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Internal Revenue Code, § 4271. Imposition Of Tax

I.R.C. § 4271(a) In General
There is hereby imposed upon the amount paid within or without the United States for the taxable transportation (as defined in section 4272) of property a tax equal to 6.25 percent of the amount so paid for such transportation. The tax imposed by this subsection shall apply only to amounts paid to a person engaged in the business of transporting property by air for hire.
I.R.C. § 4271(b) By Whom Paid
I.R.C. § 4271(b)(1) In General
Except as provided by paragraph (2), the tax imposed by subsection (a) shall be paid by the person making the payment subject to tax.
I.R.C. § 4271(b)(2) Payments Made Outside The United States
If a payment subject to tax under subsection (a) is made outside the United States and the person making such payment does not pay such tax, such tax—
I.R.C. § 4271(b)(2)(A)
shall be paid by the person to whom the property is delivered in the United States by the person furnishing the last segment of the taxable transportation in respect of which such tax is imposed, and
I.R.C. § 4271(b)(2)(B)
shall be collected by the person furnishing the last segment of such taxable transportation.
I.R.C. § 4271(c) Determination Of Amounts Paid In Certain Cases
For purposes of this section, in any case in which a person engaged in the business of transporting property by air for hire and one or more other persons not so engaged jointly provide services which include taxable transportation of property, and the person so engaged receives, for the furnishing of such taxable transportation, a portion of the receipts from the joint providing of such services, the amount paid for the taxable transportation shall be treated as being the sum of (1) the portion of the receipts so received, and (2) any expenses incurred by any of the persons not so engaged which are properly attributable to such taxable transportation and which are taken into account in determining the portion of the receipts so received.
I.R.C. § 4271(d) Application Of Tax
I.R.C. § 4271(d)(1) In General
The tax imposed by subsection (a) shall apply to—
I.R.C. § 4271(d)(1)(A)
transportation beginning during the period—
I.R.C. § 4271(d)(1)(A)(i)
beginning on the 7th day after the date of the enactment of the Airport and Airway Trust Fund Tax Reinstatement Act of 1997, and
I.R.C. § 4271(d)(1)(A)(ii)
ending on September 30, 2023, and
I.R.C. § 4271(d)(1)(B)
amounts paid during such period for transportation beginning after such period.
I.R.C. § 4271(d)(2) Refunds
If, as of the date any transportation begins, the taxes imposed by this section would not have applied to such transportation if paid for on such date, any tax paid under paragraph (1)(B) with respect to such transportation shall be treated as an overpayment.
(Added by Pub. L. 91-258, title II, Sec. 204, May 21, 1970, 84 Stat. 239, and amended Pub. L. 94-455, title XIX, Sec. 1904(a)(8), Oct. 4, 1976, 90 Stat. 1812; Pub. L. 96-298, Sec. 1(b), July 1, 1980, 94 Stat. 829; Pub. L. 97-248, title II, Sec. 280(b), Sept. 3, 1982, 96 Stat. 564; Pub. L. 100-223, title IV, Sec. 402(a)(2), Dec. 30, 1987, 101 Stat. 1532; Pub. L. 101-508, title XI, Sec. 11213(a)(2), (d)(1), Nov. 5, 1990, 104 Stat. 1388-432, 1388-435; Pub. L. 104-188, 1609, Aug. 20, 1996, 110 Stat. 1755; Pub. L. 105-2, Sec. 2(b)(2), Feb. 28, 1997; Pub. L. 105-34, title IX, Sec. 1031(b)(2), Aug. 5, 1997, 111 Stat 788; Pub. L. 110-161, Sec. 116(b)(2), Dec. 26, 2007, 121 Stat. 1844; Pub. L. 110-190, Sec. 2(b)(2), Feb. 28, 2008, 122 Stat. 643; Pub. L. 110-253, Sec. 2(b)(2), June 30, 2008, 122 Stat. 2417; Pub. L. 110-330, Sec. 2(b)(2), Sept. 30, 2008, 122 Stat. 3717; Pub. L. 111-12, Sec. 2(b)(2), Mar. 30, 2009, 123 Stat. 1457; Pub. L. 111-69, Sec. 2(b)(2), Oct. 1, 2009, 123 Stat. 2054; Pub. L. 111-116, Sec. 2(b)(2), Dec. 16, 2009, 123 Stat. 3031; Pub. L. 111-153, Sec. 2(b)(2), Mar. 31, 2010, 124 Stat. 1084; Pub. L. 111-161, Sec. 2(b)(2), Apr. 30, 2010, 124 Stat. 1126; Pub. L. 111-197, Sec. 2(b)(2), July 2, 2010, 124 Stat. 197; Pub. L. 111-216, Sec. 101(b)(2), Aug. 1, 2010, 124 Stat. 2348; Pub. L. 111-249, Sec. 2(b)(2), Sept. 30, 2010, 124 Stat. 2627; Pub. L. 111-329, Sec. 2(b)(2), Dec. 22, 2010, 124 Stat. 3566; Pub. L. 112-7, Sec. 2(b)(2), Mar. 31, 2011, 125 Stat. 31; Pub. L. 112-16, Sec. 2(b)(2), May 31, 2011, 125 Stat. 218; Pub. L. 112-21, Sec. 2(b)(2), June 29, 2011, 125 Stat. 233; Pub. L. 112-27, Sec. 2(b)(2), Aug. 5, 2011, 125 Stat. 270; Pub. L. 112-30, title II, Sec. 202(b)(2), Sept. 16, 2011, 125 Stat. 342; Pub. L. 112-91, Sec. 2(b)(2), Jan. 31, 2012; 126 Stat. 1; Pub. L. 112-95, title XI, Sec. 1101(b)(2), Feb. 14, 2012, 126 Stat. 11; Pub. L. 114-55, title II, Sec. 202(b)(2), Sept. 30, 2015; Pub. L. 114-141, title II, Sec. 202(b)(2), Mar. 30, 2016; Pub. L. 114-190, title I1, Sec. 1202(b)(2), July 15, 2016; Pub. L. 115-63, title II, Sec. 202 (b)(2), Sept. 29, 2017; Pub. L. 115-141, Div. M, title II, Sec. 202(b)(2), Mar. 23, 2018, 132 Stat. 348; Pub. L. 115-254, title VIII, Sec. 802(b)(2), Oct. 5, 2018, 132 Stat. 3186.)
BACKGROUND NOTES
Amendments to Part
1970--Pub. L. 91-258, title II, 204, May 21, 1970, 84 Stat. 239, added “PART II--PROPERTY” and items 4271 and 4272.
AMENDMENTS
2018 — Subsec. (d)(1)(A)(ii). Pub. L. 115-254, Sec. 802(b)(2), amended clause (ii) by substituting “September 30, 2023” for “September 30, 2018”.
Subsec. (d)(1)(A)(ii). Pub. L. 115-141, Div. M, Sec. 202(b)(2), amended clause (ii) by substituting “September 30, 2018” for “March 31, 2018”.
2017 — Subsec. (d)(1)(A)(ii). Pub. L. 115–63, Sec. 202(b)(2), amended clause (ii) by substituting “March 31, 2018” for “September 30, 2017”.
2016 — Subsec. (d)(1)(A)(ii). Pub. L. 114-190, Sec. 1202(b)(2), amended clause (ii) by substituting “September 30, 2017” for “July 15, 2016”.
Subsec. (d)(1)(A)(ii). Pub. L. 114-141, Sec. 202(b)(2), amended clause (ii) by substituting “July 15, 2016” for “March 31, 2016”.
2015 — Subsec. (d)(1)(A)(ii). Pub. L. 114-55, Sec. 202(b)(2), amended clause (ii) by substituting “March 31, 2016” for “September 30, 2015”.
2012 — Subsec. (d)(1)(A)(ii). Pub. L. 112-95, Sec. 1101(b)(2), amended clause (ii) by substituting “September 30, 2015” for “February 17, 2012”.
Subsec. (d)(1)(A)(ii). Pub. L. 112-91, Sec. 2(b)(2), amended clause (ii) by substituting “February 17, 2012” for “January 31, 2012”.
2011 — Subsec. (d)(1)(A)(ii). Pub. L. 112-30, Sec. 202(b)(2), amended clause (ii) by substituting “January 31, 2012” for “September 16, 2011”.
Subsec. (d)(1)(A)(ii). Pub. L. 112-27, Sec. 2(b)(2), amended clause (ii) by substituting “September 16, 2011” for “July 22, 2011”.
Subsec. (d)(1)(A)(ii). Pub. L. 112-21, Sec. 2(b)(2), amended clause (ii) by substituting “July 22, 2011” for “June 30, 2011”.
Subsec. (d)(1)(A)(ii). Pub. L. 112-16, Sec. 2(b)(2), amended clause (ii) by substituting “June 30, 2011” for “May 31, 2011”.
Subsec. (d)(1)(A)(ii). Pub. L. 112-7, Sec. 2(b)(2), amended clause (ii) by substituting “May 31, 2011” for “March 31, 2011”.
2010 — Subsec. (d)(1)(A)(ii). Pub. L. 111-329, Sec. 2(b)(2), amended clause (ii) by substituting “March 31, 2011” for “December 31, 2010”.
Subsec. (d)(1)(A)(ii). Pub. L. 111-249, Sec. 2(b)(2), amended clause (ii) by substituting “December 31, 2010” for “September 30, 2010”.
Subsec. (d)(1)(A)(ii). Pub. L. 111-216, Sec. 101(b)(2), amended clause (ii) by substituting “September 30, 2010” for “August 1, 2010”.
Subsec. (d)(1)(A)(ii). Pub. L. 111-197, Sec. 2(b)(2), amended clause (ii) by substituting “August 1, 2010” for “July 3, 2010”.
Subsec. (d)(1)(A)(ii). Pub. L. 111-161, Sec. 2(b)(2), amended clause (ii) by substituting “July 3, 2010” for “April 1, 2010”.
Subsec. (d)(1)(A)(ii). Pub. L. 111-153, Sec. 2(b)(2), amended clause (ii) by substituting “April 1, 2010” for “March 31, 2010”.
2009 — Subsec. (d)(1)(A)(ii). Pub. L. 111-116, Sec. 2(b)(2), amended clause (ii) by substituting “March 31, 2010” for “December 31, 2009”.
Subsec. (d)(1)(A)(ii). Pub. L. 111-69, Sec. 2(b)(2), amended clause (ii) by substituting “December 31, 2009” for “September 30, 2009”.
Subsec. (d)(1)(A)(ii). Pub. L. 111-12, Sec. 2(b)(2), amended clause (ii) by substituting “September 30, 2009” for “March 31, 2009”.
2008 — Subsec. (d)(1)(A)(ii). Pub. L. 110-330, Sec. 2(b)(2), amended clause (ii) by substituting “March 31, 2009” for “September 30, 2008”.
Subsec. (d)(1)(A)(ii). Pub. L. 110-253, Sec. 2(b)(2), amended clause (ii) by substituting “September 30, 2008” for “June 30, 2008”.
Subsec. (d)(1)(A)(ii). Pub. L. 110-190, Sec. 2(b)(2), amended clause (ii) by substituting “June 30, 2008” for “February 29, 2008”.
2007 — Subsec. (d)(1)(A)(ii). Pub. L. 110-161, Sec. 116(b)(2), amended clause (ii) by substituting “February 29, 2008” for “September 30, 2007”.
1997 — Subsec. (d)(1)(A)(ii). Pub. L. 105-34, Sec. 1031(b)(2), substituted “September 30, 1997” for “September 30, 2007”.
Subsec. (d). Pub. L. 105-2, Sec. 2(b)(2), amended par. (d), which prior to amendment read as follows:
“(d) Termination
The tax imposed by subsection (a) shall apply with respect to transportation beginning after August 31, 1982, and before January 1, 1996, and to transportation beginning on or after the date which is 7 calendar days after the date of the enactment of the Small Business Job Protection Act of 1996 and before January 1, 1997.”
1996 — Subsec. (d). Pub. L. 104-188, Sec. 1609(b), substituted “January 1, 1996, and to transportation beginning on or after the date which is 7 calendar days after the date of the enactment of the Small Business Job Protection Act of 1996 and before January 1, 1997” for “January 1, 1996”.
1990 — Subsec. (a). Pub. L. 101-508, Sec. 11213(a)(2), substituted ‘6.25 percent’ for ‘5 percent’.
Subsec. (d). Pub. L. 101-508, Sec. 11213(d)(1), substituted ‘January 1, 1996’ for ‘January 1, 1991’.
1987 — Subsec. (d). Pub. L. 100-223 substituted ‘1991’ for ‘1988’.
1982 — Subsec. (d). Pub. L. 97-248 substituted provision that the tax imposed by subsec. (a) shall apply with respect to transportation beginning after Aug. 31, 1982, and before Jan. 1, 1988, for provision that effective with respect to transportation beginning after Sept. 30, 1980, the tax imposed by subsec. (a) would not apply.
1980 — Subsec. (d). Pub. L. 96-298 substituted ‘September 30, 1980’ for ‘June 30, 1980’.
1976 — Subsec. (a). Pub. L. 94-455 struck out ‘which begins after June 30, 1970’ after ‘of property’.
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendment by 802(b)(2) of Pub. L. 115-254 effective October 5, 2018.
Amendment by Sec. 202(b)(2) of Pub. L. 115-141, Div. M, effective March 23, 2018.
EFFECTIVE DATE OF 2017 AMENDMENT
Amendment by Sec. 202(b)(2) of Pub. L. 115–63 effective September 29, 2017.
EFFECTIVE DATE OF 2016 AMENDMENT
Amendment by Sec. 1202(b) of Pub. L. 114-190 effective on the date of the enactment of this Act [Enacted: July 15, 2016].
Amendment by Sec. 202(b) of Pub. L. 114-141 effective on the date of the enactment of this Act [Enacted: Mar. 30, 2016].
EFFECTIVE DATE OF 2015 AMENDMENT
Amendment by Sec. 202(b) of Pub. L. 114-55 effective on the date of the enactment of this Act [Enacted: Sept. 30, 2015].
EFFECTIVE DATE OF 2012 AMENDMENTS
Amendment by Sec. 1101(b)(2) of Pub. L. 112-95 effective February 18, 2012.
Amendment by Sec. 2(b)(2) of Pub. L. 112-91 effective February 1, 2012.
EFFECTIVE DATE OF 2011 AMENDMENTS
Amendment by Sec. 202(b)(2) of Pub. L. 112-30 effective September 17, 2011.
Amendment by Sec. 2(b)(2) of Pub. L. 112-27 effective July 23, 2011.
Amendment by Sec. 2(b)(2) of Pub. L. 112-21 effective July 1, 2011.
Amendment by Sec. 2(b)(2) of Pub. L. 112-16 effective June 1, 2011.
Amendment by Sec. 2(b)(2) of Pub. L. 112-7 effective April 1, 2011.
EFFECTIVE DATE OF 2010 AMENDMENTS
Amendment by Sec. 2(b)(2) of Pub. L. 111-329 effective January 1, 2011.
Amendment by Sec. 2(b)(2) of Pub. L. 111-249 effective October 1, 2010.
Amendment by Sec. 101(b)(2) of Pub. L. 111-216 effective August 2, 2010.
Amendment by Sec. 2(b)(2) of Pub. L. 111-197 effective July 4, 2010.
Amendment by Sec. 2(b)(2) of Pub. L. 111-161 effective May 1, 2010.
Amendment by Sec. 2(b)(2) of Pub. L. 111-153 effective April 1, 2010.
EFFECTIVE DATE OF 2009 AMENDMENTS
Amendment by Sec. 2(b)(2) of Pub. L. 111-116 effective January 1, 2010.
Amendment by Sec. 2(b)(2) of Pub. L. 111-69 effective October 1, 2009.
Amendment by Sec. 2(b)(2) of Pub. L. 111-12 effective April 1, 2009.
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendment by Sec. 2(b)(2) of Pub. L. 110-330 effective October 1, 2008.
Amendment by Sec. 2(b)(2) of Pub. L. 110-253 effective July 1, 2008.
Amendment by Sec. 2(b)(2) of Pub. L. 110-190 effective March 1, 2008.
EFFECTIVE DATE OF 2007 AMENDMENT
Amendment by Sec. 116(b)(1) of Pub. L. 110-161 effective October 1, 2007.
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendment by Sec. 1031(b)(2) of Pub. L. 105-34 applicable to transportation beginning on or after October 1, 1997.
Section (e)(2) of Pub. L. 105-2 provided that:
“(A) In general.--The amendments made by subsection (b) shall apply to transportation beginning on or after such 7th day [refers to ‘the 7th day after the date of the enactment of this Act,’ {enacted: February 28, 1997} as specified in 2(e)(1)].
“(B) Exception for certain payments.--Except as provided in subparagraph (C), the amendments made by subsection (b) shall not apply to any amount paid before such 7th day.
“(C) Payments of property transportation tax within controlled group.--In the case of the tax imposed by section 4271 of the Internal Revenue Code of 1986, subparagraph (B) shall not apply to any amount paid by 1 member of a controlled group for transportation furnished by another member of such group. For purposes of the preceding sentence, all persons treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986 shall be treated as members of a controlled group.”
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by section 1609(b) of Pub. L. 104-188 applicable on the 7th calendar day after the date of the enactment of this Act [enacted: Aug. 20, 1996], except that the amendments made by subsection (b) shall not apply to any amount paid before such date.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 11213(a)(2) of Pub. L. 101-508 applicable to transportation beginning after Nov. 30, 1990, but inapplicable to amounts paid on or before such date, see section 11213(a)(3) of Pub. L. 101-508, set out as a note under section 4261 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by Pub. L. 97-248 applicable with respect to transportation beginning after Aug. 31, 1982, but inapplicable to amounts paid on or before such date, see section 280(d) of Pub. L. 97-248, set out as a note under section 4261 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94-455 effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1904(d) of Pub. L. 94-455, set out as a note under section 4041 of this title.
SUSPENSION OF CERTAIN AVIATION EXCISE TAXES
Sec. 4007 of Pub. L. 116-136 provided that:
“(a) TRANSPORTATION BY AIR.—In the case of any amount paid for transportation by air (including any amount treated as paid for transportation by air by reason of section 4261(e)(3) of the Internal Revenue Code of 1986) during the excise tax holiday period, no tax shall be imposed under section 4261 or 4271 of such Code. The preceding sentence shall not apply to amounts paid on or before the date of the enactment of this Act.
“(b) USE OF KEROSENE IN COMMERCIAL AVIATION.— In the case of kerosene used in commercial aviation (as defined in section 4083 of the Internal Revenue Code of 1986) during the excise tax holiday period—
“(1) no tax shall be imposed on such kerosene under—
“(B) section 4081 of such Code (other than at the rate provided in subsection (a)(2)(B) thereof), and
“(2) section 6427(l) of such Code shall be applied—
“(A) by treating such use as a nontaxable use, and
“(B) without regard to paragraph (4)(A)(ii) thereof.
“(c) EXCISE TAX HOLIDAY PERIOD.—For purposes of this section, the term ‘‘excise tax holiday period’’ means the period beginning after the date of the enactment of this section and ending before January 1, 2021.”
EXTENSION OF TAXES FUNDING THE AIRPORT AND AIRWAY TRUST FUND
Sec. 5(a) of Pub. L. 115-250 provided that:
“(a) Sections 4081(d)(2)(B), 4261(j), 4261(k)(1)(A)(ii), and 4271(d)(1)(A)(ii) of the Internal Revenue Code of 1986 shall be applied by substituting ‘‘October 7, 2018’’ for ‘‘September 30, 2018’’.”
APPLICATION OF TAXES
Section 156(a) of Pub. L. 111-68 provided that:
“(a) Sections 4081(d)(2)(B), 4261(j)(1)(A)(ii), and 4271(d)(1)(A)(ii) of the Internal Revenue Code of 1986 shall each be applied by substituting the date specified in section 106(3) [October 31, 2009] of this joint resolution for “September 30, 2009”.”
APPLICATION OF TAXES
Section 149(a) of Pub. L. 110-92 provided that:
“(a) Sections 4081(d)(2)(B), 4261(j)(1)(A)(ii), 4271(d)(1)(A)(ii), 9502(d)(1), and 9502(f)(2) of the Internal Revenue Code of 1986 shall each be applied by substituting the date specified in section 106(3) [November 16, 2007] of this joint resolution for “September 30, 2007” or “October 1, 2007”, as the case may be.”
DELAYED DEPOSITS OF AIRPORT TRUST FUND TAX REVENUES
Sec. 1031(g) of Pub. L. 105-34 provided that:
“(g) Delayed Deposits of Airport Trust Fund Tax Revenues.--Notwithstanding section 6302 of the Internal Revenue Codeof 1986--
(1) in the case of deposits of taxes imposed by section 4261 of such Code, the due date for any such deposit which would (but for this subsection) be required to be made after August 14, 1997, and before October 1, 1997, shall be October 10, 1997,
(2) in the case of deposits of taxes imposed by section 4261 of such Code, the due date for any such deposit which would (but for this subsection) be required to be made after August 14, 1998, and before October 1, 1998, shall be October 5, 1998, and
(3) in the case of deposits of taxes imposed by sections 4081(a)(2)(A)(ii), 4091, and 4271 of such Code, the due date for any such deposit which would (but for this subsection) be required to be made after July 31, 1998, and before October 1, 1998, shall be October 5, 1998.”
EFFECTIVE DATE
Section applicable to transportation beginning after June 30, 1970, see section 211(b) of Pub. L. 91-258, set out as an Effective Date of 1970 Amendment note under section 4041 of this title.
PRIOR PROVISIONS
A prior section 4271, act Aug. 16, 1954, ch. 736, 68A Stat. 507, 508, which related to tax for the transportation of property, was repealed by Pub. L. 85-475, Sec. 4(a), June 30, 1958, 72 Stat. 260. For effective date of repeal, see section 4(c) of Pub. L. 85-475, set out as an Effective Date of 1958 Amendment note under section 6415 of this title.