TAX ON TRANSPORTATION OF PERSONS BY AIR.

SEC. 203. TAX ON TRANSPORTATION OF PERSONS BY AIR. (a) Imposition of Tax,—Section 4261 (relating to imposition of tax on transportation of persons by air) is amended to read as follows: “SEC. 4261. IMPOSITION OF TAX. “(a) In General.—There is hereby imposed upon the amount paid for taxable transportation (as defined in section 4262) of any person which begins after June 30, 1970, a tax equal to 8 percent of the amount so paid. In the case of amounts paid outside of the United States for taxable transportation, the tax imposed by this subsection shall apply only if such transportation begins and ends in the United States. “(b) Seats, Berths, Etc.—There is hereby imposed upon the amount paid for seating or sleeping accommodations in connection with transportation which begins after June 30, 1970, and with respect to which a tax is imposed by subsection (a), a tax equal to 8 percent of the amount so paid. “(c) Use of International Travel Facilities.—There is hereby imposed a tax of $3 upon any amount paid (whether within or without the United States) for any transportation of any person by air, if such transportation begins in the United States and begins after June 30, 1970. This subsection shall not apply to any transportation all of which is taxable under subsection (a) (determined without regard to sections 4281 and 4282). “(d) By Whom Paid.—Except as provided in section 4263 (a), the taxes imposed by this section shall be paid by the person making the payment subject to the tax. “(e) Reduction, Etc., of Rates.—Effective with respect to transportation beginning after June 30, 1980— “(1) the rate of the taxes imposed by subsections (a) and (b) shall be 5 percent, and “(2) the tax imposed by subsection (c) shall not apply.” (b) Definition of Taxable Transportation.—Section 4262 (relating to definition of taxable transportation) is amended— (1) by striking out “subchapter” in subsections (a) and (b) and inserting in lieu thereof “part”; (2) by striking out “transportation” in subsection (a)(1) and inserting in lien thereof “transportation by air”; (3) by striking out “in the case of transportation” in subsection (a) (2) and inserting in lieu thereof “in the case of transportation by air”; (4) by striking out “any transportation which” in subsection (b) and inserting in lieu thereof “any transportation by air which”; and 84 Stat. 239 (5) by adding at the end thereof the following new subsection: “(d) Transportation.—For purposes of this part, the term ‘transportation’ includes layover or waiting time and movement of the air-craft in deadhead service.” (c) Requirements With Respect to Airline Tickets and Advertising.— (1) Subchapter B of chapter 75 (relating to other offenses) is amended by adding at the end thereof the following new section: “SEC. 7275. PENALTY FOR OFFENSES RELATING TO CERTAIN AIRLINE TICKETS AND ADVERTISING. “(a) Tickets.—In the ease of transportation by air all of which is taxable transportation (as defined in section 4262), the ticket for such transportation— “(1) shall show the total of (A) the amount paid for such transportation and (B) the taxes imposed by sections 4261 (a) and (b), “ (2) shall not show separately the amount paid for such transportation nor the amount of such taxes, and” “(2) if the ticket shows amounts paid with respect to any segment of such transportation, shall comply with paragraphs (1) and (2) with respect to such segments as well as with respect to the sum of the segments. “(b) Advertising.—In the case of transportation by air all of which is taxable transportation (as defined in section 4262) or would be taxable transportation if section 4262 did not include subsection (b) thereof, any advertising made by or on behalf of any person furnishing such transportation (or offering to arrange such transportation) which states the cost of such transportation shall— “(1) state such cost only as the total of (A) the amount to be paid for such transportation, and (B) the taxes imposed by sections 4261 (a), (b),and (c),and “(2) shall not state separately the amount to be paid for such transportation nor the amount of such taxes. “(c) Penalty.—Any person who violates any provision of subsection (a) or (b) is, for each violation, guilty of a misdemeanor, and upon conviction thereof shall lie fined not more than $100.” (2) The table of sections for such subchapter B is amended by adding at the end thereof the following: “7275. Penalty for offenses relating to certain airline tickets and advertising.”.