TAX ON TRANSPORTATION OF PROPERTY BY AIR.

SEC. 204. TAX ON TRANSPORTATION OF PROPERTY BY AIR.Subchapter C of chapter 33 (relating to transportation by air) is amended by adding at the end thereof the following new part: “PART II—PROPERTY “4271. Imposition of tax.”. “4272. Definition of taxable transportation, etc.”. “SEC. 4271. IMPOSITION OF TAX. “(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 which begins after June 30, 1970, ii tax equal to 5 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. “(b) By Whom Paid.— “(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. 84 Stat. 240 “(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— “(A) shall lie 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 “(B) shall be collected by the person furnishing the last segment of such taxable transportation. “(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. (d) Termination.—Effective with respect to transportation beginning after June 30, 1980, the tax imposed by subsection (a) shall not apply. “SEC. 4272. DEFINITION OF TAXABLE TRANSPORTATION, ETC. “(a) In General.—For purposes of this part, except as provided in subsection (b), the term ‘taxable transportation’ means transportation by air which begins and ends in the United States. “(b) Exceptions.—For purposes of this part, the term ‘taxable transportation’ does not include— “(1) that portion of any transportation which meets the requirements of paragraphs (1), (2), (3), and (4) of section 4262(b), or “(2) under regulations prescribed by the Secretary or his delegate, transportation of property in the course of exportation (including shipment to a possession of the United States) by continuous movement, and in due course so exported. “(c) Excess Baggage of Passengers.—For purposes of this part, the term ‘property’ does not include excess baggage accompanying a passenger traveling on an aircraft operated on an established line. “(d) Transportation.—For purposes of this part, the term ‘transportation’ includes layover or waiting time and movement of the aircraft in deadhead service.”