Publication 510 - Excise Taxes For 2005 - Department Of Treasury Page 8
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47struction to set heating and air conditioning units
narily, the person engaged in the business of
maximum certificated takeoff weight of 6,000
on roofs of buildings, to dismantle tower cranes,
transporting property by air for hire receives the
pounds or less. However, the taxes do apply if
and to aid in construction of power lines and ski
payment, collects the tax, files the returns, and
the aircraft is operated on an established line.
lifts.
pays the tax over to the government.
“Operated on an established line” means the
The tax also does not apply to air transporta-
If tax is not paid when a payment is made
aircraft operates with some degree of regularity
tion by helicopter or fixed-wing aircraft for the
outside the United States, the person furnishing
between definite points.
purpose of providing emergency medical serv-
the last segment of taxable transportation col-
Consider an aircraft to be operated on an
ices. The fixed-wing aircraft must be equipped
lects the tax from the person to whom the prop-
established line if it is operated on a charter
for and exclusively dedicated on that flight to
erty is delivered in the United States.
basis between two cities also served by that
acute care emergency medical services.
carrier on a regularly scheduled basis.
Mixed load of persons and property. If a
Skydiving. The tax does not apply to any air
Special Rules on
single amount is paid for air transportation of
transportation exclusively for the purpose of
Transportation Taxes
persons and property, the payment must be
skydiving.
allocated between the amount subject to the tax
In certain circumstances, special rules apply to
Excess baggage. The tax does not apply to
on transportation of persons and the amount
the taxes on transportation of persons and prop-
excess baggage accompanying a passenger on
subject to the tax on transportation of property.
erty by air.
an aircraft operated on an established line.
The allocation must be reasonable and sup-
Aircraft used by affiliated corporations.
Alaska and Hawaii. For transportation of
ported by adequate records.
The taxes do not apply to payments received by
property to and from Alaska and Hawaii, the tax
one member of an affiliated group of corpora-
in general does not apply to the portion of the
tions from another member for services fur-
Credits or Refunds
transportation that is entirely outside the conti-
nished in connection with the use of an aircraft.
nental United States (or the 225-mile zone if the
However, the aircraft must be owned or leased
If tax is collected and paid over for air transporta-
aircraft departs from or arrives at an airport in
by a member of the affiliated group and cannot
tion that is not taxable air transportation, the
the 225-mile zone). But the tax applies to flights
be available for hire by a nonmember of the
collector may claim a credit or refund if it has
between ports or stations in Alaska and the
affiliated group. Determine whether an aircraft is
repaid the tax to the person from whom the tax
Aleutian Islands, as well as between ports or
available for hire by a nonmember of an affiliated
was collected or obtained the consent of that
stations in Hawaii. The tax applies even though
group on a flight-by-flight basis.
person to the allowance of the credit or refund.
parts of the flights may be over international
For this rule, an affiliated group of corpora-
Alternatively, the person who paid the tax may
waters or over Canada, if no point on a line
tions is any group of corporations connected
claim a refund. For information on how to file for
drawn from where the route of transportation
with a common parent corporation through 80%
credits or refunds, see the Instructions for Form
leaves the United States (Alaska) to where it
or more of stock ownership.
720 or Form 8849.
reenters the United States (Alaska) is more than
225 miles from the United States.
Small aircraft. The taxes do not apply to
transportation furnished by an aircraft having a
Liability for tax. The person paying for tax-
able transportation is liable for the tax and, ordi-
Page 8
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