Rev. Rul. 56-467

The Iowa Toll Road Authority was created as a body both corporate and politic under Chapter 152 of the Acts of the General Assembly of the State of Iowa, effective May 14, 1955. The Authority is authorized and empowered to construct, operate, and maintain toll road projects. It is further empowered and authorized to issue toll road bonds, payable solely from revenues and other funds pledged under the Act for payment of such bonds, and to acquire in the name of the State by purchase, or by the exercise of the power of eminent domain, such public and private lands, property rights, rights-of-way, easements, and interests as it may deem necessary for carrying out the provisions of the Act. Held, the Iowa Toll Road Authority is a political subdivision of a state within the meaning of section 4292 of the Internal Revenue Code of 1954. Therefore, amounts paid by the Iowa Toll Road Authority for transportation of its representatives and of the Governor of the State, traveling for purposes of the Authority are exempt from the tax on the transportation of persons imposed by section 4261 of the Code. Likewise, amounts paid for communication services or facilities furnished to the Authority and for transportation of property to or from the Authority are exempt from the taxes imposed by sections 4251 and 4271, respectively.