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HR 105-5
"Airport & Airway Trust Fund Tax Reinstatement Act of 1997"
From the House Reports Online via GPO Access
[wais.access.gpo.gov]
105th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 105-5
_______________________________________________________________________
AIRPORT AND AIRWAY TRUST FUND TAX REINSTATEMENT ACT OF 1997
_______
February 13, 1997.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______________________________________________________________________
Mr. Archer, from the Committee on Ways and Means, submitted the
following
R E P O R T
[To accompany H.R. 668]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 668) to amend the Internal Revenue Code of 1986 to
reinstate the Airport and Airway Trust Fund excise taxes, and
for other purposes, having considered the same, report
favorably thereon without amendment, and recommend that the
bill do pass.
CONTENTS
Page
I. Summary and Background...........................................2
A. Summary............................................. 2
B. Background and Reasons for Legislation.............. 2
C. Legislative History................................. 3
II. Explanation of the Bill..........................................3
III. Vote of the Committee............................................6
IV. Budget Effects of the Bill.......................................6
A. Committee Estimates of Budgetary Effects............ 6
B. Budget Authority and Tax Expenditures............... 8
C. Cost Estimate Prepared by the Congressional Budget
Office............................................. 8
V. Other Matters To Be Discussed Under the Rules of the House.......9
A. Committee Oversight Findings and Recommendations.... 9
B. Summary of Findings and Recommendations of the
Committee on Government Reform and Oversight....... 9
C. Constitutional Authority Statement.................. 10
D. Information Relating to Unfunded Mandates........... 10
E. Applicability of House Rule XXI5(c)................. 10
VI. Changes in Existing Law Made by the Bill, as Reported...........11
I. SUMMARY AND BACKGROUND
A. Summary
H.R. 668, as reported by the Committee on Ways and Means,
provides for reinstatement of the excise taxes which fund the
Airport and Airway Trust Fund (the ``Airport Trust Fund'')
during the period beginning seven days after the date of
enactment and ending after September 30, 1997. The bill further
provides for transfer of all revenues derived from these taxes
(including those deposited and currently scheduled to be
deposited in the Treasury but which cannot be transferred under
present law) to the Airport Trust Fund, and includes provisions
to ensure prompt deposit of tax receipts with the Treasury once
the excise taxes are reinstated.
B. Background and Need For Legislation
The operations and capital programs of the Federal Aviation
Administration (the ``FAA'') are financed with appropriations
from both the Airport Trust Fund and the General Fund. In
general, capital programs are financed from the Airport Trust
Fund and operational expenses (e.g., air traffic controllers)
are financed from a mix of General Fund and Airport Trust Fund
revenues. The Airport Trust Fund taxes were last imposed during
the period from August 27, 1996, through December 31, 1996.
Receipts from these taxes that were received in the Treasury
Department before January 1, 1997, are authorized to be
deposited in the Airport Trust Fund.
Recently, it was learned that the Treasury Department,
which credits revenues to the Airport Trust Fund based on
estimated receipts, has credited the Airport Trust Fund
approximately $1.2 billion of tax receipts from transportation
sold during the months of September, October, and November,
1996, which has not as yet been received by the Treasury
Department. The delay in receipts was caused by air carriers
that (with Internal Revenue Service approval) delayed remitting
taxes collected from their customers during this period until
the air carriers file their quarterly excise tax returns for
the fourth quarter of 1996 on February 28, 1997. The Treasury
Department now must withdraw these amounts from the Airport
Trust Fund.
As a result of this reduction in the Airport Trust Fund's
balance, the uncommitted monies in the Airport Trust Fund will
be sufficient only to fund the FAA's operating expenses through
the end of the 1997 fiscal year, plus capital programs (at
previously anticipated levels) through March 1997. Further,
because this information reflects only the best available
estimates and because of provisions of certain contracts for
multiple phase projects, the FAA may be required to stop making
new capital commitments and to begin providing notice that it
intends to terminate other contracts by March 1, 1997, or
earlier, absent legislative action.
By reinstating both the prior-law excise taxes and the
authority to transfer tax revenues to the Airport Trust Fund,
the bill will enable the FAA to avoid possible shut-down of its
capital programs and to finance the agency's activities and
programs at least through the end of the 1997 fiscal year.
C. Legislative History
Committee bill
H.R. 668 was introduced by Chairman Archer on February 11,
1997. The bill was considered in a Committee on Ways and Means
markup on February 12, 1997, and was ordered favorably
reported, without amendment, by voice vote.
Legislative hearing
The Committee on Ways and Means held a public hearing on
February 5, 1997, on the solvency of the Airport Trust Fund and
the impact of the recently discovered information regarding the
delay in deposit of air transportation excise taxes on FAA
operations and capital programs. The Committee received
testimony from representatives of the Departments of the
Treasury and Transportation.
II. EXPLANATION OF THE BILL
Prior and Present Law
Tax rates
Before January 1, 1997, excise taxes were imposed on
commercial air passenger and freight transportation and on
fuels used in general aviation (i.e., transportation on non-
common carrier aircraft which is not for hire) to fund the
Airport Trust Fund. The Airport Trust Fund was established in
1970 to finance a major portion of the costs of the Federal
Aviation Administration (the ``FAA'') services and grant
programs for State and local government airports. Before
establishment of the Airport Trust Fund, Federal aviation
expenditures were financed from general revenues; General Fund
domestic air passenger and fuels taxes were imposed during this
period. The structure of the Airport Trust Fund excise taxes
has remained generally unchanged, except for rates, since 1970.
Before 1997, the Airport Trust Fund excise taxes included
three taxes on commercial air transportation:
(1) A 10-percent excise tax on domestic air passenger
transportation;
(2) A $6 per person international air passenger
departure tax; and
(3) A 6.25-percent domestic air freight excise tax.
During the same period, general aviation (e.g., corporate
aircraft) was subject to Airport Trust Fund excise taxes on the
fuels it used rather than the commercial aviation passenger
ticket and freight excise taxes. The Airport Trust Fund rates
for these excise taxes were 17.5 cents per gallon for jet fuel
and 15 cents per gallon for aviation gasoline.
Collection and deposit of tax
The air passenger ticket and freight excise taxes are
collected from passengers and freight shippers by the
commercial air carriers. The air carriers then remit the funds
to the Treasury Department; however, the air carriers are not
required to remit monies immediately. Excise tax returns are
filed quarterly (similar to annual income tax returns) with
taxes being deposited on a semi-monthly basis (similar to
estimated income taxes). For air transportation sold during a
semi-monthly period, air carriers may elect to treat the taxes
as collected on the last day of the first week of the second
following semi-monthly period. <SUP>1 Under these ``deemed
collected'' rules, for example, the taxes on air transportation
sold between October 1 and October 15, are treated as collected
by the air carriers on or before November 7. These amounts
generally must be deposited with the Treasury by November 10.
Thus, on average, revenues from commercial air passenger
transportation generally are not received by the Federal
Government until approximately one month after the air carrier
actually sells the transportation.
---------------------------------------------------------------------------
\1\ Air carriers generally make this election because it allows
them to delay remitting tax beyond the date when remittance otherwise
would be required.
---------------------------------------------------------------------------
Like income tax withholding and estimated tax payments, the
excise taxes contain payment safe harbors for avoiding
underpayment penalties. In general, Treasury Department
regulations provide that commercial air carriers are not
subject to underpayment penalties if their semi-monthly
deposits of passenger ticket and freight waybill taxes for a
quarter equal at least the amount of taxes they were required
to remit during the second preceding calendar quarter (the
``look back'' rules). For example, air carriers generally would
not be subject to underpayment penalties if their semi-monthly
deposits for the fourth quarter (October 1 through December 31)
equaled at least the amount they were required to remit during
the second quarter (April 1 through June 30) of the same year.
In a general information letter to the Air Transport
Association of America, dated August 30, 1996, the Internal
Revenue Service advised the air carriers that, notwithstanding
that no excise taxes were required to be remitted during a look
back quarter, applicable Treasury Department regulations
permitted the air carriers to continue to avail themselves of
the safe harbor and avoid remitting taxes collected from
consumers during September, October, and November of 1996 until
the air carriers file their quarterly excise tax returns for
that period on February 28, 1997. (Similarly, the air carriers
are expected to retain most taxes collected from consumers
during December 1996 until their excise tax returns for the
first quarter of 1997 are due on May 31, 1997.)
On February 7, 1997, the Treasury Department announced that
it will modify its regulations, effective for taxes imposed
after February 10, 1997. (See, Treasury Notice 97-15, February
7, 1997.) The modified regulations will provide that the look-
back safe harbor is not available for calculating deposits of
taxes that were not in effect throughout the look-back quarter.
Thus, a situation similar to that which arose with respect to
air transportation taxes imposed in 1996 could not occur again
because those taxes would not have been in effect throughout
the second preceding calendar quarter. The Treasury Department
notice does not change the deposit rules applicable to air
transportation taxes imposed during the fourth quarter of 1996.
Trust Fund deposits
The Airport Trust Fund receives gross receipts attributable
to the excise taxes described above. Present law provides that
taxes received by the Treasury Department through the end of
the period when the taxes were last imposed (i.e., through
December 31, 1996) are deposited in the Airport Trust Fund.
Taxes received after December 31, 1996, may not be transferred
to the Airport Trust Fund under present law.
The Treasury Department credited the Airport Trust Fund
with approximately $1.2 billion based on incorrect estimates of
excise tax deposits. Subsequently, the Treasury learned that
the air carriers would not remit taxes imposed in September,
October, and November of 1996 to the Treasury until February
28, 1997. The Treasury Department plans to reverse this error.
As a result, the combination of the remaining uncommitted
balance in the Airport Trust Fund and General Fund
appropriations available to the FAA are believed to be
sufficient only to support the FAA's operational expenses
through the 1997 fiscal year and to allow new capital
commitments (assuming previously anticipated commitment levels)
to be made through March 1997. However, because best available
estimates of the effect of this error on the FAA budget do not
include any estimates of the costs of terminating certain
multiple phase contracts, the FAA may have to stop making new
commitments and begin notifying contractors of its intent to
terminate multiple phase contracts on March 1, 1997, or
earlier, absent legislative action.
Explanation of Provisions
Reinstate air transportation excise taxes
The bill reinstates the air transportation excise taxes
that expired after December 31, 1996, during the period
beginning seven days after the date of enactment and ending
after September 30, 1997.
Transfer revenues to the Airport Trust Fund
The bill authorizes the Treasury Department to transfer to
the Airport Trust Fund receipts attributable to excise taxes
described above that are imposed on commercial and general
aviation. This will permit transfer of receipts attributable to
taxes imposed both during the period August 27, 1996, through
December 31, 1996, and during the period beginning seven days
after the date of enactment.
Modify Treasury Department tax deposit regulations
To prevent a delay in depositing tax similar to that which
occurred with respect to the fourth quarter of 1996, the
provisions of Treasury Department regulations providing an
exception to penalties for underpayment of estimated excise
taxes based on a look-back period will be made inapplicable
when tax was not imposed throughout the look back period. In
such a case, taxpayers could continue to use an alternative
safe harbor that provides that no underpayment penalty is
imposed as long as the taxpayer has paid at least 95 percent of
the current quarter's liability. The Treasury Department has
recently announced that it will modify its regulations in this
manner for taxes imposed after February 10, 1997.
Effective Date
The provisions reinstating the commercial air
transportation excise taxes are effective for (1)
transportation beginning during the period beginning seven days
after the date of enactment and ending after September 30,
1997, and (2) amounts paid during such period for
transportation beginning after September 30, 1997. If the air
transportation excise taxes are not extended for transportation
occurring after September 30, 1997, refunds would be provided
for any taxes paid on passenger and freight transportation
purchased before October 1, 1997, for transportation that
occurs at a time when the taxes are not in effect. No tax is
imposed on any payment made before seven days after the date of
enactment (other than certain payments for freight
transportation made between related parties), even if the
transportation occurs during the period beginning seven days
after the date of enactment and ending after September 30,
1997.
The provisions reinstating the general aviation gasoline
excise tax are effective for gasoline removed during the period
beginning seven days after the date of enactment and ending
after September 30, 1997. The provision reinstating the general
aviation jet fuel excise tax is effective for fuels sold by
producers during the same period. Floor stocks taxes are
imposed on these fuels held beyond the removal or producer
level on the date which is seven days after the date of
enactment.
The provisions relating to transfer of receipts to the
Airport Trust Fund and the modification of the Treasury
Department's excise tax deposit regulations are effective on
the date of enactment. Consistent with Treasury Notice 97-15,
described above, the modification to the Treasury Department's
excise tax deposit regulations will not affect deposits of
taxes imposed during the fourth quarter of 1996; those deposits
will continue to be made under the Treasury Department
regulations as in effect when liability for the taxes arose.
III. VOTE OF THE COMMITTEE
In compliance with clause 2(l)(2)(B) of rule XI of the
Rules of the House of Representatives, the following statement
is made concerning the vote on the motion to report the bill.
The bill (H.R. 668) was ordered favorably reported, without
amendment, by voice vote on February 12, 1997, with a quorum
present.
IV. BUDGET EFFECTS OF THE BILL
A. Committee Estimates
In compliance with clause 7(a) of Rule XIII of the rules of
the House of Representatives, the following statement is made
concerning the estimated budget effects of the bill as
reported.
The bill, as reported, is estimated to increase net budget
receipts by $2.7 billion for fiscal years 1997 and 1998. (See
the following revenue table.)
ESTIMATED BUDGET EFFECTS OF AN EXTENSION OF THE AIRPORT AND AIRWAY
TRUST FUND EXCISE TAXES THROUGH SEPTEMBER 30, 1997; FISCAL YEARS 1997-2007
[In millions of dollars]
---------------------------------------------------------------------------------------
Provision Effective 1997 1998 1999 2000 2001 2002
---------------------------------------------------------------------------------------
Extension of Airport and tp7data DOE 2,730 -54 ...... ...... ...... ......
Airway Trust Fund excise
taxes through 9/30/97.
----------------------------------------------------------------------------------------
Provision 2003 2004 2005 2006 2007 1997-02 1997-07
----------------------------------------------------------------------------------------
Extension of Airport and ...... ...... ...... ...... ...... 2,676 2,676
Airway Trust Fund excise
taxes through 9/30/97.
-----------------------------------------------------------------------------------------
Note. Details may not add to totals due to rounding.
Legend for ``Effective'' column: tp7data DOE=tickets purchased 7 days after
date of enactment for travel 7 days after date of enactment
B. Budget Authority and Tax Expenditures
Budget authority
In compliance with subdivision (B) of clause 2(l)(3) of
rule XI of the Rules of the House of Representatives, the
Committee states that the provisions of the bill as reported
involve no new or increased budget authority.
Tax expenditures
In compliance with subdivision (B) of clause 2(l)(3) of
rule XI of the Rules of the House of Representatives, the
Committee states that the provisions of the bill as reported
involve no new or increased tax expenditures.
C. Cost Estimate Prepared by the Congressional Budget Office
In compliance with subdivision (C) of clause 2(l)(3) of
rule XI of the Rules of the House of Representatives, requiring
cost estimate prepared by the Congressional Budget Office, the
Committee advises that the Congressional Budget Office has
submitted the following statement on this bill.
U.S. Congress,
Congressional Budget Office,
Washington, DC, February 12, 1997.
Hon. Bill Archer,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office and the
Joint Committee on Taxation (JCT) have reviewed H.R. 668, the
``Airport and Airway Trust Fund Tax Reinstatement Act of
1997,'' as ordered reported by the House Committee on Ways and
Means on February 12, 1997. H.R. 668 would reinstate the
Airport and Airway Trust Fund excise taxes through September
30, 1997. The JCT estimates that this bill would increase
governmental receipts by $2.730 billion in fiscal year 1997 and
would decrease revenues by $0.054 billion in fiscal year 1998.
The revenue effects of the bill are summarized in the table
below.
REVENUE EFFECTS OF THE AIRPORT AND AIRWAY TRUST FUND REINSTATEMENT ACT OF 1997
[By fiscal year, in billions of dollars]
---------------------------------------------------------------------------------
1997 1998 1999 2000 2001 2002-07
---------------------------------------------------------------------------------
Proposed changes 2.730 -0.054 0.000 0.000 0.000 0.000
---------------------------------------------------------------------------------
In accordance with the requirements of Public Law 104-4,
the Unfunded Mandates Reform Act of 1995, JCT has determined
that the bill contains an intergovernmental mandate. The
provision to reinstate the Airport and Airway Trust Fund excise
taxes through September 30, 1997, imposes a federal
intergovernmental mandate because State, local, and tribal
governments will be required to pay the requisite taxes for
commercial air travel by their employees. JCT estimates that
the direct costs of complying with this federal
intergovernmental mandate will not exceed $50 million in any of
the first five fiscal years.
In addition, JCT has determined that the bill contains a
federal private sector mandate. The bill would impose direct
costs on the private sector of more than $100 million in fiscal
year 1997. The JCT estimates the direct mandate cost of the tax
increase in the bill would total no more than $2,730 million in
1997, as shown below:
FEDERAL PRIVATE SECTOR MANDATES
[By fiscal year, in millions of dollars]
--------------------------------------------------------------------------------------
1997 1998 1999 2000 2001
--------------------------------------------------------------------------------------
Direct cost of tax increase 2,730 -54 0 0 0
--------------------------------------------------------------------------------------
Section 252 of the Balanced Budget and Emergency Deficit
Control Act of 1985 sets up pay-as-you-go procedures for
legislation affecting receipts or direct spending through 1998.
Because the bill would affect receipts, pay-as-you-go
procedures would apply to the bill. These effects are
summarized in the table below.
PAY-AS-YOU-GO CONSIDERATIONS
[By fiscal year, in millions of dollars]
------------------------------------------------------------------------
1997 1998
------------------------------------------------------------------------
Changes in receipts............. 2,730 -54
Changes in outlays.............. (\1\) Not applicable
------------------------------------------------------------------------
If you wish further details, please feel free to contact me
or your staff may wish to contact Stephanie Weiner.
Sincerely,
June E. O'Neill, Director.
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to subdivision (A) of clause 2(l)(3) of rule
XI of the Rules of the House of Representatives (relating to
oversight findings), the Committee advises that it was the
result of the Committee's oversight activities concerning the
status of the balance of the Airport Trust Fund and the need
for expeditious reinstatement of the existing Airport Trust
Fund excise taxes to provide adequate funding during fiscal
year 1997 for the operations and capital programs of the FAA
that the Committee concluded that it is appropriate to enact
the provisions contained in the bill as reported.
The Committee on Ways and Means held a public hearing on
this subject on February 5, 1997.
B. Summary of Findings and Recommendations of the Committee on
Government Reform and Oversight
With respect to subdivision (D) of clause 2(l)(3) of rule
XI of the Rules of the House of Representatives, the Committee
advises that no oversight findings or recommendations have been
submitted to this Committee by the Committee on Government
Reform and Oversight with respect to the provisions contained
in the bill.
C. Constitutional Authority Statement
With respect to clause 2(l)(4) of rule XI of the Rules of
the House of Representatives (relating to Constitutional
Authority), the Committee states that the Committee's action in
reporting this bill is derived from Article I of the
Constitution, Section 7 (``All bills for raising revenue shall
originate in the House of Representatives'') and Section 8
(``The Congress shall have power to lay and collect taxes,
duties, imposts and excises, to pay the debts * * * of the
United States'').
D. Information Relating to Unfunded Mandates
This information is provided in accordance with section 423
of the Unfunded Mandates Act of 1995 (P.L. 104-4).
The Committee has determined that the provisions to extend
the Airport and Airway Trust Fund excise taxes through
September 30, 1997, impose a Federal mandate on the private
sector and a Federal intergovernmental mandate. The costs
required to comply with the Federal private sector mandate
generally are no greater than the revenue estimate for the
provisions. The provisions enable the FAA to avoid possible
shutdown of its capital programs and to finance the agency's
activities and programs at least through the end of the 1997
fiscal year. The Committee believes these benefits of the
provisions are greater than the costs required to comply with
the Federal mandates contained in the bill.
The provisions to reinstate the Airport and Airway Trust
Fund taxes through September 30, 1997, impose a Federal
intergovernmental mandate because State, local, and tribal
governments will be required to pay the requisite excise taxes
for commercial air travel by State, local, and tribal
government employees. The staff of the Joint Committee on
Taxation estimates that the direct costs of complying with this
Federal intergovernmental mandate will not exceed $50,000,000
in either the first fiscal year or in any one of the 4 fiscal
years following the first fiscal year. The Committee intends
that the Federal intergovernmental mandate be unfunded because
the Airport and Airway Trust Fund excise taxes are intended to
fund the maintenance of U.S. airports and airways and the
Committee believes that it is appropriate for State, local, and
tribal governments to continue to bear their allocable share of
the responsibility for such funding.
The provisions reinstating the Airport and Airway Trust
Fund excise taxes are imposed both on the private sector and on
State, local, and tribal governments and, thus, do not affect
the competitive balance between such governments and the
private sector.
E. Applicability of House rule XXI5(c)
Rule XXI5(c) of the Rules of the House of Representatives
provides, in part, that ``No bill or joint resolution,
amendment, or conference report carrying a Federal income tax
rate increase shall be considered as passed or agreed to unless
so determined by a vote of not less than three-fifths of the
Members.'' The Committee has carefully reviewed the provisions
of the bill, and states that the provisions of the bill do not
involve any Federal income tax rate increase within the meaning
of the rule (as the bill only concerns reinstatement of prior-
law Airport Trust Fund excise taxes and transfers of such tax
revenues to the Airport Trust Fund).
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3 of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
INTERNAL REVENUE CODE OF 1986
* * * * * * *
Subtitle D--Miscellaneous Excise Taxes
* * * * * * *
CHAPTER 31--RETAIL EXCISE TAXES
* * * * * * *
Subchapter B--Special Fuels
* * * * * * *
SEC. 4041. IMPOSITION OF TAX.
(a) * * *
* * * * * * *
(c) Noncommercial aviation.--
(1) * * *
* * * * * * *
[(3) Termination.--The taxes imposed by paragraph (1)
shall apply during the period beginning on September 1,
1982, and ending on December 31, 1995, and during the
period beginning on the date which is 7 calendar days
after the date of the enactment of the Small Business
Job Protection Act of 1996 and ending on December 31,
1996. The termination under the preceding sentence
shall not apply to so much of the tax imposed by
paragraph (1) as does not exceed 4.3 cents per gallon.]
(3) Termination.--The rate of the taxes imposed by
paragraph (1) shall be 4.3 cents per gallon--
(A) after December 31, 1996, and before the
date which is 7 days after the date of the
enactment of the Airport and Airway Trust Fund
Tax Reinstatement Act of 1997, and
(B) after September 30, 1997.
* * * * * * *
CHAPTER 32--MANUFACTURERS EXCISE TAXES
* * * * * * *
Subchapter A--Automotive and Related Items
* * * * * * *
PART III--PETROLEUM PRODUCTS
* * * * * * *
Subpart A--Gasoline and Diesel Fuel
* * * * * * *
SEC. 4081. IMPOSITION OF TAX.
(a) * * *
* * * * * * *
(d) Termination.--
[(1) In general.--On and after October 1, 1999, the
rates of tax specified in clauses (i) and (iii) of
subsection (a)(2)(A) (other than the tax on aviation
gasoline) shall be 4.3 cents per gallon.
[(2) Aviation gasoline.--On and after January 1,
1997, the rate specified in subsection (a)(2)(A)(ii)
shall be 4.3 cents per gallon.]
(1) In general.--The rates of tax specified in
clauses (i) and (iii) of subsection (a)(2)(A) shall be
4.3 cents per gallon after September 30, 1999.
(2) Aviation gasoline.--The rate of tax specified in
subsection (a)(2)(A)(ii) shall be 4.3 cents per
gallon--
(A) after December 31, 1996, and before the
date which is 7 days after the date of the
enactment of the Airport and Airway Trust Fund
Tax Reinstatement Act of 1997, and
(B) after September 30, 1997.
(3) Leaking underground storage tank trust fund
financing rate.--The Leaking Underground Storage Tank
Trust Fund financing rate under subsection (a)(2) shall
not apply after December 31, 1995.
[(3) Aviation gasoline.--After December 31, 1996, the
rate of tax specified in subsection (a)(2)(A)(i) on
aviation gasoline shall be 4.3 cents per gallon.]
* * * * * * *
Subpart B--Aviation Fuel
* * * * * * *
SEC. 4091. IMPOSITION OF TAX.
(a) * * *
(b) Rate of tax.--
(1) * * *
* * * * * * *
(3) Termination.--
[(A) The rate of tax specified in paragraph
(1) shall be 4.3 cents per gallon--
[(i) after December 31, 1995, and
before the date which is 7 calendar
days after the date of the enactment of
the Small Business Job Protection Act
of 1996, and
[(ii) after December 31, 1996.]
(A) The rate of tax specified in paragraph
(1) shall be 4.3 cents per gallon--
(i) after December 31, 1996, and
before the date which is 7 days after
the date of the enactment of the
Airport and Airway Trust Fund Tax
Reinstatement Act of 1997, and
(ii) after September 30, 1997.
* * * * * * *
CHAPTER 33--FACILITIES AND SERVICES
* * * * * * *
Subchapter C--Transportation By Air
* * * * * * *
PART I--PERSONS
* * * * * * *
SEC. 4261. IMPOSITION OF TAX.
(a) * * *
* * * * * * *
[(g) Termination.--The taxes imposed by this section 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.]
(g) Application of Taxes.--
(1) In general.--The taxes imposed by this section
shall apply to--
(A) transportation beginning during the
period--
(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
(ii) ending on September 30, 1997,
and
(B) amounts paid during such period for
transportation beginning after such period.
(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.
* * * * * * *
PART II--PROPERTY
* * * * * * *
SEC. 4271. IMPOSITION OF TAX.
(a) * * *
* * * * * * *
[(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.]
(d) Application of Tax.--
(1) In general.--The tax imposed by subsection (a)
shall apply to--
(A) transportation beginning during the
period--
(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
(ii) ending on September 30, 1997,
and
(B) amounts paid during such period for
transportation beginning after such period.
(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.
* * * * * * *
Subtitle H--Financing of Presidential Election Campaigns
* * * * * * *
CHAPTER 98--TRUST FUND CODE
* * * * * * *
Subchapter A--Establishment of Trust Funds
* * * * * * *
SEC. 9502. AIRPORT AND AIRWAY TRUST FUND.
(a) * * *
[(b) Transfer to Airport and Airway Trust Fund of Amounts
Equivalent to Certain Taxes.--There is hereby appropriated to
the Airport and Airway Trust Fund--
[(1) amounts equivalent to the taxes received in the
Treasury after August 31, 1982, and before January 1,
1997, under subsections (c) and (e) of section 4041
(taxes on aviation fuel) and under sections 4261 and
4271 (taxes on transportation by air);
[(2) amounts determined by the Secretary of the
Treasury to be equivalent to the taxes received in the
Treasury after August 31, 1982, and before January 1,
1997, under section 4081 (to the extent of 15 cents per
gallon), with respect to gasoline used in aircraft;
[(3) amounts determined by the Secretary to be
equivalent to the taxes received in the Treasury before
January 1, 1997, under section 4091 (to the extent
attributable to the Airport and Airway Trust Fund
financing rate); and
[(4) amounts determined by the Secretary of the
Treasury to be equivalent to the taxes received in the
Treasury after August 31, 1982, and before January 1,
1997, under section 4071, with respect to tires of the
types used on aircraft.]
(b) Transfers to Airport and Airway Trust Fund.--There are
hereby appropriated to the Airport and Airway Trust Fund
amounts equivalent to--
(1) the taxes received in the Treasury under--
(A) subsections (c) and (e) of section 4041
(relating to aviation fuels),
(B) sections 4261 and 4271 (relating to
transportation by air),
(C) section 4081 (relating to gasoline) with
respect to aviation gasoline (to the extent
that the rate of the tax on such gasoline
exceeds 4.3 cents per gallon), and
(D) section 4091 (relating to aviation fuel)
to the extent attributable to the Airport and
Airway Trust Fund financing rate, and
(2) the amounts determined by the Secretary of the
Treasury to be equivalent to the amounts of civil
penalties collected under section 47107(n) of title 49,
United States Code.
* * * * * * *
(f) Definition of airport and airway trust fund financing
rate.--For purposes of this section--
(1) * * *
* * * * * * *
[(3) Termination.--Notwithstanding the preceding
provisions of this subsection, the Airport and Airway
Trust Fund financing rate shall be zero with respect
to--
[(A) taxes imposed after December 31, 1995,
and before the date which is 7 calendar days
after the date of the enactment of the Small
Business Job Protection Act of 1996 and
[(B) taxes imposed after December 31, 1996.]
(3) Termination.--Notwithstanding the preceding
provisions of this subsection, the Airport and Airway
Trust Fund financing rate shall be zero with respect to
taxes imposed during any period that the rate of the
tax imposed by section 4091(b)(1) is 4.3 cents per
gallon.
* * * * * * *
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