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S.243 "Airport and Airway Trust Fund Taxes Short Term Reinstatement Act"
105th CONGRESS
1st Session
To provide for a short term reinstatement of expired Airport and
Airway Trust Fund taxes, and for other purposes.
IN THE SENATE OF THE UNITED STATES
January 30, 1997
Mr. MCCAIN (for himself, Mr. HOLLINGS, Mr. FORD, and Mr. GORTON)
introduced the following bill; which was read twice and
referred to the Committee on Finance
A BILL
To provide for a short term reinstatement of expired Airport and
Airway Trust Fund taxes, and for other purposes.
Be it enacted by the Senate and House of
Representatives of the United States of America in Congress
assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Airport and Airway Trust Fund Taxes
Short Term Reinstatement Act'.
SEC. 2. TEMPORARY REINSTATEMENT OF AIRPORT AND AIRWAY TRUST FUND
TAXES.
(a) Fuel Tax-
(1) Subparagraph (A) of section 4091(b)(3) of the Internal
Revenue Code of 1986 is amended to read as follows:
`(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 calendar days after the date of the
enactment of the Airport and Airway Trust Fund Taxes
Short Term Reinstatement Act; and
`(ii) after September 29, 1997.'
(2) Paragraph (2) of section 4081(d) of such Code is amended
to read as follows:
`(2) AVIATION GASOLINE- The rate of tax specified in clause
(i) of subsection (a)(2)(A) shall be 4.3 cents per gallon--
`(A) after December 31, 1996, and before the date which
is 7 calendar days after the date of the enactment of the
Airport and Airway Trust Fund Taxes Short Term
Reinstatement Act; and
`(B) after September 29, 1997.'.
(3) The second paragraph (3) of section 4081(d) of such Code
is repealed.
(4) Section 4041(c)(5) of such Code is amended to read as
follows:
`(5) TERMINATION- The taxes imposed by paragraphs (1) and (2)
shall apply during the following periods:
`(A) The period beginning on August 27, 1996, and ending
on December 31, 1996.
`(B) The period beginning on the date which is 7 calendar
days after the date of the enactment of the Airport and
Airway Trust Fund Taxes Short Term Reinstatement Act and
ending on September 29, 1997.'.
(b) TICKET TAXES- Sections 4261(g) and 4271(d) are each amended
by striking `1997.' and inserting `1997, and to transportation
beginning on or after the date which is 7 days after the date of
enactment of the Airport and Airway Trust Fund Taxes Short Term
Reinstatement Act, and before September 30, 1997.';
(c) Transfer to Airport and Airway Trust Fund-
(1) Subsection (b) of section 9502 is amended by striking
`January 1, 1997,' each place it appears and inserting
`September 30, 1997,'.
(2) Paragraph (3) of section 9502(f) is amended to read as
follows:
`(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, 1996, and before
the date which is 7 calendar days after the date of the
enactment of the Airport and Airway Trust Fund Taxes Short
Term Reinstatement Act; and
`(B) taxes imposed after September 29, 1997.'
(d) Floor Stocks Taxes on Aviation Fuel-
(1) IMPOSITION OF TAX- In the case of aviation fuel on which
tax was imposed under section 4091 of the Internal Revenue Code
of 1986 before the tax-increase date described in paragraph
(3)(A)(i) and which is held on that date by any person, there
is hereby imposed a floor stocks tax of 17.5 cents per gallon.
(2) Liability for tax and method of payment-
(A) LIABILITY FOR TAX- A person holding aviation fuel on
a tax-increase date to which the tax imposed by paragraph
(1) applies shall be liable for that tax.
(B) METHOD OF PAYMENT- The tax imposed by paragraph (1)
shall be paid in the manner the Secretary prescribes.
(C) TIME FOR PAYMENT- The tax imposed by paragraph (1)
with respect to any tax-increase date shall be paid on or
before the first day of the 7th month beginning after that
tax-increase date.
(3) DEFINITIONS- For purposes of this subsection--
(A) THE CODE- The term `the Code' means the Internal
Revenue Code of 1986.
(B) TAX INCREASE DATE- The term `tax-increase date' means
the date which is 7 calendar days after the date of
enactment of this Act.
(C) AVIATION FUEL- The term `aviation fuel' has the
meaning given that term by section 4093 of the Code.
(D) HELD BY A PERSON- Aviation fuel shall be considered
as `held by a person' if title thereto has passed to that
person (whether or not delivery to the person has been made).
(E) SECRETARY- The term `Secretary' means the Secretary
of the Treasury or his delegate.
(4) EXCEPTION FOR CERTAIN USES- The tax imposed by paragraph
(1) shall not apply to aviation fuel held by any person on the
tax-increase date exclusively for any use for which a credit or
refund of the entire tax imposed by section 4091 of the Code is
allowable for aviation fuel purchased on or after the
tax-increase date for that use.
(5) Exception for certain amounts of fuel-
(A) IN GENERAL- No tax shall be imposed by paragraph (1)
on aviation fuel held on the tax-increase date by any
person if the aggregate amount of aviation fuel held by
that person on that date does not exceed 2,000 gallons.
The preceding sentence shall apply only if that person
submits to the Secretary (at the time and in the manner
required by the Secretary) such information as the
Secretary shall require for purposes of this paragraph.
(B) EXEMPT FUEL- For purposes of subparagraph (A), there
shall not be taken into account fuel held by any person
which is exempt
from the tax imposed by paragraph (1) by reason of paragraph (4).
(C) CONTROLLED GROUPS- For purposes of this paragraph--
(i) Corporations-
(I) IN GENERAL- All persons treated as a controlled group shall
be treated as 1 group.
(II) CONTROLLED GROUP- The term `controlled group' has the
meaning given to that term by subsection (a) of section 1563 of the
Code; except that for these purposes the phrase `more than 50
percent' shall be substituted for the phrase `at least 80 percent'
each place it appears in that subsection.
(ii) NONINCORPORATED PERSONS UNDER COMMON CONTROL-
Under regulations prescribed by the Secretary,
principles similar to the principles of clause (i)
shall apply to a group of persons under common control
where 1 or more of those persons is not a corporation.
(6) OTHER LAW APPLICABLE- All provisions of law, including
penalties, applicable with respect to the taxes imposed by
section 4091 of the Code shall, insofar as applicable and not
inconsistent with the provisions of this subsection, apply with
respect to the floor stock taxes imposed by paragraph (1) to
the same extent as if those taxes were imposed by section 4091
of the Code.
(d) Effective Date-
(1) IN GENERAL- The amendments made by this section take
effect 7 days after the date of enactment of this Act.
(2) TRANSPORTATION USING TICKETS PURCHASED DURING LAPSE
PERIOD- The taxes imposed by sections 4261 and 4271 of the
Internal Revenue Code of 1986 do not apply to amounts paid for
taxable transportation (as defined in section 4262 and 4272 of
the Code, respectively) after December 31, 1996, and before the
effective date of the amendments made by this section.
SEC. 3. TAXES COLLECTED DURING TAXABLE PERIOD TO BE TRANSFERRED
REGARDLESS OF WHEN PAID.
(a) IN GENERAL- Section 9502(b) of the Code is amended by adding
at the end thereof the following:
`Any amount received in the Treasury after the later of the 2
dates set forth in paragraphs (1), (2), and (4), and on or after
the date set forth in paragraph (3), shall be treated as received
on the day before such date (regardless of when received) if the
amount relates to a tax that described in this subsection that was
in effect on the day before such date.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) applies
with respect to amounts received after December 31, 1995.
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