[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 769 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 769

  To prohibit any increase in the tax on the sale of certain aviation 
fuel, and to prohibit any tax on such fuel or on the energy content of 
  petroleum or petroleum products used in the production of such fuel.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                April 2 (legislative day, March 3), 1993

 Mr. Danforth (for himself, Mr. Murkowski, Mr. Stevens, Mr. Hatch, Mr. 
 Gorton, and Mr. McCain) introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To prohibit any increase in the tax on the sale of certain aviation 
fuel, and to prohibit any tax on such fuel or on the energy content of 
  petroleum or petroleum products used in the production of such fuel.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PROHIBITION.

    Notwithstanding any other law, there shall be--
            (1) no increase in the tax under section 4091 of the 
        Internal Revenue Code of 1986 (26 U.S.C. 4091), as in effect on 
        January 1, 1993, on the sale of--
                    (A) jet aviation fuel, when such fuel is sold to a 
                registered commercial aircraft operator which uses it 
                to transport passengers or cargo; or
                    (B) non-jet aviation fuel; and
            (2) no direct or indirect tax on--
                    (A) jet aviation fuel, or the energy content of 
                petroleum or petroleum products used in the production 
                of jet aviation fuel, when such fuel is sold to a 
                registered commercial aircraft operator which utilizes 
                it to transport passengers or cargo; or
                    (B) non-jet aviation fuel or the energy content of 
                petroleum or petroleum used in the production of non-
                jet aviation fuel.

SEC. 2. RIGHT TO RECLAIM.

    If a registered commercial aircraft operator purchases aviation 
fuel on which a Federal excise or energy tax was paid by a prior owner 
of such fuel, or the petroleum from which such aviation fuel was 
produced, such commercial aircraft operator will be permitted to 
reclaim any excise or energy tax attributable to such fuel if such fuel 
is used to transport passengers or cargo.

SEC. 3. DEFINITION.

    In this Act--
            (1) The term ``jet aviation fuel'' means any aviation fuel 
        within the meaning of section 4092(a)(3) of the Internal 
        Revenue Code of 1986 (26 U.S.C. 4092(a)(3)), as in effect on 
        January 1, 1993, that is suitable for use as a fuel in a jet 
        aircraft.
            (2) The term ``non-jet aviation fuel'' means any aviation 
        fuel within the meaning of such section 4092(a)(3) that is not 
        jet aviation fuel.
            (3) The term ``registered commercial aircraft operator'' 
        means any operator of aircraft used in a business of 
        transporting persons or property for compensation or hire by 
        air which is registered with the Secretary of the Treasury 
        pursuant to sections 4101(a) and 4093(c)(3) of the Internal 
        Revenue Code of 1986 (26 U.S.C. 4101(a) and 4093(c)(3)), as in 
        effect on January 1, 1993.

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