[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4206 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 4206

 To amend the Internal Revenue Code of 1986 to provide that the amount 
   of the aviation excise taxes for any fiscal year shall equal the 
   expenditures from the Airport and Airway Trust Fund for the prior 
                  fiscal year, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 26, 1996

Mr. Lightfoot introduced the following bill; which was referred to the 
 Committee on Ways and Means, and in addition to the Committees on the 
    Budget, Government Reform and Oversight, and Transportation and 
   Infrastructure, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide that the amount 
   of the aviation excise taxes for any fiscal year shall equal the 
   expenditures from the Airport and Airway Trust Fund for the prior 
                  fiscal year, 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. AVIATION TAX REVENUES TO MATCH AIRPORT AND AIRWAY TRUST FUND 
              EXPENDITURES.

    (a) In General.--Part III of subchapter C of chapter 33 of the 
Internal Revenue Code of 1986 (relating to special provisions 
applicable to taxes on transportation by air) is amended by adding at 
the end the following new section:

``SEC. 4283. AVIATION TAX REVENUES TO MATCH AIRPORT AND AIRWAY TRUST 
              FUND EXPENDITURES.

    ``(a) General Rule.--Except as provided by subsection (b), if the 
aviation tax rates prescribed by the Secretary under this section for 
any fiscal year are greater than or less than the otherwise applicable 
rates of the aviation taxes, the rates so prescribed shall apply for 
such year in lieu of the otherwise applicable rates.
    ``(b) Limitation on Rates.--In no event may the Secretary prescribe 
rates under subsection (a) which are greater than--
            ``(1) ____ per gallon in the case of the tax imposed by 
        section 4081(a)(2)(A)(ii) (relating to aviation gasoline),
            ``(2) ____ cents per gallon in the case of the tax imposed 
        by section 4091 (relating to aviation fuel),
            ``(3) ____ percent and ____ percent, respectively, of the 
        amount paid in the case of the taxes imposed by sections 4261 
        and 4271 (relating to transportation of persons and property by 
        air), other than the tax imposed by section 4261(c), and
            ``(4) $____ on any amount paid in the case of the tax 
        imposed by section 4261(c) (relating to use of international 
        travel facilities).
    ``(c) Determination of Aviation Tax Rates.--
            ``(1) In general.--Not later than September 1 of each 
        calendar year, the Secretary shall prescribe the aviation tax 
        rates for the fiscal year which begins during such calendar 
        year.
            ``(2) Method of determining rates.--The aviation tax rates 
        prescribed by the Secretary for any fiscal year shall be rates 
        which the Secretary estimates will result in aggregate aviation 
        tax revenues during such fiscal year equal to the aggregate 
        aviation expenditures during the preceding fiscal year. Proper 
        adjustments shall be made in the estimate under the preceding 
        sentence to the extent that aggregate aviation tax revenues 
        during any prior fiscal year (beginning after September 30, 
        1996) were greater than or less than the aggregate aviation 
        expenditures for such prior fiscal year. Such adjustments shall 
        be made consistent with Congressional Budget Office scoring 
        procedures and shall be revenue neutral.
            ``(3) Proportionality of rates maintained.--Each aviation 
        tax rate prescribed by the Secretary under this section shall 
be the rate which results in the same proportion of the aggregate 
aviation tax revenues for the fiscal year as the proportion of the 
aggregate aviation tax revenues for such fiscal year which would have 
resulted from the otherwise applicable rate.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Aviation taxes.--The term `aviation taxes' means--
                    ``(A) the taxes imposed by subsections (c) and (e) 
                of section 4041,
                    ``(B) the tax imposed by section 4081(a)(2)(A)(ii) 
                to the extent attributable to the Airport and Airway 
                Trust Fund financing rate (as defined in section 
                9502(f)),
                    ``(C) the tax imposed by section 4091 to the extent 
                attributable to the Airport and Airway Trust Fund 
                financing rate (as defined in section 9502(f)), and
                    ``(D) the taxes imposed by sections 4261 and 4271.
            ``(2) Aviation tax revenues.--The term `aviation tax 
        revenues' means, with respect to any fiscal year, the aggregate 
        amount deposited into the Airport and Airway Trust Fund during 
        such year by reason of section 9502(b), reduced by transfers 
        from such Trust Fund during such year under paragraphs (2), 
        (3), and (5) of section 9502(d).
            ``(3) Aviation expenditures.--The term `aviation 
        expenditures' means, with respect to any fiscal year, the 
        aggregate budget authority for such year for expenditures from 
        the Airport and Airway Trust Fund, combined with contract 
        authority for such year (to the extent of any limitation on 
        obligations) for expenditures from the Airport and Airway Trust 
        Fund.''
    (b) Other Amendments.--
            (1) Paragraph (2) of section 9502(b) of such Code is 
        amended by striking ``under section 4081'' and all that follows 
        and inserting ``under section 4081 with respect to aviation 
        gasoline (to the extent attributable to the Airport and Airway 
        Trust Fund financing rate);''.
            (2) Paragraph (1) of section 9502(f) of such Code is 
        amended to read as follows:
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the Airport and Airway Trust Fund financing rate 
        is--
                    ``(A) in the case of aviation gasoline subject to 
                tax under section 4081, 15 cents per gallon (unless 
                otherwise prescribed by the Secretary),
                    ``(B) in the case of fuel used in an aircraft in 
                noncommercial aviation (as defined in section 
                4041(c)(4)), 17.5 cents per gallon (unless otherwise 
                prescribed by the Secretary), and
                    ``(C) in the case of fuel used in an aircraft other 
                than in noncommercial aviation (as so defined), zero.''
    (c) Clerical Amendment.--The table of sections for part III of 
subchapter C of chapter 33 of such Code is amended by adding at the end 
the following new item:

                              ``Sec. 4283. Aviation tax revenues to 
                                        match Airport and Airway Trust 
                                        Fund expenditures.''

SEC. 2. ESTABLISHMENT OF ANNUAL RESERVE ACCOUNT IN AIRPORT AND AIRWAY 
              TRUST FUND.

    Section 9502 of the Internal Revenue Code of 1986 (relating to the 
Airport and Airway Trust Fund) is amended by adding at the end the 
following new subsection:
    ``(g) Establishment of Annual Reserve Account.--
            ``(1) Creation of account.--There is established in the 
        Airport and Airway Trust Fund a separate account to be known as 
        the `Annual Reserve Account' consisting of such amounts as may 
        be transferred or credited to the Annual Reserve Account as 
        provided in this subsection or section 9602(b).
            ``(2) Transfers to annual reserve account.--The Secretary 
        of the Treasury shall transfer to the Annual Reserve Account 
        any portion of the amounts appropriated to the Airport and 
        Airway Trust Fund under subsection (b) which is attributable to 
        tax rates prescribed under section 4283(a) which are greater 
        than the otherwise applicable rates of the aviation taxes 
        prescribed for the prior fiscal year. For the purposes of the 
        preceding sentence, the term `aviation taxes' has the meaning 
        such term has under section 4283(d)(1).
            ``(3) Expenditures from annual reserve account.--Amounts in 
        the Annual Reserve Account shall be available, as provided by 
        appropriation Acts, for the same purposes as amounts in the 
        Airport and Airway Trust Fund are available under subsection 
        (d).
            ``(4) Budgetary treatment of annual reserve account.--
        Notwithstanding any other provision of law except the Line Item 
        Veto Act of 1996, the annual receipts and disbursements of the 
        Annual Reserve Account--
                    ``(A) shall not be counted as new budget authority, 
                outlays, receipts, or deficit or surplus for purposes 
                of--
                            ``(i) the budget of the United States 
                        Government as submitted by the President,
                            ``(ii) the congressional budget (including 
                        allocations of budget authority and outlays 
                        provided therein), or
                            ``(iii) the Balanced Budget and Emergency 
                        Deficit Control Act of 1985; and
                    ``(B) shall be exempt from any general budget 
                limitation imposed by statute on expenditures and net 
                lending (budget outlays) of the United States 
                Government.''

SEC. 3. EFFECTIVE DATE.

    The amendments made by this Act shall apply to fiscal years 
beginning after September 30, 1996.
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