[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 668 Enrolled Bill (ENR)]

        H.R.668

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
 the seventh day of January, one thousand nine hundred and ninety-seven


                                 An Act


 
To amend the Internal Revenue Code of 1986 to reinstate the Airport and 
         Airway Trust Fund excise 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; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``Airport and Airway 
Trust Fund Tax Reinstatement Act of 1997''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

SEC. 2. REINSTATEMENT OF AIRPORT AND AIRWAY TRUST FUND EXCISE TAXES.

    (a) Fuel Taxes.--
        (1) Aviation fuel.--Subparagraph (A) of section 4091(b)(3) 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 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.''.
        (2) Aviation gasoline.--Subsection (d) of section 4081 is 
    amended by striking the paragraph (3) added by section 1609(a) of 
    the Small Business Job Protection Act of 1996 and by striking 
    paragraphs (1) and (2) and inserting the following new paragraphs:
        ``(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) Noncommercial aviation.--Paragraph (3) of section 4041(c) 
    is amended to read as follows:
        ``(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.''.
    (b) Ticket Taxes.--
        (1) Persons.--Subsection (g) of section 4261 is amended to read 
    as follows:
    ``(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.''.
        (2) Property.--Subsection (d) of section 4271 is amended to 
    read as follows:
    ``(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.''.
    (c) Transfers to Airport and Airway Trust Fund.--
        (1) In general.--Subsection (b) of section 9502 is amended to 
    read as follows:
    ``(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.''.
        (2) Termination of financing rate.--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 taxes imposed during any period that 
    the rate of the tax imposed by section 4091(b)(1) is 4.3 cents per 
    gallon.''.
    (d) Floor Stocks Taxes on Aviation Gasoline and Aviation Fuel.--
        (1) Imposition of tax.--In the case of any aviation liquid on 
    which tax was imposed under section 4081 or 4091 of the Internal 
    Revenue Code of1986 before the tax effective date and which is held 
on such date by any person, there is hereby imposed a floor stocks tax 
of--
            (A) 15 cents per gallon in the case of aviation gasoline, 
        and
            (B) 17.5 cents per gallon in the case of aviation fuel.
        (2) Liability for tax and method of payment.--
            (A) Liability for tax.--A person holding, on the tax 
        effective date, any aviation liquid to which the tax imposed by 
        paragraph (1) applies shall be liable for such tax.
            (B) Method of payment.--The tax imposed by paragraph (1) 
        shall be paid in such manner as the Secretary shall prescribe.
            (C) Time for payment.--The tax imposed by paragraph (1) 
        shall be paid on or before the first day of the 5th month 
        beginning after the tax effective date.
        (3) Definitions.--For purposes of this subsection--
            (A) Tax effective date.--The term ``tax effective date'' 
        means the date which is 7 days after the date of the enactment 
        of this Act.
            (B) Aviation liquid.--The term ``aviation liquid'' means 
        aviation gasoline and aviation fuel.
            (C) Aviation gasoline.--The term ``aviation gasoline'' has 
        the meaning given such term in section 4081 of such Code.
            (D) Aviation fuel.--The term ``aviation fuel'' has the 
        meaning given such term by section 4093 of such Code.
            (E) Held by a person.--Aviation liquid shall be considered 
        as ``held by a person'' if title thereto has passed to such 
        person (whether or not delivery to the person has been made).
            (F) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.
        (4) Exception for exempt uses.--The tax imposed by paragraph 
    (1) shall not apply to--
            (A) aviation liquid held by any person on the tax effective 
        date exclusively for any use for which a credit or refund of 
        the entire tax imposed by section 4081 or 4091 of such Code (as 
        the case may be) is allowable for such liquid purchased on or 
        after such tax effective date for such use, or
            (B) aviation fuel held by any person on the tax effective 
        date exclusively for any use described in section 4092(b) of 
        such Code.
        (5) Exception for certain amounts of fuel.--
            (A) In general.--No tax shall be imposed by paragraph (1) 
        on any aviation liquid held on the tax effective date by any 
        person if the aggregate amount of such liquid (determined 
        separately for aviation gasoline and aviation fuel) held by 
        such person on such date does not exceed 2,000 gallons. The 
        preceding sentence shall apply only if such 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.--Any liquid to which the tax imposed by 
        paragraph (1) does not apply by reason of paragraph (4) shall 
        not be taken into account under subparagraph (A).
            (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 person.
                    (II) Controlled group.--The term ``controlled 
                group'' has the meaning given such term by subsection 
                (a) of section 1563 of such Code; except that for such 
                purposes, the phrase ``more than 50 percent'' shall be 
                substituted for the phrase ``at least 80 percent'' each 
                place it appears in such 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 
            such persons is not a corporation.
        (6) Other laws applicable.--All provisions of law, including 
    penalties, applicable with respect to the taxes imposed by section 
    4081 or 4091 of such Code shall, insofar as applicable and not 
    inconsistent with the provisions of this subsection, apply with 
    respect to the floor stocks taxes imposed by paragraph (1) to the 
    same extent as if such taxes were imposed by such section 4081 or 
    4091, as the case may be.
    (e) Effective Dates.--
        (1) Fuel taxes.--The amendments made by subsection (a) shall 
    apply to periods beginning on or after the 7th day after the date 
    of the enactment of this Act.
        (2) Ticket taxes.--
            (A) In general.--The amendments made by subsection (b) 
        shall apply to transportation beginning on or after such 7th 
        day.
            (B) Exception for certain payments.--Except as provided in 
        subparagraph (C), the amendments made by subsection (b) shall 
        not apply to any amount paid before such 7th day.
            (C) Payments of property transportation tax within 
        controlled group.--In the case of the tax imposed by section 
        4271 of the Internal Revenue Code of 1986, subparagraph (B) 
        shall not apply to any amount paid by 1 member of a controlled 
        group for transportation furnished by another member of such 
        group. For purposes of the preceding sentence, all persons 
        treated as a single employer under subsection (a) or (b) of 
        section 52 of the Internal Revenue Code of 1986 shall be 
        treated as members of a controlled group.
    (f) Application of Look-Back Safe Harbor for Deposits.--Nothing in 
the look-back safe harbor prescribed in Treasury Regulation section 
40.6302(c)-1(c)(2) shall be construed to permit such safe harbor to be 
used with respect to any tax unless such tax was imposed throughout the 
look-back period.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.