[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1424 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1424

     To amend the Internal Revenue Code of 1986 to modify the air 
  transportation tax changes made by the Taxpayer Relief Act of 1997.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 7, 1997

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

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to modify the air 
  transportation tax changes made by the Taxpayer Relief Act of 1997.

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

SECTION 1. MODIFICATIONS TO AIR TRANSPORTATION TAX CHANGES MADE BY 
              TAXPAYER RELIEF ACT OF 1997.

    (a) Elimination of Inflation Adjustment for Tax on Certain Use of 
International Travel Facilities.--Section 4261(e)(4) of the Internal 
Revenue Code of 1986 (relating to inflation adjustment of dollar rates 
of tax) is amended--
            (1) in subparagraph (A), by striking ``each dollar amount 
        contained in subsection (c)'' and inserting ``the $12.00 amount 
        contained in subsection (c)(1)'', and
            (2) in subparagraph (B)(ii), by striking ``the dollar 
        amounts contained in subsection (c)'' and inserting ``the 
        $12.00 amount contained in subsection (c)(1)''.
    (b) Modification of Rural Airport Definition.--Subclause (I) of 
section 4261(e)(1)(B) of the Internal Revenue Code of 1986 (defining 
rural airport) is amended by inserting ``(or is so located but is not 
connected to such other airport by paved roads)'' after ``clause (i)''.
    (c) Imposition of Ticket Tax on Segments to and from Alaska or 
Hawaii or Within Alaska or Hawaii at Rate in Effect Before the Taxpayer 
Relief Act of 1997.--Section 4261(e) of the Internal Revenue Code of 
1986 (relating to special rules) is amended by adding at the end the 
following:
            ``(6) Segments to and from alaska or hawaii or within 
        alaska or hawaii.--Except with respect to any domestic segment 
        described in paragraph (1), in the case of transportation 
        involving 1 or more domestic segments at least 1 of which 
        begins or ends in Alaska or Hawaii or in the case of a domestic 
        segment beginning and ending in Alaska or Hawaii--
                    ``(A) subsection (a) shall be applied by 
                substituting ``10 percent'' for the otherwise 
                applicable percentage, and
                    ``(B) the tax imposed by subsection (b)(1) shall 
                not apply.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendments made by section 1031 of the 
Taxpayer Relief Act of 1997.
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