[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 888 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 888

     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

                             April 27, 1999

  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.--Clauses (i) and (ii) 
of section 4261(e)(1)(B) of the Internal Revenue Code of 1986 (defining 
rural airport) are amended to read as follows:
                            ``(i) there were fewer than 100,000 
                        commercial passengers departing by air during 
                        the second preceding calendar year from such 
                        airport and such airport--
                                    ``(I) is not located within 75 
                                miles of another airport which is not 
                                described in this clause, or
                                    ``(II) is receiving essential air 
                                service subsidies as of August 5, 1997, 
                                or
                            ``(ii) such airport is not connected by 
                        paved roads to another airport.''
    (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 7 days after the date of the enactment of this Act.
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