[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4603 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 4603

To amend the Internal Revenue Code of 1986 to provide that the segment 
 tax on domestic air transportation shall not apply to segments to or 
                         from certain islands.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 25, 2002

 Mr. Gillmor introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide that the segment 
 tax on domestic air transportation shall not apply to segments to or 
                         from certain islands.

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

SECTION 1. EXEMPTION FROM SEGMENT TAX ON DOMESTIC AIR TRANSPORTATION 
              FOR SEGMENTS TO AND FROM CERTAIN ISLANDS.

    (a) In General.--Paragraph (1) of section 4261(e) of the Internal 
Revenue Code of 1986 (relating to segments to and from rural airports) 
is amended by redesignating subparagraph (C) as subparagraph (D) and by 
inserting after subparagraph (B) the following new subparagraph:
                    ``(C) Exception from segment tax for segments to 
                and from certain islands.--The tax imposed by 
                subsection (b)(1) shall not apply to any domestic 
                segment if--
                            ``(i) such segment is 30 miles or less, and
                            ``(ii) such segment begins or ends at an 
                        airport located on an island--
                                    ``(I) which is not connected to the 
                                mainland by any land bridge, and
                                    ``(II) which has a resident 
                                population of 1,000 or less (determined 
                                on the basis of the most recent 
                                decennial census for which data are 
                                available).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to transportation beginning after the date of the enactment of this 
Act, but shall not apply to amounts paid before such date.
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