II 111th CONGRESS 2d Session S. 3205 IN THE SENATE OF THE UNITED STATES April 14, 2010 Mr. Schumer (for himself, Mr. Menendez, Mr. Lautenberg, Mrs. Lincoln, Mrs. Shaheen, Ms. Klobuchar, Mr. Cardin, Mr. Begich, Mrs. McCaskill, Mr. Leahy, Mr. Harkin, and Mr. Sanders) 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 provide that fees charged for baggage carried into the cabin of an aircraft are subject to the excise tax imposed on transportation of persons by air.

1.

Short title

This Act may be cited as the Block Airlines' Gratuitous Fees Act or the BAG Fees Act.

2.

Fees for carry-on baggage treated as paid for taxable transportation

(a)

In general

Subsection (e) of section 4261 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (5)

Amounts paid for carry-on baggage

Any amount paid for baggage personally carried into the cabin of the aircraft by a person shall be treated for purposes of subsection (a) as an amount paid for taxable transportation. . (b)

Effective date

The amendment may by this section shall apply to transportation beginning on or after the date of the enactment of this Act.