Airport and Airway Trust Fund Tax Reinstatement Act of 1997

Summary: Airport and Airway Trust Fund Tax Reinstatement Act of 1997 - Amends the Internal Revenue Code to restore the Airport and Airway Trust Fund excise taxes.  Extends authority to transfer revenue to such Fund.

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 of 1986 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.