I 

108TH CONGRESS 

1ST SESSION H. R. 1380

To suspend the excise tax on aviation fuel used in commercial aviation 

during the period of hostilities with Iraq. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 20, 2003

Mr. SESSIONS (for himself, Mr. FOLEY, Mr. TIAHRT, Mr. SULLIVAN, Mr. 

SHIMKUS, Mr. HALL, Mr. SAM JOHNSON of Texas, Mr. LAHOOD, Mr. 

SHADEGG, Mr. SWEENEY, Mr. TIBERI, Mr. ENGLISH, Mr. CANNON, Mrs. 

MYRICK, Mr. LINDER, Mr. MEEKS of New York, Mr. TOOMEY, Mr. 

SMITH of Texas, Mr. MARIO DIAZ-BALART of Florida, Mr. HENSARLING, 

Ms. DUNN, Mr. RENZI, Mr. BRADY of Texas, Mr. DREIER, and Mr. 

FLETCHER) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL

To suspend the excise tax on aviation fuel used in commercial 

aviation during the period of hostilities with Iraq.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Travel Related Indus5 tries Protection Act of 2003’’. 
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1 SEC. 2. SUSPENSION OF EXCISE TAX ON AVIATION FUEL 

2 USED IN COMMERCIAL AVIATION. 

3 (a) IN GENERAL.—Tax imposed under section 4091 

4 of the Internal Revenue Code of 1986 by reason of section 

5 4092(b)(2) of such Code shall be zero during the suspen6 sion period. 

7 (b) DEFINITIONS.—For purposes of this Act—

8 (1) SUSPENSION PERIOD.—The term ‘suspen9 sion period’ means the period beginning on the tax 

10 suspension date and ending on the suspension termi11 nation date. 

12 (2) TAX SUSPENSION DATE.—The term ‘tax 

13 suspension date’ means the date of the enactment of 

14 this Act. 

15 (3) SUSPENSION TERMINATION DATE.—The 

16 term ‘suspension termination date’ means the date 

17 which is two years after the date of the enactment 

18 of this Act. 

19 SEC. 3. FLOOR STOCK REFUNDS. 

20 (a) IN GENERAL.—If—

21 (1) before the tax suspension date, tax has been 

22 imposed under section 4091 of the Internal Revenue 

23 Code of 1986 by reason of section 4092(b)(2) of 

24 such Code on any liquid, and 

25 (2) on such date such liquid is held by a dealer 

26 and has not been used and is intended for sale, 
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1 there shall be credited or refunded (without interest) to 

2 the person who paid such tax (hereafter in this section 

3 referred to as the ‘‘taxpayer’’) an amount equal to the tax 

4 paid by the taxpayer. 

5 (b) TIME FOR FILING CLAIMS.—No credit or refund 

6 shall be allowed or made under this section unless—

7 (1) claim therefor is filed with the Secretary of 

8 the Treasury before the date which is 6 months 

9 after the tax suspension date, and 

10 (2) in any case where liquid is held by a dealer 

11 (other than the taxpayer) on the tax suspension 

12 date—

13 (A) the dealer submits a request for refund 

14 or credit to the taxpayer before the date which 

15 is 3 months after the tax suspension date, and 

16 (B) the taxpayer files with the Secretary—

17 (i) a certification that the taxpayer 

18 has given, subsequent to receipt of the re19 quest for refund or credit from such dealer 

20 under subparagraph (A), a credit to such 

21 dealer with respect to such liquid against 

22 a purchase by the dealer of liquid from the 

23 taxpayer, and 

24 (ii) a certification by such dealer that 

25 such dealer has given, subsequent to the 
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1 tax suspension date, a credit to a suc2 ceeding dealer (if any) with respect to such 

3 liquid against a purchase by the succeeding 

4 dealer of liquid from such dealer. 

5 (c) REASONABLENESS OF CLAIMS CERTIFIED.—Any 

6 certification made under subsection (b)(2)(B) shall include 

7 an additional certification that the claim for credit was 

8 reasonably based on the taxpayer’s or dealer’s past busi9 ness relationship with the succeeding dealer. 

10 (d) DEFINITIONS.—For purposes of this section—

11 (1) the terms ‘‘dealer’’ and ‘‘held by a dealer’’ 

12 have the respective meanings given to such terms by 

13 section 6412 of such Code; except that the term 

14 ‘‘dealer’’ includes a producer, and 

15 (2) the term ‘‘tax suspension date’’ means the 

16 date which is the 7th day after the date of the en17 actment of this Act. 

18 (e) CERTAIN RULES TO APPLY.—Rules similar to the 

19 rules of subsections (b) and (c) of section 6412 of such 

20 Code shall apply for purposes of this section. 

21 SEC. 4. FLOOR STOCKS TAX. 

22 (a) IMPOSITION OF TAX.—In the case of any liquid 

23 subject to tax under section 4091 of the Internal Revenue 

24 Code of 1986 by reason of section 4092(b)(2) of such 

25 Code and on which such tax would have been imposed but 
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1 for section 2, and which is held on the suspension termi2 nation date, by any person, there is hereby imposed a floor 

3 stocks tax equal to the excess of the tax which would be 

4 imposed on such liquid had the taxable event occurred on 

5 such date over the tax previously paid (if any) on such 

6 liquid. 

7 (b) LIABILITY FOR TAX AND METHOD OF PAY8 MENT.—

9 (1) LIABILITY FOR TAX.—A person holding a 

10 liquid on the suspension termination date, to which 

11 the tax imposed by subsection (a) applies shall be 

12 liable for such tax. 

13 (2) METHOD OF PAYMENT.—The tax imposed 

14 by subsection (a) shall be paid in such manner as 

15 the Secretary shall prescribe. 

16 (3) TIME FOR PAYMENT.—The tax imposed by 

17 paragraph (1) shall be paid on or before 45 days 

18 after the suspension termination date. 

19 (c) DEFINITIONS.—For purposes of this section—

20 (1) HELD BY A PERSON.—A liquid shall be con21 sidered as ‘‘held by a person’’ if title thereto has 

22 passed to such person (whether or not delivery to 

23 the person has been made). 
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1 (2) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of the Treasury or the Secretary’s del3 egate. 

4 (d) OTHER LAW APPLICABLE.—All provisions of law, 

5 including penalties, applicable with respect to the taxes 

6 imposed by sections 4091 and 4092 of such Code shall, 

7 insofar as applicable and not inconsistent with the provi8 sions of this section, apply with respect to the floor stock 

9 taxes imposed by subsection (a) to the same extent as if 

10 such taxes were imposed by such sections.

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