H. R. 668
One Hundred Fifth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, one thousand nine hundred and ninety-seven
An Act
To amend the Internal Revenue Code of 1986 to reinstate the Airport and Airway
Trust Fund excise taxes, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
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 para-
graphs:
‘‘(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 sub-
section (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:
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‘‘(3) TERMINATION.—The rate of the taxes imposed by para-
graph (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 transpor-
tation 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 transpor-
tation 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
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‘‘(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 Treas-
ury 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 provi-
sions 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 para-
graph (1) shall be paid in such manner as the Secretary
shall prescribe.
(C) TIME FOR PAYMENT.—The tax imposed by para-
graph (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 consid-
ered 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 effec-
tive 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
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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 para-
graph (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 para-
graph.
(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 para-
graph—
(i) CORPORATIONS.—
(I) IN GENERAL.—All persons treated as a con-
trolled group shall be treated as 1 person.
(II) CONTROLLED
GROUP.—The term ‘‘con-
trolled 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, includ-
ing 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 para-
graph (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.
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(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 Regula-
tion 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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.