II
Calendar No. 19
105TH CONGRESS
1ST SESSION
H. R. 668
IN THE SENATE OF THE UNITED STATES
FEBRUARY 27, 1997
Received; read twice and placed on the calendar
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 Representa-
tives of the United States of America in Congress assembled,
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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 other-
wise expressly provided, whenever in this Act an amend-
ment 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 provi-
sion 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 sec-
tion 4091(b)(3) is amended to read as follows:
‘‘(A) The rate of tax specified in para-
graph (1) shall be 4.3 cents per gallon—
‘‘(i) after December 31, 1996, and be-
fore the date which is 7 days after the date
of the enactment of the Airport and Air-
way 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
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Job Protection Act of 1996 and by striking para-
graphs (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 im-
posed by paragraph (1) shall be 4.3 cents per gal-
lon—
‘‘(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.—
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(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 Reinstate-
ment 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 trans-
portation 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.—
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‘‘(1) IN GENERAL.—The tax imposed by sub-
section (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 Reinstate-
ment 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 trans-
portation 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—
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(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 sec-
tion 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 avia-
tion gasoline, and
(B) 17.5 cents per gallon in the case of
aviation fuel.
(2) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.—
(A) LIABILITY FOR TAX.—A person hold-
ing, on the tax effective date, any aviation liq-
uid to which the tax imposed by paragraph (1)
applies shall be liable for such tax.
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such
manner as the Secretary shall prescribe.
(C) TIME
FOR
PAYMENT.—The tax im-
posed by paragraph (1) shall be paid on or be-
fore the first day of the 5th month beginning
after the tax effective date.
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(3) DEFINITIONS.—For purposes of this sub-
section—
(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 ‘‘avia-
tion liquid’’ means aviation gasoline and avia-
tion 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 sec-
tion 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—
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(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 im-
posed 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 de-
scribed in section 4092(b) of such Code.
(5) EXCEPTION
FOR
CERTAIN
AMOUNTS
OF
FUEL.—
(A) IN
GENERAL.—No tax shall be im-
posed by paragraph (1) on any aviation liquid
held on the tax effective date by any person if
the aggregate amount of such liquid (deter-
mined separately for aviation gasoline and avia-
tion fuel) held by such person on such date does
not exceed 2,000 gallons. The preceding sen-
tence 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.
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(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 sub-
section (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 ap-
pears in such subsection.
(ii) 
NONINCORPORATED
PERSONS
UNDER COMMON CONTROL.—Under regula-
tions prescribed by the Secretary, prin-
ciples similar to the principles of clause (i)
shall apply to a group of persons under
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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 re-
spect 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
PAY-
MENTS.—Except as provided in subparagraph
(C), the amendments made by subsection (b)
shall not apply to any amount paid before such
7th day.