I
105TH CONGRESS
1ST SESSION
H. R. 1389
To amend the Internal Revenue Code of 1986 to provide that the amount
of the aviation excise taxes for any fiscal year shall equal the expendi-
tures from the Airport and Airway Trust Fund for the prior fiscal
year, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 17, 1997
Mr. PACKARD introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide
that the amount of the aviation excise taxes for any
fiscal year shall equal the expenditures from the Airport
and Airway Trust Fund for the prior fiscal year, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. AVIATION TAX REVENUES TO MATCH AIRPORT
AND AIRWAY TRUST FUND EXPENDITURES.
(a) IN GENERAL.—Part III of subchapter C of chap-
ter 33 of the Internal Revenue Code of 1986 (relating to
special provisions applicable to taxes on transportation by
Secretary under this section shall be the rate which
results in the same proportion of the aggregate avia-
tion tax revenues for the fiscal year as the propor-
tion of the aggregate aviation tax revenues for such
fiscal year which would have resulted from the oth-
erwise applicable rate.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) AVIATION
TAXES.—The term ‘aviation
taxes’ means—
‘‘(A) the taxes imposed by subsections (c)
and (e) of section 4041,
‘‘(B) 
the 
tax 
imposed 
by 
section
4081(a)(2)(A)(ii) to the extent attributable to
the Airport and Airway Trust Fund financing
rate (as defined in section 9502(f)),
‘‘(C) the tax imposed by section 4091 to
the extent attributable to the Airport and Air-
way Trust Fund financing rate (as defined in
section 9502(f)), and
‘‘(D) the taxes imposed by sections 4261
and 4271.
‘‘(2) AVIATION
TAX
REVENUES.—The term
‘aviation tax revenues’ means, with respect to any
fiscal year, the aggregate amount deposited into the
Airport and Airway Trust Fund during such year by
reason of section 9502(b), reduced by transfers from
such Trust Fund during such year under para-
graphs (2), (3), and (5) of section 9502(d).
‘‘(3) AVIATION
EXPENDITURES.—The term
‘aviation expenditures’ means, with respect to any
fiscal year, the aggregate budget authority for such
year for expenditures from the Airport and Airway
Trust Fund, combined with contract authority for
such year (to the extent of any limitation on obliga-
tions) for expenditures from the Airport and Airway
Trust Fund.’’
(b) OTHER AMENDMENTS.—
(1) Paragraph (2) of section 9502(b) of such
Code is amended by striking ‘‘under section 4081’’
and all that follows and inserting ‘‘under section
4081 with respect to aviation gasoline (to the extent
attributable to the Airport and Airway Trust Fund
financing rate);’’.
(2) Paragraph (1) of section 9502(f) of such
Code is amended to read as follows:
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the Airport and Airway
Trust Fund financing rate is—
‘‘(A) in the case of aviation gasoline sub-
ject to tax under section 4081, 15 cents per
gallon (unless otherwise prescribed by the Sec-
retary),
‘‘(B) in the case of fuel used in an aircraft
in noncommercial aviation (as defined in section
4041(c)(4)), 17.5 cents per gallon (unless oth-
erwise prescribed by the Secretary), and
‘‘(C) in the case of fuel used in an aircraft
other than in noncommercial aviation (as so de-
fined), zero.’’
(c) CLERICAL AMENDMENT.—The table of sections
for part III of subchapter C of chapter 33 of such Code
is amended by adding at the end the following new item:
‘‘Sec. 4283. Aviation tax revenues to match Airport and Airway
Trust Fund expenditures.’’
SEC. 2. ESTABLISHMENT OF ANNUAL RESERVE ACCOUNT
IN AIRPORT AND AIRWAY TRUST FUND.
Section 9502 of the Internal Revenue Code of 1986
(relating to the Airport and Airway Trust Fund) is
amended by adding at the end the following new sub-
section:
‘‘(g) ESTABLISHMENT
OF ANNUAL RESERVE AC-
COUNT.—
‘‘(1) CREATION OF ACCOUNT.—There is estab-
lished in the Airport and Airway Trust Fund a sepa-
rate account to be known as the ‘Annual Reserve
Account’ consisting of such amounts as may be
transferred or credited to the Annual Reserve Ac-
count as provided in this subsection or section
9602(b).
‘‘(2) TRANSFERS
TO
ANNUAL
RESERVE
AC-
COUNT.—The Secretary of the Treasury shall trans-
fer to the Annual Reserve Account any portion of
the amounts appropriated to the Airport and Airway
Trust Fund under subsection (b) which is in excess
of the total amounts appropriated to the Airport and
Airway Trust Fund in the prior fiscal year (includ-
ing any portion transferred to the Annual Reserve
Account in the prior fiscal year). Amounts trans-
ferred to the Annual Reserve Account shall be pre-
sumed attributable to tax rates prescribed under sec-
tion 4283(a) which are greater than the otherwise
applicable rates of the aviation taxes prescribed for
the prior fiscal year, or to greater tax revenues re-
sulting from increased user demand on the air trans-
portation system, or to a combination of both fac-
tors. For the purposes of the preceding sentence, the
term ‘aviation taxes’ has the meaning such term has
under section 4283(d)(1).
‘‘(3) EXPENDITURES FROM ANNUAL RESERVE
ACCOUNT.—Amounts in the Annual Reserve Account
shall be available, as provided by appropriation Acts,
for the same purposes as amounts in the Airport
and Airway Trust Fund are available under sub-
section (d).
‘‘(4) BUDGETARY TREATMENT OF ANNUAL RE-
SERVE ACCOUNT.—Notwithstanding any other provi-
sion of law except the Line Item Veto Act of 1996,
the annual receipts and disbursements of the Annual
Reserve Account—
‘‘(A) shall not be counted as new budget
authority, outlays, receipts, or deficit or surplus
for purposes of—
‘‘(i) the budget of the United States
Government as submitted by the President,
‘‘(ii) the congressional budget (includ-
ing allocations of budget authority and
outlays provided therein), or
‘‘(iii) the Balanced Budget and Emer-
gency Deficit Control Act of 1985; and
‘‘(B) shall be exempt from any general
budget limitation imposed by statute on expend-
itures and net lending (budget outlays) of the
United States Government.’’
SEC. 3. EFFECTIVE DATE.
The amendments made by this Act shall apply to fis-
cal years beginning after September 30, 1997.
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