I
104TH CONGRESS
2D SESSION
H. R. 4206
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
SEPTEMBER 26, 1996
Mr. LIGHTFOOT introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on the
Budget, Government Reform and Oversight, and Transportation and In-
frastructure, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned
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
air) is amended by adding at the end the following new
section:
‘‘SEC. 4283. AVIATION TAX REVENUES TO MATCH AIRPORT
AND AIRWAY TRUST FUND EXPENDITURES.
‘‘(a) GENERAL RULE.—Except as provided by sub-
section (b), if the aviation tax rates prescribed by the Sec-
retary under this section for any fiscal year are greater
than or less than the otherwise applicable rates of the
aviation taxes, the rates so prescribed shall apply for such
year in lieu of the otherwise applicable rates.
‘‘(b) LIMITATION ON RATES.—In no event may the
Secretary prescribe rates under subsection (a) which are
greater than—
‘‘(1) ll per gallon in the case of the tax im-
posed by section 4081(a)(2)(A)(ii) (relating to avia-
tion gasoline),
‘‘(2) ll cents per gallon in the case of the
tax imposed by section 4091 (relating to aviation
fuel),
‘‘(3) ll percent and ll percent, respec-
tively, of the amount paid in the case of the taxes
imposed by sections 4261 and 4271 (relating to
transportation of persons and property by air), other
than the tax imposed by section 4261(c), and
‘‘(4) $ll on any amount paid in the case of
the tax imposed by section 4261(c) (relating to use
of international travel facilities).
‘‘(c) DETERMINATION OF AVIATION TAX RATES.—
‘‘(1) IN GENERAL.—Not later than September
1 of each calendar year, the Secretary shall prescribe
the aviation tax rates for the fiscal year which be-
gins during such calendar year.
‘‘(2) METHOD OF DETERMINING RATES.—The
aviation tax rates prescribed by the Secretary for
any fiscal year shall be rates which the Secretary es-
timates will result in aggregate aviation tax revenues
during such fiscal year equal to the aggregate avia-
tion expenditures during the preceding fiscal year.
Proper adjustments shall be made in the estimate
under the preceding sentence to the extent that ag-
gregate aviation tax revenues during any prior fiscal
year (beginning after September 30, 1996) were
greater than or less than the aggregate aviation ex-
penditures for such prior fiscal year. Such adjust-
ments shall be made consistent with Congressional
Budget Office scoring procedures and shall be reve-
nue neutral.
‘‘(3) 
PROPORTIONALITY
OF
RATES
MAIN-
TAINED.—Each aviation tax rate prescribed by the
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:
‘‘(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 attrib-
utable to tax rates prescribed under section 4283(a)
which are greater than the otherwise applicable rates
of the aviation taxes prescribed for the prior fiscal
year. 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, 1996.
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