[105th Congress Public Law 2]
[From the U.S. Government Printing Office]
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[DOCID: f:publ2.105]
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AIRPORT AND AIRWAY TRUST FUND TAX REINSTATEMENT ACT OF 1997
[[Page 111 STAT. 4]]
Public Law 105-2
105th Congress
An Act
To amend the Internal Revenue Code of 1986 to reinstate the Airport and
Airway Trust Fund excise taxes, and for other purposes. <<NOTE: Feb. 28,
1997 - [H.R. 668]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Airport and
Airway Trust Fund Tax Reinstatement Act of 1997.>>
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) Short <<NOTE: 26 USC 1 note.>> Title.--This Act may be cited as
the ``Airport and Airway Trust Fund Tax Reinstatement Act of 1997''.
(b) Amendment <<NOTE: 26 USC 1 et seq.>> 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
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:
[[Page 111 STAT. 5]]
``(3) Termination.--The rate of the taxes imposed by
paragraph (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
transportation 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
transportation 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 <<NOTE: Appropriation authorization.>> 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
[[Page 111 STAT. 6]]
``(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
Treasury 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 provisions
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 <<NOTE: 26 USC 4081 note.>> 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 paragraph
(1) shall be paid in such manner as the Secretary shall
prescribe.
(C) Time for payment.--The tax imposed by paragraph
(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
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--
(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 imposed by section
4081 or 4091 of such Code (as the case may be) is
allowable for such
[[Page 111 STAT. 7]]
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
paragraph (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 <<NOTE: Applicability.>> 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 paragraph.
(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 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 <<NOTE: Regulations. Applicability.
>> 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, 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 respect 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 <<NOTE: 26 USC 4041 note.>> 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 <<NOTE: 26 USC 4261 note.>> 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.
[[Page 111 STAT. 8]]
(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 Regulation 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.
Approved February 28, 1997.
LEGISLATIVE HISTORY--H.R. 668 (S. 279):
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HOUSE REPORTS: No. 105-5 (Comm. on Ways and Means).
SENATE REPORTS: No. 105-4 accompanying S. 279 (Comm. on Finance).
CONGRESSIONAL RECORD, Vol. 143 (1997):
Feb. 25, 26, considered and passed House.
Feb. 27, considered and passed Senate.
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