H.R. 4206 (104th): 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

104th Congress, 1995–1996. Text as of Sep 26, 1996 (Introduced).

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HR 4206 IH

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 expenditures 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 Committee on Ways and Means, and in addition to the Committees on the Budget, Government Reform and Oversight, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction 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 Representatives 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 chapter 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 subsection (b), if the aviation tax rates prescribed by the Secretary 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) XX per gallon in the case of the tax imposed by section 4081(a)(2)(A)(ii) (relating to aviation gasoline),

      ‘(2) XX cents per gallon in the case of the tax imposed by section 4091 (relating to aviation fuel),

      ‘(3) XX percent and XX percent, respectively, 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) $XX 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 begins 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 estimates will result in aggregate aviation tax revenues during such fiscal year equal to the aggregate aviation expenditures during the preceding fiscal year. Proper adjustments shall be made in the estimate under the preceding sentence to the extent that aggregate aviation tax revenues during any prior fiscal year (beginning after September 30, 1996) were greater than or less than the aggregate aviation expenditures for such prior fiscal year. Such adjustments shall be made consistent with Congressional Budget Office scoring procedures and shall be revenue neutral.

      ‘(3) PROPORTIONALITY OF RATES MAINTAINED- Each aviation tax rate prescribed by the

Secretary under this section shall be the rate which results in the same proportion of the aggregate aviation tax revenues for the fiscal year as the proportion of the aggregate aviation tax revenues for such fiscal year which would have resulted from the otherwise 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 Airway 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 paragraphs (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 obligations) 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 provided in this subsection, the Airport and Airway Trust Fund financing rate is--

        ‘(A) in the case of aviation gasoline subject to tax under section 4081, 15 cents per gallon (unless otherwise prescribed by the Secretary),

        ‘(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 otherwise prescribed by the Secretary), and

        ‘(C) in the case of fuel used in an aircraft other than in noncommercial aviation (as so defined), 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 subsection:

    ‘(g) ESTABLISHMENT OF ANNUAL RESERVE ACCOUNT-

      ‘(1) CREATION OF ACCOUNT- There is established in the Airport and Airway Trust Fund a separate account to be known as the ‘Annual Reserve Account’ consisting of such amounts as may be transferred or credited to the Annual Reserve Account as provided in this subsection or section 9602(b).

      ‘(2) TRANSFERS TO ANNUAL RESERVE ACCOUNT- The Secretary of the Treasury shall transfer to the Annual Reserve Account any portion of the amounts appropriated to the Airport and Airway Trust Fund under subsection (b) which is attributable 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 subsection (d).

      ‘(4) BUDGETARY TREATMENT OF ANNUAL RESERVE ACCOUNT- Notwithstanding any other provision 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 (including allocations of budget authority and outlays provided therein), or

          ‘(iii) the Balanced Budget and Emergency Deficit Control Act of 1985; and

        ‘(B) shall be exempt from any general budget limitation imposed by statute on expenditures and net lending (budget outlays) of the United States Government.’

SEC. 3. EFFECTIVE DATE.

    The amendments made by this Act shall apply to fiscal years beginning after September 30, 1996.