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S.340 - Airport and Airway Trust Fund Reauthorization Act of 2011
An original bill to amend the Internal Revenue Code of 1986 to extend the funding and expenditure authority of the Airport and Airway Trust Fund, and for other purposes.
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SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.
(b) Amendment 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.CommentsClose CommentsPermalink
SEC. 2. EXTENSION OF TAXES FUNDING AIRPORT AND AIRWAY TRUST FUND.
SEC. 3. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE AUTHORITY.
SEC. 4. MODIFICATION OF EXCISE TAX ON KEROSENE USED IN AVIATION.
(1) IN GENERAL- Subparagraph (A) of section 4081(a)(2) is amended by striking ‘and’ at the end of clause (ii), by striking the period at the end of clause (iii) and inserting ‘, and’, and by adding at the end the following new clause:CommentsClose CommentsPermalink
‘(C) TAXES IMPOSED ON FUEL USED IN COMMERCIAL AVIATION- In the case of aviation-grade kerosene which is removed from any refinery or terminal directly into the fuel tank of an aircraft for use in commercial aviation by a person registered for such use under section 4101, the rate of tax under subparagraph (A)(iv) shall be 4.3 cents per gallon.’.CommentsClose CommentsPermalink
(1) EXEMPTION FOR PREVIOUSLY TAXED FUEL- Paragraph (2) of section 4041(c) is amended by inserting ‘at the rate specified in subsection (a)(2)(A)(iv) thereof’ after ‘section 4081’.CommentsClose CommentsPermalink
‘(3) RATE OF TAX- The rate of tax imposed by this subsection shall be the rate of tax in effect under section 4081(a)(2)(A)(iv) (4.3 cents per gallon with respect to any sale or use for commercial aviation).’.CommentsClose CommentsPermalink
(1) AVIATION-GRADE KEROSENE USED IN COMMERCIAL AVIATION- Clause (ii) of section 6427(l)(4)(A) is amended by striking ‘specified in section 4041(c) or 4081(a)(2)(A)(iii), as the case may be,’ and inserting ‘so imposed’.CommentsClose CommentsPermalink
‘(B) PAYMENTS TO ULTIMATE, REGISTERED VENDOR- With respect to any kerosene used in aviation (other than kerosene to which paragraph (6) applies), if the ultimate purchaser of such kerosene waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay (without interest) the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor--CommentsClose CommentsPermalink
(3) AVIATION-GRADE KEROSENE NOT USED IN AVIATION- Subsection (l) of section 6427 is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph:CommentsClose CommentsPermalink
‘(5) REFUNDS FOR AVIATION-GRADE KEROSENE NOT USED IN AVIATION- If tax has been imposed under section 4081 at the rate specified in section 4081(a)(2)(A)(iv) and the fuel is used other than in an aircraft, the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the amount of tax imposed on such fuel reduced by the amount of tax that would be imposed under section 4041 if no tax under section 4081 had been imposed.’.CommentsClose CommentsPermalink
(i) Paragraph (4) of section 9503(b) is amended by striking ‘or’ at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting a comma, and by inserting after subparagraph (D) the following new subparagraphs:CommentsClose CommentsPermalink
(1) IMPOSITION OF TAX- In the case of aviation-grade kerosene fuel which is held on April 1, 2011, by any person, there is hereby imposed a floor stocks tax on aviation-grade kerosene equal to--CommentsClose CommentsPermalink
(A) the tax which would have been imposed before such date on such kerosene had the amendments made by this section been in effect at all times before such date, reduced byCommentsClose CommentsPermalink
(3) TRANSFER OF FLOOR STOCK TAX REVENUES TO TRUST FUNDS- For purposes of determining the amount transferred to the Airport and Airway Trust Fund, the tax imposed by this subsection shall be treated as imposed by section 4081(a)(2)(A)(iv) of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink
(A) AVIATION-GRADE KEROSENE- The term ‘aviation-grade kerosene’ means aviation-grade kerosene as such term is used within the meaning of section 4081 of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink
(B) HELD BY A PERSON- Aviation-grade kerosene 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).CommentsClose CommentsPermalink
(5) EXCEPTION FOR EXEMPT USES- The tax imposed by paragraph (1) shall not apply to any aviation-grade kerosene held by any person exclusively for any use to the extent a credit or refund of the tax is allowable under the Internal Revenue Code of 1986 for such use.CommentsClose CommentsPermalink
(A) IN GENERAL- No tax shall be imposed by paragraph (1) on any aviation-grade kerosene held on April 1, 2011, by any person if the aggregate amount of such aviation-grade kerosene held by such person on such date does not exceed 2,000 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 subparagraph.CommentsClose CommentsPermalink
(B) EXEMPT AVIATION-GRADE KEROSENE- For purposes of subparagraph (A), there shall not be taken into account any aviation-grade kerosene held by any person which is exempt from the tax imposed by paragraph (1) by reason of paragraph (5).CommentsClose CommentsPermalink
(II) CONTROLLED GROUP- The term ‘controlled group’ has the meaning given to such term by subsection (a) of section 1563 of the Internal Revenue Code of 1986; 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.CommentsClose CommentsPermalink
(ii) NONINCORPORATED PERSONS UNDER COMMON CONTROL- Under regulations prescribed by the Secretary, principles similar to the principles of subparagraph (A) shall apply to a group of persons under common control if 1 or more of such persons is not a corporation.CommentsClose CommentsPermalink
(7) OTHER LAWS APPLICABLE- All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 of the Internal Revenue Code of 1986 on the aviation-grade kerosene involved shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply with respect to the floor stock taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section.CommentsClose CommentsPermalink
SEC. 5. AIR TRAFFIC CONTROL SYSTEM MODERNIZATION ACCOUNT.
‘(1) CREATION OF ACCOUNT- There is established in the Airport and Airway Trust Fund a separate account to be known as the ‘Air Traffic Control System Modernization Account’ consisting of such amounts as may be transferred or credited to the Air Traffic Control System Modernization Account as provided in this subsection or section 9602(b).CommentsClose CommentsPermalink
‘(2) TRANSFERS TO AIR TRAFFIC CONTROL SYSTEM MODERNIZATION ACCOUNT- On October 1, 2011, and annually thereafter the Secretary shall transfer $400,000,000 to the Air Traffic Control System Modernization Account from amounts appropriated to the Airport and Airway Trust Fund under subsection (b) which are attributable to taxes on aviation-grade kerosene.CommentsClose CommentsPermalink
‘(3) EXPENDITURES FROM ACCOUNT- Amounts in the Air Traffic Control System Modernization Account shall be available subject to appropriation for expenditures relating to the modernization of the air traffic control system (including facility and equipment account expenditures).’.CommentsClose CommentsPermalink
SEC. 6. TREATMENT OF FRACTIONAL AIRCRAFT OWNERSHIP PROGRAMS.
‘SEC. 4043. SURTAX ON FUEL USED IN AIRCRAFT PART OF A FRACTIONAL OWNERSHIP PROGRAM.
‘(F) there are multi-year program agreements covering the fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the program.CommentsClose CommentsPermalink
‘(3) DRY-LEASE AIRCRAFT EXCHANGE- The term ‘dry-lease aircraft exchange’ means an agreement, documented by the written program agreements, under which the program aircraft are available, on an as needed basis without crew, to each fractional owner.CommentsClose CommentsPermalink
(3) TRANSFER OF REVENUES TO AIRPORT AND AIRWAY TRUST FUND- Subsection (1) of section 9502(b) is amended by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively, and by inserting after subparagraph (A) the following new subparagraph:CommentsClose CommentsPermalink
(b) Fractional Ownership Programs Treated as Non-commercial Aviation- Subsection (b) of section 4083 is amended by adding at the end the following new sentence: ‘For uses of aircraft before October 1, 2013, such term shall not include the use of any aircraft which is part of a fractional ownership aircraft program (as defined by section 4043(c)).’.CommentsClose CommentsPermalink
(c) Exemption From Tax on Transportation of Persons- Section 4261, as amended by this Act, is amended by redesignating subsection (j) as subsection (k) and by inserting after subsection (i) the following new subsection:CommentsClose CommentsPermalink
‘(j) Exemption for Aircraft in Fractional Ownership Aircraft Programs- No tax shall be imposed by this section or section 4271 on any air transportation provided before October 1, 2013, by an aircraft which is part of a fractional ownership aircraft program (as defined by section 4043(c)).’.CommentsClose CommentsPermalink
SEC. 7. TERMINATION OF EXEMPTION FOR SMALL JET AIRCRAFT ON NONESTABLISHED LINES.
SEC. 8. TRANSPARENCY IN PASSENGER TAX DISCLOSURES.
‘(1) IN GENERAL- In the case of transportation by air for which disclosure on the ticket or advertising for such transportation of the amounts paid for passenger taxes is required by subsection (a)(2) or (b)(1)(B), if such amounts are separately disclosed, it shall be unlawful for the disclosure of such amounts to include any amounts not attributable to such taxes.CommentsClose CommentsPermalink
‘(2) INCLUSION IN TRANSPORTATION COST- Nothing in this subsection shall prohibit the inclusion of amounts not attributable to the taxes imposed by subsection (a), (b), or (c) of section 4261 in the disclosure of the amount paid for transportation as required by subsection (a)(1) or (b)(1)(A), or in a separate disclosure of amounts not attributable to such taxes.’.CommentsClose CommentsPermalink
SEC. 9. TAX-EXEMPT BOND FINANCING FOR FIXED-WING EMERGENCY MEDICAL AIRCRAFT.
(a) In General- Subsection (e) of section 147 is amended by adding at the end the following new sentence: ‘The preceding sentence shall not apply to any fixed-wing aircraft equipped for, and exclusively dedicated to providing, acute care emergency medical services (within the meaning of 4261(g)(2)).’CommentsClose CommentsPermalink
SEC. 10. PROTECTION OF AIRPORT AND AIRWAY TRUST FUND SOLVENCY.
(a) In General- Paragraph (1) of section 9502(d) is amended by adding at the end the following new sentence: ‘Unless otherwise provided by this section, for purposes of this paragraph for fiscal year 2012 or 2013, the amount available for making expenditures for such fiscal year shall not exceed 90 percent of the receipts of the Airport and Airway Trust Fund plus interest credited to such Trust Fund for such fiscal year as estimated by the Secretary of the Treasury.’.CommentsClose CommentsPermalink