TAX ON USE OF AIRCRAFT.

SEC. 206. TAX ON USE OF AIRCRAFT. (a) Imposition of Tax.—Chapter 36 (relating to certain other excise taxes) is amended by adding at the end thereof the following new subchapter: 84 Stat. 243 “Subchapter E—Tax on Use of Civil Aircraft “Sec. 4491. Imposition of tax. “Sec. 4492. Definitions. “Sec. 4493. Special rules. “Sec. 4494. Cross reference. “SEC. 4491. IMPOSITION OF TAX. “(a) Imposition of Tax.—A tax is hereby imposed on the use of any taxable civil aircraft during any year at the rate of— “(1) $25,plus “(2) (A) in the case of an aircraft (other than a turbine engine powered aircraft) having a maximum certificated takeoff weight of more than 2,500 pounds, 2 cents a pound for each pound of the maximum certificated takeoff weight, or (B) in the case of any turbine engine powered aircraft, 8½ cents a pound for each pound of the maximum certificated takeoff weight. “(b) By Whom Paid.—Except as provided in section 4493(a), the tax imposed by this section shall be paid— “(1) in the case of a taxable civil aircraft described in section 4492(a)(1), by the person in whose name the aircraft is, or is required to be, registered, or “(2) in the case of a taxable civil aircraft described in section 4492(a)(2), by the United States person by or for whom the aircraft is owned. “(c) Probation of Tax.—If in any year the first use of the taxable civil aircraft is after the first month in such year, that portion of the tax which is determined under subsection (a)(2) shall be reckoned proportionately from the first day of the month in which such use occurs to and including the last day in such year. “(d) One Tax Liability Per Year.— “(1) In general.—To the extent that the tax imposed by this section is paid with respect to any taxable civil aircraft for any year, no further tax shall be imposed by this section for such year with respect to such aircraft. “(2) Cross reference.— “For privilege of paying tax imposed by this section in install-meats, see section 6156. “(e) Termination.—On and after July 1, 1980, the tax imposed by subsection (a) shall not apply. “SEC. 4492. DEFINITIONS. “(a) Taxable Civil Aircraft.—For purposes of this subchapter, the term ‘taxable civil aircraft’ means any engine driven aircraft— “(1) registered, or required to be registered, under section 501(a) of the Federal Aviation Act of 1958 (49 U.S.C., sec. 1401(a)), or “(2) which is not described in paragraph (1) but which is owned by or for a United States person. “(b) Weight.—For purposes of this subchapter, the term ‘maximum certificated takeoff weight’ means the maximum such weight contained in the type certificate or airworthiness certificate. “(c) Other Definitions.—For purposes of this subchapter— “(1) Year.—The term ‘year’ means the one-year period beginning on July 1. “(2) Use.—The term ‘use’ means use in the navigable airspace of the United States. 84 Stat. 244 “(3) Navigable airspace of the united states.—The term ‘navigable airspace of the United States’ has the definition given to such term by section 101 (24) of the Federal Aviation Act of 1958 (49 U.S.C., sec. 1301 (24)), except that such term does not include the navigable airspace of the Commonwealth of Puerto Rico or of any possession of the United States. “SEC. 4493. SPECIAL RULES. “(a) Payment of Tax by Lessee.— “(1) In general.—Any person who is the lessee of any taxable civil aircraft on the day in any year on which occurs the first use which subjects such aircraft to the tax imposed by section 4491 for such year may, under regulations prescribed by the Secretary or his delegate, elect to be liable for payment of such tax. Notwithstanding any such election, if such lessee does not pay such tax, the lessor shall also be liable for payment of such tax. “(2) Exception.—No election may be made under paragraph (1) with respect to any taxable civil aircraft which is leased from a person engaged in the business of transporting persons or property for compensation or hire by air. “(b) Certain Persons Engaged in Foreign Air Commerce.— “(1) Election to pay tentative tax.— Any person who is a significant user of taxable civil aircraft in foreign air commerce may, with respect to that portion of the tax imposed by section 4491 which is determined under section 4491 (a) (2) on any taxable civil aircraft for any year beginning on or after July 1, 1970, elect to pay the tentative tax determined under paragraph (2). The payment of such tentative tax shall not relieve such person from payment of the net liability for the tax imposed by section 4491 on such taxable civil aircraft (determined as of the close of such year). “(2) Tentative tax.—For purposes of paragraph (1), the tentative tax with respect to any taxable civil aircraft for any year is an amount equal to that portion of the tax imposed by section 4491 on such aircraft for such year which is determined under section 4491 (a)(2), reduced by a percentage of such amount equal to the percentage which the aggregate of the payments to which such person was entitled under section 6426 (determined without regard to section 6426(c) (2)) with respect to the preceding year is of the aggregate of the taxes imposed by section 4491 for which such person was liable for payment for the preceding year. In the case of the year beginning on July 1, 1970, this subsection shall apply only if the person electing to pay the tentative tax establishes what the tentative tax would have been for such year if section 4491 had taken effect on July 1, 1969. “(3) Significant users of aircraft in foreign air commerce.—For purposes of paragraph (1), a person is a significant user of taxable civil aircraft in foreign air commerce for any year only if the aggregate of the payments to which such person was entitled under section 6426 (determined without regard to section 6426(c) (2)) with respect to the preceding year was at least 10 percent of the aggregate of the taxes imposed by section 4491 for which such person was liable for payment for the preceding year. “(4) Net liability for tax.— For purposes of paragraph (1), the net liability for the tax imposed by section 4491 with respect to any taxable civil aircraft for any year is— “(A) the amount of the tax imposed by such section, reduced by 84 Stat. 245 “(B) the amount, payable under section 6426 with respect to such aircraft for the year (determined without regard to section 6426(c) (2)). “SEC. 4494. CROSS REFERENCE. “For penalties and administrative provisions applicable to this subchapter, see subtitle F.” (b) Installment Payment of Tax.— (1) Section 6156(a) (relating to installment payments of tax on use of highway motor vehicles) is amended by inserting “or 4491” after “4481” (2) Paragraph (2) of section 6156(e) is amended to read as follows: (3) ) July, August, or September of 1972, in the ease of the tax imposed by section 4481.” (c) Refund for Certain Foreign Air Commerce.— Subchapter B of chapter 65 (relating to rules of special application) is amended by adding at the end thereof the following new section: “SEC. 6426. REFUND OF AIRCRAFT USE TAX WHERE PLANE TRANSPORTS FOR HIRE IN FOREIGN AIR COMMERCE. “(a) General Rule.—In the case of any aircraft used in the business of transporting persons or property for compensation or hire by air, if any of such transportation during any period is transportation in foreign air commerce, the Secretary or his delegate shall pay (without interest) to the person who paid the tax under section 4491 for such period the amount determined by multiplying that portion of the amount so paid for such period which is determined under section 4491(a) (2) with respect to such aircraft by a fraction— “(1) the numerator of which is the number of air port-to-airport miles such aircraft traveled in foreign air commerce during such period while engaged in such business, and “(2) the denominator of which is the total number of airport-to-airport miles such aircraft traveled during such period. “(b) Definitions.— For purposes of this section— “(1) Foreign air commerce.—The term ‘foreign air commerce’ means any movement by air of the aircraft which does not begin and end in the United States: except that any segment of such movement in which the aircraft, traveled between two ports or stations in the United States shall be treated as travel which is not foreign air commerce. “(2) Airport-to-airport miles.— The term ‘airport-to-airport miles’ means the official mileage distance between airports as determined under regulations prescribed by the Secretary or his delegate. “(c) Payments to Persons Paying Tentative Tax.—In the case of any person who paid a tentative tax determined under section 4493(h) with respect to any aircraft for any period, the amount payable under subsection (a) with respect to such aircraft for such period— “(1) shall be computed with reference to that portion of the tax imposed under section 4491 for such period which is determined under section 4491 (a)(2), and “(2) as so computed, shall be reduced by an amount equal to— “(A) the amount by which that portion of the tax imposed under section 4491 for such period which is determined under section 4491 (a)(2), exceeds “(B) the amount of the tentative tax determined under section 4493(b) paid for such period. “(d) Time for Filing Claim.—Not more than one claim may be filed under this section by any person with respect to any year. No 84 Stat. 246claim shall be allowed under this subsection with respect to any year unless filed on or before the first September 30 after the end of such year. “(e) Regulations.—The Secretary or his delegate may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section or the amount to which any person is entitled under this section with respect to any period may be treated by such person as an overpayment which may be credited against the tax imposed by section 1191 with respect to such period.” (d) Clerical Amendments.— (1) The table of subchapters for chapter 36 is amended by adding at the end thereof the following: ““Subchapter E. Tax on use of civil aircraft”. (2) The heading for section 6156 is amended by inserting “AND CIVIL AIRCRAFT” after “HIGHWAY MOTOR VEHICLES”. (3) The table of sections for subchapter A of chapter 62 is amended by inserting “and civil aircraft” after “highway motor vehicles” in the item relating to section 6156. (4) The table of sections for subchapter B of chapter 65 is amended by adding at the end thereof the following: “Sec. 6426. Refund of aircraft use tax where plane transports for hire in foreign air commerce.”