EXEMPTION FROM TAXES ON TRANSPORTATION PROVIDED BY SEAPLANES.

SEC. 11123. EXEMPTION FROM TAXES ON TRANSPORTATION PROVIDED BY SEAPLANES.(a) In General.—Section 4261 (relating to imposition of tax) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection:“(i) Exemption for Seaplanes.—No tax shall be imposed by this section or section 4271 on any air transportation by a seaplane with respect to any segment consisting of a takeoff from, and a landing on, water, but only if the places at which such takeoff and landing occur have not received and are not receiving financial assistance from the Airport and Airways Trust Fund.”.(b) Rate of Fuel Tax for Seaplanes Subject to Exemption.—Subsection (b) of section 4083 is amended by striking “section 4261(h)” and inserting “subsection (h) or (i) of section 4261”.(c) Effective Date.—The amendments made by this section shall apply to transportation beginning after September 30, 2005.