PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 929 Subtitle D—Excise and Employment Tax Provisions SEC. 1031. EXTENSION AND MODIFICATION OF TAXES FUNDING AIR- PORT AND AIRWAY TRUST FUND; INCREASED DEPOSITS INTO SUCH FUND. (a) FUEL TAXES.— (1) AVIATION FUEL.— Clause (ii) of section 4091(b)(3)(A) is amended by striking "September 30, 1997" and inserting "September 30, 2007". (2) AVIATION GASOLINE. — Subparagraph (B) of section 4081(d)(2) is amended by striking "September 30, 1997" and inserting "September 30, 2007". (3) NONCOMMERCIAL AVIATION.— Subparagraph (B) of section 4041(c)(3) is amended by striking "September 30, 1997" and inserting "September 30, 2007". (b) TICKET TAXES.— (1) PERSONS. —Clause (ii) of section 4261(g)(1)(A) is amended by striking "September 30, 1997" and inserting "September 30, 2007". (2) PROPERTY. —Clause (ii) of section 4271(d)(1)(A) is amended by striking "September 30, 1997" and inserting "September 30, 2007". (c) MODIFICATIONS TO TAX ON TRANSPORTATION OF PERSONS BY AIR.— (1) IN GENERAL.— Section 4261 (relating to imposition of tax) is amended by striking subsections (a), (b), and (c) and inserting the following new subsections: "(a) IN GENERAL. —There is hereby imposed on the amount paid for taxable transportation of any person a tax equal to 7.5 percent of the amount so paid. "(b) DOMESTIC SEGMENTS OF TAXABLE TRANSPORTATION. — "(1) IN GENERAL.— T here is hereby imposed on the amount paid for each domestic segment of taxable transportation by air a tax in the amount determined in accordance with the following table for the period in which the segment begins: In the case of segments beginning: The tax is: After September 30, 1997, and before October 1, 1998 $1.00 After September 30, 1998, and before October 1, 1999 $2.00 After September 30, 1999, and before January 1, 2000 $2.25 During 2000 $2.50 During 2001 $2.75 During 2002 or thereafter $3.00. "(2) DOMESTIC SEGMENT.— For purposes of this section, the term 'domestic segment' means any segment consisting of 1 takeoff and 1 landing and which is taxable transportation described in section 4262(a)(1). "(3) CHANGES IN SEGMENTS BY REASON OF REROUTING.— If— "(A) transportation is purchased between 2 locations on specified flights, and "(B) there is a change in the route taken between such 2 locations which changes the number of domestic segments, but there is no change in the amount charged for such transportation,
�
