text: 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) ____ per gallon in the case of the tax imposed by 
          section 4081(a)(2)(A)(ii) (relating to aviation gasoline),
              ``(2) ____ cents per gallon in the case of the tax imposed 
          by section 4091 (relating to aviation fuel),
              ``(3) ____ percent and ____ 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) $____ 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.
target: Amends the Internal Revenue Code to:  (1) provide that the amount of fiscal year aviation excise taxes shall match Airport and Airway Trust Fund expenditures; (2) require annual aviation tax rate determinations by a specified date; and (3) establish in such Fund an Annual Reserve Account.
feat_title: 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.