Energy Security Tax Act of 1989

Energy Security Tax Act of 1989 - Amends the Internal Revenue Code to impose an excise tax on the first sale within the United States of imports of: (1) crude oil; (2) refined petroleum products; and (3) petrochemical feedstocks or petrochemical derivatives.

Sets the rate of the tax as the difference between $22 per barrel ($24.50 for petroleum and petrochemical products) and the most recently published average price of a barrel of internationally traded oil, as determined by the Secretary of the Treasury in accordance with a specified formula.

 
HR 659 IH
101st CONGRESS
1st Session
H.R. 659
To amend the Internal Revenue Code of 1986 to impose a fee on the importation
of crude oil or refined petroleum products.
IN THE HOUSE OF REPRESENTATIVES
January 27, 1989
Mr. ANDREWS (for himself, Mr. PICKLE, Mr. HALL of Texas, Mr. MCCURDY,
Mr. WATKINS, Mr. ENGLISH, Mr. BUSTAMANTE, Mr. CHAPMAN, Mr. BRYANT,
Mr. COLEMAN of Texas, Mr. STENHOLM, Mr. FROST, Mr. LELAND, Mr. LAUGHLIN,
Mr. COMBEST, Mr. TAUZIN, Mrs. BOGGS, Mr. HAYES of Louisiana, Mr. BARTON of
Texas, Mr. BROOKS, and Mr. SARPALIUS) introduced the following bill; which
was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to impose a fee on the importation
of crude oil or refined petroleum products.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Energy Security Tax Act of 1989'.
SEC. 2. FEE ON IMPORTED CRUDE OIL, REFINED PETROLEUM PRODUCTS, AND
PETROCHEMICAL FEEDSTOCKS OR PETROCHEMICAL DERIVATIVES.
  (a) IN GENERAL- Subtitle E of the Internal Revenue Code of 1986 (relating
  to alcohol, tobacco, and certain other excise taxes) is amended by adding
  at the end thereof the following new chapter:
`CHAPTER 55--IMPORTED CRUDE OIL, REFINED PETROLEUM PRODUCTS, AND PETROCHEMICAL
FEEDSTOCKS OR PETROCHEMICAL DERIVATIVES
`Sec. 5891. Imposition of tax.
`Sec. 5892. Definitions.
`Sec. 5893. Registration.
`SEC. 5891. IMPOSITION OF TAX.
  `(a) IMPOSITION OF TAX- In addition to any other tax imposed under this
  title, an excise tax is hereby imposed on--
  `(1) the first sale within the United States of--
  `(A) any crude oil,
  `(B) any refined petroleum product, or
  `(C) any petrochemical feedstock or petrochemical derivative,
that has been imported into the United States, and
  `(2) the use within the United States of--
  `(A) any crude oil, or
  `(B) any refined petroleum product, or
  `(C) any petrochemical feedstock or petrochemical derivative,
that has been imported into the United States if no tax has been imposed
with respect to such crude oil or refined petroleum product prior to such use.
  `(b) Rate of Tax-
  `(1) CRUDE OIL- For purposes of paragraphs (1)(A) and (2)(A) of subsection
  (a) the rate of tax shall be the excess, if any, of--
  `(A) $22 per barrel, over
  `(B) the most recently published average price of a barrel of internationally
  traded oil.
  `(2) REFINED PETROLEUM PRODUCT- For purposes of paragraphs (1)(B) and
  (2)(B) of subsection (a), the rate of tax shall be the excess, if any, of--
  `(A) $24.50 per barrel, over
  `(B) the most recently published average price of a barrel of internationally
  traded oil.
  `(3) PETROCHEMICAL FEEDSTOCK OR PETROCHEMICAL DERIVATIVE- For purposes
  of paragraphs (1)(C) and (2)(C) of subsection (a), the rate of tax
  shall be equal to the rate of tax determined under paragraph (2) of this
  subsection, except that `barrel equivalent of crude oil feedstocks used
  in the manufacture of such petrochemical feedstocks or petrochemical
  derivative' shall be substituted for `barrel' the first place it appears
  in such paragraph (1).
  `(4) FRACTIONAL PARTS OF BARRELS- In the case of a fraction of a barrel,
  the tax imposed by subsection (a) shall be the same fraction of the amount
  of such tax imposed on the whole barrel.
  `(c) Determination of Average Price-
  `(1) IN GENERAL- For purposes of this section, the average price of
  internationally traded oil with respect to any week during which the tax
  under subsection (a) is imposed shall be determined by the Secretary and
  published in the Federal Register on the first day of such week.
  `(2) BASIS OF DETERMINATION- For purposes of paragraph (1), the Secretary,
  after consultation with the Administrator of the Energy Information
  Administration of the Department of Energy, shall determine the average
  price of internationally traded oil for the preceding 4 weeks, pursuant
  to the formula for determining such international price as is used in
  publishing the Weekly Petroleum Status Report and as is in effect on the
  date of enactment of this section.
  `(d) Liability for Payment of Tax-
  `(1) SALES- The taxes imposed by subsection (a)(1) shall be paid by the first
  person who sells the crude oil, refined petroleum product, petrochemical
  feedstock, or petrochemical derivative within the United States.
  `(2) USE- The taxes imposed by subsection (a)(2) shall be paid by the person
  who uses the crude oil, refined petroleum product, petrochemical feedstock,
  or petrochemical derivative.
`SEC. 5892. DEFINITIONS.
  `For purposes of this chapter--
  `(1) CRUDE OIL- The term `crude oil' means crude oil other than crude oil
  produced from a well located in the United States (within the meaning
  of section 638(1)) or in a possession of the United States (within the
  meaning of section 638(2)).
  `(2) BARREL- The term `barrel' means 42 United States gallons.
  `(3) REFINED PETROLEUM PRODUCT- The term `refined petroleum product' shall
  have the same meaning given to such term by section 3(5) of the Emergency
  Petroleum Allocation Act of 1973 (15 U.S.C. 752(5)).
  `(4) EXPORT- The term `export' includes shipment to a possession of the
  United States; and the term `exported' includes shipment to a possession
  of the United States.
`SEC. 5893. REGISTRATION.
  `Every person subject to tax under section 5891 shall, before incurring
  any liability for tax under such section, register with the Secretary.'
  (b) CONFORMING AMENDMENT- The table of chapters for subtitle E of such
  Code is amended by adding at the end thereof the following new item:
`CHAPTER 55. Imported crude oil, refined petroleum products, and petrochemical
feedstocks or petrochemical derivatives.'
  (c) DEDUCTIBILITY OF IMPORTED OIL TAX- The first sentence of section 164(a)
  of such Code (relating to deductions for taxes) is amended by inserting
  after paragraph (5) the following new paragraph:
  `(6) The taxes imposed by section 5891.'
  (d) EFFECTIVE DATE- The amendments made by this section shall apply with
  respect to sales and use of imported crude oil, imported refined petroleum
  products, petrochemical feedstocks, or petrochemical derivatives on or
  after October 1, 1989.