To amend the Internal Revenue Code of 1986 to provide that the diesel fuel tax on recreational boats shall be imposed only at the retail level.

Amends the Internal Revenue Code to add use in diesel-powered boats to the list of nontaxable uses for diesel fuel, effective on the enactment of this Act. Prohibits imposing a penalty on a person who sells or holds for sale dyed fuel for use in, or uses dyed fuel in, any diesel-powered boat and pays the tax imposed on such sale or use, effective on the date of the enactment of the Omnibus Budget Reconciliation Act of 1993.

[Congressional Bills 104th Congress]
[From the U.S. Government Printing Office]
[H.R. 1821 Introduced in House (IH)]

  1st Session
                                H. R. 1821

 To amend the Internal Revenue Code of 1986 to provide that the diesel 
  fuel tax on recreational boats shall be imposed only at the retail 
                                 level.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 13, 1995

   Mr. Farr (for himself, Mr. Bliley, Mr. Studds, Mr. Gilchrest, Mr. 
  Pallone, Ms. Pelosi, Mr. Gejdenson, Mr. Ackerman, Mr. Bentsen, Mr. 
 Saxton, Mr. Moran, Mr. Tauzin, Mr. Peterson of Florida, Ms. Lofgren, 
and Mr. Martinez) 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 provide that the diesel 
  fuel tax on recreational boats shall be imposed only at the retail 
                                 level.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. MODIFICATION OF TAX PROVISIONS RELATING TO DIESEL FUEL SOLD 
              FOR USE OR USED IN DIESEL-POWERED BOATS.

    (a) Tax-Free Sales.--Subsection (b) of section 4082 of the Internal 
Revenue Code of 1986 (relating to exemptions for diesel fuel) is 
amended by striking ``and'' at the end of paragraph (2), by striking 
the period at the end of paragraph (3) and inserting ``, and'', and by 
adding at the end the following new paragraph:
            ``(4) any use in diesel-powered boats.''
    (b) Penalty-free Taxable Sale or Use of Dyed Diesel Fuel.--
            (1) In general.--Section 6714 of such Code (relating to 
        dyed fuel sold for use or used in taxable use, etc.), as added 
        by section 13242 of the Omnibus Budget Reconciliation Act of 
        1993, is amended by redesignating subsections (c) and (d) as 
        subsections (d) and (e), respectively, and by inserting after 
        subsection (b) the following new subsection:
    ``(c) Exception.--No penalty shall be imposed under subsection (a) 
on any person who--
            ``(1) sells or holds for sale dyed fuel for use in, or uses 
        dyed fuel in, any diesel-powered boat, and
            ``(2) pays the tax imposed on such sale or use under 
        section 4041(a)(1)(A).''
            (2) Nontaxable use.--Paragraph (2) of section 6714(d) of 
        such Code, as redesignated by paragraph (1), is amended by 
        inserting ``paragraphs (1), (2), and (3) of'' before 
        ``section''.
            (3) Technical amendments.--
                    (A) Part II of subchapter B of chapter 68 of the 
                Internal Revenue Code of 1986 is amended by 
                redesignating section 6714 (relating to dyed fuel sold 
                for use or used in taxable use, etc.), as added by 
                section 13242(b)(1) of the Omnibus Budget 
                Reconciliation Act of 1993, as section 6715.
                    (B) The table of sections for such part is amended 
                by redesignating the item relating to section 6714 
                (relating to dyed fuel sold for use or used in taxable 
                use, etc.), as added by section 13242(b)(2) of such 
                Act, as section 6715.
    (c) Effective Dates.--
            (1) Tax-free sales.--The amendment made by subsection (a) 
        shall take effect on the date of the enactment of this Act.
            (2) Penalty-free sales.--The amendments made by subsection 
        (b) shall take effect as if included in the amendments made by 
        section 13242 of the Omnibus Budget Reconciliation Act of 1993.
                                 <all>