[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4006 Introduced in House (IH)]
106th CONGRESS
2d Session
H. R. 4006
To amend the Internal Revenue Code of 1986 to reduce motor fuel excise
tax rates.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 16, 2000
Mr. Collins (for himself, Mr. Pombo, Mr. Deal of Georgia, Mr. Graham,
Mr. Hayworth, Mr. Sam Johnson of Texas, and Mr. Barr of Georgia)
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 reduce motor fuel excise
tax rates.
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 ``Fuel Tax Cost Reduction Act of
2000''.
SEC. 2. REDUCTION OF HIGHWAY MOTOR FUEL TAX RATES TO PRE-1990 LEVELS;
4.3-CENT REDUCTION IN OTHER FUEL TAX RATES.
(a) Highway Gasoline.--Clause (i) of section 4081(a)(2)(A) of the
Internal Revenue Code of 1986 is amended by striking ``18.3 cents'' and
inserting ``9 cents''.
(b) Aviation Gasoline.--Clause (ii) of section 4081(a)(2)(A) of
such Code is amended by striking ``19.3 cents'' and inserting ``15
cents''.
(c) Diesel Fuel and Kerosene.--Clause (iii) of section
4081(a)(2)(A) of such Code is amended by striking ``24.3 cents'' and
inserting ``15 cents''.
(d) Aviation Fuel.--Paragraph (1) of section 4091(b) of such Code
is amended by striking ``21.8 cents'' and inserting ``17.5 cents''.
(e) Fuel Used on Inland Waterways.--
(1) Paragraph (1) of section 4042(b) of such Code is
amended by adding ``and'' at the end of subparagraph (A), by
striking ``, and'' at the end of subparagraph (B) and inserting
a period, and by striking subparagraph (C).
(2) Paragraph (2) of section 4042(b) of such Code is
amended by striking subparagraph (C).
(f) Technical Amendments.--
(1) Subparagraph (B) of section 40(e)(1) of such Code is
amended by striking ``during which the rates of tax under
section 4081(a)(2)(A) are 4.3 cents per gallon'' and inserting
``during which the rate of tax under section 4081(a)(2)(A)(i)
does not apply''.
(2) Subparagraph (A) of section 4041(a)(1) of such Code is
amended by striking ``or a diesel-powered train'' each place it
appears and by striking ``or train''.
(3) Subparagraph (C) of section 4041(a)(1) of such Code is
amended by striking clause (ii) and by redesignating clause
(iii) as clause (ii).
(4) Subclause (I) of section 4041(a)(1)(C)(ii) of such
Code, as redesignated by paragraph (3), is amended by striking
``7.3 cents'' and inserting ``3 cents'' and by striking ``4.3
cents per gallon'' and inserting ``zero''.
(5) Subsection (a) of section 4041 of such Code is amended
by striking paragraph (3).
(6) Subparagraph (C) of section 4041(b)(1) of such Code is
amended by striking all that follows ``section 6421(e)(2)'' and
inserting a period.
(7) Subparagraph (B) of section 4041(a)(2) of such Code is
amended by striking all that follows clause (i) and inserting
the following new clauses:
``(ii) 5.4 cents per gallon in the case of
any sale or use of liquefied petroleum gas
before October 1, 2005, and
``(iii) 4.1 cents per gallon in the case of
any sale or use of liquefied natural gas before
October 1, 2005.''
(8) Paragraph (3) of section 4041(c) of such Code is
amended to read as follows:
``(3) Termination.--The rate of the taxes imposed by
paragraph (1) shall be zero after September 30, 2007.''
(9) Subsection (d) of section 4041 of such Code is amended
by redesignating paragraph (3) as paragraph (4) and by
inserting after paragraph (2) the following new paragraph:
``(3) Diesel fuel used in trains.--There is hereby imposed
a tax of 0.1 cent per gallon on any liquid other than gasoline
(as defined in section 4083)--
``(A) sold by any person to an owner, lessee, or
other operator of a diesel-powered train for use as a
fuel in such train, or
``(B) used by any person as a fuel in a diesel-
powered train unless there was a taxable sale of such
fuel under subparagraph (A).
No tax shall be imposed by this paragraph on the sale or use of
any liquid if tax was imposed on such liquid under section
4081.''
(10) Clauses (i) and (ii) of section 4041(m)(1)(A) of such
Code are amended to read as follows:
``(i) 2 cents per gallon on and after the
date of the enactment of this clause and before
October 1, 2005, and
``(ii) zero after September 30, 2005,
and''.
(11) Subsection (c) of section 4081 of such Code is amended
by striking paragraph (6) and by redesignating paragraphs (7)
and (8) as paragraphs (6) and (7), respectively.
(12) Paragraphs (1) and (2) of section 4081(d) of such Code
are amended to read as follows:
``(1) In general.--The rates of tax specified in clauses
(i) and (iii) of subsection (a)(2)(A) shall be zero after
September 30, 2005.
``(2) Aviation gasoline.--The rate of tax specified in
subsection (a)(2)(A)(ii) shall be zero after September 30,
2007.''
(13) Subsection (f) of section 4082 of such Code is amended
by striking ``section 4041(a)(1)'' and inserting ``subsections
(d)(3) and (a)(1) of section 4041, respectively''.
(14) Paragraph (3) of section 4083(a) of such Code is
amended by striking ``or a diesel-powered train''.
(15) Subparagraph (A) of section 4091(b)(3) of such Code is
amended to read as follows:
``(A) The rate of tax specified in paragraph (1)
shall be zero after September 30, 2007.''
(16) Paragraph (1) of section 4091(c) of such Code is
amended--
(A) by striking ``14 cents'' and inserting ``9.7
cents'',
(B) by striking ``13.3 cents'' and inserting ``9
cents'',
(C) by striking ``13.2 cents'' and inserting ``8.9
cents'',
(D) by striking ``13.1 cents'' and inserting ``8.8
cents'', and
(E) by striking ``13.4 cents'' and inserting ``9.1
cents''.
(17) Subsection (c) of section 4091 of such Code is amended
by striking paragraph (4), and by redesignating paragraph (5)
as paragraph (4).
(18) Subsection (b) of section 4092 of such Code is amended
by striking ``attributable to'' and all that follows and
inserting ``attributable to the Leaking Underground Storage
Tank Trust Fund financing rate imposed by such section. For
purposes of the preceding sentence, the term `commercial
aviation' means any use of an aircraft other than in
noncommercial aviation (as defined in section 4041(c)(2)).''
(19) Subparagraph (B) of section 6421(f)(2) of such Code is
amended by striking ``and,'' and all that follows and inserting
a period.
(20) Paragraph (3) of section 6421(f) of such Code is
amended to read as follows:
``(3) Gasoline used in trains.--In the case of gasoline
used as a fuel in a train, this section shall not apply with
respect to the Leaking Underground Storage Tank Trust Fund
financing rate under section 4081.''
(21) Subparagraph (A) of section 6427(b)(2) of such Code is
amended by striking ``7.4 cents'' and inserting ``3.1 cents''.
(22) Paragraph (3) of section 6427(l) of such Code is
amended to read as follows:
``(3) Refund of certain taxes on fuel used in diesel-
powered trains.--For purposes of this subsection, the term
`nontaxable use' includes fuel used in a diesel-powered train.
The preceding sentence shall not apply to the tax imposed by
section 4041(d) and the Leaking Underground Storage Tank Trust
Fund financing rate under section 4081 except with respect to
fuel sold for exclusive use by a State or any political
subdivision thereof.''
(23) Paragraph (4) of section 6427(l) of such Code is
amended by striking ``attributable to'' and all that follows
through the period and inserting ``attributable to the Leaking
Underground Storage Tank Trust Fund financing rate imposed by
such section.''
(g) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
(h) Floor Stock Refunds.--
(1) In general.--If--
(A) before the date of the enactment of this Act,
tax has been imposed under section 4081 or 4091 of the
Internal Revenue Code of 1986 on any liquid, and
(B) on such date such liquid is held by a dealer
and has not been used and is intended for sale,
there shall be credited or refunded (without interest) to the
person who paid such tax (hereafter in this subsection referred
to as the ``taxpayer'') an amount equal to the excess of the
tax paid by the taxpayer over the amount of such tax which
would be imposed on such liquid had the taxable event occurred
on such date.
(2) Time for filing claims.--No credit or refund shall be
allowed or made under this subsection unless--
(A) claim therefor is filed with the Secretary of
the Treasury before the date which is 6 months after
the date of the enactment of this Act, based on a
request submitted to the taxpayer before the date which
is 3 months after such date of enactment, by the dealer
who held the liquid on such date of enactment, and
(B) the taxpayer has repaid or agreed to repay the
amount so claimed to such dealer or has obtained the
written consent of such dealer to the allowance of the
credit or the making of the refund.
(3) Exception for fuel held in retail stocks.--No credit or
refund shall be allowed under this subsection with respect to
any liquid in retail stocks held at the place where intended to
be sold at retail.
(4) Definitions.--For purposes of this subsection, the
terms ``dealer'' and ``held by a dealer'' have the respective
meanings given to such terms by section 6412 of such Code.
(5) Certain rules to apply.--Rules similar to the rules of
subsections (b) and (c) of section 6412 of such Code shall
apply for purposes of this subsection.
(i) Maintenance of Trust Fund Deposits.--In determining the amounts
to be appropriated to any trust fund, an amount equal to the reduction
in revenues to the Treasury by reason of a reduction under this Act in
any rate shall be treated as taxes received in the Treasury under such
rate.
<all>
Sponsor introductory remarks on measure. (CR E257)
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Sponsor introductory remarks on measure. (CR E1153)
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