Repeal the 4.3 cent per gallon tax increase (enacted in 1993) for fuel used for trains, planes, and barges.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4776 Introduced in House (IH)]
106th CONGRESS
2d Session
H. R. 4776
To amend the Internal Revenue Code of 1986 to suspend all motor fuel
taxes until March 31, 2001, to permanently repeal the 4.3 cent per
gallon increases in rail, barge, and aviation fuel taxes enacted in
1993, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 28, 2000
Mr. Collins (for himself, Mr. Hayworth, Mr. Kingston, Mr. Sam Johnson
of Texas, Mr. Blunt, Mr. McKeon, Mr. Hobson, Mr. Bishop, Mr. English,
Mr. LoBiondo, Mr. Linder, Mr. Coburn, Mr. Hefley, and Mr. Norwood)
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 suspend all motor fuel
taxes until March 31, 2001, to permanently repeal the 4.3 cent per
gallon increases in rail, barge, and aviation fuel taxes enacted in
1993, and for other purposes.
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 Excise Tax Relief Act''.
SEC. 2. SUSPENSION OF FUEL TAXES THROUGH MARCH 31, 2001.
(a) Temporary Suspension of Fuel Taxes.--During the suspension
period, each rate of tax referred to in subsection (b) shall be reduced
to zero.
(b) Rates of Tax.--The rates of tax referred to in this subsection
are the rates of tax otherwise applicable under--
(1) paragraphs (1), (2), and (3) of section 4041(a) of the
Internal Revenue Code of 1986 (relating to diesel fuel and
special motor fuels),
(2) subsection (m) of section 4041 of such Code (relating
to certain alcohol fuels),
(3) subparagraphs (A) and (C) of section 4042(b)(1) of such
Code (relating to tax on fuel used in commercial transportation
on inland waterways),
(4) clauses (i), (ii), and (iii) of section 4081(a)(2)(A)
of such Code (relating to gasoline, diesel fuel, and kerosene),
(5) paragraph (1) of section 4091(b) of such Code (relating
to aviation fuel), and
(6) paragraph (2) of section 4092(b) of such Code (relating
to fuel used in commercial aviation).
(c) Suspension Period.--For purposes of this section, the term
``suspension period'' means period beginning on the date of the
enactment of this Act and ending on March 31, 2001.
SEC. 3. REPEAL OF 1993 INCREASES IN CERTAIN MOTOR FUEL TAXES.
(a) Diesel Fuel Used in Trains.--Subparagraph (C) of section
4041(a)(1) of the Internal Revenue Code of 1986 is amended by striking
clause (ii) and by redesignating clause (iii) as clause (ii).
(b) 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).
(c) Gasoline Used in Trains.--Clause (i) of section 4081(a)(2)(A)
of such Code is amended by inserting before the comma at the end the
following: ``(14 cents in the case of gasoline used in trains)''.
(d) Aviation Gasoline.--Clause (ii) of section 4081(a)(2)(A) of
such Code is amended by striking ``19.3 cents'' and inserting ``15
cents''.
(e) Aviation Fuel.--Paragraph (1) of section 4091(b) of such Code
is amended by striking ``21.8 cents'' and inserting ``17.5 cents''.
(f) Technical Amendments.--
(1) 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''.
(2) 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.
(3) 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.''
(4) Paragraph (2) of section 4081(d) of such Code is
amended to read as follows:
``(2) Aviation gasoline.--The rate of tax specified in
subsection (a)(2)(A)(ii) shall be zero after September 30,
2007.''.
(5) 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''.
(6) Paragraph (3) of section 4083(a) of such Code is
amended by striking ``or a diesel-powered train''.
(7) 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.''
(8) 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''.
(9) Subsection (c) of section 4091 of such Code is amended
by striking paragraph (4), and by redesignating paragraph (5)
as paragraph (4).
(10) 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)).''
(11) Subparagraph (B) of section 6421(f)(2) of such Code is
amended by striking ``and,'' and all that follows and inserting
a period.
(12) 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.''
(13) 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.''
(14) 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 April 1, 2001.
SEC. 4. FLOOR STOCK REFUNDS.
(a) In General.--If--
(1) before the tax suspension date, a tax referred to in
section 2(b) has been imposed under the Internal Revenue Code
of 1986 on any liquid, and
(2) 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 section 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.
(b) Time for Filing Claims.--No credit or refund shall be allowed
or made under this section unless--
(1) claim therefor is filed with the Secretary of the
Treasury before the date which is 6 months after the tax
suspension date, and
(2) in any case where liquid is held by a dealer (other
than the taxpayer) on the tax suspension date--
(A) the dealer submits a request for refund or
credit to the taxpayer before the date which is 3
months after the tax suspension date, 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.
(c) Exception for Fuel Held in Retail Stocks.--No credit or refund
shall be allowed under this section with respect to any liquid in
retail stocks held at the place where intended to be sold at retail.
(d) Definitions.--For purposes of this section--
(1) the terms ``dealer'' and ``held by a dealer'' have the
respective meanings given to such terms by section 6412 of such
Code; except that the term ``dealer'' includes a producer, and
(2) the term ``tax suspension date'' means the date on
which the suspension period begins under section 2(b).
(e) 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 section.
SEC. 5. FLOOR STOCKS TAX.
(a) Imposition of Tax.--In the case of any taxable liquid which is
held on the floor stocks tax date by any person, there is hereby
imposed a floor stocks tax equal to the excess of the tax which would
be imposed on such liquid under any section of the Internal Revenue
Code of 1986 referred to in section 2(b) had the taxable event occurred
on the floor stocks tax date over the tax paid under any such section
on such liquid.
(b) Liability for Tax and Method of Payment.--
(1) Liability for tax.--A person holding a liquid on the
floor stocks tax date to which the tax imposed by subsection
(a) applies shall be liable for such tax.
(2) Method of payment.--The tax imposed by subsection (a)
shall be paid in such manner as the Secretary shall prescribe.
(3) Time for payment.--The tax imposed by subsection (a)
shall be paid on or before the date which is 6 months after the
floor stocks tax date.
(c) Definitions.--For purposes of this section--
(1) Held by a person.--A liquid shall be considered as
``held by a person'' if title thereto has passed to such person
(whether or not delivery to the person has been made).
(2) Taxable liquid.--The term `taxable liquid' means any
liquid on which a tax referred to in section 2(b) is imposed on
the floor stocks tax date.
(3) Floor stocks tax date.--The term ``floor stocks tax
date'' means April 1, 2001.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or the Secretary's delegate.
(d) Exception for Exempt Uses.--The tax imposed by subsection (a)
shall not apply to taxable liquid held by any person exclusively for
any use to the extent a credit or refund of the tax imposed by a
section of the Code referred to in section 2(b) is allowable for such
use.
(e) Exception for Fuel Held in Vehicle Tank.--No tax shall be
imposed by subsection (a) on taxable liquid held in the tank of a motor
vehicle or motorboat.
(f) Exception for Certain Amounts of Fuel.--
(1) In general.--No tax shall be imposed by subsection (a)
on any liquid held on the floor stocks tax date by any person
if the aggregate amount of liquid held by such person on such
date does not exceed 2,000 gallons. The preceding sentence
shall apply only if such person submits to the Secretary (at
the time and in the manner required by the Secretary) such
information as the Secretary shall require for purposes of this
paragraph.
(2) Exempt fuel.--For purposes of paragraph (1), there
shall not be taken into account fuel held by any person which
is exempt from the tax imposed by subsection (a) by reason of
subsection (d) or (e).
(3) Controlled groups.--For purposes of this subsection--
(A) Corporations.--
(i) In general.--All persons treated as a
controlled group shall be treated as 1 person.
(ii) Controlled group.--The term
``controlled group'' has the meaning given to
such term by subsection (a) of section 1563 of
such Code; except that for such purposes the
phrase ``more than 50 percent'' shall be
substituted for the phrase ``at least 80
percent'' each place it appears in such
subsection.
(B) Nonincorporated persons under common control.--
Under regulations prescribed by the Secretary,
principles similar to the principles of subparagraph
(A) shall apply to a group of persons under common
control where 1 or more of such persons is not a
corporation.
(g) Other Law Applicable.--All provisions of law, including
penalties, applicable with respect to the taxes imposed by chapter 31
or 32 of such Code shall, insofar as applicable and not inconsistent
with the provisions of this section, apply with respect to the floor
stock taxes imposed by subsection (a) to the same extent as if such
taxes were imposed by such chapter.
SEC. 6. 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.
SEC. 7. REPORTING REQUIREMENTS.
(a) Changes in Fuel Prices.--Not later than 30 days after the date
of the enactment of this Act, the Secretary of Treasury, in
consultation with the Secretary of Energy, shall prepare and submit to
the Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a study which specifically addresses
the following issues:
(1) Changes in the price of gasoline, diesel fuel, and
other transportation fuels over the previous 12 months.
(2) The impact on fuel prices posed by the reformulated gas
mandate of the Clean Air Act.
(3) The economic feasibility and appropriateness of
maintaining the reformulated gas mandate.
(b) Pass Through of Tax Reduction.--
(1) The Comptroller General of the United States shall
conduct a study of the reduction of taxes under this Act to
determine whether there has been a pass through to consumers of
such reduction.
(2) Not later than 60 days after the date of the enactment
of this Act, the Comptroller General shall submit to the
Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate a report containing the
results of the study conducted under paragraph (1).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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