[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1915 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 1915
To amend the Internal Revenue Code of 1986 to suspend for six months
the 4.3 cent increase in motor fuel taxes enacted in 1993.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 17, 2001
Mr. Smith of Michigan 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 for six months
the 4.3 cent increase in motor fuel taxes enacted in 1993.
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 ``Gas Affordability Act of 2001''.
SEC. 2. SIX-MONTH SUSPENSION OF 1993 4.3 CENT INCREASE IN FUEL TAXES.
(a) Six-Month Suspension of Fuel Taxes.--Section 4081 of the
Internal Revenue Code of 1986 (relating to imposition of tax on
gasoline, diesel fuel, and kerosene) is amended by adding at the end
the following new subsection:
``(f) Temporary Suspension of Fuel Taxes.--
``(1) In general.--During the suspension period, each rate
of tax referred to in paragraph (2) shall be reduced by 4.3
cents per gallon.
``(2) Rates of tax.--The rates of tax referred to in this
paragraph are the rates of tax otherwise applicable under--
``(A) subsection (a)(2)(A) (relating to gasoline,
diesel fuel, and kerosene),
``(B) sections 4091(b)(3)(A) (relating to aviation
fuel),
``(C) section 4042(b)(2)(C) (relating to fuel used
on inland waterways),
``(D) paragraph (1) or (2) of section 4041(a)
(relating to diesel fuel, special fuels, and compressed
natural gas), and
``(E) section 4041(m)(1)(A)(i) (relating to certain
methanol or ethanol fuels).
``(3) Comparable treatment for compressed natural gas.--No
tax shall be imposed by section 4041(a)(3) on any sale or use
during the applicable period.
``(4) Comparable treatment under certain refund rules.--In
the case of fuel on which tax is imposed during the applicable
period, each of the rates specified in sections 6421(f)(2)(B),
6421(f)(3)(B)(iii), 6427(b)(2)(A), 6427(l)(3)(B)(iii), and
6427(l)(4)(B) shall be reduced by 4.3 cents per gallon.
``(5) Suspension period.--For purposes of this subsection,
the term `suspension period' means the period beginning on July
1, 2001, and ending on December 31, 2001.''
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
SEC. 3. FLOOR STOCK REFUNDS.
(a) In General.--If--
(1) before the tax suspension date, tax has been imposed
under section 4081 or 4091 of 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 4081(f) of the
Internal Revenue Code of 1986 (as added by section 2).
(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. 4. 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 under section 4041, 4081, or 4091 of the Internal Revenue
Code of 1986 on such liquid had the taxable event occurred on the floor
stocks tax date over the tax paid under such sections 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 tax is imposed under section 4041, 4081, or
4091 of the Internal Revenue Code of 1986 on the floor stocks
tax date.
(3) Gasoline and diesel fuel.--The terms ``gasoline'' and
``diesel fuel'' have the respective meanings given such terms
by section 4083 of such Code.
(4) Aviation fuel.--The term ``aviation fuel'' has the
meaning given such term by section 4093 of such Code.
(5) Floor stocks tax date.--The term ``floor stocks tax
date'' means the day after the end of the suspension period
under section 4081(f) of such Code (as added by section 2).
(6) 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 section
4041, 4081, or 4091 of such Code 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)--
(A) on gasoline held on the floor stocks tax date
by any person if the aggregate amount of gasoline held
by such person on such date does not exceed 4,000
gallons, and
(B) on diesel fuel, kerosene, or aviation fuel held
on such date by any person if the aggregate amount of
diesel fuel, kerosene, or aviation fuel 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 section
4041(a)(2) of such Code in the case of special fuels; by section 4081
of such Code in the case of gasoline, diesel fuel, and kerosene; and by
section 4091 of such Code in the case of aviation fuel shall, insofar
as applicable and not inconsistent with the provisions of this
subsection, apply with respect to the floor stock taxes imposed by
subsection (a) to the same extent as if such taxes were imposed by such
section 4041, 4081, or 4091.
SEC. 5. PROTECTION OF HIGHWAY TRUST FUND.
The amounts transferred to the Highway Trust Fund under section
9503 of the Internal Revenue Code of 1986 shall be determined as if
this Act had not been acted.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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