Summer Relief for Motorists Act of 2006 - Expresses the sense of Congress that states can assist motorists by temporarily suspending state gasoline taxes without jeopardizing their commitment to transportation infrastructure investment.
Amends the Internal Revenue Code to suspend excise taxes on gasoline, diesel fuel, and kerosene from the enactment of this Act until September 4, 2006 (suspension period). Provides for reimbursement to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund for tax revenues lost during the suspension period.
Requires the Secretary of the Interior to suspend the application of any federal law exempting crude oil and natural gas producers from the payment of royalties for production activities on federal lands during periods when the average price of crude oil exceeds $35.86 per barrel and the average wellhead price of natural gas exceeds $4.48 per 1,000 cubic feet.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5302 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5302
To amend the Internal Revenue Code of 1986 to suspend the highway fuels
taxes, to provide for suspension of royalty relief, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 4, 2006
Mr. Kennedy of Minnesota (for himself, Mr. Miller of Florida, Mr.
Gerlach, Mr. Ramstad, Mr. Doolittle, and Mr. English of Pennsylvania)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committee on Resources, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to suspend the highway fuels
taxes, to provide for suspension of royalty relief, 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 ``Summer Relief for Motorists Act of
2006''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that the States, with an average gas
tax of 20.8 cents per gallon, also possess the ability to provide
significant immediate relief to motorists by temporarily suspending
their own motor fuel excise taxes. While Congress believes such action
is appropriate, Congress also believes that the States should find
offsets for such temporary motor fuel excise tax suspensions in order
to maintain their commitment to transportation infrastructure
investment.
SEC. 3. SUSPENSION OF HIGHWAY FUEL TAXES.
(a) Suspension of Highway Fuel Taxes on Gasoline, Diesel Fuel, and
Kerosene.--
(1) In general.--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) Suspension of Taxes on Gasoline, Diesel Fuel, and Kerosene.--
``(1) In general.--During the suspension period, each rate
of tax referred to in paragraph (2) shall be reduced to zero
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) clauses (i) and (iii) of subsection (a)(2)(A)
(relating to gasoline, diesel fuel, and kerosene),
determined after application of subsection (a)(2)(B)
and without regard to subsection (a)(2)(C), and
``(B) paragraph (1) of section 4041(a) (relating to
diesel fuel and kerosene) with respect to fuel sold for
use or used in a diesel-powered highway vehicle.
``(3) Suspension period.--For purposes of this subsection,
the term `suspension period' means the period beginning on May
29, 2006 (or, if later, the date of the enactment of this
subsection) and ending on September 4, 2006.
``(4) Maintenance of trust fund deposits.--In determining
the amounts to be appropriated to the Highway Trust Fund under
section 9503 and to the Leaking Underground Storage Tank Trust
Fund under section 9508, an amount equal to the reduction in
revenues to the Treasury by reason of this subsection shall be
treated as taxes received in the Treasury under this section or
section 4041.''.
(2) Effective date.--The amendment made by this subsection
shall take effect on the date of the enactment of this Act.
(b) Floor Stock Refunds.--
(1) In general.--If--
(A) before the tax suspension date, tax has been
imposed under section 4081 of the Internal Revenue Code
of 1986 on any highway motor fuel, and
(B) on such date such fuel 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 tax which would be imposed on
such fuel 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 tax suspension date based on a request submitted to
the taxpayer before the date which is 3 months after
the tax suspension date by the dealer who held the
highway motor fuel on such 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.
(3) Exception for fuel held in retail stocks.--No credit or
refund shall be allowed under this subsection with respect to
any highway motor fuel in retail stocks held at the place where
intended to be sold at retail.
(4) Definitions.--For purposes of this subsection--
(A) Tax suspension date.--The term ``tax suspension
date'' means the first day of the suspension period in
effect under section 4081(f) of the Internal Revenue
Code of 1986 (as added by subsection (a) of this
section).
(B) Highway motor fuel.--The term ``highway motor
fuel'' has the meaning given such term for purposes of
subsection (c).
(C) Other terms.--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.
(c) Floor Stocks Tax.--
(1) Imposition of tax.--In the case of any highway motor
fuel which is held on the tax restoration 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 fuel had the taxable
event occurred on such date over the tax (if any) previously
paid (and not credited or refunded) on such fuel.
(2) Liability for tax and method of payment.--
(A) Liability for tax.--The person holding highway
motor fuel on the tax restoration date to which the tax
imposed by paragraph (1) applies shall be liable for
such tax.
(B) Method of payment.--The tax imposed by
paragraph (1) shall be paid in such manner as the
Secretary shall prescribe.
(C) Time for payment.--The tax imposed by paragraph
(1) shall be paid on or before the 45th day after the
tax restoration date.
(3) Definitions.--For purposes of this subsection--
(A) Tax restoration date.--The term ``tax
restoration date'' means the first day after the
suspension period (as defined in section 4081(f) of the
Internal Revenue Code of 1986).
(B) Highway motor fuel.--The term ``highway motor
fuel'' means any liquid on which tax would have been
imposed under section 4081 of the Internal Revenue Code
of 1986 during the suspension period in effect under
section 4081(f) of such Code but for the amendments
made by subsection (a).
(C) Held by a person.--A highway motor fuel 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).
(D) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury or the Secretary's delegate.
(4) Exception for exempt uses.--The tax imposed by
paragraph (1) shall not apply to any highway motor fuel held by
any person exclusively for any use to the extent a credit or
refund of the tax is allowable for such use.
(5) Exception for certain amounts of fuel.--
(A) In general.--No tax shall be imposed by
paragraph (1) on any highway motor fuel held on the tax
restoration date by any person if the aggregate amount
of such highway motor 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 subparagraph.
(B) Exempt fuel.--For purposes of subparagraph (A),
there shall not be taken into account any highway motor
fuel held by any person which is exempt from the tax
imposed by paragraph (1) by reason of paragraph (4).
(C) Controlled groups.--For purposes of this
subsection--
(i) 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.
(ii) 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 if 1 or more of
such persons is not a corporation.
(6) Other laws applicable.--All provisions of law,
including penalties, applicable with respect to the taxes
imposed by section 4081 of such Code shall, insofar as
applicable and not inconsistent with the provisions of this
subsection, apply with respect to the floor stock taxes imposed
by paragraph (1) to the same extent as if such taxes were
imposed by such section.
SEC. 4. SUSPENSION OF ROYALTY RELIEF.
(a) New Leases.--
(1) Requirement.--The Secretary of the Interior (referred
to in this title as the ``Secretary'') shall suspend the
application of any provision of Federal law under which a
person would otherwise be provided relief from a requirement to
pay a royalty for the production of oil or natural gas from
Federal land (including submerged land) occurring on or after
the date of enactment of this Act during a period in which--
(A) for the production of oil, the average price of
crude oil in the United States during the 4-week period
immediately preceding the suspension is greater than
$35.86 per barrel; and
(B) for the production of natural gas, the average
wellhead price of natural gas in the United States
during the 4-week period immediately preceding the
suspension is greater than $4.48 per 1,000 cubic feet.
(2) Determination of average prices.--For purposes of
paragraph (1), the Secretary shall determine average prices,
taking into consideration the most recent data reported by the
Energy Information Administration.
(b) Renegotiation of Existing Leases.--
(1) Requirement.--The Secretary shall, to the maximum
extent practicable, renegotiate each lease authorizing
production of oil or natural gas on Federal land (including
submerged land) issued by the Secretary before the date of the
enactment of this Act as the Secretary determines to be
necessary to modify the terms of the lease to ensure that a
suspension of a requirement to pay royalties under the lease
does not apply to production described in subsection (a)(1).
(2) Failure to renegotiate and modify.--
(A) In general.--Beginning on the date that is 1
year after the date of enactment of this Act, a lessee
that does not renegotiate a lease described in
paragraph (1) in accordance with that paragraph shall
not be eligible to enter into a new lease authorizing
production of oil or natural gas on Federal land
(including submerged land).
(B) Transfers.--A lessee shall not be eligible to
obtain by sale or other transfer any lease described in
paragraph (1) issued before the date of enactment of
this Act, unless the lessee--
(i) renegotiates the lease; and
(ii) enters into an agreement with the
Secretary to modify the terms of the lease in
accordance with paragraph (1).
<all>
Sponsor introductory remarks on measure. (CR H1956)
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Energy and Mineral Resources.
Executive Comment Requested from Interior.
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