Surface Transportation and Taxation Equity Act or the STATE Act
Amends the Internal Revenue Code to reduce the federal excise tax on gasoline and special fuels (but not below two cents per gallon) by corresponding increases in fuel taxes imposed by states as of January 6, 2015 (the date of introduction of this Act).
[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 118 Introduced in House (IH)]
114th CONGRESS
1st Session
H. R. 118
To amend the Internal Revenue Code of 1986 to reduce the Federal tax on
fuels by the amount of any increase in the rate of tax on such fuel by
the States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 6, 2015
Mr. Garrett 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 the Federal tax on
fuels by the amount of any increase in the rate of tax on such fuel by
the States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Surface
Transportation and Taxation Equity Act'' or as the ``STATE Act''.
(b) Purposes.--The purposes of this Act are to--
(1) return primary transportation program responsibility
and taxing authority to the States,
(2) free States' transportation dollars from Federal
micromanagement, earmarking, and budgetary pressures,
(3) enable decisions regarding which infrastructure
projects will be built, how they will be financed, and how they
will be regulated to be made by persons best able to make those
decisions,
(4) eliminate the current system in which a Federal
gasoline tax is sent to Washington and through a cumbersome
Department of Transportation bureaucracy,
(5) prohibit the Federal Government from forcing unwanted
mandates on States by threatening to withhold transportation
money, and
(6) achieve measurable congestion mitigation and
infrastructure preservation and safety in a cost effective way
subject to available resources.
SEC. 2. FEDERAL TAX ON FUELS DECREASED BY AMOUNT OF INCREASE IN STATE
TAX ON FUEL.
(a) In General.--Subpart B of part III of subchapter A of chapter
32 of the Internal Revenue Code of 1986 (relating to special provisions
applicable to fuels tax) is amended by adding at the end the following
new section:
``SEC. 4106. REDUCTION IN RATES OF TAX BASED ON INCREASE IN STATE TAX
RATE.
``(a) In General.--Under regulations prescribed by the Secretary,
the rate of tax imposed under section 4081 with respect to any fuel and
the rate of tax imposed under section 4041 with respect to any liquid
shall be decreased, but not below 2 cents per gallon, by the applicable
State tax rate increase with respect to such fuel or liquid.
``(b) Applicable State Tax Rate Increase.--For purposes of this
section, the term `applicable State tax rate increase' means, with
respect to any fuel or liquid, the excess, as periodically determined
under tables prescribed by the Secretary, of--
``(1) the rate of tax imposed by the applicable State on
the sale or use of such fuel or liquid, over
``(2) the rate of tax imposed by the applicable State on
the sale or use of such fuel or liquid as of the date of the
introduction of the STATE Act.
Any increase in the rate of tax imposed by any applicable State on the
sale or use of any fuel or liquid shall be taken into account under
this subsection only if State law provides that such increase is to be
taken into account under this subsection.
``(c) Applicable State.--For purposes of this section, the term
`applicable State' means the State which is determined under
regulations prescribed by the Secretary as--
``(1) in the case of a liquid to which section 4041
applies, the State in which such liquid is sold or used, or
``(2) in the case of a fuel to which section 4081 applies,
the State in which such fuel is most likely to be sold or used.
``(d) Requirement To Maintain Interstate Highway System.--
Subsection (a) shall not apply with respect to any fuel or liquid if
the applicable State with respect to such fuel or liquid has not
entered into an agreement with the Secretary of Transportation under
which such State has agreed to provide for the proper maintenance of
that portion of the interstate highway system which is within such
State.''.
(b) Conforming Amendments.--
(1) Section 9503 of such Code is amended by striking
subsection (d).
(2)(A) Paragraph (4) of section 9503(e) of such Code is
amended to read as follows:
``(4) Reduction in rate of transfer based on reduction in
state tax rates.--
``(A) In general.--There shall be substituted for
each amount in paragraph (2) an amount which bears the
same ratio to such amount as the aggregate reduced tax
rate bears to the aggregate unreduced tax rate.
``(B) Aggregate reduced tax rate.--For purposes of
subparagraph (A), the term `aggregate reduced tax rate'
means, with respect to any amount for any calendar
year, the amount of tax that the Secretary estimates
will be imposed with respect to the liquid or fuel to
which such amount relates for such year after
application of section 4106.
``(C) Aggregate unreduced tax rate.--For purposes
of subparagraph (A), the term `aggregate unreduced tax
rate' means, with respect to any amount for any
calendar year, the amount of tax that the Secretary
estimates would have been imposed with respect to the
liquid or fuel to which such amount relates for such
year if section 4106 did not apply for such year.''.
(B) Subparagraph (A) of section 9503(e)(2) of such Code is
amended by striking ``sentence'' and inserting ``subsection''.
(3) The table for section for subpart B of part III of
subchapter A of chapter 32 of such Code is amended by adding at
the end the following new item:
``Sec. 4106. Reduction in rates of tax based on increase in State tax
rate.''.
(c) Effective Date.--The amendment made by this section shall apply
to liquid or fuel removed, entered, sold, or used after the date of the
enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line