-CITE-
    26 USC CHAPTER 31 - RETAIL EXCISE TAXES                     01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle D - Miscellaneous Excise Taxes
    CHAPTER 31 - RETAIL EXCISE TAXES

-HEAD-
                     CHAPTER 31 - RETAIL EXCISE TAXES                 

-MISC1-
    Subchapter                                                  Sec.(!1)
    A.      Luxury passenger vehicles (!2)                          4001
    B.      Special fuels                                           4041
    C.      Heavy trucks and trailers                               4051 

                             PRIOR PROVISIONS                         
      The provisions of a prior chapter 31, Miscellaneous Excise Taxes,
    were set out as:
        Subchapter (A), Jewelry and related items, comprising sections
      4001 to 4003;
        Subchapter (B), Furs, comprising sections 4011 to 4013;
        Subchapter (C), Toilet preparations, comprising sections 4021
      and 4022;
        Subchapter (D), Luggage, handbags, etc., comprising section
      4031;
        Subchapter (E), Special fuels, comprising sections 4041 and
      4042; and
        Subchapter (F), Special provisions applicable to retailers tax,
      comprising sections 4051 to 4058.
      The headings for subchs. (A) to (D) were struck out by section
    101(b)(1) and the listed sections were repealed by section 101(a)
    of Pub. L. 89-44, title I, June 21, 1965, 79 Stat. 136, the Excise
    Tax Reduction Act of 1965, applicable with respect to articles sold
    on or after June 22, 1965, as provided in section 701(a) of Pub. L.
    89-44, set out as an Effective Date of 1965 Amendment note under
    section 4161 of this title.
      The headings for subchs. (E) and (F) were stricken by section
    1904(a)(1)(A) of Pub. L. 94-455, title XIX, Oct. 4, 1976, 90 Stat.
    1810, the Tax Reform Act of 1976. Sections 4051 to 4053 were
    repealed by section 101(b)(2) of Pub. L. 89-44, title I, June 21,
    1965, 79 Stat. 136, applicable with respect to articles sold on or
    after June 22, 1965, as provided in section 701(a) of Pub. L. 89-
    44, set out as an Effective Date of 1965 Amendment note under
    section 4061 of this title; and sections 4042 and 4054 to 4058 were
    repealed by section 1904(a)(1)(D) of Pub. L. 94-455, title XIX,
    Oct. 4, 1976, 90 Stat. 1811, effective Feb. 1, 1977, as provided in
    section 1904(d) of Pub. L. 94-455, set out as an Effective Date of
    1976 Amendment note under section 4041 of this title.
      The subject matter of the prior sections was as follows:
      A prior section 4001, acts Aug. 16, 1954, ch. 736, 68A Stat. 473;
    Sept. 2, 1958, Pub. L. 85-859, title I, Sec. 101, 72 Stat. 1275;
    Sept. 21, 1959, Pub. L. 86-344, Sec. 1(a), 73 Stat. 617, imposed an
    excise tax equivalent to 10 percent of selling price upon jewelry,
    stones, watches, clocks, case and movements for watches and clocks,
    flatware and hollow ware, opera glasses, lorgnettes, marine
    glasses, field glasses, and binoculars.
      A prior section 4002, act Aug. 16, 1954, ch. 736, 68A Stat. 473,
    defined "articles sold at retail" to include articles sold at
    auction.
      A prior section 4003, acts Aug. 16, 1954, ch. 736, 68A Stat. 474;
    Sept. 2, 1958, Pub. L. 85-859, title I, Sec. 102, 72 Stat. 1276,
    specified exemptions to tax imposed by section 4001.
      A prior section 4011, act Aug. 16, 1954, ch. 736, 68A Stat. 475,
    imposed an excise tax equivalent to 10 percent of selling price
    upon fur articles.
      A prior section 4012, act Aug. 16, 1954, ch. 736, 68A Stat. 475,
    defined "article sold at retail" to include articles manufactured
    from material supplied by customer and articles sold at auction.
      A prior section 4013, act Aug. 16, 1954, ch. 736, 68A Stat. 475,
    specified exemptions to tax imposed by section 4011.
      A prior section 4021, acts Aug. 16, 1954, ch. 736, 68A Stat. 476;
    Apr. 8, 1960, Pub. L. 86-413, Sec. 1, 74 Stat. 31, imposed an
    excise tax equivalent to 10 percent of selling price upon toilet
    preparations.
      A prior section 4022, act Aug. 16, 1954, ch. 736, 68A Stat. 476,
    specified certain exemptions from tax imposed by section 4021,
    including items for babies, items used in barber shops and beauty
    parlors, and miniature samples.
      A prior section 4031, acts Aug. 16, 1954, ch. 736, 68A Stat. 477;
    Sept. 2, 1958, Pub. L. 85-859, title I, Sec. 103, 72 Stat. 1276,
    imposed an excise tax equivalent to 10 percent of selling price
    upon luggage and handbags, including billfolds and wallets,
    traveler's garment bags, and briefcases.
      A prior section 4042, act Aug. 16, 1954, ch. 736, 68A Stat. 478,
    provided a cross reference to section 4222 for exemption from tax
    where special motor fuels are sold for use for certain vessels.
      A prior section 4051, act Aug. 16, 1954, ch. 736, 68A Stat. 479,
    defined price for which articles were sold for purposes of
    determining retailers excise taxes.
      A prior section 4052, act Aug. 16, 1954, ch. 736, 68A Stat. 479,
    provided that lease of an article would be considered sale of
    article for excise tax purposes.
      A prior section 4053, acts Aug. 16, 1954, ch. 736, 68A Stat. 479;
    Sept. 2, 1958, Pub. L. 85-859, title I, Sec. 104, 72 Stat. 1276,
    made provision for imposition of retailers tax on installment
    sales.
      A prior section 4054, act Aug. 16, 1954, ch. 736, 68A Stat. 479,
    related to application of taxes to retail sales by United States or
    by any agency or instrumentality of United States unless
    specifically exempted from such tax.
      A prior section 4055, act Aug. 16, 1954, ch. 736, 68A Stat. 480;
    June 21, 1965, Pub. L. 89-44, title I, Sec. 101(b)(3), 79 Stat.
    136, exempted from taxes articles sold for exclusive use of any
    State, Territory of United States, or any political subdivision
    thereof, or District of Columbia, including use by such entities of
    any liquid as a fuel.
      A prior section 4056, act Aug. 16, 1954, ch. 736, 68A Stat. 480,
    provided that no tax shall be imposed upon sale of any article for
    export, or for shipment to a possession of United States and in due
    course so shipped and exported.
      A prior section 4057, added Pub. L. 85-859, title I, Sec. 105(a),
    Sept. 2, 1958, 72 Stat. 1277; amended Pub. L. 86-344, Sec. 2(a),
    Sept. 21, 1959, 73 Stat. 617; Pub. L. 89-44, title I, Sec.
    101(b)(4), June 21, 1965, 79 Stat. 136; Pub. L. 91-172, title I,
    Sec. 101(j)(25), Dec. 30, 1969, 83 Stat. 528, provided an exception
    with respect to sale of any article to a non-profit educational
    organization for its exclusive use including use of any liquid as a
    fuel and defined "non-profit educational organization".
      A prior section 4058, act Aug. 16, 1954, ch. 736, 68A Stat. 480,
    Sec. 4058, formerly 4057; renumbered Sept. 2, 1958, Pub. L. 85-859,
    title I, Sec. 105(a), 72 Stat. 1277, related to cross references
    for exemption of sales to United States in certain cases and
    administrative provisions of general application.

                                AMENDMENTS                            
      1993 - Pub. L. 103-66, title XIII, Sec. 13161(b)(3), Aug. 10,
    1993, 107 Stat. 453, substituted "Luxury passenger vehicles" for
    "Certain luxury items" in item for subchapter A.
      1990 - Pub. L. 101-508, title XI, Sec. 11221(e), Nov. 5, 1990,
    104 Stat. 1388-444, added item for subchapter A and redesignated
    former items for subchapters A and B as B and C, respectively.
      1983 - Pub. L. 97-424, title V, Sec. 512(b)(2)(A), Jan. 6, 1983,
    96 Stat. 2177, substituted "Retail Excise Taxes" for "Special
    Fuels" in chapter heading, and added an analysis for subchapters A
    and B.
      1976 - Pub. L. 94-455, title XIX, Sec. 1904(a)(1)(A), Oct. 4,
    1976, 90 Stat. 1810, substituted "Special Fuels" for "Retailers
    Excise Taxes" in chapter heading.

-FOOTNOTE-
    (!1) Section numbers editorially supplied.(!2) So in original. Does
         not conform to subchapter heading.


-End-


-CITE-
    26 USC Subchapter A - Luxury Passenger Automobiles          01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle D - Miscellaneous Excise Taxes
    CHAPTER 31 - RETAIL EXCISE TAXES
    Subchapter A - Luxury Passenger Automobiles

-HEAD-
                SUBCHAPTER A - LUXURY PASSENGER AUTOMOBILES            

-MISC1-
    Sec.                                                     
    4001.       Imposition of tax.                                    
    4002.       1st retail sale; uses, etc. treated as sales;
                 determination of price.                              
    4003.       Special rules.                                        

                             PRIOR PROVISIONS                         
      This subchapter consisted of part I with subparts A (Secs. 4001-
    4004) and B (Secs. 4006, 4007) and part II (Secs. 4011, 4012),
    prior to being amended generally by Pub. L. 103-66, title XIII,
    Sec. 13161(a), Aug. 10, 1993, 107 Stat. 449.
      Another prior subchapter A of chapter 31 was redesignated
    subchapter B by Pub. L. 101-508, title XI, Sec. 11221(a), Nov. 5,
    1990, 104 Stat. 1388-438.

                                AMENDMENTS                            
      1993 - Pub. L. 103-66, title XIII, Sec. 13161(a), Aug. 10, 1993,
    107 Stat. 449, amended subchapter heading and analysis generally,
    substituting "Luxury Passenger Automobiles" for "Certain Luxury
    Items" in subchapter heading, striking out part analysis consisting
    of parts I "Imposition of taxes" and II "Rules of general
    applicability", part I heading "IMPOSITION OF TAXES", subpart
    analysis consisting of subparts A "Passenger vehicles, boats, and
    aircraft" and B "Jewelry and furs", and subpart A heading
    "Passenger Vehicles, Boats, and Aircraft", substituting "Imposition
    of tax" for "Passenger vehicles" in item 4001, "1st retail sale;
    uses, etc. treated as sales; determination of price" for "Boats" in
    item 4002, and "Special rules" for "Aircraft" in item 4003, and
    striking out item 4004 "Rules applicable to subpart A".

-End-



-CITE-
    26 USC Sec. 4001                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle D - Miscellaneous Excise Taxes
    CHAPTER 31 - RETAIL EXCISE TAXES
    Subchapter A - Luxury Passenger Automobiles

-HEAD-
    Sec. 4001. Imposition of tax

-STATUTE-
    (a) Imposition of tax
      (1) In general
        There is hereby imposed on the 1st retail sale of any passenger
      vehicle a tax equal to 10 percent of the price for which so sold
      to the extent such price exceeds the applicable amount.
      (2) Applicable amount
        (A) In general
          Except as provided in subparagraphs (B) and (C), the
        applicable amount is $30,000.
        (B) Qualified clean-fuel vehicle property
          In the case of a passenger vehicle which is propelled by a
        fuel which is not a clean-burning fuel and to which is
        installed qualified clean-fuel vehicle property (as defined in
        section 179A(c)(1)(A)) for purposes of permitting such vehicle
        to be propelled by a clean-burning fuel, the applicable amount
        is equal to the sum of - 
            (i) the dollar amount in effect under subparagraph (A),
          plus
            (ii) the increase in the price for which the passenger
          vehicle was sold (within the meaning of section 4002) due to
          the installation of such property.
        (C) Purpose built passenger vehicle
          (i) In general
            In the case of a purpose built passenger vehicle, the
          applicable amount is equal to 150 percent of the dollar
          amount in effect under subparagraph (A).
          (ii) Purpose built passenger vehicle
            For purposes of clause (i), the term "purpose built
          passenger vehicle" means a passenger vehicle produced by an
          original equipment manufacturer and designed so that the
          vehicle may be propelled primarily by electricity.
    (b) Passenger vehicle
      (1) In general
        For purposes of this subchapter, the term "passenger vehicle"
      means any 4-wheeled vehicle - 
          (A) which is manufactured primarily for use on public
        streets, roads, and highways, and
          (B) which is rated at 6,000 pounds unloaded gross vehicle
        weight or less.
      (2) Special rules
        (A) Trucks and vans
          In the case of a truck or van, paragraph (1)(B) shall be
        applied by substituting "gross vehicle weight" for "unloaded
        gross vehicle weight".
        (B) Limousines
          In the case of a limousine, paragraph (1) shall be applied
        without regard to subparagraph (B) thereof.
    (c) Exceptions for taxicabs, etc.
      The tax imposed by this section shall not apply to the sale of
    any passenger vehicle for use by the purchaser exclusively in the
    active conduct of a trade or business of transporting persons or
    property for compensation or hire.
    (d) Exemption for law enforcement uses, etc.
      No tax shall be imposed by this section on the sale of any
    passenger vehicle - 
        (1) to the Federal Government, or a State or local government,
      for use exclusively in police, firefighting, search and rescue,
      or other law enforcement or public safety activities, or in
      public works activities, or
        (2) to any person for use exclusively in providing emergency
      medical services.
    (e) Inflation adjustment
      (1) In general
        The $30,000 amount in subsection (a) shall be increased by an
      amount equal to - 
          (A) $30,000, multiplied by
          (B) the cost-of-living adjustment under section 1(f)(3) for
        the calendar year in which the vehicle is sold, determined by
        substituting "calendar year 1990" for "calendar year 1992" in
        subparagraph (B) thereof.
      (2) Rounding
        If any amount as adjusted under paragraph (1) is not a multiple
      of $2,000, such amount shall be rounded to the next lowest
      multiple of $2,000.
    (f) Phasedown
      For sales occurring in calendar years after 1995 and before 2003,
    subsection (a)(1) and section 4003(a) shall be applied by
    substituting for "10 percent", each place it appears, the
    percentage determined in accordance with the following table:

    If the calendar year is:                          The percentage
                                                         is:            
       1996                                          9 percent              
       1997                                          8 percent              
       1998                                          7 percent              
       1999                                          6 percent              
       2000                                          5 percent              
       2001                                          4 percent              
       2002                                          3 percent  .           
    (g) Termination
      The taxes imposed by this section and section 4003 shall not
    apply to any sale, use, or installation after December 31, 2002.

-SOURCE-
    (Added Pub. L. 101-508, title XI, Sec. 11221(a), Nov. 5, 1990, 104
    Stat. 1388-439; amended Pub. L. 103-66, title XIII, Sec. 13161(a),
    Aug. 10, 1993, 107 Stat. 449; Pub. L. 104-188, title I, Secs.
    1607(a), (b), 1703(c)(1), Aug. 20, 1996, 110 Stat. 1839, 1875; Pub.
    L. 105-34, title IX, Sec. 906(a)-(b)(2), title XVI, Sec.
    1601(f)(3)(A), (B), Aug. 5, 1997, 111 Stat. 874, 875, 1090.)


-MISC1-
                                AMENDMENTS                            
      1997 - Subsec. (a). Pub. L. 105-34, Sec. 906(a), amended heading
    and text of subsec. (a) generally. Prior to amendment, text read as
    follows: "There is hereby imposed on the 1st retail sale of any
    passenger vehicle a tax equal to 10 percent of the price for which
    so sold to the extent such price exceeds $30,000."
      Subsec. (e)(1). Pub. L. 105-34, Sec. 906(b)(1), struck out "and
    section 4003(a)" after "in subsection (a)" in introductory
    provisions.
      Subsec. (f). Pub. L. 105-34, Sec. 1601(f)(3)(A)(i), inserted "and
    section 4003(a)" after "subsection (a)".
      Pub. L. 105-34, Sec. 1601(f)(3)(A)(ii), inserted ", each place it
    appears," before "the percentage".
      Pub. L. 105-34, Sec. 906(b)(2), substituted "subsection (a)(1)"
    for "subsection (a)".
      Subsec. (g). Pub. L. 105-34, Sec. 1601(f)(3)(B), substituted
    "taxes imposed by this section and section 4003" for "tax imposed
    by this section" and ", use, or installation" for "or use".
      1996 - Subsec. (e). Pub. L. 104-188, Sec. 1703(c)(1), reenacted
    heading without change and amended text generally. Prior to
    amendment, text read as follows:
      "(1) In general. - If, for any calendar year, the excess (if any)
    of - 
        "(A) $30,000, increased by the cost-of-living adjustment for
      the calendar year, over
        "(B) the dollar amount in effect under subsection (a) for the
      calendar year,
    is equal to or greater than $2,000, then the $30,000 amount in
    subsection (a) and section 4003(a) (as previously adjusted under
    this subsection) for any subsequent calendar year shall be
    increased by the amount of such excess rounded to the next lowest
    multiple of $2,000.
      "(2) Cost-of-living adjustment. - For purposes of paragraph (1),
    the cost-of-living adjustment for any calendar year shall be the
    cost-of-living adjustment under section 1(f)(3) for such calendar
    year, determined by substituting 'calendar year 1990' for 'calendar
    year 1992' in subparagraph (B) thereof."
      Subsec. (f). Pub. L. 104-188, Sec. 1607(b), added subsec. (f).
    Former subsec. (f) redesignated (g).
      Pub. L. 104-188, Sec. 1607(a), substituted "December 31, 2002"
    for "December 31, 1999".
      Subsec. (g). Pub. L. 104-188, Sec. 1607(b), redesignated subsec.
    (f) as (g).
      1993 - Pub. L. 103-66 amended section generally, substituting
    "Imposition of tax" for "Passenger vehicles" in section catchline
    and "this subchapter" for "subsection (a)" in subsec. (b)(1) and
    adding subsecs. (d) to (f).

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 906(c) of Pub. L. 105-34 provided that: "The amendments
    made by this section [amending this section and section 4003 of
    this title] shall apply to sales and installations occurring after
    the date of the enactment of this Act [Aug. 5, 1997]."
      Section 1601(f)(3)(C) of Pub. L. 105-34 provided that: "The
    amendments made by this paragraph [amending this section] shall
    apply to sales after the date of the enactment of this Act [Aug. 5,
    1997]."
      Amendment by section 1601(f)(3)(A), (B) of Pub. L. 105-34
    effective as if included in the provisions of the Small Business
    Job Protection Act of 1996, Pub. L. 104-188, to which it relates,
    see section 1601(j) of Pub. L. 105-34, set out as a note under
    section 23 of this title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 1607(c) of Pub. L. 104-188 provided that: "The amendments
    made by this section [amending this section] shall apply with
    respect to sales occurring after the date which is 7 days after the
    date of the enactment of this Act [Aug. 20, 1996]."
      Section 1703(c)(2) of Pub. L. 104-188 provided that: "The
    amendment made by paragraph (1) [amending this section] shall take
    effect on the date of the enactment of this Act [Aug. 20, 1996]."

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Section 13161(c) of Pub. L. 103-66 provided that: "The amendments
    made by this section [amending this section and sections 4002,
    4003, 4221, and 4222 of this title and omitting sections 4004,
    4006, 4007, 4011, and 4012 of this title] shall take effect on
    January 1, 1993, except that the provisions of section 4001(e) of
    the Internal Revenue Code of 1986 (as amended by subsection (a))
    shall take effect on the date of the enactment of this Act [Aug.
    10, 1993]."

                              EFFECTIVE DATE                          
      Section 11221(f) of Pub. L. 101-508 provided that:
      "(1) In general. - The amendments made by this section [enacting
    this subchapter, redesignating former subchapters A and B of this
    chapter as subchapters B and C, respectively, and amending sections
    4221, 4222, and 4293 of this title] shall take effect on January 1,
    1991.
      "(2) Exception for binding contracts. - In determining whether
    any tax imposed by subchapter A of chapter 31 of the Internal
    Revenue Code of 1986, as added by this section, applies to any sale
    after December 31, 1990, there shall not be taken into account the
    amount paid for any article (or any part or accessory therefor) if
    the purchaser held on September 30, 1990, a contract (which was
    binding on such date and at all times thereafter before the
    purchase) for the purchase of such article (or such part or
    accessory)."

-End-



-CITE-
    26 USC Sec. 4002                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle D - Miscellaneous Excise Taxes
    CHAPTER 31 - RETAIL EXCISE TAXES
    Subchapter A - Luxury Passenger Automobiles

-HEAD-
    Sec. 4002. 1st retail sale; uses, etc. treated as sales;
      determination of price

-STATUTE-
    (a) 1st retail sale
      For purposes of this subchapter, the term "1st retail sale" means
    the 1st sale, for a purpose other than resale, after manufacture,
    production, or importation.
    (b) Use treated as sale
      (1) In general
        If any person uses a passenger vehicle (including any use after
      importation) before the 1st retail sale of such vehicle, then
      such person shall be liable for tax under this subchapter in the
      same manner as if such vehicle were sold at retail by him.
      (2) Exemption for further manufacture
        Paragraph (1) shall not apply to use of a vehicle as material
      in the manufacture or production of, or as a component part of,
      another vehicle taxable under this subchapter to be manufactured
      or produced by him.
      (3) Exemption for demonstration use
        Paragraph (1) shall not apply to any use of a passenger vehicle
      as a demonstrator.
      (4) Exception for use after importation of certain vehicles
        Paragraph (1) shall not apply to the use of a vehicle after
      importation if the user or importer establishes to the
      satisfaction of the Secretary that the 1st use of the vehicle
      occurred before January 1, 1991, outside the United States.
      (5) Computation of tax
        In the case of any person made liable for tax by paragraph (1),
      the tax shall be computed on the price at which similar vehicles
      are sold at retail in the ordinary course of trade, as determined
      by the Secretary.
    (c) Leases considered as sales
      For purposes of this subchapter - 
      (1) In general
        Except as otherwise provided in this subsection, the lease of a
      vehicle (including any renewal or any extension of a lease or any
      subsequent lease of such vehicle) by any person shall be
      considered a sale of such vehicle at retail.
      (2) Special rules for long-term leases
        (A) Tax not imposed on sale for leasing in a qualified lease
          The sale of a passenger vehicle to a person engaged in a
        passenger vehicle leasing or rental trade or business for
        leasing by such person in a long-term lease shall not be
        treated as the 1st retail sale of such vehicle.
        (B) Long-term lease
          For purposes of subparagraph (A), the term "long-term lease"
        means any long-term lease (as defined in section 4052).
        (C) Special rules
          In the case of a long-term lease of a vehicle which is
        treated as the 1st retail sale of such vehicle - 
          (i) Determination of price
            The tax under this subchapter shall be computed on the
          lowest price for which the vehicle is sold by retailers in
          the ordinary course of trade.
          (ii) Payment of tax
            Rules similar to the rules of section 4217(e)(2) shall
          apply.
          (iii) No tax where exempt use by lessee
            No tax shall be imposed on any lease payment under a long-
          term lease if the lessee's use of the vehicle under such
          lease is an exempt use (as defined in section 4003(b)) of
          such vehicle.
    (d) Determination of price
      (1) In general
        In determining price for purposes of this subchapter - 
          (A) there shall be included any charge incident to placing
        the passenger vehicle in condition ready for use,
          (B) there shall be excluded - 
            (i) the amount of the tax imposed by this subchapter,
            (ii) if stated as a separate charge, the amount of any
          retail sales tax imposed by any State or political
          subdivision thereof or the District of Columbia, whether the
          liability for such tax is imposed on the vendor or vendee,
          and
            (iii) the value of any component of such passenger vehicle
          if - 
              (I) such component is furnished by the 1st user of such
            passenger vehicle, and
              (II) such component has been used before such furnishing,
            and

          (C) the price shall be determined without regard to any trade-
        in.
      (2) Other rules
        Rules similar to the rules of paragraphs (2) and (4) of section
      4052(b) shall apply for purposes of this subchapter.

-SOURCE-
    (Added Pub. L. 101-508, title XI, Sec. 11221(a), Nov. 5, 1990, 104
    Stat. 1388-439; amended Pub. L. 103-66, title XIII, Sec. 13161(a),
    Aug. 10, 1993, 107 Stat. 450.)


-MISC1-
                                AMENDMENTS                            
      1993 - Pub. L. 103-66 amended section generally, substituting
    provisions relating to imposition of luxury tax upon first retail
    sale or use of luxury automobile for provisions relating to
    imposition of similar tax upon boats.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-66 effective Jan. 1, 1993, see section
    13161(c) of Pub. L. 103-66, set out as a note under section 4001 of
    this title.

-End-



-CITE-
    26 USC Sec. 4003                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle D - Miscellaneous Excise Taxes
    CHAPTER 31 - RETAIL EXCISE TAXES
    Subchapter A - Luxury Passenger Automobiles

-HEAD-
    Sec. 4003. Special rules

-STATUTE-
    (a) Separate purchase of vehicle and parts and accessories therefor
      Under regulations prescribed by the Secretary - 
      (1) In general
        Except as provided in paragraph (2), if - 
          (A) the owner, lessee, or operator of any passenger vehicle
        installs (or causes to be installed) any part or accessory
        (other than property described in section 4001(a)(2)(B)) on
        such vehicle, and
          (B) such installation is not later than the date 6 months
        after the date the vehicle was 1st placed in service,

      then there is hereby imposed on such installation a tax equal to
      10 percent of the price of such part or accessory and its
      installation.
      (2) Limitation
        The tax imposed by paragraph (1) on the installation of any
      part or accessory shall not exceed 10 percent of the excess (if
      any) of - 
          (A) the sum of - 
            (i) the price of such part or accessory and its
          installation,
            (ii) the aggregate price of the parts and accessories (and
          their installation) installed before such part or accessory,
          plus
            (iii) the price for which the passenger vehicle was sold,
          over

          (B) the appropriate applicable amount as determined under
        section 4001(a)(2).
      (3) Exceptions
        Paragraph (1) shall not apply if - 
          (A) the part or accessory installed is a replacement part or
        accessory,
          (B) the part or accessory is installed to enable or assist an
        individual with a disability to operate the vehicle, or to
        enter or exit the vehicle, by compensating for the effect of
        such disability, or
          (C) the aggregate price of the parts and accessories (and
        their installation) described in paragraph (1) with respect to
        the vehicle does not exceed $1,000 (or such other amount or
        amounts as the Secretary may by regulation prescribe).

      The price of any part or accessory (and its installation) to
      which paragraph (1) does not apply by reason of this paragraph
      shall not be taken into account under paragraph (2)(A).
      (4) Installers secondarily liable for tax
        The owners of the trade or business installing the parts or
      accessories shall be secondarily liable for the tax imposed by
      this subsection.
    (b) Imposition of tax on sales, etc., within 2 years of vehicles
      purchased tax-free
      (1) In general
        If - 
          (A) no tax was imposed under this subchapter on the 1st
        retail sale of any passenger vehicle by reason of its exempt
        use, and
          (B) within 2 years after the date of such 1st retail sale,
        such vehicle is resold by the purchaser or such purchaser makes
        a substantial nonexempt use of such vehicle,

      then such sale or use of such vehicle by such purchaser shall be
      treated as the 1st retail sale of such vehicle for a price equal
      to its fair market value at the time of such sale or use.
      (2) Exempt use
        For purposes of this subsection, the term "exempt use" means
      any use of a vehicle if the 1st retail sale of such vehicle is
      not taxable under this subchapter by reason of such use.
    (c) Parts and accessories sold with taxable passenger vehicle
      Parts and accessories sold on, in connection with, or with the
    sale of any passenger vehicle shall be treated as part of the
    vehicle.
    (d) Partial payments, etc.
      In the case of a contract, sale, or arrangement described in
    paragraph (2), (3), or (4) of section 4216(c), rules similar to the
    rules of section 4217(e)(2) shall apply for purposes of this
    subchapter.

-SOURCE-
    (Added Pub. L. 101-508, title XI, Sec. 11221(a), Nov. 5, 1990, 104
    Stat. 1388-439; amended Pub. L. 103-66, title XIII, Sec. 13161(a),
    Aug. 10, 1993, 107 Stat. 451; Pub. L. 105-34, title IX, Sec.
    906(b)(3), (4), title XIV, Sec. 1401(a), Aug. 5, 1997, 111 Stat.
    875, 1045.)


-MISC1-
                             PRIOR PROVISIONS                         
      Prior sections 4004, 4006, 4007, 4011, and 4012 of this title
    were omitted in the general revision of this subchapter by Pub. L.
    103-66, title XIII, Sec. 13161(a), Aug. 10, 1993, 107 Stat. 449.
      Section 4004, added Pub. L. 101-508, title XI, Sec. 11221(a),
    Nov. 5, 1990, 104 Stat. 1388-440; amended Pub. L. 103-66, title
    XIII, Sec. 13162(a), Aug. 10, 1993, 107 Stat. 453, related to
    certain rules applicable to former subpart A of part I of this
    subchapter.
      Section 4006, added Pub. L. 101-508, title XI, Sec. 11221(a),
    Nov. 5, 1990, 104 Stat. 1388-441, related to imposition of tax on
    1st retail sale of jewelry.
      Section 4007, added Pub. L. 101-508, title XI, Sec. 11221(a),
    Nov. 5, 1990, 104 Stat. 1388-442, related to imposition of tax on
    1st retail sale of furs.
      Section 4011, added Pub. L. 101-508, title XI, Sec. 11221(a),
    Nov. 5, 1990, 104 Stat. 1388-442, provided definitions and special
    rules for purposes of this subchapter.
      Section 4012, added Pub. L. 101-508, title XI, Sec. 11221(a),
    Nov. 5, 1990, 104 Stat. 1388-444, provided that taxes imposed by
    this subchapter did not apply to any sale or use after Dec. 31,
    1999.

                                AMENDMENTS                            
      1997 - Subsec. (a)(1). Pub. L. 105-34, Sec. 906(b)(3), inserted
    "(other than property described in section 4001(a)(2)(B))" after
    "part or accessory".
      Subsec. (a)(2)(B). Pub. L. 105-34, Sec. 906(b)(4), amended
    subpar. (B) generally, substituting "the appropriate applicable
    amount as determined under section 4001(a)(2)" for "$30,000".
      Subsec. (a)(3)(C). Pub. L. 105-34, Sec. 1401(a), substituted
    "$1,000" for "$200".
      1993 - Pub. L. 103-66 amended section generally, substituting
    provisions prescribing special rules applicable to imposition of
    luxury passenger automobile tax for provisions relating to
    imposition of similar tax on aircraft.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by section 906(b)(3), (4) of Pub. L. 105-34 applicable
    to sales and installations occurring after Aug. 5, 1997, see
    section 906(c) of Pub. L. 105-34, set out as a note under section
    4001 of this title.
      Section 1401(b) of Pub. L. 105-34 provided that: "The amendments
    made by subsection (a) [amending this section and section 4051 of
    this title] shall apply to installations on vehicles sold after the
    date of the enactment of this Act [Aug. 5, 1997]."

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-66 effective Jan. 1, 1993, see section
    13161(c) of Pub. L. 103-66, set out as a note under section 4001 of
    this title.

-End-


-CITE-
    26 USC Subchapter B - Special Fuels                         01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle D - Miscellaneous Excise Taxes
    CHAPTER 31 - RETAIL EXCISE TAXES
    Subchapter B - Special Fuels

-HEAD-
                       SUBCHAPTER B - SPECIAL FUELS                   

-MISC1-
    Sec.                                                     
    4041.       Imposition of tax.                                    
    4042.       Tax on fuel used in commercial transportation on
                 inland waterways.                                    

                             PRIOR PROVISIONS                         
      A prior subchapter B of chapter 31 was redesignated subchapter C
    by Pub. L. 101-508, title XI, Sec. 11221(a), Nov. 5, 1990, 104
    Stat. 1388-438.

                                AMENDMENTS                            
      1990 - Pub. L. 101-508, title XI, Sec. 11221(a), Nov. 5, 1990,
    104 Stat. 1388-438, redesignated this subchapter, formerly
    subchapter A, as subchapter B. Former subchapter B redesignated C.
      1978 - Pub. L. 95-502, title II, Sec. 202(c), Oct. 21, 1978, 92
    Stat. 1697, added item 4042.
      1976 - Pub. L. 94-455, title XIX, Sec. 1904(a)(1)(A), Oct. 4,
    1976, 90 Stat. 1810, added item 4041.

-End-



-CITE-
    26 USC Sec. 4041                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle D - Miscellaneous Excise Taxes
    CHAPTER 31 - RETAIL EXCISE TAXES
    Subchapter B - Special Fuels

-HEAD-
    Sec. 4041. Imposition of tax

-STATUTE-
    (a) Diesel fuel and special motor fuels
      (1) Tax on diesel fuel and kerosene in certain cases
        (A) In general
          There is hereby imposed a tax on any liquid other than
        gasoline (as defined in section 4083) - 
            (i) sold by any person to an owner, lessee, or other
          operator of a diesel-powered highway vehicle or a diesel-
          powered train for use as a fuel in such vehicle or train, or
            (ii) used by any person as a fuel in a diesel-powered
          highway vehicle or a diesel-powered train unless there was a
          taxable sale of such fuel under clause (i).
        (B) Exemption for previously taxed fuel
          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 (other than such tax at the Leaking Underground Storage
        Tank Trust Fund financing rate) and the tax thereon was not
        credited or refunded.
        (C) Rate of tax
          (i) In general
            Except as otherwise provided in this subparagraph, the rate
          of the tax imposed by this paragraph shall be the rate of tax
          specified in section 4081(a)(2)(A) on diesel fuel which is in
          effect at the time of such sale or use.
          (ii) Rate of tax on trains
            In the case of any sale for use, or use, of diesel fuel in
          a train, the rate of tax imposed by this paragraph shall be -
          
              (I) 3.3 cents per gallon after December 31, 2004, and
            before July 1, 2005,
              (II) 2.3 cents per gallon after June 30, 2005, and before
            January 1, 2007, and
              (III) 0 after December 31, 2006.
          (iii) Rate of tax on certain buses
            (I) In general
              Except as provided in subclause (II), in the case of fuel
            sold for use or used in a use described in section
            6427(b)(1) (after the application of section 6427(b)(3)),
            the rate of tax imposed by this paragraph shall be 7.3
            cents per gallon (4.3 cents per gallon after September 30,
            2011).
            (II) School bus and intracity transportation
              No tax shall be imposed by this paragraph on any sale for
            use, or use, described in subparagraph (B) or (C) of
            section 6427(b)(2).
      (2) Alternative fuels
        (A) In general
          There is hereby imposed a tax on any liquid (other than gas
        oil, fuel oil, or any product taxable under section 4081 (other
        than such tax at the Leaking Underground Storage Tank Trust
        Fund financing rate)) - 
            (i) sold by any person to an owner, lessee, or other
          operator of a motor vehicle or motorboat for use as a fuel in
          such motor vehicle or motorboat, or
            (ii) used by any person as a fuel in a motor vehicle or
          motorboat unless there was a taxable sale of such liquid
          under clause (i).
        (B) Rate of tax
          The rate of the tax imposed by this paragraph shall be - 
            (i) except as otherwise provided in this subparagraph, the
          rate of tax specified in section 4081(a)(2)(A)(i) which is in
          effect at the time of such sale or use, and
            (ii) in the case of liquefied natural gas, any liquid fuel
          (other than ethanol and methanol) derived from coal
          (including peat), and liquid hydrocarbons derived from
          biomass (as defined in section 45K(c)(3)), 24.3 cents per
          gallon.
      (3) Compressed natural gas
        (A) In general
          There is hereby imposed a tax on compressed natural gas - 
            (i) sold by any person to an owner, lessee, or other
          operator of a motor vehicle or motorboat for use as a fuel in
          such motor vehicle or motorboat, or
            (ii) used by any person as a fuel in a motor vehicle or
          motorboat unless there was a taxable sale of such gas under
          clause (i).

        The rate of the tax imposed by this paragraph shall be 18.3
        cents per energy equivalent of a gallon of gasoline.
        (B) Bus uses
          No tax shall be imposed by this paragraph on any sale for
        use, or use, described in subparagraph (B) or (C) of section
        6427(b)(2) (relating to school bus and intracity
        transportation).
        (C) Administrative provisions
          For purposes of applying this title with respect to the taxes
        imposed by this subsection, references to any liquid subject to
        tax under this subsection shall be treated as including
        references to compressed natural gas subject to tax under this
        paragraph, and references to gallons shall be treated as
        including references to energy equivalent of a gallon of
        gasoline with respect to such gas.
    (b) Exemption for off-highway business use; reduction in tax for
      qualified methanol and ethanol fuel
      (1) Exemption for off-highway business use
        (A) In general
          No tax shall be imposed by subsection (a) on liquids sold for
        use or used in an off-highway business use.
        (B) Tax where other use
          If a liquid on which no tax was imposed by reason of
        subparagraph (A) is used otherwise than in an off-highway
        business use, a tax shall be imposed by paragraph (1)(B),
        (2)(B), or (3)(A)(ii) of subsection (a) (whichever is
        appropriate) and by the corresponding provision of subsection
        (d)(1) (if any).
        (C) Off-highway business use defined
          For purposes of this subsection, the term "off-highway
        business use" has the meaning given to such term by section
        6421(e)(2); except that such term shall not, for purposes of
        subsection (a)(1), include use in a diesel-powered train.
      (2) Qualified methanol and ethanol fuel
        (A) In general
          In the case of any qualified methanol or ethanol fuel - 
            (i) the rate applicable under subsection (a)(2) shall be
          the applicable blender rate per gallon less than the
          otherwise applicable rate (6 cents per gallon in the case of
          a mixture none of the alcohol in which consists of ethanol),
          and
            (ii) subsection (d)(1) shall be applied by substituting
          "0.05 cent" for "0.1 cent" with respect to the sales and uses
          to which clause (i) applies.
        (B) Qualified methanol and ethanol fuel produced from coal
          The term "qualified methanol or ethanol fuel" means any
        liquid at least 85 percent of which consists of methanol,
        ethanol, or other alcohol produced from coal (including peat).
        (C) Applicable blender rate
          For purposes of subparagraph (A)(i), the applicable blender
        rate is - 
            (i) except as provided in clause (ii), 5.4 cents, and
            (ii) for sales or uses during calendar years 2001 through
          2008,  1/10  of the blender amount applicable under section
          40(h)(2) for the calendar year in which the sale or use
          occurs.
        (D) Termination
          On and after January 1, 2009, subparagraph (A) shall not
        apply.
    (c) Certain liquids used as a fuel in aviation
      (1) In general
        There is hereby imposed a tax upon any liquid for use as a fuel
      other than aviation gasoline - 
          (A) sold by any person to an owner, lessee, or other operator
        of an aircraft for use in such aircraft, or
          (B) used by any person in an aircraft unless there was a
        taxable sale of such fuel under subparagraph (A).
      (2) Exemption for previously taxed fuel
        No tax shall be imposed by this subsection on the sale or use
      of any liquid for use as a fuel other than aviation gasoline if
      tax was imposed on such liquid under section 4081 (other than
      such tax at the Leaking Underground Storage Tank Trust Fund
      financing rate) and the tax thereon was not credited or refunded.
      (3) Rate of tax
        The rate of tax imposed by this subsection shall be 21.8 cents
      per gallon (4.3 cents per gallon with respect to any sale or use
      for commercial aviation).
    (d) Additional taxes to fund Leaking Underground Storage Tank Trust
      Fund
      (1) Tax on sales and uses subject to tax under subsection (a)
        In addition to the taxes imposed by subsection (a), there is
      hereby imposed a tax of 0.1 cent a gallon on the sale or use of
      any liquid (other than liquefied petroleum gas and other than
      liquefied natural gas) if tax is imposed by subsection (a)(1) or
      (2) on such sale or use.
      (2) Liquids used in aviation
        In addition to the taxes imposed by subsection (c), there is
      hereby imposed a tax of 0.1 cent a 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 an aircraft for use as a fuel in such aircraft, or
          (B) used by any person as a fuel in an aircraft unless there
        was a taxable sale of such liquid under subparagraph (A).

      No tax shall be imposed by this paragraph on the sale or use of
      any liquid if there was a taxable sale of such liquid under
      section 4081.
      (3) Diesel fuel used in trains
        In the case of any sale for use or use after December 31, 2006,
      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) Termination
        The taxes imposed by this subsection shall not apply during any
      period during which the Leaking Underground Storage Tank Trust
      Fund financing rate under section 4081 does not apply.
      (5) Nonapplication of exemptions other than for exports
        For purposes of this section, the tax imposed under this
      subsection shall be determined without regard to subsections (f),
      (g) (other than with respect to any sale for export under
      paragraph (3) thereof), (h), and (l).
    [(e) Repealed. Pub. L. 108-357, title VIII, Sec. 853(d)(2)(C), Oct.
      22, 2004, 118 Stat. 1613]
    (f) Exemption for farm use
      (1) Exemption
        Under regulations prescribed by the Secretary, no tax shall be
      imposed under this section on any liquid sold for use or used on
      a farm for farming purposes.
      (2) Use on a farm for farming purposes
        For purposes of paragraph (1) of this subsection, use on a farm
      for farming purposes shall be determined in accordance with
      paragraphs (1), (2), and (3) of section 6420(c).
    (g) Other exemptions
      Under regulations prescribed by the Secretary, no tax shall be
    imposed under this section - 
        (1) on any liquid sold for use or used as supplies for vessels
      or aircraft (within the meaning of section 4221(d)(3));
        (2) with respect to the sale of any liquid for the exclusive
      use of any State, any political subdivision of a State, or the
      District of Columbia, or with respect to the use by any of the
      foregoing of any liquid as a fuel;
        (3) upon the sale of any liquid for export, or for shipment to
      a possession of the United States, and in due course so exported
      or shipped;
        (4) with respect to the sale of any liquid to a nonprofit
      educational organization for its exclusive use, or with respect
      to the use by a nonprofit educational organization of any liquid
      as a fuel; and
        (5) with respect to the sale of any liquid to a qualified blood
      collector organization (as defined in section 7701(a)(49)) for
      such organization's exclusive use in the collection, storage, or
      transportation of blood.

    For purposes of paragraph (4), the term "nonprofit educational
    organization" means an educational organization described in
    section 170(b)(1)(A)(ii) which is exempt from income tax under
    section 501(a). The term also includes a school operated as an
    activity of an organization described in section 501(c)(3) which is
    exempt from income tax under section 501(a), if such school
    normally maintains a regular faculty and curriculum and normally
    has a regularly enrolled body of pupils or students in attendance
    at the place where its educational activities are regularly carried
    on.
    (h) Exemption for use by certain aircraft museums
      (1) Exemption
        Under regulations prescribed by the Secretary, no tax shall be
      imposed under this section on any liquid sold for use or used by
      an aircraft museum in an aircraft or vehicle owned by such museum
      and used exclusively for purposes set forth in paragraph (2)(C).
      (2) Definition of aircraft museum
        For purposes of this subsection, the term "aircraft museum"
      means an organization - 
          (A) described in section 501(c)(3) which is exempt from
        income tax under section 501(a),
          (B) operated as a museum under charter by a State or the
        District of Columbia, and
          (C) operated exclusively for the procurement, care, and
        exhibition of aircraft of the type used for combat or transport
        in World War II.
    [(i) Repealed. Pub. L. 108-357, title VIII, Sec. 853(d)(2)(D), Oct.
      22, 2004, 118 Stat. 1613]
    (j) Sales by United States, etc.
      The taxes imposed by this section shall apply with respect to
    liquids sold at retail by the United States, or by any agency or
    instrumentality of the United States, unless sales by such agency
    or instrumentality are by statute specifically exempted from such
    taxes.
    [(k) Repealed. Pub. L. 108-357, title III, Sec. 301(c)(6), Oct. 22,
      2004, 118 Stat. 1461]
    (l) Exemption for certain uses
      No tax shall be imposed under this section on any liquid sold for
    use in, or used in, a helicopter or a fixed-wing aircraft for
    purposes of providing transportation with respect to which the
    requirements of subsection (f) or (g) of section 4261 are met.
    (m) Certain alcohol fuels
      (1) In general
        In the case of the sale or use of any partially exempt methanol
      or ethanol fuel the rate of the tax imposed by subsection (a)(2)
      shall be - 
          (A) after September 30, 1997, and before October 1, 2011 - 
            (i) in the case of fuel none of the alcohol in which
          consists of ethanol, 9.15 cents per gallon, and
            (ii) in any other case, 11.3 cents per gallon, and

          (B) after September 30, 2011 - 
            (i) in the case of fuel none of the alcohol in which
          consists of ethanol, 2.15 cents per gallon, and
            (ii) in any other case, 4.3 cents per gallon.
      (2) Partially exempt methanol or ethanol fuel
        The term "partially exempt methanol or ethanol fuel" means any
      liquid at least 85 percent of which consists of methanol,
      ethanol, or other alcohol produced from natural gas.

-SOURCE-
    (Aug. 16, 1954, ch. 736, 68A Stat. 478; Mar. 30, 1955, ch. 18, Sec.
    3(a)(1), 69 Stat. 14; Mar. 29, 1956, ch. 115, Sec. 3(a)(1), 70
    Stat. 66; Apr. 2, 1956, ch. 160, Sec. 2(a)(1), 70 Stat. 89; June
    29, 1956, ch. 462, title II, Sec. 202, 70 Stat. 387; Pub. L. 85-
    859, title I, Sec. 119(b)(1), Sept. 2, 1958, 72 Stat. 1286; Pub.
    L. 86-342, title II, Sec. 201(b), Sept. 21, 1959, 73 Stat. 613;
    Pub. L. 87-61, title II, Sec. 201(a), (c), (d), June 29, 1961, 75
    Stat. 123, 124; Pub. L. 89-44, title VIII, Sec. 802(a)(2), June 21,
    1965, 79 Stat. 159; Pub. L. 91-258, title II, Sec. 202, May 21,
    1970, 84 Stat. 237; Pub. L. 91-605, title III, Sec. 303(a)(1), (2),
    Dec. 31, 1970, 84 Stat. 1743; Pub. L. 94-280, title III, Sec.
    303(a)(1), (2), May 5, 1976, 90 Stat. 456; Pub. L. 94-455, title
    XIX, Secs. 1904(a)(1)(B), (C), 1906(b)(13)(A), Oct. 4, 1976, 90
    Stat. 1810, 1811, 1834; Pub. L. 94-530, Sec. 1(a), Oct. 17, 1976,
    90 Stat. 2487; Pub. L. 95-599, title V, Sec. 502(a)(1), (b), Nov.
    6, 1978, 92 Stat. 2756, 2757; Pub. L. 95-600, title VII, Sec.
    703(l)(1), (2), Nov. 6, 1978, 92 Stat. 2942; Pub. L. 95-618, title
    II, Secs. 221(b)(1), 222(a)(2), 233(a)(3)(B), Nov. 9, 1978, 92
    Stat. 3185, 3187, 3191; Pub. L. 96-223, title II, Sec. 232(a)(2),
    Apr. 2, 1980, 94 Stat. 273; Pub. L. 96-298, Sec. 1(a), July 1,
    1980, 94 Stat. 829; Pub. L. 97-248, title II, Sec. 279(a), (b)(1),
    Sept. 3, 1982, 96 Stat. 563; Pub. L. 97-424, title V, Secs.
    511(a)(2), (b)(1), (c)(2), (d)(2), (g)(1), 516(a)(1), (b)(1), Jan.
    6, 1983, 96 Stat. 2169-2171, 2173, 2182, 2183; Pub. L. 98-369, div.
    A, title IX, Secs. 911(a), 912(a), 913(a), title X, Sec. 1018(a),
    July 18, 1984, 98 Stat. 1005, 1007, 1008, 1021; Pub. L. 99-499,
    title V, Sec. 521(a)(2), (d)(1)-(3), Oct. 17, 1986, 100 Stat. 1776,
    1779; Pub. L. 99-514, title IV, Sec. 422(a)(1), (2), title XVII,
    Sec. 1702(a), title XVIII, Sec. 1878(c)(1), Oct. 22, 1986, 100
    Stat. 2229, 2773, 2903; Pub. L. 100-17, title V, Sec. 502(a)(1),
    (b)(1)-(3), (c)(1), Apr. 2, 1987, 101 Stat. 256, 257; Pub. L. 100-
    203, title X, Sec. 10502(b), Dec. 22, 1987, 101 Stat. 1330-441;
    Pub. L. 100-223, title IV, Secs. 402(b), 404(b), 405(b)(3), Dec.
    30, 1987, 101 Stat. 1532, 1533, 1535; Pub. L. 100-647, title I,
    Sec. 1017(c)(3), (4), title II, Sec. 2001(d)(2), (3)(A)-(D), Nov.
    10, 1988, 102 Stat. 3576, 3595; Pub. L. 101-508, title XI, Secs.
    11211(a)(4), (b)(3), (6)(C)-(E)(i), (F), (d)(1), (2), (e)(1), (2),
    11213(b)(2)(A), (B), (d)(2)(B), (e)(3), Nov. 5, 1990, 104 Stat.
    1388-423, 1388-425 to 1388-427, 1388-433, 1388-436; Pub. L. 102-
    240, title VIII, Sec. 8002(b)(1), (2), Dec. 18, 1991, 105 Stat.
    2203; Pub. L. 103-66, title XIII, Secs. 13163(a)(2),
    13241(b)(2)(A), (B)(iii), (c), (e), (f)(1), (2), 13242(d)(3)-(13),
    Aug. 10, 1993, 107 Stat. 453, 510, 511, 522-524; Pub. L. 104-188,
    title I, Secs. 1208, 1609(a)(3), (g)(3), (4)(A), Aug. 20, 1996, 110
    Stat. 1776, 1841-1843; Pub. L. 105-2, Sec. 2(a)(3), Feb. 28, 1997,
    111 Stat. 4; Pub. L. 105-34, title IX, Secs. 902(b)(1), (2),
    907(a), (b), title X, Secs. 1031(a)(3), 1032(e)(1), (2), title XIV,
    Sec. 1435(b), title XVI, Sec. 1601(f)(4)(A), (B), Aug. 5, 1997, 111
    Stat. 873, 875, 929, 935, 1053, 1090; Pub. L. 105-178, title IX,
    Secs. 9002(a)(1)(A)-(C), 9003(a)(1)(A), (B), (b)(2)(A), 9006(a),
    June 9, 1998, 112 Stat. 499, 501, 502, 506; Pub. L. 105-206, title
    VI, Sec. 6010(g)(1), July 22, 1998, 112 Stat. 814; Pub. L. 108-357,
    title II, Sec. 241(a)(1), (2)(A), title III, Sec. 301(c)(5), (6),
    title VIII, Sec. 853(a)(6), (d)(2)(A)-(E), Oct. 22, 2004, 118 Stat.
    1437, 1461, 1611-1613; Pub. L. 109-58, title XIII, Sec. 1362(b)(2),
    Aug. 8, 2005, 119 Stat. 1059; Pub. L. 109-59, title XI, Secs.
    11101(a)(1)(A)-(C), 11113(a), 11151(e)(2), 11161(b)(1), (3)(A),
    Aug. 10, 2005, 119 Stat. 1943, 1946, 1969-1971; Pub. L. 109-280,
    title XII, Sec. 1207(a), Aug. 17, 2006, 120 Stat. 1070; Pub. L. 109-
    432, div. A, title II, Sec. 208, Dec. 20, 2006, 120 Stat. 2946.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(2)(B). Pub. L. 109-432, Sec. 208(c),
    substituted "and ethanol fuel produced from coal" for "or ethanol
    fuel" in heading.
      Subsec. (b)(2)(C)(ii). Pub. L. 109-432, Sec. 208(b), substituted
    "2008" for "2007".
      Subsec. (b)(2)(D). Pub. L. 109-432, Sec. 208(a), substituted
    "January 1, 2009" for "October 1, 2007".
      Subsec. (g)(5). Pub. L. 109-280, which directed the addition of
    par. (5) to section 4041(g), without specifying the act to be
    amended, was executed to subsec. (g) of this section, which is
    section 4041 of the Internal Revenue Code of 1986, to reflect the
    probable intent of Congress.
      2005 - Subsec. (a)(1)(B). Pub. L. 109-59, Sec. 11161(b)(3)(A),
    struck out last sentence which read as follows: "This subparagraph
    shall not apply to aviation-grade kerosene."
      Pub. L. 109-58, Sec. 1362(b)(2)(A), inserted "(other than such
    tax at the Leaking Underground Storage Tank Trust Fund financing
    rate)" after "section 4081".
      Subsec. (a)(1)(C)(iii)(I). Pub. L. 109-59, Sec. 11101(a)(1)(A),
    substituted "2011" for "2005".
      Subsec. (a)(2). Pub. L. 109-59, Sec. 11113(a)(3), substituted
    "Alternative fuels" for "Special motor fuels" in heading.
      Subsec. (a)(2)(A). Pub. L. 109-58, Sec. 1362(b)(2)(A), inserted
    "(other than such tax at the Leaking Underground Storage Tank Trust
    Fund financing rate)" after "section 4081" in introductory
    provisions.
      Subsec. (a)(2)(B). Pub. L. 109-59, Sec. 11113(a)(1)(C), struck
    out concluding provisions which read as follows: "In the case of
    any sale or use after September 30, 2011, clause (ii) shall be
    applied by substituting '3.2 cents' for '13.6 cents', and clause
    (iii) shall be applied by substituting '2.8 cents' for '11.9
    cents'."
      Pub. L. 109-59, Sec. 11101(a)(1)(B), substituted "2011" for
    "2005" in concluding provisions.
      Subsec. (a)(2)(B)(i). Pub. L. 109-59, Sec. 11113(a)(1)(A),
    inserted "and" at end.
      Subsec. (a)(2)(B)(ii). Pub. L. 109-59, Sec. 11151(e)(2),
    substituted "section 45K(c)(3)" for "section 29(c)(3)".
      Pub. L. 109-59, Sec. 11113(a)(1)(B), (D), added cl. (ii) and
    struck out former cl. (ii) which read as follows: "13.6 cents per
    gallon in the case of liquefied petroleum gas, and".
      Subsec. (a)(2)(B)(iii). Pub. L. 109-59, Sec. 11113(a)(1)(B),
    struck out cl. (iii) which read as follows: "11.9 cents per gallon
    in the case of liquefied natural gas."
      Subsec. (a)(3)(A). Pub. L. 109-59, Sec. 11113(a)(2)(A),
    substituted "18.3 cents per energy equivalent of a gallon of
    gasoline" for "48.54 cents per MCF (determined at standard
    temperature and pressure)" in concluding provisions.
      Subsec. (a)(3)(C). Pub. L. 109-59, Sec. 11113(a)(2)(B),
    substituted "energy equivalent of a gallon of gasoline" for "MCF".
      Subsec. (b)(1)(A). Pub. L. 109-58, Sec. 1362(b)(2)(B), which
    directed amendment of subpar. (A) by striking out "or (d)(1))", was
    executed by striking out "or (d)(1)" after "subsection (a)" to
    reflect the probable intent of Congress.
      Subsec. (c). Pub. L. 109-59, Sec. 11161(b)(1)(D), substituted
    "Certain liquids used as a fuel in aviation" for "Aviation-grade
    kerosene" in heading.
      Subsec. (c)(1). Pub. L. 109-59, Sec. 11161(b)(1)(A), substituted
    "any liquid for use as a fuel other than aviation gasoline" for
    "aviation-grade kerosene" in introductory provisions.
      Subsec. (c)(2). Pub. L. 109-59, Sec. 11161(b)(1)(B), substituted
    "liquid for use as a fuel other than aviation gasoline" for
    "aviation-grade kerosene".
      Pub. L. 109-58, Sec. 1362(b)(2)(A), inserted "(other than such
    tax at the Leaking Underground Storage Tank Trust Fund financing
    rate)" after "section 4081".
      Subsec. (c)(3). Pub. L. 109-59, Sec. 11161(b)(1)(C), added par.
    (3) and struck out former par. (3) which read as follows: "The rate
    of tax imposed by this subsection shall be the rate of tax
    applicable under section 4081(a)(2)(A)(iv) which is in effect at
    the time of such sale or use."
      Subsec. (d)(5). Pub. L. 109-58, Sec. 1362(b)(2)(C), added par.
    (5).
      Subsec. (m)(1)(A), (B). Pub. L. 109-59, Sec. 11101(a)(1)(C),
    substituted "2011" for "2005" in introductory provisions.
      2004 - Subsec. (a)(1). Pub. L. 108-357, Sec. 853(a)(6)(B),
    inserted "and kerosene" after "diesel fuel" in heading.
      Subsec. (a)(1)(B). Pub. L. 108-357, Sec. 853(a)(6)(A), inserted
    at end "This subparagraph shall not apply to aviation-grade
    kerosene."
      Subsec. (a)(1)(C)(ii)(I) to (III). Pub. L. 108-357, Sec.
    241(a)(1), added subcls. (I) to (III) and struck out former subcls.
    (I) to (III) which read as follows:
      "(I) 6.8 cents per gallon after September 30, 1993, and before
    October 1, 1995,
      "(II) 5.55 cents per gallon after September 30, 1995, and before
    November 1, 1998, and
      "(III) 4.3 cents per gallon after October 31, 1998."
      Subsec. (b)(2)(B). Pub. L. 108-357, Sec. 301(c)(5), substituted
    "coal (including peat)" for "a substance other than petroleum or
    natural gas".
      Subsec. (c). Pub. L. 108-357, Sec. 853(d)(2)(A), amended heading
    and text of subsec. (c) generally, substituting provisions relating
    to imposition of tax upon aviation-grade kerosene and providing
    exemption for fuel previously taxed under section 4081, for
    provisions relating to imposition of tax on nongasoline fuels where
    no tax had been imposed under section 4091.
      Subsec. (d)(2). Pub. L. 108-357, Sec. 853(d)(2)(B), substituted
    "section 4081" for "section 4091" in concluding provisions.
      Subsec. (d)(3), (4). Pub. L. 108-357, Sec. 241(a)(2)(A), added
    par. (3) and redesignated former par. (3) as (4).
      Subsec. (e). Pub. L. 108-357, Sec. 853(d)(2)(C), struck out
    heading and text of subsec. (e). Text read as follows: "If a liquid
    on which tax was imposed on the sale thereof is taxable at a higher
    rate under subsection (c)(1) of this section on the use thereof,
    there is hereby imposed a tax equal to the difference between the
    tax so imposed and the tax payable at such higher rate."
      Subsec. (i). Pub. L. 108-357, Sec. 853(d)(2)(D), struck out
    heading and text of subsec. (i). Text read as follows: "If any
    liquid is sold by any person for use as a fuel in an aircraft, it
    shall be presumed for purposes of this section that a tax imposed
    by this section applies to the sale of such liquid unless the
    purchaser is registered in such manner (and furnished such
    information in respect of the use of the liquid) as the Secretary
    shall by regulations provide."
      Subsec. (k). Pub. L. 108-357, Sec. 301(c)(6), struck out subsec.
    (k) which related to rates of tax in the case of the sale or use of
    any fuels containing alcohol.
      Subsec. (m)(1). Pub. L. 108-357, Sec. 853(d)(2)(E), reenacted
    heading without change and amended text of par. (1) generally,
    substituting provisions relating to rates of tax after Sept. 30,
    1997, and before Oct. 1, 2005, and rates of tax after Sept. 30,
    2005, for provisions relating to rates of tax after Sept. 30, 1997,
    and before Oct. 1, 2005, rates of tax after Sept. 30, 2005, and
    rate of tax imposed by subsec. (c)(1).
      1998 - Subsec. (a)(1)(C)(ii)(II). Pub. L. 105-178, Sec.
    9006(a)(1), substituted "November 1, 1998" for "October 1, 1999".
      Subsec. (a)(1)(C)(ii)(III). Pub. L. 105-178, Sec. 9006(a)(2),
    substituted "October 31, 1998" for "September 30, 1999".
      Subsec. (a)(1)(C)(iii)(I). Pub. L. 105-178, Sec. 9002(a)(1)(A),
    substituted "2005" for "1999".
      Subsec. (a)(2)(B). Pub. L. 105-178, Sec. 9002(a)(1)(B),
    substituted "2005" for "1999" in concluding provisions.
      Subsec. (b)(2)(A)(i). Pub. L. 105-178, Sec. 9003(b)(2)(A)(i),
    substituted "the applicable blender rate" for "5.4 cents".
      Subsec. (b)(2)(C). Pub. L. 105-178, Sec. 9003(b)(2)(A)(ii), added
    subpar. (C). Former subpar. (C) redesignated (D).
      Pub. L. 105-178, Sec. 9003(a)(1)(A), substituted "2007" for
    "2000".
      Subsec. (b)(2)(D). Pub. L. 105-178, Sec. 9003(b)(2)(A)(ii),
    redesignated subpar. (C) as (D).
      Subsec. (k)(3). Pub. L. 105-178, Sec. 9003(a)(1)(B), substituted
    "2007" for "2000".
      Subsec. (l). Pub. L. 105-206 substituted "subsection (f) or (g)"
    for "subsection (e) or (f)".
      Subsec. (m)(1)(A). Pub. L. 105-178, Sec. 9002(a)(1)(C),
    substituted "2005" for "1999" in two places.
      1997 - Subsec. (a)(1)(A). Pub. L. 105-34, Sec. 902(b)(1),
    substituted "or a diesel-powered train" for ", a diesel-powered
    train, or a diesel-powered boat" in cls. (i) and (ii) and "vehicle
    or train" for "vehicle, train, or boat" in cl. (i).
      Subsec. (a)(1)(D). Pub. L. 105-34, Sec. 902(b)(2), struck out
    heading and text of subpar. (D). Text read as follows: "In the case
    of any sale for use, or use, of fuel in a diesel-powered motorboat -
     
        "(i) no tax shall be imposed by subsection (a) or (d)(1) during
      the period beginning on the date which is 7 days after the date
      of the enactment of the Small Business Job Protection Act of 1996
      and ending on December 31, 1997,
        "(ii) effective during the period after September 30, 1999, and
      before January 1, 2000, the rate of tax imposed by this paragraph
      is 24.3 cents per gallon, and
        "(iii) the termination of the tax under subsection (d) shall
      not occur before January 1, 2000."
      Subsec. (a)(2). Pub. L. 105-34, Sec. 907(a)(1), amended heading
    and text of par. (2) generally. Prior to amendment, text read as
    follows: "There is hereby imposed a tax on benzol, benzene,
    naphtha, liquefied petroleum gas, casing head and natural gasoline,
    or any other liquid (other than kerosene, gas oil, or fuel oil, or
    any product taxable under section 4081) - 
        "(A) sold by any person to an owner, lessee, or other operator
      of a motor vehicle or motorboat for use as a fuel in such motor
      vehicle or motorboat, or
        "(B) used by any person as a fuel in a motor vehicle or
      motorboat unless there was a taxable sale of such liquid under
      subparagraph (A).
    The rate of the tax imposed by this paragraph shall be the rate of
    tax specified in section 4081(a)(2)(A)(i) on gasoline which is in
    effect at the time of such sale or use."
      Pub. L. 105-34, Sec. 1601(f)(4)(B), substituted "section
    4081(a)(2)(A)(i)" for "section 4081(a)(2)(A)" in concluding
    provisions.
      Subsec. (a)(2)(A). Pub. L. 105-34, Sec. 1032(e)(1), struck out
    "kerosene," after "(other than" in introductory provisions.
      Subsec. (c)(1). Pub. L. 105-34, Sec. 1032(e)(2), substituted
    "kerosene and any other liquid" for "any liquid" in introductory
    provisions.
      Subsec. (c)(2). Pub. L. 105-34, Sec. 1435(b), inserted "or by
    reason of section 4261(h)" before period at end.
      Subsec. (c)(3). Pub. L. 105-2 amended heading and text of par.
    (3) generally. Prior to amendment, text read as follows: "The taxes
    imposed by paragraph (1) shall apply during the period beginning on
    September 1, 1982, and ending on December 31, 1995, and during the
    period beginning on the date which is 7 calendar days after the
    date of the enactment of the Small Business Job Protection Act of
    1996 and ending on December 31, 1996. The termination under the
    preceding sentence shall not apply to so much of the tax imposed by
    paragraph (1) as does not exceed 4.3 cents per gallon."
      Subsec. (c)(3)(B). Pub. L. 105-34, Sec. 1031(a)(3), substituted
    "September 30, 2007" for "September 30, 1997".
      Subsec. (d)(1). Pub. L. 105-34, Sec. 907(a)(2), inserted "and
    other than liquefied natural gas" after "liquefied petroleum gas".
      Subsec. (l). Pub. L. 105-34, Sec. 1601(f)(4)(A), struck out
    "helicopter" after "certain" in heading and inserted "or a fixed-
    wing aircraft" after "helicopter" in text.
      Subsec. (m)(1)(A). Pub. L. 105-34, Sec. 907(b), amended subpar.
    (A) generally. Prior to amendment, subpar. (A) read as follows:
    "the rate of the tax imposed by subsection (a)(2) shall be - 
        "(i) 11.3 cents per gallon after September 30, 1993, and before
      October 1, 1999, and
        "(ii) 4.3 cents per gallon after September 30, 1999, and".
      1996 - Subsec. (a)(1)(D). Pub. L. 104-188, Sec. 1208, added cl.
    (i) and redesignated former cls. (i) and (ii) as (ii) and (iii),
    respectively.
      Subsec. (c)(2). Pub. L. 104-188, Sec. 1609(g)(3)(A), redesignated
    par. (4) as (2) and struck out former par. (2) which read as
    follows:
      "(2) Gasoline. - There is hereby imposed a tax (at the rate
    specified in paragraph (3)) upon gasoline (as defined in section
    4083) - 
        "(A) sold by any person to an owner, lessee, or other operator
      of an aircraft, for use as a fuel in such aircraft in
      noncommercial aviation; or
        "(B) used by any person as a fuel in an aircraft in
      noncommercial aviation, unless there was a taxable sale of such
      product under subparagraph (A).
    The tax imposed by this paragraph shall be in addition to any tax
    imposed under section 4081."
      Subsec. (c)(3). Pub. L. 104-188, Sec. 1609(g)(3), redesignated
    par. (5) as (3) and substituted "paragraph (1)" for "paragraphs (1)
    and (2)", and struck out former par. (3) which read as follows:
      "(3) Rate of tax. - The rate of tax imposed by paragraph (2) on
    any gasoline is 1 cent per gallon."
      Subsec. (c)(4). Pub. L. 104-188, Sec. 1609(g)(3)(A), redesignated
    par. (4) as (2).
      Subsec. (c)(5). Pub. L. 104-188, Sec. 1609(g)(3)(A), redesignated
    par. (5) as (3).
      Pub. L. 104-188, Sec. 1609(a)(3), inserted ", and during the
    period beginning on the date which is 7 calendar days after the
    date of the enactment of the Small Business Job Protection Act of
    1996 and ending on December 31, 1996" after "December 31, 1995".
      Subsec. (k)(1)(A) to (C). Pub. L. 104-188, Sec. 1609(g)(4)(A),
    inserted "and" at end of subpar. (A), substituted period for ",
    and" at end of subpar. (B), and struck out subpar. (C) which read
    as follows: "no tax shall be imposed by subsection (c)(2)."
      1993 - Subsec. (a)(1). Pub. L. 103-66, Sec. 13242(d)(3), amended
    heading and text of par. (1) generally. Prior to amendment, text
    read as follows: "There is hereby imposed a tax on any liquid
    (other than any product taxable under section 4081) - 
        "(A) sold by any person to an owner, lessee, or other operator
      of a diesel-powered highway vehicle or diesel-powered boat for
      use as a fuel in such vehicle or boat, or
        "(B) used by any person as a fuel in a diesel-powered highway
      vehicle or diesel-powered boat unless there was a taxable sale of
      such liquid under subparagraph (A).
    The rate of the tax imposed by this paragraph shall be the sum of
    the Highway Trust Fund financing rate and the diesel fuel deficit
    reduction rate in effect under section 4091 at the time of such
    sale or use. No tax shall be imposed by this paragraph on the sale
    or use of any liquid if there was a taxable sale of such liquid
    under section 4091."
      Pub. L. 103-66, Sec. 13163(a)(2), substituted "diesel-powered
    highway vehicle or diesel-powered boat" for "diesel-powered highway
    vehicle" in subpars. (A) and (B) and "such vehicle or boat" for
    "such vehicle" in subpar. (A).
      Subsec. (a)(2). Pub. L. 103-66, Sec. 13242(d)(4), in introductory
    provisions, struck out "or paragraph (1) of this subsection" after
    "section 4081" and, in closing provisions, substituted "The rate of
    the tax imposed by this paragraph shall be the rate of tax
    specified in section 4081(a)(2)(A) on gasoline which is in effect
    at the time of such sale or use." for "The rate of the tax imposed
    by this paragraph shall be the sum of the Highway Trust Fund
    financing rate and the deficit reduction rate in effect under
    section 4081 at the time of such sale or use."
      Subsec. (a)(3). Pub. L. 103-66, Sec. 13241(e)(1), added par. (3).
      Subsec. (b)(1)(B). Pub. L. 103-66, Sec. 13242(d)(5)(A),
    substituted "paragraph (1)(B), (2)(B), or (3)(A)(ii)" for
    "paragraph (1)(B) or (2)(B)" and inserted before period at end "(if
    any)".
      Subsec. (b)(1)(C). Pub. L. 103-66, Sec. 13242(d)(5)(B), inserted
    before period at end "; except that such term shall not, for
    purposes of subsection (a)(1), include use in a diesel-powered
    train".
      Subsec. (b)(2)(A)(i). Pub. L. 103-66, Sec. 13242(d)(5)(C), struck
    out "Highway Trust Fund financing" before "rate applicable".
      Subsec. (c)(1). Pub. L. 103-66, Sec. 13242(d)(6), substituted
    "The rate of the tax imposed by this paragraph shall be the rate of
    tax specified in section 4091(b)(1) which is in effect at the time
    of such sale or use." for "The rate of the tax imposed by this
    paragraph shall be the sum of the Airport and Airway Trust Fund
    financing rate and the aviation fuel deficit reduction rate in
    effect under section 4091 at the time of such sale or use." in
    concluding provisions.
      Pub. L. 103-66, Sec. 13241(b)(2)(B)(iii), struck out "of 17.5
    cents per gallon" before "upon any liquid" in introductory
    provisions and inserted "The rate of the tax imposed by this
    paragraph shall be the sum of the Airport and Airway Trust Fund
    financing rate and the aviation fuel deficit reduction rate in
    effect under section 4091 at the time of such sale or use." before
    last sentence in concluding provisions.
      Subsec. (c)(2). Pub. L. 103-66, Sec. 13242(d)(7), substituted
    "gasoline (as defined in section 4083)" for "any product taxable
    under section 4081".
      Subsec. (c)(3). Pub. L. 103-66, Sec. 13241(b)(2)(A), amended
    heading and text of par. (3) generally. Prior to amendment, text
    read as follows: "The rate of tax imposed by paragraph (2) on any
    gasoline is the excess of 15 cents a gallon over the sum of the
    Highway Trust Fund financing rate plus the deficit reduction rate
    at which tax was imposed on such gasoline under section 4081."
      Subsec. (c)(5). Pub. L. 103-66, Sec. 13242(d)(8), inserted at end
    "The termination under the preceding sentence shall not apply to so
    much of the tax imposed by paragraph (1) as does not exceed 4.3
    cents per gallon."
      Subsec. (d)(1). Pub. L. 103-66, Sec. 13241(e)(2), substituted
    "subsection (a)(1) or (2)" for "subsection (a)" before "on such
    sale or use".
      Subsec. (d)(2). Pub. L. 103-66, Sec. 13242(d)(9), (10),
    redesignated par. (3) as (2), substituted "(other than gasoline (as
    defined in section 4083))" for "(other than any product taxable
    under section 4081)", and struck out heading and text of former
    par. (2). Text read as follows: "There is hereby imposed a tax of
    0.1 cent a gallon on any liquid (other than a product taxable under
    section 4081) - 
        "(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 liquid under subparagraph
      (A).
    No tax shall be imposed by this paragraph on the sale or use of any
    liquid if there was a taxable sale of such liquid under section
    4091."
      Subsec. (d)(3), (4). Pub. L. 103-66, Sec. 13242(d)(9),
    redesignated pars. (3) and (4) as (2) and (3), respectively.
      Subsec. (f)(3). Pub. L. 103-66, Sec. 13241(f)(1), struck out
    heading and text of par. (3). Text read as follows: "Except with
    respect to the taxes imposed by subsection (d), paragraph (1) shall
    not apply on and after October 1, 1999."
      Subsec. (g). Pub. L. 103-66, Sec. 13241(f)(2), struck out at end
    "Except with respect to the taxes imposed by subsection (d),
    paragraphs (2) and (4) shall not apply on and after October 1,
    1999."
      Subsec. (k)(1)(A). Pub. L. 103-66, Sec. 13242(d)(11), struck out
    "Highway Trust Fund financing" before "rates under paragraphs" and
    substituted "section 4081(c)" for "sections 4081(c) and 4091(c), as
    the case may be".
      Subsec. (k)(1)(B). Pub. L. 103-66, Sec. 13242(d)(12), substituted
    "4091(c)" for "4091(d)".
      Subsec. (m)(1)(A). Pub. L. 103-66, Sec. 13242(d)(13), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "under subsection (a)(2) - 
        "(i) the Highway Trust Fund financing rate shall be 5.75 cents
      per gallon, and
        "(ii) the deficit reduction rate shall be 5.55 cents per
      gallon."
      Pub. L. 103-66, Sec. 13241(c), amended subpar. (A) generally.
    Prior to amendment, subpar. (A) read as follows: "under subsection
    (a)(2) the Highway Trust Fund financing rate shall be 5.75 cents
    per gallon and the deficit reduction rate shall be 1.25 cents per
    gallon, and".
      Subsec. (m)(1)(B). Pub. L. 103-66, Sec. 13242(d)(13), amended
    subpar. (B) generally. Prior to amendment, subpar. (B) read as
    follows: "the rate of the tax imposed by subsection (c)(1) shall be
    the comparable rate under section 4091(d)(1)."
      1991 - Subsecs. (f)(3), (g). Pub. L. 102-240 substituted "1999"
    for "1995".
      1990 - Subsec. (a)(1). Pub. L. 101-508, Sec. 11211(b)(6)(C)(i),
    struck out "of 15 cents a gallon" after "imposed a tax" in
    introductory provisions and inserted before last sentence "The rate
    of the tax imposed by this paragraph shall be the sum of the
    Highway Trust Fund financing rate and the diesel fuel deficit
    reduction rate in effect under section 4091 at the time of such
    sale or use."
      Subsec. (a)(2). Pub. L. 101-508, Sec. 11211(b)(3), substituted
    "imposed a tax" for "imposed a tax of 9 cents a gallon" in
    introductory provisions and inserted at end "The rate of the tax
    imposed by this paragraph shall be the sum of the Highway Trust
    Fund financing rate and the deficit reduction rate in effect under
    section 4081 at the time of such sale or use."
      Subsec. (a)(3). Pub. L. 101-508, Sec. 11211(b)(6)(C)(ii), struck
    out par. (3) which provided that on and after Oct. 1, 1993, the
    taxes imposed by subsec. (a) shall not apply.
      Subsec. (b)(2)(A)(i). Pub. L. 101-508, Sec. 11211(b)(6)(D),
    amended cl. (i) generally. Prior to amendment, cl. (i) read as
    follows: "subsection (a)(2) shall be applied by substituting '3
    cents' for '9 cents', and".
      Subsec. (b)(2)(C). Pub. L. 101-508, Sec. 11211(e)(1), substituted
    "2000" for "1993".
      Subsec. (c)(1). Pub. L. 101-508, Sec. 11213(b)(2)(A), substituted
    "17.5 cents" for "14 cents".
      Subsec. (c)(3). Pub. L. 101-508, Sec. 11211(a)(4), substituted
    "15 cents" for "12 cents" and "the sum of the Highway Trust Fund
    financing rate plus the deficit reduction rate" for "the Highway
    Trust Fund financing rate".
      Subsec. (c)(5). Pub. L. 101-508, Sec. 11213(d)(2)(B), substituted
    "1995" for "1990".
      Subsec. (c)(6). Pub. L. 101-508, Sec. 11213(e)(3), struck out
    par. (6) which provided cross reference to section 4283 for
    reduction of rates of taxes imposed by subsec. (c)(1) and (2) in
    certain circumstances.
      Subsecs. (f)(3), (g). Pub. L. 101-508, Sec. 11211(d)(1), (2),
    substituted "1995" for "1993".
      Subsec. (k)(1)(A). Pub. L. 101-508, Sec. 11211(b)(6)(E)(i),
    amended subpar. (A) generally. Prior to amendment, subpar. (A) read
    as follows: "subsection (a)(1) shall be applied by substituting '9
    cents' for '15 cents', and".
      Subsec. (k)(1)(B). Pub. L. 101-508, Sec. 11213(b)(2)(B)(i),
    amended subpar. (B) generally. Prior to amendment, subpar. (B) read
    as follows: "no tax shall be imposed by subsection (c)(1), and".
      Pub. L. 101-508, Sec. 11211(b)(6)(E)(i), amended subpar. (B)
    generally. Prior to amendment, subpar. (B) read as follows:
    "subsection (a)(2) shall be applied by substituting '3 cents' for
    '9 cents', and".
      Subsec. (k)(1)(C). Pub. L. 101-508, Sec. 11211(b)(6)(E)(i),
    amended subpar. (C) generally. Prior to amendment, subpar. (C) read
    as follows: "no tax shall be imposed by subsection (c)."
      Subsec. (k)(3). Pub. L. 101-508, Sec. 11211(e)(2), substituted
    "2000" for "1993".
      Subsec. (m)(1)(A). Pub. L. 101-508, Sec. 11211(b)(6)(F), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "subsection (a)(2) shall be applied by substituting '4 1/2
     cents' for '9 cents', and".
      Subsec. (m)(1)(B). Pub. L. 101-508, Sec. 11213(b)(2)(B)(ii),
    amended subpar. (B) generally. Prior to amendment, subpar. (B) read
    as follows: "no tax shall be imposed by subsection (c)."
      1988 - Subsec. (b)(1)(A). Pub. L. 100-647, Sec. 2001(d)(3)(A),
    inserted reference to subsection (d)(1).
      Subsec. (b)(1)(B). Pub. L. 100-647, Sec. 2001(d)(3)(B), inserted
    "and by the corresponding provision of subsection (d)(1)" before
    the period.
      Subsec. (b)(1)(C). Pub. L. 100-647, Sec. 1017(c)(3), substituted
    "section 6421(e)(2)" for "section 6421(d)(2)".
      Subsec. (b)(2)(A). Pub. L. 100-647, Sec. 2001(d)(3)(D), amended
    subpar. (A) generally, inserting "(i)" before "subsection (a)(2)"
    and adding cl. (ii).
      Subsec. (b)(3). Pub. L. 100-647, Sec. 2001(d)(3)(C), struck out
    par. (3) which coordinated subsec. (b) with taxes imposed by
    subsec. (d).
      Subsec. (c)(3). Pub. L. 100-647, Sec. 2001(d)(2), substituted
    "the Highway Trust Fund financing rate at which" for "the rate at
    which".
      Subsec. (f)(3). Pub. L. 100-647, Sec. 1017(c)(4), amended par.
    (3) generally, substituting "paragraph (1) shall not apply on and
    after October 1, 1993" for "on and after October 1, 1993, paragraph
    (1) shall not apply".
      1987 - Subsec. (a)(1). Pub. L. 100-203, Sec. 10502(b)(1), in
    heading substituted "Tax on diesel fuel where no tax imposed on
    fuel under section 4091" for "Diesel fuel" and in text inserted
    sentence at end that no tax be imposed by this paragraph on the
    sale or use of any liquid if there was a taxable sale of such
    liquid under section 4091.
      Subsec. (a)(3). Pub. L. 100-17, Sec. 502(a)(1), substituted
    "1993" for "1988".
      Subsec. (b)(2)(C). Pub. L. 100-17, Sec. 502(b)(1), substituted
    "1993" for "1988".
      Subsec. (c)(1). Pub. L. 100-203, Sec. 10502(b)(2), in heading
    substituted "Tax on nongasoline fuels where no tax imposed on fuel
    under section 4091" for "In general" and in text inserted sentence
    at end that no tax be imposed by this paragraph on the sale or use
    of any liquid if there was a taxable sale of such liquid under
    section 4091.
      Subsec. (c)(5). Pub. L. 100-223, Sec. 402(b), substituted "1990"
    for "1987".
      Subsec. (c)(6). Pub. L. 100-223, Sec. 405(b)(3), added par. (6).
      Subsec. (d)(1). Pub. L. 100-203, Sec. 10502(b)(3), added par.
    (1), substituting new heading for "Liquids other than gasoline,
    etc., used in motor vehicles, motorboats, or trains", and struck
    out text of former par. (1) which read as follows: "In addition to
    the taxes imposed by subsection (a), there is hereby imposed a tax
    of 0.1 cents a gallon on benzol, benzene, naphtha, casing head and
    natural gasoline, or any other liquid (other than kerosene, gas
    oil, liquefied petroleum gas, or fuel oil, or any product taxable
    under section 4081) - 
        "(A) sold by any person to an owner, lessee, or other operator
      of a motor vehicle, motorboat, or train for use as a fuel in such
      motor vehicle, motorboat, or train, or
        "(B) used by any person as a fuel in a motor vehicle,
      motorboat, or train unless there was a taxable sale of such
      liquid under subparagraph (A)."
      Subsec. (d)(2). Pub. L. 100-203, Sec. 10502(b)(3), added par.
    (2), substituting new heading for "Liquids used in aviation", and
    struck out text of former par. (2) which read as follows: "In
    addition to the taxes imposed by subsection (c) and section 4081,
    there is hereby imposed a tax of 0.1 cents a gallon on any liquid -
    
        "(A) sold by any person to an owner, lessee, or other operator
      of an aircraft for use as a fuel in such aircraft, or
        "(B) used by any person as a fuel in an aircraft unless there
      was a taxable sale of such liquid under subparagraph (A).
    The tax imposed by this paragraph shall not apply to any product
    taxable under section 4081 which is used as a fuel in an aircraft
    other than in noncommercial aviation."
      Subsec. (d)(3), (4). Pub. L. 100-203, Sec. 10502(b)(3), added
    par. (3) and redesignated former par. (3) as (4).
      Subsecs. (f)(3), (g). Pub. L. 100-17, Sec. 502(b)(2), (3),
    substituted "1993" for "1988".
      Subsec. (k)(3). Pub. L. 100-17, Sec. 502(c)(1), substituted
    "September 30, 1993" for "December 31, 1992".
      Subsec. (l). Pub. L. 100-223, Sec. 404(b), amended subsec. (l)
    generally. Prior to amendment, subsec. (l) read as follows: "No tax
    shall be imposed under this section on any liquid sold for use in,
    or used in, a helicopter for the purpose of - 
        "(1) transporting individuals, equipment, or supplies in the
      exploration for, or the development or removal of, hard minerals,
      oil, or gas, or
        "(2) the planting, cultivation, cutting or transportation of,
      or caring for, trees (including logging operation),
    but only if the helicopter does not take off from, or land at, a
    facility eligible for assistance under the Airport and Airway
    Development Act of 1970, or otherwise use services provided
    pursuant to the Airport and Airway Improvement Act of 1982 during
    such use."
      Subsec. (n). Pub. L. 100-203, Sec. 10502(b)(4), struck out
    subsec. (n) which related to tax on diesel fuel for highway vehicle
    use being imposed on sale to retailer.
      1986 - Subsec. (b). Pub. L. 99-514, Sec. 422(a)(2), substituted
    "reduction in tax" for "exemption" in heading.
      Subsec. (b)(2)(A). Pub. L. 99-514, Sec. 422(a)(1), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "No tax shall be imposed by subsection (a) on any
    qualified methanol or ethanol fuel."
      Subsec. (b)(3). Pub. L. 99-499, Sec. 521(d)(1), added par. (3).
      Subsecs. (d), (e). Pub. L. 99-499, Sec. 521(a)(2), added subsec.
    (d) and redesignated former subsec. (d) as (e).
      Subsec. (f)(3). Pub. L. 99-499, Sec. 521(d)(2), substituted
    "Except with respect to the taxes imposed by subsection (d), on and
    after" for "On and after".
      Subsec. (g). Pub. L. 99-499, Sec. 521(d)(3), substituted "Except
    with respect to the taxes imposed by subsection (d), paragraphs"
    for "Paragraphs" in last sentence.
      Subsec. (l)(1). Pub. L. 99-514, Sec. 1879(c)(1), amended par. (1)
    generally. Prior to amendment, par. (1) read as follows:
      "transporting individuals, equipment, or supplies in - 
        "(A) the exploration for, or the development or removal of,
      hard minerals, or
        "(B) the exploration for oil or gas, or".
      Subsec. (n). Pub. L. 99-514, Sec. 1702(a), added subsec. (n).
      1984 - Subsec. (a)(1). Pub. L. 98-369, Sec. 911(a), substituted
    "15 cents" for "9 cents".
      Subsec. (k)(1). Pub. L. 98-369, Sec. 912(a), in amending par. (1)
    generally, substituted "liquid" for "liquid fuel" in provisions
    preceding subpar. (A), in subpar. (A), substituted "subsection
    (a)(1) shall be applied by substituting '9 cents' for '15 cents',
    and" for "subsection (a) shall be applied by substituting '4 cents'
    for '9 cents' each place it appears, and", added subpar. (B), and
    redesignated former subpar. (B) as (C).
      Subsec. (l)(1). Pub. L. 98-369, Sec. 1018(a), designated existing
    provisions as subpar. (A) and added subpar. (B).
      Subsec. (m). Pub. L. 98-369, Sec. 913(a), added subsec. (m).
      1983 - Subsec. (a). Pub. L. 97-424, Secs. 511(a)(2),
    516(a)(1)(A), added subsec. (a), and struck out former subsec. (a)
    which provided for a tax of 4 cents a gallon on diesel fuel.
      Subsec. (b). Pub. L. 97-424, Sec. 511(b)(1), (c)(2), added
    subsec. (b), and struck out former subsec. (b) which provided for a
    tax of 4 cents a gallon on special motor fuels.
      Subsec. (c)(3). Pub. L. 97-424, Sec. 511(g)(1), substituted
    provision that the rate of tax imposed by par. (2) on any gasoline
    is the excess of 12 cents a gallon over the rate at which tax was
    imposed on such gasoline under section 4081 for provision that the
    rate of tax imposed by par. (2) was 8 cents a gallon (10 1/2  cents
    a gallon in the case of any gasoline with respect to which a tax
    was imposed under section 4081 at the rate set forth in subsec. (b)
    thereof).
      Subsec. (e). Pub. L. 97-424, Sec. 516(a)(1)(B), struck out
    subsec. (e) which provided that the taxes imposed by subsecs. (a)
    and (b) would be 1 1/2  cents a gallon and that second and third
    sentences of subsecs. (a) and (b) would not apply on and after Oct.
    1, 1984.
      Subsec. (f)(3). Pub. L. 97-424, Sec. 516(b)(1)(A), added par.
    (3).
      Subsec. (g). Pub. L. 97-424, Sec. 516(b)(1)(B), inserted
    provision that pars. (2) and (4) shall not apply on and after Oct.
    1, 1988.
      Subsec. (k). Pub. L. 97-424, Sec. 511(d)(2), in par. (1)
    substituted provisions for a 4-cent tax on the sale or use of any
    liquid fuel at least 10 percent of which consists of alcohol for
    provisions that no tax be imposed by this section on the sale or
    use of such fuel, and in par. (2) substituted "to which paragraph
    (1) applied" for "on which tax was not imposed by reason of this
    subsection" after "alcohol" and inserted provision that any tax
    imposed on such sale shall be reduced by the amount (if any) of the
    tax imposed on the sale of such mixture.
      1982 - Subsec. (c). Pub. L. 97-248, Sec. 279(a), in par. (1)
    substituted "14 cents" for "7 cents", in par. (3) substituted "8
    cents a gallon (10 1/2  cents a gallon in the case of any gasoline
    with respect to which a tax is imposed under section 4081 at the
    rate set forth in subsection (b) thereof)" for "3 cents a gallon",
    and in par. (5) substituted provisions that the taxes imposed by
    pars. (1) and (2) shall apply during the period beginning on Sept.
    1, 1982, and ending on Dec. 31, 1987, for provisions that on and
    after Oct. 1, 1980, the taxes imposed by pars. (1) and (2) would
    not apply.
      Subsec. (l). Pub. L. 97-248, Sec. 279(b)(1), added subsec. (l).
      1980 - Subsec. (c)(5). Pub. L. 96-298 extended termination date
    to "October 1, 1980" from "July 1, 1980".
      Subsec. (k)(3). Pub. L. 96-223 added par. (3).
      1978 - Subsec. (b). Pub. L. 95-618, Secs. 222(a)(2),
    233(a)(3)(B), substituted ", in a qualified business use" for
    "otherwise than as a fuel in a highway vehicle (A) which (at the
    time of such sale or use) is registered, or is required to be
    registered, for highway use under the laws of any State or foreign
    country, or (B) which, in the case of a highway vehicle owned by
    the United States, is used on the highway" and "is used otherwise
    than in a qualified business use" for "is used as a fuel in a
    highway vehicle (A) which (at the time of such use) is registered,
    or is required to be registered, for highway use under the laws of
    any State or foreign country, or (B) which, in the case of a
    highway vehicle owned by the United States, is used on the highway"
    and inserted provision that for purposes of this subsection
    "qualified business use" has the meaning given to such term by
    section 6421(d)(2).
      Subsec. (c)(3). Pub. L. 95-599, Sec. 502(b), struck out
    termination date of Sept. 30, 1979 for 3 cents per gallon rate of
    tax and struck out provision for a 5 1/2  cents per gallon rate of
    tax after such date.
      Subsec. (e). Pub. L. 95-599, Sec. 502(a)(1), substituted "1984"
    for "1979".
      Subsec. (h)(2). Pub. L. 95-600, Sec. 703(l)(1), substituted "term
    'aircraft museum' means" for "term 'aircraft' means".
      Subsecs. (i), (j). Pub. L. 95-600, Sec. 703(l)(2), redesignated
    subsec. (i), relating to sales by United States, or by any agency
    or instrumentality of United States, as (j).
      Subsec. (k). Pub. L. 95-618, Sec. 221(b)(1), added subsec. (k).
      1976 - Subsec. (c)(3). Pub. L. 94-280, Sec. 303(a)(1),
    substituted "1979" for "1977" in two places.
      Subsec. (e). Pub. L. 94-280, Sec. 303(a)(2), substituted "1979"
    for "1977".
      Subsec. (f)(1). Pub. L. 94-455, Sec. 1906(b)(13(A), struck out
    "or his delegate" after "Secretary".
      Subsec. (g). Pub. L. 94-455, Secs. 1904(a)(1)(B), 1906(b)(13)(A),
    designated existing provisions as par. (1), substituted "Other
    exemptions" for "Exemptions for use as supplies for vessels" after
    "(g)", struck out "or his delegate" after "Secretary", and added
    pars. (2) to (4) and definition of "nonprofit educational
    organization".
      Subsec. (h). Pub. L. 94-530 added subsec. (h). Former subsec. (h)
    redesignated "(i) Registration".
      Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or his delegate"
    after "Secretary".
      Subsec. (i). Pub. L. 94-455, Sec. 1904(a)(1)(C), added subsec.
    (i) relating to sales by United States.
      Pub. L. 94-530 redesignated former subsec. (h) as "(i)
    Registration".
      1970 - Subsec. (b). Pub. L. 91-258, Sec. 202(b)(1) and (2),
    substituted "motor vehicle or motorboat" for "motor vehicle,
    motorboat, or airplane", twice in par. (1) and once in par. (2),
    and "in" for "for the propulsion of" in par. (1) preceding "such
    motor vehicle", in par. (2) preceding "a motor vehicle" and in text
    following par. (2) before "a highway vehicle (A)" in two places,
    respectively.
      Subsec. (c). Pub. L. 91-258, Sec. 202(a), added subsec. (c).
    Former subsec. (c) redesignated (e).
      Subsec. (c)(3). Pub. L. 91-605, Sec. 303(a)(1), substituted
    "1977" for "1972" in two places.
      Subsec. (d). Pub. L. 91-258, Sec. 202(a), added subsec. (d).
    Former subsec. (d) redesignated (f).
      Subsec. (e). Pub. L. 91-605, Sec. 303(a)(2), substituted "1977"
    for "1972".
      Pub. L. 91-258, Sec. 202(a), redesignated former subsec. (c) as
    (e), substituting in par. (1) "subsections (a) and (b)" and "," for
    "this section" and ";". Former subsec. (e) redesignated (g).
      Subsec. (f). Pub. L. 91-258, Sec. 202(a), redesignated former
    subsec. (d) as (f), substituting in par. (1) prohibition against
    imposition of tax "under this section on any liquid sold for use or
    used on a farm for farming purposes" for prior provisions that "(A)
    no tax shall be imposed under subsection (a)(1) or (b)(1) on the
    sale of any liquid sold for use on a farm for farming purposes, and
    (B) no tax shall be imposed under subsection (a)(2) or (b)(2) on
    the use of any liquid used on a farm for farming purposes".
      Subsec. (g). Pub. L. 91-258, Sec. 202(a), redesignated former
    subsec. (e) as (g), substituting "this section on any liquid sold"
    for "subsection (b) in the case of any fuel sold".
      Subsec. (h). Pub. L. 91-258, Sec. 202(a), added subsec. (h).
      1965 - Subsec. (b). Pub. L. 89-44 inserted "casinghead and
    natural gasoline," after "liquefied petroleum gas," in text
    preceding par. (1).
      1961 - Subsec. (a). Pub. L. 87-61, Sec. 201(a), increased tax on
    diesel fuel from 3 to 4 cents a gallon, and substituted "a tax of 2
    cents a gallon shall be imposed under paragraph (2)" for "a tax of
    1 cent a gallon shall be imposed under paragraph (2)".
      Subsec. (b). Pub. L. 87-61, Sec. 201(a), increased tax on special
    motor fuels from 3 to 4 cents a gallon, and substituted "a tax of 2
    cents a gallon shall be imposed under paragraph (2)" for "a tax of
    1 cent a gallon shall be imposed under paragraph (2)".
      Subsec. (c). Pub. L. 87-61, Sec. 201(c), substituted "October 1,
    1972" for "July 1, 1972".
      Subsec. (f). Pub. L. 87-61, Sec. 201(d), repealed subsec. (f)
    which authorized a temporary increase in taxes under subsecs. (a)
    and (b).
      1959 - Subsecs. (a), (b). Pub. L. 86-342, Sec. 201(b)(2), struck
    out "in lieu of 3 cents a gallon" after "shall be 2 cents a
    gallon".
      Subsec. (f). Pub. L. 86-342, Sec. 201(b)(1), added subsec. (f).
      1958 - Subsec. (e). Pub. L. 85-859 added subsec. (e).
      1956 - Subsec. (a). Act June 29, 1956, Sec. 202(a), increased tax
    on diesel fuel from 2 cents a gallon to 3 cents a gallon, and
    inserted provisions which retained tax at 2 cents a gallon for
    diesel fuel used in vehicles not registered, and not required to be
    registered, for highway use, or vehicles owned by the United States
    and not used on the highway.
      Subsec. (b). Act June 29, 1956, Sec. 202(b), increased tax on
    special motor fuels from 2 cents a gallon to 3 cents a gallon, and
    inserted provisions which retained tax at 2 cents a gallon for
    special motor fuels sold for use or used otherwise than as a fuel
    for the propulsion of a highway vehicle which is registered, or is
    required to be registered, for highway use, or vehicles owned by
    the United States used on the highway.
      Subsec. (c). Act June 29, 1956, Sec. 202(c), substituted "July 1,
    1972" for "April 1, 1956" and provided for nonapplication of second
    and third sentences of subsec. (a) and (b).
      Act Mar. 29, 1956, substituted "April 1, 1957" for "April 1,
    1956".
      Subsec. (d). Act Apr. 2, 1956, added subsec. (d).
      1955 - Subsec. (c). Act Mar. 30, 1955, substituted "April 1,
    1956" for "April 1, 1955".

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title XII, Sec. 1207(g), Aug. 17, 2006, 120
    Stat. 1072, provided that:
      "(1) In general. - The amendments made by this section [amending
    this section and sections 4221, 4253, 4483, 6416, 6421, and 7701 of
    this title] shall take effect on January 1, 2007.
      "(2) Subsection (d). - The amendment made by subsection (d)
    [amending section 4483 of this title] shall apply to taxable
    periods beginning on or after July 1, 2007."

                     EFFECTIVE DATE OF 2005 AMENDMENTS                 
      Pub. L. 109-59, title XI, Sec. 11101(e), Aug. 10, 2005, 119 Stat.
    1945, provided that: "The amendments made by this section [amending
    this section, sections 4051, 4071, 4081, 4221, 4481 to 4483, 6412,
    9503, and 9504 of this title, and section 460l-11 of Title 16,
    Conservation] shall take effect on the date of the enactment of
    this Act [Aug. 10, 2005]."
      Pub. L. 109-59, title XI, Sec. 11113(d), Aug. 10, 2005, 119 Stat.
    1949, provided that: "The amendments made by this section [amending
    this section and sections 4101, 6426, and 6427 of this title] shall
    apply to any sale or use for any period after September 30, 2006."
      Amendment by section 11151(e)(2) of Pub. L. 109-59 effective as
    if included in the provision of the Energy Tax Incentives Act of
    2005, Pub. L. 109-58, title XIII, to which such amendment relates,
    see section 11151(f)(3) of Pub. L. 109-59, set out as a note under
    section 38 of this title.
      Pub. L. 109-59, title XI, Sec. 11161(e), Aug. 10, 2005, 119 Stat.
    1973, provided that: "The amendments made by this section [amending
    this section and sections 4081, 4082, 6427, 9502, and 9503 of this
    title] shall apply to fuels or liquids removed, entered, or sold
    after September 30, 2005."
      Pub. L. 109-58, title XIII, Sec. 1362(d), Aug. 8, 2005, 119 Stat.
    1060, provided that:
      "(1) In general. - Except as provided in paragraph (2), the
    amendments made by this section [enacting section 6430 of this
    title and amending this section and sections 4081, 4082, and 9508
    of this title] shall take effect on October 1, 2005.
      "(2) No exemption. - The amendments made by subsection (b)
    [enacting section 6430 of this title and amending this section and
    section 4082 of this title] shall apply to fuel entered, removed,
    or sold after September 30, 2005."

                     EFFECTIVE DATE OF 2004 AMENDMENT                 
      Pub. L. 108-357, title II, Sec. 241(c), Oct. 22, 2004, 118 Stat.
    1438, provided that: "The amendments made by this section [amending
    this section and sections 4042, 4082, 6421, and 6427 of this title]
    shall take effect on January 1, 2005."
      Amendment by section 301(c)(5), (6) of Pub. L. 108-357 applicable
    to fuel sold or used after Dec. 31, 2004, see section 301(d)(1) of
    Pub. L. 108-357, set out as a note under section 40 of this title.
      Pub. L. 108-357, title VIII, Sec. 853(e), Oct. 22, 2004, 118
    Stat. 1614, provided that: "The amendments made by this section
    [amending this section and sections 4081 to 4083, 4101, 4103, 4221,
    6206, 6416, 6427, 6724, 9502, and 9508 of this title, redesignating
    subpart C of part III of subchapter A of chapter 32 of this title
    as subpart B of part III of subchapter A of chapter 32 of this
    title, and repealing former subpart B of part III of subchapter A
    of chapter 32 of this title] shall apply to aviation-grade kerosene
    removed, entered, or sold after December 31, 2004."

                     EFFECTIVE DATE OF 1998 AMENDMENTS                 
      Amendment by Pub. L. 105-206 effective, except as otherwise
    provided, as if included in the provisions of the Taxpayer Relief
    Act of 1997, Pub. L. 105-34, to which such amendment relates, see
    section 6024 of Pub. L. 105-206, set out as a note under section 1
    of this title.
      Amendment by section 9003(b)(2)(A) of Pub. L. 105-178 effective
    Jan. 1, 2001, see section 9003(b)(3) of Pub. L. 105-178, set out as
    a note under section 40 of this title.

                     EFFECTIVE DATE OF 1997 AMENDMENTS                 
      Section 902(c) of Pub. L. 105-34 provided that: "The amendments
    made by this section [amending this section and sections 4083 and
    6421 of this title] shall take effect on January 1, 1998."
      Section 907(c) of Pub. L. 105-34 provided that: "The amendments
    made by this section [amending this section] shall take effect on
    October 1, 1997."
      Section 1031(e)(1) of Pub. L. 105-34 provided that: "The
    amendments made by subsection (a) [amending this section and
    sections 4081 and 4091 of this title] shall apply take effect [sic]
    on October 1, 1997."
      Pub. L. 105-34, title X, Sec. 1032(f), Aug. 5, 1997, 111 Stat.
    935, as amended by Pub. L. 105-178, title IX, Sec. 9008, June 9,
    1998, 112 Stat. 506; Pub. L. 106-170, title V, Sec. 524, Dec. 17,
    1999, 113 Stat. 1928, provided that:
      "(1) Except as provided in paragraph (2), the amendments made by
    this section [amending this section and sections 4081 to 4083,
    4093, 4101, 6416, 6427, 6715, 7232, 9503, and 9508 of this title]
    shall take effect on July 1, 1998.
      "(2) The amendment made by subsection (d) [amending section 4101
    of this title] shall take effect on January 1, 2002."
      Section 1435(c)(2) of Pub. L. 105-34 provided that: "The
    amendment made by subsection (b) [amending this section] shall take
    effect on October 1, 1997."
      Amendment by section 1601(f)(4)(A), (B) of Pub. L. 105-34
    effective as if included in the provisions of the Small Business
    Job Protection Act of 1996, Pub. L. 104-188, to which it relates,
    see section 1601(j) of Pub. L. 105-34, set out as a note under
    section 23 of this title.
      Section 2(e)(1) of Pub. L. 105-2 provided that: "The amendments
    made by subsection (a) [amending this section and sections 4081 and
    4091 of this title] shall apply to periods beginning on or after
    the 7th day after the date of the enactment of this Act [Feb. 28,
    1997]."

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 1609(i) of Pub. L. 104-188 provided that: "The amendments
    made by this section [amending this section and sections 4081,
    4091, 4261, 4271, 4282, 6421, and 9502 of this title] shall take
    effect on the 7th calendar day after the date of the enactment of
    this Act [Aug. 20, 1996], except that the amendments made by
    subsection (b) [amending sections 4261 and 4271 of this title]
    shall not apply to any amount paid before such date."

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Section 13163(d) of Pub. L. 103-66 provided that: "The amendments
    made by this section [amending this section and sections 4092,
    6421, and 9508 of this title] shall take effect on January 1,
    1994."
      Section 13241(g) of Pub. L. 103-66 provided that: "The amendments
    made by this section [amending this section and sections 4042,
    4081, 4091, 4093, 6420, 6421, and 6427 of this title] shall take
    effect on October 1, 1993."
      Section 13242(e) of Pub. L. 103-66 provided that: "The amendments
    made by this section [enacting sections 4084 and 6714 of this title
    and amending this section and sections 4081 to 4083, 4091 to 4093,
    4101 to 4103, 6206, 6302, 6412, 6416, 6420, 6421, 6427, 9502, 9503,
    and 9508 of this title] shall take effect on January 1, 1994."

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 11211(a)(6) of Pub. L. 101-508 provided that: "Except as
    otherwise provided in this subsection, the amendments made by this
    subsection [amending this section and sections 4081 and 9503 of
    this title] shall apply to gasoline removed (as defined in [former]
    section 4082 of the Internal Revenue Code of 1986) after November
    30, 1990."
      Section 11211(b)(7) of Pub. L. 101-508 provided that: "The
    amendments made by this subsection [amending this section and
    sections 4091, 4093, 6427, 9502, and 9503 of this title] shall take
    effect on December 1, 1990."
      Section 11213(b)(4) of Pub. L. 101-508 provided that: "The
    amendments made by this subsection [amending this section and
    sections 4091 and 6427 of this title] shall take effect on December
    1, 1990."

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Amendment by section 1017(c)(3), (4) of Pub. L. 100-647
    effective, except as otherwise provided, as if included in the
    provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which
    such amendment relates, see section 1019(a) of Pub. L. 100-647, set
    out as a note under section 1 of this title.
      Amendment by section 2001(d)(2), (3)(A)-(D) of Pub. L. 100-647
    effective, except as otherwise provided, as if included in the
    provision of the Superfund Revenue Act of 1986, Pub. L. 99-499,
    title V, to which it relates, see section 2001(e) of Pub. L. 100-
    647, set out as a note under section 56 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENTS                 
      Section 2001(d)(1)(A) of Pub. L. 100-647 provided that: "The
    amendments made by subsections (b)(3) and (d)(17) of section 10502
    of the Revenue Act of 1987 [Pub. L. 100-203, amending this section
    and section 9508 of this title] shall be treated as if included in
    the amendments made by section 521 of the Superfund Revenue Act of
    1986 [Pub. L. 99-499] except that the last sentence of [former]
    paragraphs (2) and (3) of section 4041(d) of the Internal Revenue
    Code of 1986 (as amended by such subsection (b)(3)) and the
    reference to section 4091 of such Code in section 9508(c)(2)(A) of
    such Code (as amended by such subsection (d)(1) [(d)(17)]) shall
    not apply to sales before April 1, 1988."
      Section 404(d)(2) of Pub. L. 100-223 provided that: "The
    amendment made by subsection (b) [amending this section] shall take
    effect on October 1, 1988."
      Amendment by Pub. L. 100-203 applicable to sales after Mar. 31,
    1988, see section 10502(e) of Pub. L. 100-203, set out as a note
    under section 40 of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENTS                 
      Section 422(a)(3) of Pub. L. 99-514 provided that: "The
    amendments made by this subsection [amending this section] shall
    take effect on January 1, 1987."
      Section 1702(c) of Pub. L. 99-514 provided that: "The amendments
    made by this section [amending this section and section 6652 of
    this title] shall apply to sales after the first calendar quarter
    beginning more than 60 days after the date of the enactment of this
    Act [Oct. 22, 1986]."
      Amendment by section 1878(c)(1) of Pub. L. 99-514 effective,
    except as otherwise provided, as if included in the provisions of
    the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such
    amendment relates, see section 1881 of Pub. L. 99-514, set out as a
    note under section 48 of this title.
      Section 521(e) of Pub. L. 99-499 provided that: "The amendments
    made by this section [amending this section and sections 4042,
    4081, 4221, 6416, 6420, 6421, 6427, 9502, 9503, and 9506 of this
    title] shall take effect on January 1, 1987."

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by section 911(a) of Pub. L. 98-369 effective Aug. 1,
    1984, see section 911(e) of Pub. L. 98-369, set out as a note under
    section 6427 of this title.
      Amendment by section 912(a) of Pub. L. 98-369 effective Jan. 1,
    1985, see section 912(g) of Pub. L. 98-369, set out as a note under
    section 40 of this title.
      Section 913(c) of Pub. L. 98-369 provided that: "The amendments
    made by this section [amending this section and section 40 of this
    title] shall take effect on August 1, 1984."
      Section 1018(c)(1) of Pub. L. 98-369 provided that: "The
    amendment made by subsection (a) [amending this section] shall take
    effect on April 1, 1984."

                     EFFECTIVE DATE OF 1983 AMENDMENT                 
      Section 511(h) of Pub. L. 97-424 provided that:
      "(1) In general. - Except as otherwise provided in this
    subsection, the amendments made by this section [amending this
    section and sections 44E, 4081, 6416, 6420, 6421, and 6427 of this
    title] shall take effect on April 1, 1983.
      "(2) Tariff on imported alcohol. - The amendment made by
    subsection (d)(5) [amending item 901.50 of the Tariff Schedules,
    which are not set out in the Code] shall apply with respect to
    articles entered, or withdrawn from warehouse for consumption,
    after March 31, 1983.
      "(3) For subsection (e)(2). - The amendment made by subsection
    (e)(2) [amending section 6427 of this title] shall take effect on
    January 1, 1983.
      "(4) Shared transportation requirement. - The amendment made by
    subsection (e)(3) [amending section 6427 of this title] shall apply
    with respect to fuel purchased after December 31, 1982, and before
    January 1, 1984."

                     EFFECTIVE DATE OF 1982 AMENDMENT                 
      Section 279(c) of Pub. L. 97-248 provided that: "The amendments
    made by this section [amending this section and section 6427 of
    this title] shall take effect on September 1, 1982."

                     EFFECTIVE DATE OF 1978 AMENDMENTS                 
      Section 221(b)(2) of Pub. L. 95-618, as amended by Pub. L. 96-
    223, title II, Sec. 232(a)(3), Apr. 2, 1980, 94 Stat. 273,
    provided that: "The amendment made by paragraph (1) [amending this
    section] shall apply to sales or use after December 31, 1978."
      Section 222(b) of Pub. L. 95-618 provided that: "The amendments
    made by subsection (a) [amending this section and sections 6421 and
    6424 of this title] shall apply with respect to uses after December
    31, 1978."
      Amendment by section 233(a)(3)(B) of Pub. L. 95-618 effective on
    first day of first calendar month which begins more than 10 days
    after Nov. 9, 1978, see section 233(d) of Pub. L. 95-618, set out
    as a note under section 34 of this title.
      Amendment by Pub. L. 95-600 effective Oct. 4, 1976, see section
    703(r) of Pub. L. 95-600, set out as a note under section 46 of
    this title.

                     EFFECTIVE DATE OF 1976 AMENDMENTS                 
      Section 1(d) of Pub. L. 94-530 provided that: "The amendments
    made by this section [amending this section and sections 39, 6427,
    7210, 7603, 7604, and 7605 of this title] shall take effect on
    October 1, 1976."
      Section 1904(d) of Pub. L. 94-455 provided that: "Except as
    otherwise provided in this section, the amendments made by this
    section [amending this section and sections 263, 861, 1232, 4042,
    4216, 4217, 4227, 4253, 4261, 4271, 4371 to 4374, 4482, 4493, 4901,
    4905, 4973, 6011, 6416, 6611, 6651, 6808, 7012, 7234, 7240, 7265,
    7270, 7272, 7303, 7611, and 7655 of this title and repealing
    sections 4042, 4054 to 4058, 4226, 4292, 4294, 4295, 4591 to 4597,
    4801 to 4806, 4811 to 4826, 4881 to 4886, 4911 to 4931, 6076, 6680,
    6681, 6689, 7235, 7239, 7241, 7264, 7267, 7274, and 7328 of this
    title] shall take effect on the first day of the first month which
    begins more than 90 days after the date of the enactment of this
    Act [Oct. 4, 1976]."

                     EFFECTIVE DATE OF 1970 AMENDMENT                 
      Section 211 of title II of Pub. L. 91-258 provided that:
      "(a) General Rule. - Except as provided in subsection (b), the
    amendments made by this title [see Short Title of 1970 Amendment
    note below] shall take effect on July 1, 1970.
      "(b) Exceptions. - The amendments made by sections 203 [enacting
    section 7275 and amending sections 4261 and 4262 of this title] and
    204 [enacting sections 4271 and 4272 of this title] shall apply to
    transportation beginning after June 30, 1970. The amendments made
    by subsections (a), (b), and (c) of section 207 [enacting section
    6427 and amending sections 39, 6420, 6421, and 6424] shall apply
    with respect to taxable years ending after June 30, 1970."

                     EFFECTIVE DATE OF 1965 AMENDMENT                 
      Section 802(d)(2) of Pub. L. 89-44 provided that: "The amendment
    made by subsection (a)(2) [amending this section] shall apply with
    respect to casinghead and natural gasoline sold or used on or after
    July 1, 1965, except that such amendment shall not apply to a sale
    or use of casinghead or natural gasoline which was sold by a
    producer or importer before such date if tax under section 4081 of
    the Code (as in effect prior to the amendment made by subsection
    (a)(1) [amending section 4082 of this title]) was imposed with
    respect to such sale."

                     EFFECTIVE DATE OF 1961 AMENDMENT                 
      Section 208 of title II of Pub. L. 87-61 provided that:
      "(a) Except as provided in subsection (b), the amendments made by
    this title [enacting section 6156 of this title, amending this
    section and sections 4061, 4071, 4081, 4218, 4221, 4226, 4481,
    4482, 6412, 6416, 6421, and 6601 of this title, and amending
    section 209 of The Highway Revenue Act of 1956, set out as a note
    under section 120 of Title 23, Highways] shall take effect on the
    date of the enactment of this Act [June 29, 1961].
      "(b)(1) The amendments made by sections 201, 202, and 203
    [enacting section 6156 of this title and amending this section and
    sections 4071, 4081, 4481, 4482, 6421, and 6601 of this title]
    shall take effect on July 1, 1961.
      "(2) The amendments made by section 205(a), (c), and (d)
    [amending sections 4221 and 6416 of this title] shall apply only in
    the case of gasoline sold on or after October 1, 1961.
      "(3) The amendment made by section 205(b) [amending section 4218
    of this title] shall apply only in the case of gasoline used on or
    after October 1, 1961."

                     EFFECTIVE DATE OF 1958 AMENDMENT                 
      Amendment by Pub. L. 85-859 effective on first day of first
    calendar quarter which begins more than 60 days after Sept. 2,
    1958, see section 1(c) of Pub. L. 85-859.

                     EFFECTIVE DATE OF 1956 AMENDMENTS                 
      Section 211 of title II of act June 29, 1956, provided that:
    "This title [enacting sections 173 and 174 of Title 23, Highways,
    and sections 4426, 4481 to 4484 of this title, amending this
    section and sections 4061, 4071, 4072, 4073, 4081, 4084, 6206,
    6412, 6416, 6504, 6511, 6612, 6675, 7210, 7603, 7604, and 7605 of
    this title, and renumbering sections 4227 and 6422 of this title]
    shall take effect on the date of its enactment [June 29, 1956],
    except that the amendments made by sections 202, 203, 204, and 205
    [amending this section and sections 4061, 4071, 4072, 4073, and
    4081 of this title] shall take effect on July 1, 1956."
      Section 2(a)(2) of act Apr. 2, 1956, provided that: "The
    amendment made by paragraph (1) [amending this section] shall take
    effect on the day after the date of the enactment of this Act [Apr.
    2, 1956]."

                       SHORT TITLE OF 1970 AMENDMENT                   
      Section 201(a) of title II of Pub. L. 91-258 provided that: "This
    title [enacting sections 4271, 4272, 4281, 4282, 4491 to 4494,
    6426, 6427, and 7275 of this title and section 1742 of former Title
    49, Transportation, amending this section and sections 39, 874,
    4082, 4261, 4262, 4291 to 4294, 6156, 6201, 6206, 6401, 6415, 6416,
    6420, 6421, 6424, 6675, 7210, and 7603 to 7605 of this title,
    repealing former section 4263 of this title, enacting provisions
    set out as notes under section 104 of Title 4, Flag and Seal, Seat
    of Government, and the States, and section 1742 of former Title 49,
    and amending provision set out as a note under section 120 of Title
    23, Highways] may be cited as the 'Airport and Airway Revenue Act
    of 1970'."

                      SHORT TITLE OF 1956 AMENDMENTS                  
      Section 201(a) of title II of act June 29, 1956, provided that:
    "This title [enacting sections 173 and 174 of Title 23, Highways,
    and sections 4426, 4481 to 4484 of this title, amending this
    section and sections 4061, 4071, 4072, 4073, 4081, 4084, 6206,
    6412, 6416, 6504, 6511, 6612, 6675, 7210, 7603, 7604, and 7605 of
    this title, and renumbering sections 4227 and 6422 of this title]
    may be cited as the 'Highway Revenue Act of 1956'."
      Section 1 of act Mar. 29, 1956, provided: "That this Act
    [amending this section and sections 11, 821, 4061, 4081, 5001,
    5022, 5041, 5051, 5063, 5134, 5701, 5701 note, 5707, and 6412 of
    this title] may be cited as the 'Tax Rate Extension Act of 1956'."

                       SHORT TITLE OF 1955 AMENDMENT                   
      Section 1 of act Mar. 30, 1955, provided: "That this Act
    [amending this section and sections 11, 821, 4061, 4081, 5001,
    5022, 5041, 5051, 5063, 5134, 5701, 5701 note, 5707, and 6412 of
    this title] may be cited as the 'Tax Rate Extension Act of 1955'."

            DELAYED DEPOSITS OF HIGHWAY MOTOR FUEL TAX REVENUES        
      Due date for deposit of taxes imposed by this section which would
    be required to be made after July 31, 1998, and before Oct. 1,
    1998, to be Oct. 5, 1998, see section 901(e) of Pub. L. 105-34, set
    out as a note under section 6302 of this title.

                            FLOOR STOCKS TAXES                        
      Section 11213(b)(5) of Pub. L. 101-508 imposed a floor stocks tax
    on aviation fuel on which tax was imposed under section 4041(c)(1)
    or 4091 of this title before Dec. 1, 1990, and which was held on
    such date by any person.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of this title.

          STUDY BY SECRETARY OF THE TREASURY; REPORT TO CONGRESS      
      Pub. L. 96-451, title II, Sec. 204, Oct. 14, 1980, 94 Stat. 1988,
    directed Secretary of the Treasury, after consultation with
    Secretary of department in which Coast Guard was operating, to
    conduct a study to determine portion of taxes imposed by sections
    4041(b) and 4081 of the Internal Revenue Code of 1954 which were
    attributable to fuel used in recreational motorboats, and to report
    to Congress on his findings under such study, not later than 2
    years after Oct. 14, 1980.

          STUDY OF IMPORTED ALCOHOL BY SECRETARY OF THE TREASURY      
      Section 232(f) of Pub. L. 96-223 required, within 180 days after
    Apr. 2, 1980, Secretary of the Treasury to furnish specific
    Congressional committees recommendations for limiting import of
    alcohol into United States for fuel purposes.

                     REPORTS ON USE OF ALCOHOL IN FUEL                 
      Section 221(c) of Pub. L. 95-618, as amended by Pub. L. 96-223,
    Sec. 232(g), Apr. 2, 1980, 94 Stat. 280; Pub. L. 99-514, Sec. 2,
    Oct. 22, 1986, 100 Stat. 2095, provided that: "On April 1 of each
    year, beginning with April 1, 1981, and ending with April 1, 1992,
    the Secretary of Energy, in consultation with the Secretary of the
    Treasury and the Secretary of Transportation, shall submit to the
    Congress a report on the use of alcohol in fuel. The report shall
    include - 
        "(1) a description of the firms engaged in the alcohol fuel
      industry,
        "(2) the amount of alcohol fuel sold in each State, and the
      amount of gasoline saved in each State by reason of the use of
      alcohol fuels,
        "(3) the revenue loss resulting from the exemptions from tax
      for alcohol fuels under sections 4041(k) and 4081(c) of the
      Internal Revenue Code of 1986 [formerly I.R.C. 1954] and the
      credit allowable under section 44E [now 40] of such Code and the
      impact of such revenue loss on the Highway Trust Fund, and
        "(4) the cost of production and the retail cost of alcohol
      fuels as compared to gasoline and special fuels not mixed with
      alcohol."

-End-



-CITE-
    26 USC Sec. 4042                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle D - Miscellaneous Excise Taxes
    CHAPTER 31 - RETAIL EXCISE TAXES
    Subchapter B - Special Fuels

-HEAD-
    Sec. 4042. Tax on fuel used in commercial transportation on inland
      waterways

-STATUTE-
    (a) In general
      There is hereby imposed a tax on any liquid used during any
    calendar quarter by any person as a fuel in a vessel in commercial
    waterway transportation.
    (b) Amount of tax
      (1) In general
        The rate of the tax imposed by subsection (a) is the sum of - 
          (A) the Inland Waterways Trust Fund financing rate,
          (B) the Leaking Underground Storage Tank Trust Fund financing
        rate, and
          (C) the deficit reduction rate.
      (2) Rates
        For purposes of paragraph (1) - 
          (A) The Inland Waterways Trust Fund financing rate is the
        rate determined in accordance with the following table:


                     If the use occurs:                    2The tax per 
                                                            gallon is:  
    --------------------------------------------------------------------
    Before 1990                                                 10 cents
    During 1990                                                 11 cents
    During 1991                                                 13 cents
    During 1992                                                 15 cents
    During 1993                                                 17 cents
    During 1994                                                 19 cents
    After 1994                                                 20 cents.
    --------------------------------------------------------------------

          (B) The Leaking Underground Storage Tank Trust Fund financing
        rate is 0.1 cent per gallon.
          (C) The deficit reduction rate is - 
            (i) 3.3 cents per gallon after December 31, 2004, and
          before July 1, 2005,
            (ii) 2.3 cents per gallon after June 30, 2005, and before
          January 1, 2007, and
            (iii) 0 after December 31, 2006.
      (3) Exception for fuel taxed under section 4041(d)
        The Leaking Underground Storage Tank Trust Fund financing rate
      under paragraph (2)(B) shall not apply to the use of any fuel if
      tax under section 4041(d) was imposed on the sale of such fuel or
      is imposed on such use.
      (4) Termination of Leaking Underground Storage Tank Trust Fund
        financing rate
        The Leaking Underground Storage Tank Trust Fund financing rate
      under paragraph (2)(B) shall not apply during any period during
      which the Leaking Underground Storage Tank Trust Fund financing
      rate under section 4081 does not apply.
    (c) Exemptions
      (1) Deep-draft ocean-going vessels
        The tax imposed by subsection (a) shall not apply with respect
      to any vessel designed primarily for use on the high seas which
      has a draft of more than 12 feet.
      (2) Passenger vessels
        The tax imposed by subsection (a) shall not apply with respect
      to any vessel used primarily for the transportation of persons.
      (3) Use by State or local government in transporting property in
        a state or local business
        Subparagraph (B) of subsection (d)(1) shall not apply with
      respect to use by a State or political subdivision thereof.
      (4) Use in moving lash and seabee ocean-going barges
        The tax imposed by subsection (a) shall not apply with respect
      to use for movement by tug of exclusively LASH (Lighter-aboard-
      ship) and SEABEE ocean-going barges released by their ocean-
      going carriers solely to pick up or deliver international
      cargoes.
    (d) Definitions
      For purposes of this section - 
      (1) Commercial waterway transportation
        The term "commercial waterway transportation" means any use of
      a vessel on any inland or intracoastal waterway of the United
      States - 
          (A) in the business of transporting property for compensation
        or hire, or
          (B) in transporting property in the business of the owner,
        lessee, or operator of the vessel (other than fish or other
        aquatic animal life caught on the voyage).
      (2) Inland or intracoastal waterway of the United States
        The term "inland or intracoastal waterway of the United States"
      means any inland or intracoastal waterway of the United States
      which is described in section 206 of the Inland Waterways Revenue
      Act of 1978.
      (3) Person
        The term "person" includes the United States, a State, a
      political subdivision of a State, or any agency or
      instrumentality of any of the foregoing.
    (e) Date for filing return
      The date for filing the return of the tax imposed by this section
    for any calendar quarter shall be the last day of the first month
    following such quarter.

-SOURCE-
    (Added Pub. L. 95-502, title II, Sec. 202(a), Oct. 21, 1978, 92
    Stat. 1696; amended Pub. L. 99-499, title V, Sec. 521(a)(3), Oct.
    17, 1986, 100 Stat. 1777; Pub. L. 99-662, title XIV, Sec. 1404(a),
    Nov. 17, 1986, 100 Stat. 4270; Pub. L. 100-647, title II, Sec.
    2002(a)(2), Nov. 10, 1988, 102 Stat. 3597; Pub. L. 103-66, title
    XIII, Sec. 13241(d), Aug. 10, 1993, 107 Stat. 510; Pub. L. 108-357,
    title II, Sec. 241(b), Oct. 22, 2004, 118 Stat. 1438.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 206 of the Inland Waterways Revenue Act of 1978, referred
    to in subsec. (d)(2), is section 206 of Pub. L. 95-502, title II,
    Oct. 21, 1978, 92 Stat. 1700, which is classified to section 1804
    of Title 33, Navigation and Navigable Waters.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 4042, act Aug. 16, 1954, ch. 736, 68A Stat. 478,
    provided a cross reference to section 4222 of this title for
    exemption from tax where special motor fuels are sold for use for
    certain vessels, prior to repeal by Pub. L. 94-455, title XIX, Sec.
    1904(a)(1)(D), Oct. 4, 1976, 90 Stat. 1811.

                                AMENDMENTS                            
      2004 - Subsec. (b)(2)(C). Pub. L. 108-357 amended subpar. (C)
    generally. Prior to amendment, subpar. (C) read as follows: "The
    deficit reduction rate is 4.3 cents per gallon."
      1993 - Subsec. (b)(1)(C). Pub. L. 103-66, Sec. 13241(d)(1), added
    subpar. (C).
      Subsec. (b)(2)(C). Pub. L. 103-66, Sec. 13241(d)(2), added
    subpar. (C).
      1988 - Subsec. (b)(2). Pub. L. 100-647 amended par. (2)
    generally. Prior to amendment, par. (2) read as follows: "For
    purposes of paragraph (1) - 
        "(A) the Inland Waterways Trust Fund financing rate is 10 cents
      a gallon, and
        "(B) the Leaking Underground Storage Tank Trust Fund financing
      rate is 0.1 cents a gallon."
      1986 - Subsec. (b). Pub. L. 99-499 and Pub. L. 99-662 both
    amended subsec. (b) generally, effective Jan. 1, 1987. Pub. L. 100-
    647, Sec. 2002(a)(1) (see Construction of 1986 Amendments note
    below), provided that for purposes of this section, the amendment
    made by Pub. L. 99-499 be treated as enacted after the amendment
    made by Pub. L. 99-662. Prior to amendment by Pub. L. 99-499 and
    Pub. L. 99-662, subsec. (b) read as follows:


               "If the use occurs -                    2The tax is -    
    --------------------------------------------------------------------
      After September 30, 1980 and before               4 cents a gallon
       October 1, 1981                                                  
      After September 30, 1981 and before               6 cents a gallon
       October 1, 1983                                                  
      After September 30, 1983 and before               8 cents a gallon
       October 1, 1985                                                  
      After September 30, 1985                       10 cents a gallon".
    --------------------------------------------------------------------


                     EFFECTIVE DATE OF 2004 AMENDMENT                 
      Amendment by Pub. L. 108-357 effective Jan. 1, 2005, see section
    241(c) of Pub. L. 108-357, set out as a note under section 4041 of
    this title.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Amendment by Pub. L. 103-66 effective Oct. 1, 1993, see section
    13241(g) of Pub. L. 103-66, set out as a note under section 4041 of
    this title.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Section 2002(d) of Pub. L. 100-647, as amended by Pub. L. 101-
    239, title VII, Sec. 7812(b), Dec. 19, 1989, 103 Stat. 2412,
    provided that: "The amendments made by subsections (b) and (c)
    [amending section 4462 of this title and provisions set out as a
    note under section 4461 of this title] shall take effect as if
    included in the provision of the Harbor Maintenance Revenue Act of
    1986 [Pub. L. 99-662, title XIV] to which it relates, and the
    amendment made by subsection (a)(2) [amending this section] shall
    take effect as if included in the amendment made by section
    521(a)(3) of the Superfund Revenue Act of 1986 [Pub. L. 99-499,
    title V]."

                     EFFECTIVE DATE OF 1986 AMENDMENTS                 
      Section 1404(c) of Pub. L. 99-662 provided that: "The amendments
    made by this section [amending this section and section 1804 of
    Title 33, Navigation and Navigable Waters] shall take effect on
    January 1, 1987."
      Amendment by Pub. L. 99-499 effective Jan. 1, 1987, see section
    521(e) of Pub. L. 99-499, set out as a note under section 4041 of
    this title.

                              EFFECTIVE DATE                          
      Section 202(d) of Pub. L. 95-502 provided that: "The amendments
    made by this section [enacting this section and amending section
    4293 of this title] shall take effect on October 1, 1980."

                      CONSTRUCTION OF 1986 AMENDMENTS                  
      Section 2002(a)(1) of Pub. L. 100-647 provided that: "For
    purposes of section 4042 of the 1986 Code, the amendment made by
    section 521(a)(3) of the Superfund Revenue Act of 1986 [Pub. L. 99-
    499, amending this section] shall be treated as enacted after the
    amendment made by section 1404(a) of the Harbor Maintenance Revenue
    Act of 1986 [Pub. L. 99-662, amending this section]."

-End-


-CITE-
    26 USC Subchapter C - Heavy Trucks and Trailers             01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle D - Miscellaneous Excise Taxes
    CHAPTER 31 - RETAIL EXCISE TAXES
    Subchapter C - Heavy Trucks and Trailers

-HEAD-
                 SUBCHAPTER C - HEAVY TRUCKS AND TRAILERS             

-MISC1-
    Sec.                                                     
    4051.       Imposition of tax on heavy trucks and trailers sold at
                 retail.                                              
    4052.       Definitions and special rules.                        
    4053.       Exemptions.                                           

                                AMENDMENTS                            
      1990 - Pub. L. 101-508, title XI, Sec. 11221(a), Nov. 5, 1990,
    104 Stat. 1388-438, redesignated this subchapter, formerly
    subchapter B, as subchapter C.

-End-



-CITE-
    26 USC Sec. 4051                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle D - Miscellaneous Excise Taxes
    CHAPTER 31 - RETAIL EXCISE TAXES
    Subchapter C - Heavy Trucks and Trailers

-HEAD-
    Sec. 4051. Imposition of tax on heavy trucks and trailers sold at
      retail

-STATUTE-
    (a) Imposition of tax
      (1) In general
        There is hereby imposed on the first retail sale of the
      following articles (including in each case parts or accessories
      sold on or in connection therewith or with the sale thereof) a
      tax of 12 percent of the amount for which the article is so sold:
          (A) Automobile truck chassis.
          (B) Automobile truck bodies.
          (C) Truck trailer and semitrailer chassis.
          (D) Truck trailer and semitrailer bodies.
          (E) Tractors of the kind chiefly used for highway
        transportation in combination with a trailer or semitrailer.
      (2) Exclusion for trucks weighing 33,000 pounds or less
        The tax imposed by paragraph (1) shall not apply to automobile
      truck chassis and automobile truck bodies, suitable for use with
      a vehicle which has a gross vehicle weight of 33,000 pounds or
      less (as determined under regulations prescribed by the
      Secretary).
      (3) Exclusion for trailers weighing 26,000 pounds or less
        The tax imposed by paragraph (1) shall not apply to truck
      trailer and semitrailer chassis and bodies, suitable for use with
      a trailer or semitrailer which has a gross vehicle weight of
      26,000 pounds or less (as determined under regulations prescribed
      by the Secretary.(!1)

      (4) Exclusion for tractors weighing 19,500 pounds or less
        The tax imposed by paragraph (1) shall not apply to tractors of
      the kind chiefly used for highway transportation in combination
      with a trailer or semitrailer if - 
          (A) such tractor has a gross vehicle weight of 19,500 pounds
        or less (as determined by the Secretary), and
          (B) such tractor, in combination with a trailer or
        semitrailer, has a gross combined weight of 33,000 pounds or
        less (as determined by the Secretary).
      (5) Sale of trucks, etc., treated as sale of chassis and body
        For purposes of this subsection, a sale of an automobile truck
      or truck trailer or semitrailer shall be considered to be a sale
      of a chassis and of a body described in paragraph (1).
    (b) Separate purchase of truck or trailer and parts and accessories
      therefor
      Under regulations prescribed by the Secretary - 
      (1) In general
        If - 
          (A) the owner, lessee, or operator of any vehicle which
        contains an article taxable under subsection (a) installs (or
        causes to be installed) any part or accessory on such vehicle,
        and
          (B) such installation is not later than the date 6 months
        after the date such vehicle (as it contains such article) was
        first placed in service,

      then there is hereby imposed on such installation a tax equal to
      12 percent of the price of such part or accessory and its
      installation.
      (2) Exceptions
        Paragraph (1) shall not apply if - 
          (A) the part or accessory installed is a replacement part or
        accessory, or
          (B) the aggregate price of the parts and accessories (and
        their installation) described in paragraph (1) with respect to
        any vehicle does not exceed $1,000 (or such other amount or
        amounts as the Secretary may by regulations prescribe).
      (3) Installers secondarily liable for tax
        The owners of the trade or business installing the parts or
      accessories shall be secondarily liable for the tax imposed by
      paragraph (1).
    (c) Termination
      On and after October 1, 2011, the taxes imposed by this section
    shall not apply.
    (d) Credit against tax for tire tax
      If - 
        (1) tires are sold on or in connection with the sale of any
      article, and
        (2) tax is imposed by this subchapter on the sale of such
      tires,

    there shall be allowed as a credit against the tax imposed by this
    subchapter an amount equal to the tax (if any) imposed by section
    4071 on such tires.

-SOURCE-
    (Added Pub. L. 97-424, title V, Sec. 512(b)(1), Jan. 6, 1983, 96
    Stat. 2174; amended Pub. L. 98-369, div. A, title VII, Sec. 734(g),
    title IX, Sec. 921, July 18, 1984, 98 Stat. 980, 1009; Pub. L. 99-
    514, title XVIII, Secs. 1877(c), 1899A(47), Oct. 22, 1986, 100
    Stat. 2902, 2961; Pub. L. 100-17, title V, Sec. 502(a)(2), Apr. 2,
    1987, 101 Stat. 256; Pub. L. 101-508, title XI, Sec. 11211(c)(1),
    Nov. 5, 1990, 104 Stat. 1388-426; Pub. L. 102-240, title VIII, Sec.
    8002(a)(1), Dec. 18, 1991, 105 Stat. 2203; Pub. L. 105-34, title
    XIV, Secs. 1401(a), 1402(a), 1432(a), Aug. 5, 1997, 111 Stat. 1045,
    1046, 1050; Pub. L. 105-178, title IX, Sec. 9002(a)(1)(D), June 9,
    1998, 112 Stat. 499; Pub. L. 109-59, title XI, Secs.
    11101(a)(1)(D), 11112(a), Aug. 10, 2005, 119 Stat. 1943, 1946.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 4051, act Aug. 16, 1954, ch. 736, 68A Stat. 479,
    defined the price for which articles were sold for purposes of
    determining retailers excise taxes, prior to repeal by Pub. L. 94-
    455, title XIX, Sec. 1904(a)(1)(D), Oct. 4, 1976, 90 Stat. 1811.

                                AMENDMENTS                            
      2005 - Subsec. (a)(4), (5). Pub. L. 109-59, Sec. 11112(a), added
    par. (4) and redesignated former par. (4) as (5).
      Subsec. (c). Pub. L. 109-59, Sec. 11101(a)(1)(D), substituted
    "2011" for "2005".
      1998 - Subsec. (c). Pub. L. 105-178 substituted "2005" for
    "1999".
      1997 - Subsec. (b)(2)(B). Pub. L. 105-34, Sec. 1401(a),
    substituted "$1,000" for "$200".
      Subsec. (d). Pub. L. 105-34, Sec. 1432(a), redesignated subsec.
    (e) as (d) and struck out former subsec. (d) which provided for a
    temporary reduction in tax on certain piggyback trailers.
      Subsec. (e). Pub. L. 105-34, Sec. 1432(a), redesignated subsec.
    (e) as (d).
      Pub. L. 105-34, Sec. 1401(a), amended heading and text of subsec.
    (e) generally. Prior to amendment, text read as follows: "In the
    case of any article taxable under subsection (a) on which tax was
    imposed under section 4061(a), subsection (a) shall be applied by
    substituting '2 percent' for '12 percent'."
      1991 - Subsec. (c). Pub. L. 102-240 substituted "1999" for
    "1995".
      1990 - Subsec. (c). Pub. L. 101-508 substituted "1995" for
    "1993".
      1987 - Subsec. (c). Pub. L. 100-17 substituted "1993" for "1988".
      1986 - Subsec. (d)(1). Pub. L. 99-514, Sec. 1899A(47),
    substituted "July 18, 1984" for "the date of the enactment of the
    Tax Reform Act of 1984".
      Subsec. (d)(3). Pub. L. 99-514, Sec. 1877(c), inserted at end "No
    tax shall be imposed by reason of this paragraph on any use or
    resale which occurs more than 6 years after the date of the first
    retail sale."
      1984 - Subsec. (b)(3). Pub. L. 98-369, Sec. 734(g), substituted
    "The owners of the trade or business installing the parts or
    accessories shall be secondarily liable for the tax imposed by
    paragraph (1)" for "In addition to the owner, lessee, or operator
    of the vehicle, the owner of the trade or business installing the
    part or accessory shall be liable for the tax imposed by paragraph
    (1)".
      Subsecs. (d), (e). Pub. L. 98-369, Sec. 921, added subsec. (d)
    and redesignated former subsec. (d) as (e).

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Pub. L. 109-59, title XI, Sec. 11112(b), Aug. 10, 2005, 119 Stat.
    1946, provided that: "The amendments made by this section [amending
    this section] shall apply to sales after September 30, 2005."

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by section 1401(a) of Pub. L. 105-34 applicable to
    installations on vehicles sold after Aug. 5, 1997, see section
    1401(b) of Pub. L. 105-34, set out as a note under section 4003 of
    this title.
      Section 1402(c) of Pub. L. 105-34 provided that: "The amendments
    made by this section [amending this section and section 4052 of
    this title] shall take effect on January 1, 1998."

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by section 1877(c) of Pub. L. 99-514 effective, except
    as otherwise provided, as if included in the provisions of the Tax
    Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment
    relates, see section 1881 of Pub. L. 99-514, set out as a note
    under section 48 of this title.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Section 736 of subtitle C (Secs. 731-736) of title VII of div. A
    of Pub. L. 98-369 provided that: "Except as otherwise provided in
    this subtitle, any amendment made by this subtitle [amending this
    section and sections 48, 1366, 4052, 4053, 4071 to 4073, 4081,
    4082, 4216, 4218, 4221 to 4223, 4227, 4481, 6401, 6412, 6416, 6427,
    6511, and 9502 of this title, repealing sections 4061 to 4063 of
    this title, and amending provisions set out as notes under sections
    4061 and 4081 of this title] shall take effect as if included in
    the provisions of the Highway Revenue Act of 1982 [Pub. L. 97-424]
    to which such amendment relates."

                              EFFECTIVE DATE                          
      Section 512(b)(3) of Pub. L. 97-424 provided that: "The
    amendments made by this subsection [enacting this subchapter and
    amending section 6416 of this title] shall take effect on April 1,
    1983."

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of this title.

-FOOTNOTE-               

    (!1) So in original. Probably should be preceded by a closing
         parenthesis.


-End-



-CITE-
    26 USC Sec. 4052                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle D - Miscellaneous Excise Taxes
    CHAPTER 31 - RETAIL EXCISE TAXES
    Subchapter C - Heavy Trucks and Trailers

-HEAD-
    Sec. 4052. Definitions and special rules

-STATUTE-
    (a) First retail sale
      For purposes of this subchapter - 
      (1) In general
        The term "first retail sale" means the first sale, for a
      purpose other than for resale or leasing in a long-term lease,
      after production, manufacture, or importation.
      (2) Leases considered as sales
        Rules similar to the rules of section 4217 shall apply.
      (3) Use treated as sale
        (A) In general
          If any person uses an article taxable under section 4051
        before the first retail sale of such article, then such person
        shall be liable for tax under section 4051 in the same manner
        as if such article were sold at retail by him.
        (B) Exemption for use in further manufacture
          Subparagraph (A) shall not apply to use of an article as
        material in the manufacture or production of, or as a component
        part of, another article to be manufactured or produced by him.
        (C) Computation of tax
          In the case of any person made liable for tax by subparagraph
        (A), the tax shall be computed on the price at which similar
        articles are sold at retail in the ordinary course of trade, as
        determined by the Secretary.
    (b) Determination of price
      (1) In general
        In determining price for purposes of this subchapter - 
          (A) there shall be included any charge incident to placing
        the article in condition ready for use,
          (B) there shall be excluded - 
            (i) the amount of the tax imposed by this subchapter,
            (ii) if stated as a separate charge, the amount of any
          retail sales tax imposed by any State or political
          subdivision thereof or the District of Columbia, whether the
          liability for such tax is imposed on the vendor or vendee,
          and
            (iii) the value of any component of such article if - 
              (I) such component is furnished by the first user of such
            article, and
              (II) such component has been used before such furnishing,
            and

          (C) the price shall be determined without regard to any trade-
        in.
      (2) Sales not at arm's length
        In the case of any article sold (otherwise than through an
      arm's-length transaction) at less than the fair market price, the
      tax under this subchapter shall be computed on the price for
      which similar articles are sold at retail in the ordinary course
      of trade, as determined by the Secretary.
      (3) Long-term lease
        (A) In general
          In the case of any long-term lease of an article which is
        treated as the first retail sale of such article, the tax under
        this subchapter shall be computed on a price equal to - 
            (i) the sum of - 
              (I) the price (determined under this subchapter but
            without regard to paragraph (4)) at which such article was
            sold to the lessor, and
              (II) the cost of any parts and accessories installed by
            the lessor on such article before the first use by the
            lessee or leased in connection with such long-term lease,
            plus

            (ii) an amount equal to the presumed markup percentage of
          the sum described in clause (i).
        (B) Presumed markup percentage
          For purposes of subparagraph (A), the term "presumed markup
        percentage" means the average markup percentage of retailers of
        articles of the type involved, as determined by the Secretary.
        (C) Exceptions under regulations
          To the extent provided in regulations prescribed by the
        Secretary, subparagraph (A) shall not apply to specified types
        of leases where its application is not necessary to carry out
        the purposes of this subsection.
      (4) Special rule where tax paid by manufacturer, producer, or
        importer
        (A) In general
          In any case where the manufacturer, producer, or importer of
        any article (or a related person) is liable for tax imposed by
        this subchapter with respect to such article, the tax under
        this subchapter shall be computed on a price equal to the sum
        of - 
            (i) the price which would (but for this paragraph) be
          determined under this subchapter, plus
            (ii) the product of the price referred to in clause (i) and
          the presumed markup percentage determined under paragraph
          (3)(B).
        (B) Related person
          For purposes of this paragraph - 
          (i) In general
            Except as provided in clause (ii), the term "related
          person" means any person who is a member of the same
          controlled group (within the meaning of section 5061(e)(3))
          as the manufacturer, producer, or importer.
          (ii) Exception for retail establishment
            To the extent provided in regulations prescribed by the
          Secretary, a person shall not be treated as a related person
          with respect to the sale of any article if such article is
          sold through a permanent retail establishment in the normal
          course of the trade or business of being a retailer.
    (c) Certain combinations not treated as manufacture
      (1) In general
        For purposes of this subchapter (other than subsection
      (a)(3)(B)), a person shall not be treated as engaged in the
      manufacture of any article by reason of merely combining such
      article with any item listed in paragraph (2).
      (2) Items
        The items listed in this paragraph are any coupling device
      (including any fifth wheel), wrecker crane, loading and unloading
      equipment (including any crane, hoist, winch, or power liftgate),
      aerial ladder or tower, snow and ice control equipment,
      earthmoving, excavation and construction equipment, spreader,
      sleeper cab, cab shield, or wood or metal floor.
    (d) Certain other rules made applicable
      Under regulations prescribed by the Secretary, rules similar to
    the rules of subsections (c) and (d) of section 4216 (relating to
    partial payments) shall apply for purposes of this subchapter.
    (e) Long-term lease
      For purposes of this section, the term "long-term lease" means
    any lease with a term of 1 year or more. In determining a lease
    term for purposes of the preceding sentence, the rules of section
    168(i)(3)(A) shall apply.
    (f) Certain repairs and modifications not treated as manufacture
      (1) In general
        An article described in section 4051(a)(1) shall not be treated
      as manufactured or produced solely by reason of repairs or
      modifications to the article (including any modification which
      changes the transportation function of the article or restores a
      wrecked article to a functional condition) if the cost of such
      repairs and modifications does not exceed 75 percent of the
      retail price of a comparable new article.
      (2) Exception
        Paragraph (1) shall not apply if the article (as repaired or
      modified) would, if new, be taxable under section 4051 and the
      article when new was not taxable under such section or the
      corresponding provision of prior law.
    (g) Regulations
      The Secretary shall prescribe regulations which permit, in lieu
    of any other certification, persons who are purchasing articles
    taxable under this subchapter for resale or leasing in a long-term
    lease to execute a statement (made under penalties of perjury) on
    the sale invoice that such sale is for resale. The Secretary shall
    not impose any registration requirement as a condition of using
    such procedure.

-SOURCE-
    (Added Pub. L. 97-424, title V, Sec. 512(b)(1), Jan. 6, 1983, 96
    Stat. 2175; amended Pub. L. 98-369, div. A, title VII, Secs. 731,
    735(b)(2), July 18, 1984, 98 Stat. 976, 981; Pub. L. 100-17, title
    V, Secs. 505(a)-(c), 506(a), Apr. 2, 1987, 101 Stat. 258, 259; Pub.
    L. 100-647, title VI, Sec. 6111(a), Nov. 10, 1988, 102 Stat. 3713;
    Pub. L. 105-34, title XIV, Secs. 1402(b), 1434(a), (b), Aug. 5,
    1997, 111 Stat. 1046, 1052; Pub. L. 105-206, title VI, Sec.
    6014(c), July 22, 1998, 112 Stat. 820.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 4052, act Aug. 16, 1954, ch. 736, 68A Stat. 479,
    provided that lease of an article would be considered the sale of
    article for excise tax purposes, prior to repeal by Pub. L. 94-455,
    title XIX, Sec. 1904(a)(1)(D), Oct. 4, 1976, 90 Stat. 1811.

                                AMENDMENTS                            
      1998 - Subsec. (f)(2). Pub. L. 105-206 substituted "such section"
    for "this section".
      1997 - Subsec. (b)(1)(B)(ii) to (iv). Pub. L. 105-34, Sec.
    1402(b), inserted "and" at end of cl. (ii), redesignated cl. (iv)
    as (iii), and struck out former cl. (iii) which read as follows:
    "the fair market value (including any tax imposed by section 4071)
    at retail of any tires (not including any metal rim or rim base),
    and".
      Subsec. (d). Pub. L. 105-34, Sec. 1434(b)(1), substituted "rules
    of subsections (c) and (d) of section 4216 (relating to partial
    payments) shall apply" for "rules of - 
        "(1) subsections (c) and (d) of section 4216 (relating to
      partial payments), and
        "(2) section 4222 (relating to registration),
    shall apply".
      Subsec. (e). Pub. L. 105-34, Sec. 1434(a), redesignated subsec.
    (f) as (e).
      Subsec. (f). Pub. L. 105-34, Sec. 1434(a), added subsec. (f).
    Former subsec. (f) redesignated (e).
      Subsec. (g). Pub. L. 105-34, Sec. 1434(b)(2), added subsec. (g).
      1988 - Subsec. (a)(1). Pub. L. 100-647 substituted "production,
    manufacture" for "manufacture, production".
      1987 - Subsec. (a)(1). Pub. L. 100-17, Sec. 505(a), inserted "or
    leasing in a long-term lease" after "resale".
      Subsec. (b)(3). Pub. L. 100-17, Sec. 505(b), added par. (3).
      Subsec. (b)(4). Pub. L. 100-17, Sec. 506(a), added par. (4).
      Subsec. (f). Pub. L. 100-17, Sec. 505(c), added subsec. (f).
      1984 - Subsec. (b)(1)(B)(iv). Pub. L. 98-369, Sec. 731, added cl.
    (iv).
      Subsec. (c). Pub. L. 98-369, Sec. 735(b)(2), in amending subsec.
    (c) generally, designated existing provisions as par. (1), in par.
    (1) as so designated substituted "by reason of merely combining
    such article with any article listed in paragraph (2)" for "with
    any equipment or other item listed in section 4063(d)", and added
    par. (2).

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-206 effective, except as otherwise
    provided, as if included in the provisions of the Taxpayer Relief
    Act of 1997, Pub. L. 105-34, to which such amendment relates, see
    section 6024 of Pub. L. 105-206, set out as a note under section 1
    of this title.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by section 1402(b) of Pub. L. 105-34 effective Jan. 1,
    1998, see section 1402(c) of Pub. L. 105-34, set out as a note
    under section 4051 of this title.
      Section 1434(c) of Pub. L. 105-34 provided that: "The amendments
    made by this section [amending this section] shall take effect on
    January 1, 1998."

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Section 6111(b) of Pub. L. 100-647 provided that: "The amendment
    made by subsection (a) [amending this section] shall take effect on
    January 1, 1988."

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Section 505(d) of Pub. L. 100-17 provided that: "The amendments
    made by this section [amending this section] shall apply with
    respect to articles sold by the manufacturer, producer, or importer
    on or after the first day of the first calendar quarter which
    begins more than 90 days after the date of the enactment of this
    Act [Apr. 2, 1987]."
      Section 506(b) of Pub. L. 100-17 provided that: "The amendment
    made by this section [amending this section] shall apply with
    respect to articles sold by the manufacturer, producer, or importer
    on or after the 1st day of the 1st calendar quarter which begins
    more than 90 days after the date of the enactment of this Act [Apr.
    2, 1987]."

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective, except as otherwise
    provided, as if included in the provisions of the Highway Revenue
    Act of 1982, title V of Pub. L. 97-424, to which such amendment
    relates, see section 736 of Pub. L. 98-369, set out as a note under
    section 4051 of this title.

-End-



-CITE-
    26 USC Sec. 4053                                            01/03/2007

-EXPCITE-
    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle D - Miscellaneous Excise Taxes
    CHAPTER 31 - RETAIL EXCISE TAXES
    Subchapter C - Heavy Trucks and Trailers

-HEAD-
    Sec. 4053. Exemptions

-STATUTE-
      No tax shall be imposed by section 4051 on any of the following
    articles:
      (1) Camper coaches bodies for self-propelled mobile homes
        Any article designed - 
          (A) to be mounted or placed on automobile trucks, automobile
        truck chassis, or automobile chassis, and
          (B) to be used primarily as living quarters or camping
        accommodations.
      (2) Feed, seed, and fertilizer equipment
        Any body primarily designed - 
          (A) to process or prepare seed, feed, or fertilizer for use
        on farms,
          (B) to haul feed, seed, or fertilizer to and on farms,
          (C) to spread feed, seed, or fertilizer on farms,
          (D) to load or unload feed, seed, or fertilizer on farms, or
          (E) for any combination of the foregoing.
      (3) House trailers
        Any house trailer.
      (4) Ambulances, hearses, etc.
        Any ambulance, hearse, or combination ambulance-hearse.
      (5) Concrete mixers
        Any article designed - 
          (A) to be placed or mounted on an automobile truck chassis or
        truck trailer or semitrailer chassis, and
          (B) to be used to process or prepare concrete.
      (6) Trash containers, etc.
        Any box, container, receptacle, bin or other similar article - 
          (A) which is designed to be used as a trash container and is
        not designed for the transportation of freight other than
        trash, and
          (B) which is not designed to be permanently mounted on or
        permanently affixed to an automobile truck chassis or body.
      (7) Rail trailers and rail vans
        Any chassis or body of a trailer or semitrailer which is
      designed for use both as a highway vehicle and a railroad car.
      For purposes of the preceding sentence, piggy-back trailer or
      semitrailer shall not be treated as designed for use as a
      railroad car.
      (8) Mobile machinery
        Any vehicle which consists of a chassis - 
          (A) to which there has been permanently mounted (by welding,
        bolting, riveting, or other means) machinery or equipment to
        perform a construction, manufacturing, processing, farming,
        mining, drilling, timbering, or similar operation if the
        operation of the machinery or equipment is unrelated to
        transportation on or off the public highways,
          (B) which has been specially designed to serve only as a
        mobile carriage and mount (and a power source, where
        applicable) for the particular machinery or equipment involved,
        whether or not such machinery or equipment is in operation, and
          (C) which, by reason of such special design, could not,
        without substantial structural modification, be used as a
        component of a vehicle designed to perform a function of
        transporting any load other than that particular machinery or
        equipment or similar machinery or equipment requiring such a
        specially designed chassis.

-SOURCE-
    (Added Pub. L. 97-424, title V, Sec. 512(b)(1), Jan. 6, 1983, 96
    Stat. 2176; amended Pub. L. 98-369, div. A, title VII, Sec.
    735(b)(1), July 18, 1984, 98 Stat. 981; Pub. L. 108-357, title
    VIII, Sec. 851(a)(1), Oct. 22, 2004, 118 Stat. 1607.)


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                             PRIOR PROVISIONS                         
      A prior section 4053, acts Aug. 16, 1954, ch. 736, 68A Stat. 479;
    Sept. 2, 1958, Pub. L. 85-859, title I, Sec. 104, 72 Stat. 1276,
    made provision for the imposition of the retailers tax on
    installment sales, prior to repeal by Pub. L. 94-455, title XIX,
    Sec. 1904(a)(1)(D), Oct. 4, 1976, 90 Stat. 1811.
      For provisions of prior sections 4054 to 4058 of this title, see
    Prior Provisions note set out preceding section 4041 of this title.

                                AMENDMENTS                            
      2004 - Par. (8). Pub. L. 108-357 added par. (8).
      1984 - Pub. L. 98-369 amended section generally, substituting
    provisions listing articles on which no tax under section 4051
    shall be imposed for former provisions which stated that no tax be
    imposed under section 4051 on any article specified in subsection
    (a) of section 4063 and that the exemptions provided by section
    4221(a) extended to the tax imposed by section 4051.

                     EFFECTIVE DATE OF 2004 AMENDMENT                 
      Pub. L. 108-357, title VIII, Sec. 851(a)(2), Oct. 22, 2004, 118
    Stat. 1607, provided that: "The amendment made by this subsection
    [amending this section] shall take effect on the day after the date
    of the enactment of this Act [Oct. 22, 2004]."

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-369 effective, except as otherwise
    provided, as if included in the provisions of the Highway Revenue
    Act of 1982, title V of Pub. L. 97-424, to which such amendment
    relates, see section 736 of Pub. L. 98-369, set out as a note under
    section 4051 of this title.

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