To amend the Internal Revenue Code of 1986 to suspend all motor fuel taxes for six months.

Summary: Gas Tax Fairness Act of 2001 - Amends the Internal Revenue Code to suspend, for six months, motor fuels taxes. States that amounts transferred to the Highway Trust Fund shall be determined as if this Act had not been enacted.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gas Tax Fairness Act of 2001''.

SEC. 2. SIX-MONTH SUSPENSION OF FUEL TAXES.

    (a) Six-Month Suspension of Fuel Taxes.--Section 4081 of the 
Internal Revenue Code of 1986 (relating to imposition of tax on 
gasoline, diesel fuel, and kerosene) is amended by adding at the end 
the following new subsection:
    ``(f) Temporary Suspension of Fuel Taxes.--
            ``(1) In general.--During the suspension period, each rate 
        of tax referred to in paragraph (2) shall be reduced to zero.
            ``(2) Rates of tax.--The rates of tax referred to in this 
        paragraph are the rates of tax otherwise applicable under--
                    ``(A) subsection (a)(2)(A) (relating to gasoline, 
                diesel fuel, and kerosene),
                    ``(B) sections 4091(b)(3)(A) (relating to aviation 
                fuel),
                    ``(C) section 4042(b)(2)(C) (relating to fuel used 
                on inland waterways),
                    ``(D) paragraph (1), (2), or (3) of section 4041(a) 
                (relating to diesel fuel, special fuels, and compressed 
                natural gas), and
                    ``(E) section 4041(m)(1)(A)(i) (relating to certain 
                methanol or ethanol fuels).
            ``(3) Suspension period.--For purposes of this subsection, 
        the term `suspension period' means the period beginning on July 
        1, 2001, and ending on December 31, 2001.''
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 3. FLOOR STOCK REFUNDS.

    (a) In General.--If--
            (1) before the tax suspension date, tax has been imposed 
        under section 4081 or 4091 of the Internal Revenue Code of 1986 
        on any liquid, and
            (2) on such date such liquid is held by a dealer and has 
        not been used and is intended for sale,
there shall be credited or refunded (without interest) to the person 
who paid such tax (hereafter in this section referred to as the 
``taxpayer'') an amount equal to the excess of the tax paid by the 
taxpayer over the amount of such tax which would be imposed on such 
liquid had the taxable event occurred on such date.
    (b) Time for Filing Claims.--No credit or refund shall be allowed 
or made under this section unless--
            (1) claim therefor is filed with the Secretary of the 
        Treasury before the date which is 6 months after the tax 
        suspension date, and
            (2) in any case where liquid is held by a dealer (other 
        than the taxpayer) on the tax suspension date--
                    (A) the dealer submits a request for refund or 
                credit to the taxpayer before the date which is 3 
                months after the tax suspension date, and
                    (B) the taxpayer has repaid or agreed to repay the 
                amount so claimed to such dealer or has obtained the 
                written consent of such dealer to the allowance of the 
                credit or the making of the refund.
    (c) Exception for Fuel Held in Retail Stocks.--No credit or refund 
shall be allowed under this section with respect to any liquid in 
retail stocks held at the place where intended to be sold at retail.
    (d) Definitions.--For purposes of this section--
            (1) the terms ``dealer'' and ``held by a dealer'' have the 
        respective meanings given to such terms by section 6412 of such 
        Code; except that the term ``dealer'' includes a producer, and
            (2) the term ``tax suspension date'' means the date on 
        which the suspension period begins under section 4081(f) of the 
        Internal Revenue Code of 1986 (as added by section 2).
    (e) Certain Rules To Apply.--Rules similar to the rules of 
subsections (b) and (c) of section 6412 of such Code shall apply for 
purposes of this section.

SEC. 4. FLOOR STOCKS TAX.

    (a) Imposition of Tax.--In the case of any taxable liquid which is 
held on the floor stocks tax date by any person, there is hereby 
imposed a floor stocks tax equal to the excess of the tax which would 
be imposed under section 4041, 4081, or 4091 of the Internal Revenue 
Code of 1986 on such liquid had the taxable event occurred on the floor 
stocks tax date over the tax paid under such sections on such liquid.
    (b) Liability for Tax and Method of Payment.--
            (1) Liability for tax.--A person holding a liquid on the 
        floor stocks tax date to which the tax imposed by subsection 
        (a) applies shall be liable for such tax.
            (2) Method of payment.--The tax imposed by subsection (a) 
        shall be paid in such manner as the Secretary shall prescribe.
            (3) Time for payment.--The tax imposed by subsection (a) 
        shall be paid on or before the date which is 6 months after the 
        floor stocks tax date.
    (c) Definitions.--For purposes of this section--
            (1) Held by a person.--A liquid shall be considered as 
        ``held by a person'' if title thereto has passed to such person 
        (whether or not delivery to the person has been made).
            (2) Taxable liquid.--The term `taxable liquid' means any 
        liquid on which tax is imposed under section 4041, 4081, or 
        4091 of the Internal Revenue Code of 1986 on the floor stocks 
        tax date.
            (3) Gasoline and diesel fuel.--The terms ``gasoline'' and 
        ``diesel fuel'' have the respective meanings given such terms 
        by section 4083 of such Code.
            (4) Aviation fuel.--The term ``aviation fuel'' has the 
        meaning given such term by section 4093 of such Code.
            (5) Floor stocks tax date.--The term ``floor stocks tax 
        date'' means the day after the end of the suspension period 
        under section 4081(f) of such Code (as added by section 2).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.
    (d) Exception for Exempt Uses.--The tax imposed by subsection (a) 
shall not apply to taxable liquid held by any person exclusively for 
any use to the extent a credit or refund of the tax imposed by section 
4041, 4081, or 4091 of such Code is allowable for such use.
    (e) Exception for Fuel Held in Vehicle Tank.--No tax shall be 
imposed by subsection (a) on taxable liquid held in the tank of a motor 
vehicle or motorboat.
    (f) Exception for Certain Amounts of Fuel.--
            (1) In general.--No tax shall be imposed by subsection 
        (a)--
                    (A) on gasoline held on the floor stocks tax date 
                by any person if the aggregate amount of gasoline held 
                by such person on such date does not exceed 4,000 
                gallons, and
                    (B) on diesel fuel, kerosene, or aviation fuel held 
                on such date by any person if the aggregate amount of 
                diesel fuel, kerosene, or aviation fuel held by such 
                person on such date does not exceed 2,000 gallons.
        The preceding sentence shall apply only if such person submits 
        to the Secretary (at the time and in the manner required by the 
        Secretary) such information as the Secretary shall require for 
        purposes of this paragraph.
            (2) Exempt fuel.--For purposes of paragraph (1), there 
        shall not be taken into account fuel held by any person which 
        is exempt from the tax imposed by subsection (a) by reason of 
        subsection (d) or (e).
            (3) Controlled groups.--For purposes of this subsection--
                    (A) Corporations.--
                            (i) In general.--All persons treated as a 
                        controlled group shall be treated as 1 person.
                            (ii) Controlled group.--The term 
                        ``controlled group'' has the meaning given to 
                        such term by subsection (a) of section 1563 of 
                        such Code; except that for such purposes the 
                        phrase ``more than 50 percent'' shall be 
                        substituted for the phrase ``at least 80 
                        percent'' each place it appears in such 
                        subsection.
                    (B) Nonincorporated persons under common control.--
                Under regulations prescribed by the Secretary, 
                principles similar to the principles of subparagraph 
                (A) shall apply to a group of persons under common 
                control where 1 or more of such persons is not a 
                corporation.
    (g) Other Law Applicable.--All provisions of law, including 
penalties, applicable with respect to the taxes imposed by section 
4041(a)(2) of such Code in the case of special fuels; by section 4081 
of such Code in the case of gasoline, diesel fuel, and kerosene; and by 
section 4091 of such Code in the case of aviation fuel shall, insofar 
as applicable and not inconsistent with the provisions of this 
subsection, apply with respect to the floor stock taxes imposed by 
subsection (a) to the same extent as if such taxes were imposed by such 
section 4041, 4081, or 4091.

SEC. 5. PROTECTION OF HIGHWAY TRUST FUND.

    The amounts transferred to the Highway Trust Fund under section 
9503 of the Internal Revenue Code of 1986 shall be determined as if 
this Act had not been acted.