I 

109TH CONGRESS 

1ST SESSION H. R. 2924 

To amend the Internal Revenue Code of 1986 to reduce motor fuel excise 

taxes during periods of high fuel prices. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 15, 2005 

Mr. HASTINGS of Florida (for himself, Mr. MOORE of Kansas, and Mr. 

OWENS) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to reduce 

motor fuel excise taxes during periods of high fuel prices. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Gas Price Spike Relief 

5 Act of 2005’’. 

6 SEC. 2. TEMPORARY 4.3-CENT REDUCTION IN CERTAIN 

7 FUEL TAX RATES. 

8 (a) IN GENERAL.—Section 4081 of the Internal Rev9 enue Code of 1986 (relating to imposition of tax on motor 
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1 and aviation fuels) is amended by adding at the end the 

2 following new subsection: 

3 ‘‘(f) TEMPORARY 4.3-CENT REDUCTION IN CERTAIN

4 FUEL TAX RATES.— 

5 ‘‘(1) IN GENERAL.—During a temporary rate 

6 reduction period with respect to any taxable fuel, the 

7 rate of tax referred to in paragraph (2) otherwise 

8 applicable to such fuel shall be reduced (but not 

9 below zero) by 4.3 cents per gallon. 

10 ‘‘(2) RATES OF TAX.—The rates of tax referred 

11 to in this paragraph are— 

12 ‘‘(A) each rate of tax under subsection 

13 (a)(2)(A) (relating to gasoline and diesel fuel), 

14 ‘‘(B) each rate of tax under paragraph (1) 

15 or (2) of section 4041(a) (relating to diesel fuel 

16 and special fuels), and 

17 ‘‘(C) the rate of tax under section 

18 4041(m)(1)(A) (relating to certain methanol or 

19 ethanol fuels). 

20 ‘‘(3) COMPARABLE TREATMENT FOR COM21 PRESSED NATURAL GAS.—No tax shall be imposed 

22 by section 4041(a)(3) on any sale or use during a 

23 temporary rate reduction period with respect to gas24 oline. 
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1 ‘‘(4) COMPARABLE TREATMENT UNDER CER2 TAIN REFUND RULES.—In the case of fuel on which 

3 tax is imposed during a temporary rate reduction 

4 period, each of the comparable rates otherwise appli5 cable under sections 6421(f)(3)(B)(ii), 

6 6427(b)(2)(A), and 6427(l)(3)(B)(ii) shall be re7 duced (but not below zero) by 4.3 cents per gallon. 

8 ‘‘(5) TEMPORARY RATE REDUCTION PERIOD.— 

9 For purposes of this subsection— 

10 ‘‘(A) IN GENERAL.—The term ‘temporary 

11 rate reduction period’ means, with respect to 

12 any taxable fuel, any period of months (as de13 termined by the Secretary) during which the 

14 motor fuel price index for such fuel is 10 per15 cent greater than such index for the base 

16 month. 

17 ‘‘(B) BASE MONTH.—The term ‘base 

18 month’ means, with respect to any period, the 

19 last month before such period. 

20 ‘‘(C) MOTOR FUEL PRICE INDEX.—The 

21 term ‘motor fuel price index’ means— 

22 ‘‘(i) HIGHWAY MOTOR FUEL.—In the 

23 case of fuel other than aviation-grade ker24 osene, the index comprised of the motor 
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1 fuel price component of the Consumer 

2 Price Index (as defined in section 1(f)(5)). 

3 ‘‘(ii) AVIATION-GRADE KEROSENE.— 

4 In the case of aviation-grade kerosene, the 

5 index comprised of the average monthly 

6 price of such kerosene (for end users) as 

7 published by the Energy Information Ad8 ministration of the Department of Energy. 

9 ‘‘(D) DATA.—The motor fuel price index 

10 for any month which is taken into account for 

11 purposes of this subsection shall be such index 

12 for the 2d preceding month. 

13 ‘‘(6) TRUST FUNDS HELD HARMLESS.— 

14 Amounts appropriated to the Highway Trust Fund 

15 and the Airport and Airways Trust Fund shall be 

16 determined as if this subsection had never been en17 acted.’’. 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 this section shall take effect on the date of the enactment 

20 of this Act. 

21 SEC. 3. FLOOR STOCKS REFUNDS. 

22 (a) IN GENERAL.—If— 

23 (1) before the first day of any temporary rate 

24 reduction period, tax has been imposed under section 
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1 4081 of the Internal Revenue Code of 1986 on any 

2 liquid, and 

3 (2) on such first day such liquid is held by a 

4 dealer and has not been used and is intended for 

5 sale, 

6 there shall be credited or refunded (without interest) to 

7 the person who paid such tax (hereafter in this section 

8 referred to as the ‘‘taxpayer’’) an amount equal to the ex9 cess of the tax paid by the taxpayer over the amount of 

10 such tax which would be imposed on such liquid had the 

11 taxable event occurred on such date. 

12 (b) TIME FOR FILING CLAIMS.—No credit or refund 

13 shall be allowed or made under this section with respect 

14 to any temporary rate reduction period unless— 

15 (1) claim therefor is filed with the Secretary of 

16 the Treasury before the date which is 6 months 

17 after the first day of such period, based on a request 

18 submitted to the taxpayer before the date which is 

19 3 months after such first day, by the dealer who 

20 held the liquid on such first day, and 

21 (2) the taxpayer has repaid or agreed to repay 

22 the amount so claimed to such dealer or has ob23 tained the written consent of such dealer to the al24 lowance of the credit or the making of the refund. 
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1 (c) EXCEPTION FOR FUEL HELD IN RETAIL

2 STOCKS.—No credit or refund shall be allowed under this 

3 section with respect to any liquid in retail stocks held at 

4 the place where intended to be sold at retail. 

5 (d) DEFINITIONS.—For purposes of this section— 

6 (1) IN GENERAL.—The terms ‘‘dealer’’ and 

7 ‘‘held by a dealer’’ have the respective meanings 

8 given to such terms by section 6412 of such Code. 

9 (2) TEMPORARY RATE REDUCTION PERIOD.— 

10 The term ‘‘temporary rate reduction period’’ has the 

11 meaning given to such term by section 4081(f)(5) of 

12 such Code. 

13 (e) CERTAIN RULES TO APPLY.—Rules similar to the 

14 rules of subsections (b) and (c) of section 6412 of such 

15 Code shall apply for purposes of this section. 

16 SEC. 4. FLOOR STOCKS TAX. 

17 (a) IMPOSITION OF TAX.—In the case of taxable fuel 

18 on which tax was imposed under section 4081 of the Inter19 nal Revenue Code of 1986 during any temporary rate re20 duction period, and which is held on the first day after 

21 such period by any person, there is hereby imposed a floor 

22 stocks tax of 4.3 cents per gallon. 

23 (b) LIABILITY FOR TAX AND METHOD OF PAY24 MENT.— 
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1 (1) LIABILITY FOR TAX.—A person holding tax2 able fuel on the first day after a temporary rate re3 duction period to which the tax imposed by sub4 section (a) applies shall be liable for such tax. 

5 (2) METHOD OF PAYMENT.—The tax imposed 

6 by subsection (a) shall be paid in such manner as 

7 the Secretary shall prescribe. 

8 (3) TIME FOR PAYMENT.—The tax imposed by 

9 subsection (a) shall be paid on or before the date 

10 which is 3 months after the close of the temporary 

11 rate reduction period to which such tax relates. 

12 (c) DEFINITIONS.—For purposes of this section— 

13 (1) TEMPORARY RATE REDUCTION PERIOD.— 

14 The term ‘‘temporary rate reduction period’’ has the 

15 meaning given to such term by section 4081(f)(5) of 

16 such Code. 

17 (2) HELD BY A PERSON.—Fuel shall be consid18 ered as held by a person if title thereto has passed 

19 to such person (whether or not delivery to the per20 son has been made). 

21 (3) TAXABLE FUEL.—The term ‘‘taxable fuel’’ 

22 has the meaning given to such term by section 4083 

23 of such Code. 

24 (4) SECRETARY.—The term ‘‘Secretary’’ means 

25 the Secretary of the Treasury or his delegate. 
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1 (d) EXCEPTION FOR EXEMPT USES.—The tax im2 posed by subsection (a) shall not apply to taxable fuel held 

3 by any person exclusively for any use to the extent a credit 

4 or refund of the tax imposed by section 4081 of such Code 

5 is allowable for such use. 

6 (e) EXCEPTION FOR FUEL HELD IN VEHICLE

7 TANK.—No tax shall be imposed by subsection (a) on tax8 able fuel held in the tank of a motor vehicle or motorboat. 

9 (f) EXCEPTION FOR CERTAIN AMOUNTS OF FUEL.— 

10 (1) IN GENERAL.—No tax shall be imposed by 

11 subsection (a)— 

12 (A) on gasoline held on the first day after 

13 any temporary rate reduction period, by any 

14 person if the aggregate amount of gasoline held 

15 by such person on such date does not exceed 

16 4,000 gallons, and 

17 (B) on diesel fuel held on such first day by 

18 any person if the aggregate amount of diesel 

19 fuel held by such person on such date does not 

20 exceed 2,000 gallons. 

21 The preceding sentence shall apply only if such per22 son submits to the Secretary (at the time and in the 

23 manner required by the Secretary) such information 

24 as the Secretary shall require for purposes of this 

25 paragraph. 
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1 (2) EXEMPT FUEL.—For purposes of para2 graph (1), there shall not be taken into account fuel 

3 held by any person which is exempt from the tax im4 posed by subsection (a) by reason of subsection (d) 

5 or (e). 

6 (3) CONTROLLED GROUPS.—For purposes of 

7 this section— 

8 (A) CORPORATIONS.— 

9 (i) IN GENERAL.—All persons treated 

10 as a controlled group shall be treated as 1 

11 person. 

12 (ii) CONTROLLED GROUP.—The term 

13 ‘‘controlled group’’ has the meaning given 

14 to such term by subsection (a) of section 

15 1563 of such Code; except that for such 

16 purposes ‘‘more than 50 percent’’ shall be 

17 substituted for ‘‘at least 80 percent’’ each 

18 place it appears in such subsection. 

19 (B) NONINCORPORATED PERSONS UNDER

20 COMMON CONTROL.—Under regulations pre21 scribed by the Secretary, principles similar to 

22 the principles of subparagraph (A) shall apply 

23 to a group of persons under common control 

24 where 1 or more of such persons is not a cor25 poration. 
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1 (g) OTHER LAWS APPLICABLE.—All provisions of 

2 law, including penalties, applicable with respect to the 

3 taxes imposed by section 4081 of such Code shall, insofar 

4 as applicable and not inconsistent with the provisions of 

5 this subsection, apply with respect to the floor stock taxes 

6 imposed by subsection (a) to the same extent as if such 

7 taxes were imposed by such section 4081. 

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