I

104TH CONGRESS

1ST SESSION H. R. 1947

To amend the Internal Revenue Code of 1986 to revise certain rules relating

to fuel excise tax refunds, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 28, 1995

Mr. MCCRERY (for himself, Mr. HERGER, and Mr. JACOBS) 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 revise

certain rules relating to fuel excise tax refunds, and

for other purposes.

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 ‘‘Miscellaneous Fuel

5 Tax Corrections Act of 1995’’.

6 SEC. 2. INTEREST PAYABLE ON GASOLINE TAX REFUNDS

7 TO WHOLESALE DISTRIBUTORS.

8 Paragraph (4) of section 6416(a) of the Internal Rev9 enue Code of 1986 is amended by adding at the end the

10 following new subparagraph:
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1 ‘‘(C) PERIOD FOR FILING CLAIMS, ETC.—

2 ‘‘(i) IN GENERAL.—A claim may be

3 filed under this paragraph by any person

4 with respect to gasoline sold during any

5 period—

6 ‘‘(I) for which $200 or more is

7 payable under this paragraph, and

8 ‘‘(II) which is not less than 1

9 week.

10 ‘‘(ii) PAYMENT OF CLAIM.—Notwith11 standing subsection (b), if the Secretary

12 has not paid pursuant to a claim filed

13 under this paragraph within 20 days after

14 the date of the filing of such claim, the

15 claim shall be paid with interest from such

16 date determined by using the overpayment

17 rate and method under section 6621.

18 ‘‘(iii) TIME FOR FILING CLAIM.—No

19 claim filed under this paragraph shall be

20 allowed unless filed during the 1st quarter

21 following the last quarter included in the

22 claim.’’
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1 SEC. 3. INTEREST PAYABLE ON REFUNDS OF TAXES ON

2 DIESEL FUEL AND AVIATION FUEL.

3 Paragraph (4) of section 6427(i) of the Internal Rev4 enue Code of 1986 is amended to read as follows:

5 ‘‘(4) SPECIAL RULE FOR NONTAXABLE USES OF

6 DIESEL FUEL AND AVIATION FUEL.—

7 ‘‘(A) IN GENERAL.—A claim may be filed

8 under subsection (l) by any person with respect

9 to fuel used by such person for any period—

10 ‘‘(i) for which $250 or more is pay11 able under subsection (l), and

12 ‘‘(ii) which is not less than 1 month.

13 ‘‘(B) PAYMENT OF CLAIM.—Notwithstand14 ing subsection (l)(1), if the Secretary has not

15 paid pursuant to a claim filed under this para16 graph within 20 days after the date of the filing

17 of such claim, the claim shall be paid with in18 terest from such date determined by using the

19 overpayment rate and method under section

20 6621.

21 ‘‘(C) TIME FOR FILING CLAIM.—No claim

22 filed under this paragraph shall be allowed un23 less filed during the 1st quarter following the

24 last quarter included in the claim.’’
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1 SEC. 4. VENDOR REFUNDS FOR FUEL USED IN CERTAIN

2 BUSES AND AS HEATING OIL.

3 (a) CERTAIN BUSES.—

4 (1) IN GENERAL.—Paragraph (1) of section

5 6427(b) of the Internal Revenue Code of 1986 is

6 amended to read as follows:

7 ‘‘(1) ALLOWANCE.—Except as otherwise pro8 vided in this subsection and subsection (k), if—

9 ‘‘(A) any fuel other than gasoline (as de10 fined in section 4083(a)) on the sale of which

11 tax was imposed by section 4041(a) or 4081 is

12 used in an automobile bus while engaged in—

13 ‘‘(i) furnishing (for compensation)

14 passenger land transportation available to

15 the general public, or

16 ‘‘(ii) the transportation of students

17 and employees of schools (as defined in the

18 last sentence of section 4221(d)(7)(C)),

19 and

20 ‘‘(B) the ultimate vendor of such fuel

21 meets the requirements of clauses (i) and (ii) of

22 subsection (l)(5)(B),

23 the Secretary shall pay (without interest) to such ul24 timate vendor an amount equal to the product of the

25 number of gallons of such fuel so used multiplied by
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1 the rate at which tax was imposed on such fuel by

2 section 4041(a) or 4081, as the case may be.’’

3 (2) REFUNDS WITH INTEREST.—Subparagraph

4 (A) of section 6427(i)(5) of such Code is amended—

5 (A) by inserting ‘‘(b) or’’ before ‘‘(l)(5)’’

6 the first place it appears,

7 (B) by striking ‘‘subsection (l)(5)’’ the sec8 ond place it appears and inserting ‘‘subsections

9 (b) and (l)(5)’’, and

10 (C) by striking ‘‘subsection (l)(1)’’ and in11 serting ‘‘subsections (b)(1) and (l)(1)’’.

12 (3) TECHNICAL AMENDMENTS.—

13 (A) Subparagraph (B) of section

14 6427(b)(2) of such Code is amended by striking

15 ‘‘(1)(B)’’ and inserting ‘‘(1)(A)(ii)’’.

16 (B) Paragraph (3) of section 6427(b) of

17 such Code is amended by striking ‘‘(1)(A)’’ and

18 inserting ‘‘(1)(A)(i)’’.

19 (b) HEATING OIL.—Subparagraph (A) of section

20 6427(l)(5) of such Code is amended by striking ‘‘or’’ at

21 the end of clause (i), by striking the period at the end

22 of clause (ii) and inserting ‘‘, or’’, and by adding at the

23 end the following new clause:

24 ‘‘(iii) as heating oil.’’
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1 SEC. 5. DIESEL FUEL SOLD FOR USE OR USED IN DIESEL2 POWERED BOATS TAXED ONLY ON RETAIL

3 SALE.

4 (a) TAX-FREE SALES FOR USE IN DIESEL-POWERED

5 BOATS.—Subsection (b) of section 4082 of the Internal

6 Revenue Code of 1986 (relating to exemptions for diesel

7 fuel) is amended by striking ‘‘and’’ at the end of para8 graph (2), by striking the period at the end of paragraph

9 (3) and inserting ‘‘, and’’, and by adding at the end the

10 following new paragraph:

11 ‘‘(4) any use in a diesel-powered boat.’’

12 (b) APPLICATION OF PENALTY AT RETAIL LEVEL.—

13 Paragraph (2) of section 6714(c) of such Code, as added

14 by section 13242 of the Omnibus Budget Reconciliation

15 Act of 1993, is amended to read as follows:

16 ‘‘(2) NONTAXABLE USE.—

17 ‘‘(A) IN GENERAL.—Except as provided in

18 subparagraph (B), the term ‘nontaxable use’

19 has the meaning given such term by section

20 4082(b).

21 ‘‘(B) EXCEPTION FOR TAXABLE SALES

22 AND USES OF FUEL IN DIESEL-POWERED

23 BOATS.—Subparagraph (A) shall not apply to

24 dyed fuel sold for use or used in a diesel-pow25 ered boat if tax is imposed on such sale or use

26 under 4041(a)(1) and such tax is not paid.’’
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1 (c) CORRECTION OF SECTION NUMBERING.—

2 (1) Part II of subchapter B of chapter 68 of

3 such Code is amended by redesignating section 6714

4 (relating to dyed fuel sold for use or used in taxable

5 use, etc.), as added by section 13242(b)(1) of the

6 Omnibus Budget Reconciliation Act of 1993, as sec7 tion 6715.

8 (2) The table of sections for such part is

9 amended by redesignating the item relating to sec10 tion 6714 (relating to dyed fuel sold for use or used

11 in taxable use, etc.), as added by section

12 13242(b)(2) of such Act, as section 6715.

13 SEC. 6. NO PENALTY ON ADDITION OF KEROSENE IN CER14 TAIN CASES.

15 Paragraph (3) of section 6715(a) of the Internal Rev16 enue Code of 1986, as redesignating by section 4, is

17 amended by inserting before the comma ‘‘unless such al18 teration is through the addition of kerosene by a person

19 who is not described in paragraph (1) or (2) with respect

20 to such fuel’’.

21 SEC. 7. REFUND FOR TAX-PAID DIESEL FUEL WHICH IS

22 COMMINGLED WITH DYED DIESEL FUEL.

23 Paragraph (2) of section 6427(l) of the Internal Rev24 enue Code of 1986 is amended by adding at the end the

25 following new flush sentence:
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1 ‘‘Such term includes the addition of diesel fuel on

2 which tax has been imposed by section 4081 to dyed

3 diesel fuel if such addition is established to the satis4 faction of the Secretary as being accidental.’’

5 SEC. 8. EFFECTIVE DATE.

6 The amendments made by this Act shall take effect

7 on the date of the enactment of this Act; except that no

8 interest shall be paid by reason of such amendments with

9 respect to any claim filed before such date.

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