II 

113TH CONGRESS 

1ST SESSION S. 1450 

To amend the Internal Revenue Code of 1986 to impose an ad valorem 

excise tax on certain passenger cruise voyages, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 1, 2013 

Mr. ROCKEFELLER introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to impose 

an ad valorem excise tax on certain passenger cruise 

voyages, 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. EXCISE TAX ON GROSS RECEIPTS DERIVED 

4 FROM CRUISES. 

5 (a) IN GENERAL.—Subchapter B of chapter 36 of the 

6 Internal Revenue Code of 1986 is amended by inserting 

7 after section 4472 the following: 

8 ‘‘PART II—AD VALOREM TAX 

‘‘Sec. 4476. Imposition of tax. 

‘‘Sec. 4477. Definitions. 


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1 ‘‘SEC. 4476. IMPOSITION OF TAX. 

2 ‘‘(a) IN GENERAL.—In addition to any other tax, 

3 there is hereby imposed a tax of 5 percent of the allocable 

4 amount with respect to any covered passenger cruise. 

5 ‘‘(b) BY WHOM PAID.—The tax imposed by this sec6 tion shall be paid by the person providing the covered pas7 senger cruise. 

8 ‘‘SEC. 4477. DEFINITIONS. 

9 ‘‘For purposes of this section— 

10 ‘‘(1) COVERED PASSENGER CRUISE.— 

11 ‘‘(A) IN GENERAL.—The term ‘covered 

12 passenger cruise’ means a voyage of a commer13 cial passenger cruise vessel— 

14 ‘‘(i) that extends over 1 or more 

15 nights, and 

16 ‘‘(ii) during which passengers embark 

17 or disembark the vessel in the United 

18 States. 

19 ‘‘(B) EXCEPTIONS FOR CERTAIN VOY20 AGES.—Such term shall not include any voy21 age— 

22 ‘‘(i) on any vessel owned or operated 

23 by the United States, a State, or any sub24 division thereof, 

25 ‘‘(ii) which occurs exclusively on the 

26 inland waterways of the United States, or 


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1 ‘‘(iii) in which a vessel in the usual 

2 course of employment proceeds, without an 

3 intervening foreign port of call from one 

4 port or place in the United States to the 

5 same port or place or to another port or 

6 place in the United States. 

7 ‘‘(2) PASSENGER CRUISE VESSEL.— 

8 ‘‘(A) IN GENERAL.—The term ‘passenger 

9 cruise vessel’ means any passenger vessel— 

10 ‘‘(i) having berth or stateroom accom11 modations for at least 250 passengers, and 

12 ‘‘(ii) that is used in the business of 

13 carrying passengers for hire. 

14 ‘‘(B) EXCEPTIONS.—Such term shall not 

15 include any ferry, recreational vessel, sailing 

16 school vessel, small passenger vessel, offshore 

17 supply vessel, or any other vessel determined 

18 under regulations by the Secretary to be ex19 cluded from the application of this part. 

20 ‘‘(C) DEFINITIONS.—Any term used in 

21 this section which is used in chapter 21 of title 

22 46, United States Code, shall have the meaning 

23 given such term under section 2101 of such 

24 title. 


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1 ‘‘(3) ALLOCABLE AMOUNT.—The term ‘allo2 cable amount’ means— 

3 ‘‘(A) in the case in which a majority of the 

4 passengers on any covered passenger cruise em5 bark or disembark in the United States, 100 

6 percent of the gross receipts attributable to 

7 such covered passenger cruise, and 

8 ‘‘(B) in any other case, 50 percent of the 

9 gross receipts attributable to such covered pas10 senger cruise. 

11 ‘‘(4) UNITED STATES.—The term ‘United 

12 States’ includes any possession of the United 

13 States.’’. 

14 (b) CONFORMING AMENDMENT.—Subchapter B of 

15 chapter 36 of the Internal Revenue Code of 1986 is 

16 amended by striking all preceding section 4471 and insert17 ing the following: 

18 ‘‘Subchapter B—Transportation by Water 

‘‘PART I—PER PASSENGER TAX

‘‘PART II—AD VALOREM TAX

19 ‘‘PART I—PER PASSENGER TAX 

‘‘Sec. 4471. Imposition of tax. 

‘‘Sec. 4472. Definitions.’’. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to voyages made after the date of 

22 the enactment of this Act. 


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1 SEC. 2. INTERMODAL INFRASTRUCTURE TRUST FUND. 

2 (a) IN GENERAL.—Subchapter A of Chapter 98 of 

3 the Internal Revenue Code of 1986 is amended by adding 

4 at the end the following new section: 

5 ‘‘SEC. 9512. INTERMODAL INFRASTRUCTURE TRUST FUND. 

6 ‘‘(a) CREATION OF TRUST FUND.—There is hereby 

7 established in the Treasury of the United States a trust 

8 fund to be known as the ‘Intermodal Infrastructure Trust 

9 Fund’, consisting of such amounts as may be appropriated 

10 or credited to the Intermodal Infrastructure Trust Fund 

11 in this section or section 9602(b). 

12 ‘‘(b) TRANSFERS TO INTERMODAL INFRASTRUCTURE

13 TRUST FUND.—There are hereby appropriated to the 

14 Intermodal Infrastructure Trust Fund amounts equivalent 

15 to the taxes received in the Treasury under section 4471. 

16 ‘‘(c) EXPENDITURES FROM INTERMODAL INFRA17 STRUCTURE TRUST FUND.—Amounts in the Intermodal 

18 Infrastructure Trust Fund shall be available, as provided 

19 in appropriations Acts, for transportation improvement, 

20 including— 

21 ‘‘(1) the construction or improvement of— 

22 ‘‘(A) passenger or freight rail lines, 

23 ‘‘(B) highways, 

24 ‘‘(C) bridges, 

25 ‘‘(D) airports, 

26 ‘‘(E) air traffic control systems, 


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1 ‘‘(F) port or marine facilities, 

2 ‘‘(G) inland waterways, 

3 ‘‘(H) transmission or distribution pipelines, 

4 ‘‘(I) public transportation facilities or sys5 tems, 

6 ‘‘(J) intercity passenger bus or passenger 

7 rail facilities or equipment, and 

8 ‘‘(K) freight rail facilities or equipment, 

9 and 

10 ‘‘(2) planning, preparation, or design of any 

11 project described in paragraph (1).’’. 

12 (b) CLERICAL AMENDMENT.—The table of sections 

13 for subchapter A of Chapter 98 of such Code is amended 

14 by adding at the end the following new item: 

‘‘Sec. 9512. Intermodal Infrastructure Trust Fund.’’. 

Æ 


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