II

106TH CONGRESS

1ST SESSION S. 820

To amend the Internal Revenue Code of 1986 to repeal the 4.3-cent motor

fuel excise taxes on railroads and inland waterway transportation which

remain in the general fund of the Treasury.

IN THE SENATE OF THE UNITED STATES

APRIL 15, 1999

Mr. CHAFEE (for himself, Mr. BREAUX, and Mr. JEFFORDS) 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 repeal

the 4.3-cent motor fuel excise taxes on railroads and

inland waterway transportation which remain in the general fund of the Treasury.

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 ‘‘Transportation Tax

5 Equity and Fairness Act’’.
2

•S 820 IS

1 SEC. 2. REPEAL OF 4.3-CENT MOTOR FUEL EXCISE TAXES

2 ON RAILROADS AND INLAND WATERWAY

3 TRANSPORTATION WHICH REMAIN IN GEN4 ERAL FUND.

5 (a) TAXES ON TRAINS.—

6 (1) IN GENERAL.—Subparagraph (A) of section

7 4041(a)(1) of the Internal Revenue Code of 1986

8 (relating to tax on diesel fuel in certain cases) is

9 amended—

10 (A) by striking ‘‘or a diesel-powered train’’

11 in clauses (i) and (ii), and

12 (B) by striking ‘‘or train’’ in clause (i).

13 (2) CONFORMING AMENDMENTS.—

14 (A) Subparagraph (C) of section

15 4041(a)(1) of such Code is amended by striking

16 clause (ii) and by redesignating clause (iii) as

17 clause (ii).

18 (B) Subparagraph (C) of section

19 4041(b)(1) of such Code is amended by striking

20 all that follows ‘‘section 6421(e)(2)’’ and insert21 ing a period.

22 (C) Subsection (d) of section 4041 of such

23 Code is amended by redesignating paragraph

24 (3) as paragraph (4) and by inserting after

25 paragraph (2) the following new paragraph:
3

•S 820 IS

1 ‘‘(3) DIESEL FUEL USED IN TRAINS.—There is

2 hereby imposed a tax of 0.1 cent per gallon on any

3 liquid other than gasoline (as defined in section

4 4083)—

5 ‘‘(A) sold by any person to an owner, les6 see, or other operator of a diesel-powered train

7 for use as a fuel in such train, or

8 ‘‘(B) used by any person as a fuel in a die9 sel-powered train unless there was a taxable

10 sale of such fuel under subparagraph (A).

11 No tax shall be imposed by this paragraph on the

12 sale or use of any liquid if tax was imposed on such

13 liquid under section 4081.’’

14 (D) Subsection (f) of section 4082 of such

15 Code is amended by striking ‘‘section

16 4041(a)(1)’’ and inserting ‘‘subsections (d)(3)

17 and (a)(1) of section 4041, respectively’’.

18 (E) Paragraph (3) of section 4083(a) of

19 such Code is amended by striking ‘‘or a diesel20 powered train’’.

21 (F) Paragraph (3) of section 6421(f) of

22 such Code is amended to read as follows:

23 ‘‘(3) GASOLINE USED IN TRAINS.—In the case

24 of gasoline used as a fuel in a train, this section

25 shall not apply with respect to the Leaking Under-
4

•S 820 IS

1 ground Storage Tank Trust Fund financing rate

2 under section 4081.’’

3 (G) Paragraph (3) of section 6427(f) of

4 such Code is amended to read as follows:

5 ‘‘(3) REFUND OF CERTAIN TAXES ON FUEL

6 USED IN DIESEL-POWERED TRAINS.—For purposes

7 of this subsection, the term ‘nontaxable use’ includes

8 fuel used in a diesel-powered train. The preceding

9 sentence shall not apply to the tax imposed by sec10 tion 4041(d) and the Leaking Underground Storage

11 Tank Trust Fund financing rate under section 4081

12 except with respect to fuel sold for exclusive use by

13 a State or any political subdivision thereof.’’

14 (b) FUEL USED ON INLAND WATERWAYS.—

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

16 4042(b) of the Internal Revenue Code of 1986 (re17 lating to amount of tax) is amended by adding

18 ‘‘and’’ at the end of subparagraph (A), by striking

19 ‘‘, and’’ at the end of subparagraph (B) and insert20 ing a period, and by striking subparagraph (C).

21 (2) CONFORMING AMENDMENT.—Paragraph (2)

22 of section 4042(b) of such Code is amended by strik23 ing subparagraph (C).
5

•S 820 IS

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

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

3 of this Act.

Æ