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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5302 Introduced in House (IH)]

109th CONGRESS
  2d Session
                                H. R. 5302

To amend the Internal Revenue Code of 1986 to suspend the highway fuels 
   taxes, to provide for suspension of royalty relief, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 4, 2006

   Mr. Kennedy of Minnesota (for himself, Mr. Miller of Florida, Mr. 
 Gerlach, Mr. Ramstad, Mr. Doolittle, and Mr. English of Pennsylvania) 
 introduced the following bill; which was referred to the Committee on 
 Ways and Means, and in addition to the Committee on Resources, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
To amend the Internal Revenue Code of 1986 to suspend the highway fuels 
   taxes, to provide for suspension of royalty relief, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Summer Relief for Motorists Act of 
2006''.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that the States, with an average gas 
tax of 20.8 cents per gallon, also possess the ability to provide 
significant immediate relief to motorists by temporarily suspending 
their own motor fuel excise taxes. While Congress believes such action 
is appropriate, Congress also believes that the States should find 
offsets for such temporary motor fuel excise tax suspensions in order 
to maintain their commitment to transportation infrastructure 
investment.

SEC. 3. SUSPENSION OF HIGHWAY FUEL TAXES.

    (a) Suspension of Highway Fuel Taxes on Gasoline, Diesel Fuel, and 
Kerosene.--
            (1) In general.--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) Suspension of Taxes on Gasoline, Diesel Fuel, and Kerosene.--
            ``(1) In general.--During the suspension period, each rate 
        of tax referred to in paragraph (2) shall be reduced to zero 
        cents per gallon.
            ``(2) Rates of tax.--The rates of tax referred to in this 
        paragraph are the rates of tax otherwise applicable under--
                    ``(A) clauses (i) and (iii) of subsection (a)(2)(A) 
                (relating to gasoline, diesel fuel, and kerosene), 
                determined after application of subsection (a)(2)(B) 
                and without regard to subsection (a)(2)(C), and
                    ``(B) paragraph (1) of section 4041(a) (relating to 
                diesel fuel and kerosene) with respect to fuel sold for 
                use or used in a diesel-powered highway vehicle.
            ``(3) Suspension period.--For purposes of this subsection, 
        the term `suspension period' means the period beginning on May 
        29, 2006 (or, if later, the date of the enactment of this 
        subsection) and ending on September 4, 2006.
            ``(4) Maintenance of trust fund deposits.--In determining 
        the amounts to be appropriated to the Highway Trust Fund under 
        section 9503 and to the Leaking Underground Storage Tank Trust 
        Fund under section 9508, an amount equal to the reduction in 
        revenues to the Treasury by reason of this subsection shall be 
        treated as taxes received in the Treasury under this section or 
        section 4041.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect on the date of the enactment of this Act.
    (b) Floor Stock Refunds.--
            (1) In general.--If--
                    (A) before the tax suspension date, tax has been 
                imposed under section 4081 of the Internal Revenue Code 
                of 1986 on any highway motor fuel, and
                    (B) on such date such fuel 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 subsection referred 
        to as the ``taxpayer'') an amount equal to the excess of the 
        tax paid by the taxpayer over the tax which would be imposed on 
        such fuel had the taxable event occurred on such date.
            (2) Time for filing claims.--No credit or refund shall be 
        allowed or made under this subsection unless--
                    (A) claim therefor is filed with the Secretary of 
                the Treasury before the date which is 6 months after 
                the tax suspension date based on a request submitted to 
                the taxpayer before the date which is 3 months after 
                the tax suspension date by the dealer who held the 
                highway motor fuel on such 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.
            (3) Exception for fuel held in retail stocks.--No credit or 
        refund shall be allowed under this subsection with respect to 
        any highway motor fuel in retail stocks held at the place where 
        intended to be sold at retail.
            (4) Definitions.--For purposes of this subsection--
                    (A) Tax suspension date.--The term ``tax suspension 
                date'' means the first day of the suspension period in 
                effect under section 4081(f) of the Internal Revenue 
                Code of 1986 (as added by subsection (a) of this 
                section).
                    (B) Highway motor fuel.--The term ``highway motor 
                fuel'' has the meaning given such term for purposes of 
                subsection (c).
                    (C) Other terms.--The terms ``dealer'' and ``held 
                by a dealer'' have the respective meanings given to 
                such terms by section 6412 of such Code.
            (5) 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 subsection.
    (c) Floor Stocks Tax.--
            (1) Imposition of tax.--In the case of any highway motor 
        fuel which is held on the tax restoration date by any person, 
        there is hereby imposed a floor stocks tax equal to the excess 
        of the tax which would be imposed on such fuel had the taxable 
        event occurred on such date over the tax (if any) previously 
        paid (and not credited or refunded) on such fuel.
            (2) Liability for tax and method of payment.--
                    (A) Liability for tax.--The person holding highway 
                motor fuel on the tax restoration date to which the tax 
                imposed by paragraph (1) applies shall be liable for 
                such tax.
                    (B) Method of payment.--The tax imposed by 
                paragraph (1) shall be paid in such manner as the 
                Secretary shall prescribe.
                    (C) Time for payment.--The tax imposed by paragraph 
                (1) shall be paid on or before the 45th day after the 
                tax restoration date.
            (3) Definitions.--For purposes of this subsection--
                    (A) Tax restoration date.--The term ``tax 
                restoration date'' means the first day after the 
                suspension period (as defined in section 4081(f) of the 
                Internal Revenue Code of 1986).
                    (B) Highway motor fuel.--The term ``highway motor 
                fuel'' means any liquid on which tax would have been 
                imposed under section 4081 of the Internal Revenue Code 
                of 1986 during the suspension period in effect under 
                section 4081(f) of such Code but for the amendments 
                made by subsection (a).
                    (C) Held by a person.--A highway motor fuel 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).
                    (D) Secretary.--The term ``Secretary'' means the 
                Secretary of the Treasury or the Secretary's delegate.
            (4) Exception for exempt uses.--The tax imposed by 
        paragraph (1) shall not apply to any highway motor fuel held by 
        any person exclusively for any use to the extent a credit or 
        refund of the tax is allowable for such use.
            (5) Exception for certain amounts of fuel.--
                    (A) In general.--No tax shall be imposed by 
                paragraph (1) on any highway motor fuel held on the tax 
                restoration date by any person if the aggregate amount 
                of such highway motor 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 subparagraph.
                    (B) Exempt fuel.--For purposes of subparagraph (A), 
                there shall not be taken into account any highway motor 
                fuel held by any person which is exempt from the tax 
                imposed by paragraph (1) by reason of paragraph (4).
                    (C) Controlled groups.--For purposes of this 
                subsection--
                            (i) 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.
                            (ii) 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 if 1 or more of 
                        such persons is not a corporation.
            (6) Other laws applicable.--All provisions of law, 
        including penalties, applicable with respect to the taxes 
        imposed by section 4081 of such Code shall, insofar as 
        applicable and not inconsistent with the provisions of this 
        subsection, apply with respect to the floor stock taxes imposed 
        by paragraph (1) to the same extent as if such taxes were 
        imposed by such section.

SEC. 4. SUSPENSION OF ROYALTY RELIEF.

    (a) New Leases.--
            (1) Requirement.--The Secretary of the Interior (referred 
        to in this title as the ``Secretary'') shall suspend the 
        application of any provision of Federal law under which a 
        person would otherwise be provided relief from a requirement to 
        pay a royalty for the production of oil or natural gas from 
        Federal land (including submerged land) occurring on or after 
        the date of enactment of this Act during a period in which--
                    (A) for the production of oil, the average price of 
                crude oil in the United States during the 4-week period 
                immediately preceding the suspension is greater than 
                $35.86 per barrel; and
                    (B) for the production of natural gas, the average 
                wellhead price of natural gas in the United States 
                during the 4-week period immediately preceding the 
                suspension is greater than $4.48 per 1,000 cubic feet.
            (2) Determination of average prices.--For purposes of 
        paragraph (1), the Secretary shall determine average prices, 
        taking into consideration the most recent data reported by the 
        Energy Information Administration.
    (b) Renegotiation of Existing Leases.--
            (1) Requirement.--The Secretary shall, to the maximum 
        extent practicable, renegotiate each lease authorizing 
        production of oil or natural gas on Federal land (including 
        submerged land) issued by the Secretary before the date of the 
        enactment of this Act as the Secretary determines to be 
        necessary to modify the terms of the lease to ensure that a 
        suspension of a requirement to pay royalties under the lease 
        does not apply to production described in subsection (a)(1).
            (2) Failure to renegotiate and modify.--
                    (A) In general.--Beginning on the date that is 1 
                year after the date of enactment of this Act, a lessee 
                that does not renegotiate a lease described in 
                paragraph (1) in accordance with that paragraph shall 
                not be eligible to enter into a new lease authorizing 
                production of oil or natural gas on Federal land 
                (including submerged land).
                    (B) Transfers.--A lessee shall not be eligible to 
                obtain by sale or other transfer any lease described in 
                paragraph (1) issued before the date of enactment of 
                this Act, unless the lessee--
                            (i) renegotiates the lease; and
                            (ii) enters into an agreement with the 
                        Secretary to modify the terms of the lease in 
                        accordance with paragraph (1).
                                 <all>
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