I 

113TH CONGRESS 

1ST SESSION H. R. 3636 

To amend the Internal Revenue Code of 1986 to increase the excise tax 

on gasoline, diesel, and kerosene fuels. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 3, 2013 

Mr. BLUMENAUER 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 increase 

the excise tax on gasoline, diesel, and kerosene fuels. 

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 ‘‘Update, Promote, and 

5 Develop America’s Transportation Essentials Act of 

6 2013’’. 

7 SEC. 2. FINDINGS; SENSE OF CONGRESS. 

8 (a) FINDINGS.—The Congress finds the following: 

9 (1) Since the passage of SAFETEA–LU, Con10 gress has transferred over $50 billion from the GenVerDate Mar 15 2010 01:51 Dec 04, 2013 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3636.IH H3636

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1 eral Fund to the Highway Trust Fund, in order to 

2 maintain solvency. 

3 (2) The Congressional Budget Office estimates 

4 after the end of Fiscal year 2014, annual General 

5 Fund transfers of approximately $15 billion will be 

6 necessary in order to maintain current Highway 

7 Trust Fund spending levels. 

8 (3) The Congressional Budget Office also esti9 mates that in order to provide funding for surface 

10 transportation projects where the Federal benefit 

11 outweighs the cost, an additional $83 billion a year 

12 would need to be allocated to the Highway and 

13 Transit Trust Funds. 

14 (4) The American Society for Civil Engineers 

15 estimates that in order to meet our economic and 

16 transportation needs, the United States should in17 vest at least an additional $500 billion in our sur18 face transportation system by 2020. 

19 (5) The National Commission on Fiscal Reform 

20 and Responsibility report, often referred to as the 

21 ‘‘Simpson-Bowles’’ plan, includes a recommendation 

22 to raise the gas tax by fifteen cents. 

23 (6) The National Surface Transportation Infra24 structure Financing Commission recommended, in 

25 their 2009 report, that Congress take action to preVerDate Mar 15 2010 01:51 Dec 04, 2013 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3636.IH H3636

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1 vent the Highway Trust Fund from becoming insol2 vent, and to avoid any reductions in infrastructure 

3 spending. The Commission also noted that a Federal 

4 funding system based on a vehicle miles traveled sys5 tem, is the consensus choice for the future. 

6 (b) SENSE OF CONGRESS REGARDING REPLACEMENT

7 OF GAS TAX.—It is the sense of Congress that by 2024 

8 the gas tax should be repealed and replaced with a more 

9 sustainable, stable funding source. 

10 SEC. 3. TAX ON MOTOR FUELS. 

11 (a) GASOLINE OTHER THAN AVIATION GASOLINE.— 

12 Section 4081(a)(2)(A)(i) of the Internal Revenue Code of 

13 1986 is amended to read as follows: 

14 ‘‘(i) in the case of gasoline other than 

15 aviation gasoline— 

16 ‘‘(I) for tax imposed before 2014, 

17 18.3 cents per gallon, 

18 ‘‘(II) for tax imposed during 

19 2014, 26.3 cents per gallon, 

20 ‘‘(III) for tax imposed during 

21 2015, 30.3 cents per gallon, and 

22 ‘‘(IV) for tax imposed after 2015 

23 and before 2025, 33.3 cents per gal24 lon,’’. 


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1 (b) DIESEL FUEL OR KEROSENE.—Section 

2 4081(a)(2)(A)(iii) of the Internal Revenue Code of 1986 

3 is amended to read as follows: 

4 ‘‘(iii) in the case of diesel fuel or ker5 osene— 

6 ‘‘(I) for tax imposed before 2014, 

7 24.3 cents per gallon, 

8 ‘‘(II) for tax imposed during 

9 2014, 32.3 cents per gallon, 

10 ‘‘(III) for tax imposed during 

11 2015, 36.3 cents per gallon, and 

12 ‘‘(IV) for tax imposed after 2015 

13 and before 2025, 39.3 cents per gal14 lon,’’. 

15 (c) INCREASE FOR INFLATION.—Paragraph (2) of 

16 section 4081(a) of such Code is amended by adding at 

17 the end the following: 

18 ‘‘(E) ADJUSTMENT FOR INFLATION.—In 

19 the case of any calendar year beginning after 

20 2016, the rates of tax contained in clauses 

21 (i)(IV) and (iii)(IV) of subparagraph (A) shall 

22 each be increased by an amount equal to— 

23 ‘‘(i) such rate, multiplied by 

24 ‘‘(ii) the cost of living adjustment de25 termined under section 1(f)(3) for the calVerDate Mar 15 2010 01:51 Dec 04, 2013 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3636.IH H3636

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1 endar year, determined by substituting 

2 ‘calendar year 2015’ for ‘calendar year 

3 1992’ in subparagraph (B) thereof. 

4 Any increase under the preceding sentence shall 

5 be rounded to the nearest 0.1 cents.’’. 

6 (d) DIESEL-WATER FUEL EMULSION.—Section 

7 4081(a)(2)(D) of the Internal Revenue Code of 1986 is 

8 amended by striking ‘‘19.7 cents’’ for ‘‘24.3 cents’’ and 

9 inserting ‘‘a rate equal to 71 percent of the rate in effect 

10 under subparagraph (A) (without regard to this subpara11 graph)’’. 

12 (e) TERMINATION.—Section 4081(d)(1) of the Inter13 nal Revenue Code of 1986 is amended by striking ‘‘Sep14 tember 30, 2016’’ and inserting ‘‘December 31, 2024’’. 

15 (f) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to fuels or liquids removed, en17 tered, or sold after December 31, 2013. 

18 SEC. 4. FLOOR STOCKS TAX. 

19 (a) IMPOSITION OF TAX.—In the case of any taxable 

20 liquid which is held on the floor stocks tax date by any 

21 person, there is hereby imposed a floor stocks tax equal 

22 to the excess of the tax which would be imposed on such 

23 liquid under section 4041 or 4081 of the Internal Revenue 

24 Code of 1986 had the taxable event occurred on the floor 


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1 stocks tax date over the tax paid under any such section 

2 on such liquid. 

3 (b) LIABILITY FOR TAX AND METHOD OF PAY4 MENT.— 

5 (1) LIABILITY FOR TAX.—A person holding a 

6 liquid on the floor stocks tax date to which the tax 

7 imposed by subsection (a) applies shall be liable for 

8 such tax. 

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

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

11 the Secretary shall prescribe. 

12 (3) TIME OF PAYMENT.—The tax imposed by 

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

14 which is 6 months after the floor stocks tax date. 

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

16 (1) HELD BY A PERSON.—A liquid shall be con17 sidered as held by a person if title thereto has 

18 passed to such person (whether or not delivery to 

19 the person has been made). 

20 (2) TAXABLE LIQUID.—The term ‘‘taxable liq21 uid’’ means diesel fuel and kerosene (other than 

22 aviation-grade kerosene). 

23 (3) FLOOR STOCKS DATE.—The term ‘‘floor 

24 stocks tax date’’ means any January 1 of any cal25 endar year beginning after the date of the enactment 


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1 of this Act on which a rate of tax under section 

2 4041 or 4081 of such Code increases pursuant to an 

3 amendment made by section 2. 

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

5 the Secretary of the Treasury. 

6 (d) EXCEPTION FOR EXEMPT USES.—The tax im7 posed by subsection (a) shall not apply to taxable liquid 

8 held by any person exclusively for any use to the extent 

9 a credit or refund of the tax imposed by a section of such 

10 Code is allowable for such use. 

11 (e) EXCEPTION FOR FUEL HELD IN VEHICLE

12 TANK.—No tax shall be imposed by subsection (a) on tax13 able liquid held in the tank of a motor vehicle or motor14 boat. 

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

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

17 subsection (A) on any liquid held on the floor stocks 

18 tax date by any person if the aggregate amount of 

19 liquid held by such person on such date does not ex20 ceed 2,000 gallons. The preceding sentence shall 

21 apply only if such person submits to the Secretary 

22 (at the time and in the manner required by the Sec23 retary) such information as the Secretary shall re24 quire for purposes of this 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 the phrase ‘‘more than 50 per17 cent’’ shall be substituted for the phrase 

18 ‘‘at least 80 percent’’ each place it appears 

19 in such subsection. 

20 (B) NONINCORPORATED PERSONS UNDER

21 COMMON CONTROL.—Under regulations pre22 scribed by the Secretary, principles similar to 

23 the principles of clause (i) shall apply to a 

24 group of persons under common control where 


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1 one or more of such persons is not a corpora2 tion. 

3 (g) OTHER LAWS APPLICABLE.—All provisions of 

4 law, including penalties, applicable with respect to the 

5 taxes imposed by chapter 31 or 32 of such Code shall, 

6 insofar as applicable and not inconsistent with the provi7 sions of this section, apply with respect to the floor stock 

8 taxes imposed by subsection (a) to the same extent as if 

9 such taxes were imposed by such chapter. 

Æ 


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