I

107TH CONGRESS

1ST SESSION H. R. 1694

To amend the Internal Revenue Code of 1986 to repeal the 1993 4.3-

cent increases in highway motor fuel taxes.

IN THE HOUSE OF REPRESENTATIVES

MAY 3, 2001

Mr. POMBO (for himself, Mr. PAUL, Mr. EHRLICH, Mr. SHADEGG, Mr. JONES

of North Carolina, Mr. SCARBOROUGH, Mr. CHABOT, Mr. TAYLOR of

North Carolina, Mr. MCHUGH, Mr. BONILLA, Mr. RADANOVICH, Mr.

OSE, and Mr. THORNBERRY) 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 repeal

the 1993 4.3-cent increases in highway motor fuel taxes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. REPEAL OF 1993 INCREASES IN HIGHWAY

4 MOTOR FUEL TAXES.

5 (a) HIGHWAY GASOLINE.—Clause (i) of section

6 4081(a)(2)(A) of the Internal Revenue Code of 1986 is

7 amended by striking ‘‘18.3 cents’’ and inserting ‘‘14

8 cents’’.
2

•HR 1694 IH

1 (b) DIESEL FUEL AND KEROSENE.—Clause (iii) of

2 section 4081(a)(2)(A) of such Code is amended by striking

3 ‘‘24.3 cents’’ and inserting ‘‘20 cents’’.

4 (c) TECHNICAL AMENDMENTS.—

5 (1) Subparagraph (B) of section 40(e)(1) of

6 such Code is amended by striking ‘‘during which the

7 rates of tax under section 4081(a)(2)(A) are 4.3

8 cents per gallon’’ and inserting ‘‘during which the

9 rate of tax under section 4081(a)(2)(A)(i) does not

10 apply’’.

11 (2) Subparagraph (A) of section 4041(a)(1) of

12 such Code is amended by striking ‘‘or a diesel-pow13 ered train’’ each place it appears and by striking ‘‘or

14 train’’.

15 (3) Subparagraph (C) of section 4041(a)(1) of

16 such Code is amended by striking clause (ii) and by

17 redesignating clause (iii) as clause (ii).

18 (4) Subclause (I) of section 4041(a)(1)(C)(ii) of

19 such Code, as redesignated by paragraph (3), is

20 amended by striking ‘‘7.3 cents’’ and inserting ‘‘3

21 cents’’ and by striking ‘‘4.3 cents per gallon’’ and

22 inserting ‘‘zero’’.

23 (5) Subsection (a) of section 4041 of such Code

24 is amended by striking paragraph (3).
3

•HR 1694 IH

1 (6) Subparagraph (C) of section 4041(b)(1) of

2 such Code is amended by striking all that follows

3 ‘‘section 6421(e)(2)’’ and inserting a period.

4 (7) Subparagraph (B) of section 4041(a)(2) of

5 such Code is amended by striking all that follows

6 clause (i) and inserting the following new clauses:

7 ‘‘(ii) 10.4 cents per gallon in the case

8 of liquefied petroleum gas, and

9 ‘‘(iii) 9.1 cents per gallon in the case

10 of liquefied natural gas.’’

11 (8) Paragraph (3) of section 4041(c) of such

12 Code is amended to read as follows:

13 ‘‘(3) TERMINATION.—The rate of the taxes im14 posed by paragraph (1) shall be zero after Sep15 tember 30, 2007.’’

16 (9) Subsection (d) of section 4041 of such Code

17 is amended by redesignating paragraph (3) as para18 graph (4) and by inserting after paragraph (2) the

19 following new paragraph:

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

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

22 liquid other than gasoline (as defined in section

23 4083)—
4

•HR 1694 IH

1 ‘‘(A) sold by any person to an owner, les2 see, or other operator of a diesel-powered train

3 for use as a fuel in such train, or

4 ‘‘(B) used by any person as a fuel in a die5 sel-powered train unless there was a taxable

6 sale of such fuel under subparagraph (A).

7 No tax shall be imposed by this paragraph on the

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

9 liquid under section 4081.’’

10 (10) Clauses (i) and (ii) of section

11 4041(m)(1)(A) of such Code are amended to read as

12 follows:

13 ‘‘(i) 7 cents per gallon on and after

14 the date of the enactment of this clause

15 and before October 1, 2005, and

16 ‘‘(ii) zero after September 30, 2005,

17 and’’.

18 (11) Subsection (c) of section 4081 of such

19 Code is amended by striking paragraph (6) and by

20 redesignating paragraphs (7) and (8) as paragraphs

21 (6) and (7), respectively.

22 (12) Paragraph (1) of section 4081(d) of such

23 Code is amended by striking ‘‘4.3 cents per gallon’’

24 and inserting ‘‘zero’’.
5

•HR 1694 IH

1 (13) Subsection (f) of section 4082 of such

2 Code is amended by striking ‘‘section 4041(a)(1)’’

3 and inserting ‘‘subsections (d)(3) and (a)(1) of sec4 tion 4041, respectively’’.

5 (14) Paragraph (3) of section 4083(a) of such

6 Code is amended by striking ‘‘or a diesel-powered

7 train’’.

8 (15) Paragraph (3) of section 6421(f) of such

9 Code is amended to read as follows:

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

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

12 shall not apply with respect to the Leaking Under13 ground Storage Tank Trust Fund financing rate

14 under section 4081.’’

15 (16) Subparagraph (A) of section 6427(b)(2) of

16 such Code is amended by striking ‘‘7.4 cents’’ and

17 inserting ‘‘3.1 cents’’.

18 (17) Paragraph (3) of section 6427(l) of such

19 Code is amended to read as follows:

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

21 USED IN DIESEL-POWERED TRAINS.—For purposes

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

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

24 sentence shall not apply to the tax imposed by sec25 tion 4041(d) and the Leaking Underground Storage
6

•HR 1694 IH

1 Tank Trust Fund financing rate under section 4081

2 except with respect to fuel sold for exclusive use by

3 a State or any political subdivision thereof.’’

4 (d) EFFECTIVE DATE.—The amendments made by

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

6 of this Act.

7 (e) FLOOR STOCK REFUNDS.—

8 (1) IN GENERAL.—If—

9 (A) before the date of the enactment of

10 this Act, tax has been imposed under section

11 4081 of the Internal Revenue Code of 1986 on

12 any liquid, and

13 (B) on such date such liquid is held by a

14 dealer and has not been used and is intended

15 for sale,

16 there shall be credited or refunded (without interest)

17 to the person who paid such tax (hereafter in this

18 subsection referred to as the ‘‘taxpayer’’) an amount

19 equal to the excess of the tax paid by the taxpayer

20 over the amount of such tax which would be imposed

21 on such liquid had the taxable event occurred on

22 such date.

23 (2) TIME FOR FILING CLAIMS.—No credit or re24 fund shall be allowed or made under this subsection

25 unless—
7

•HR 1694 IH

1 (A) claim therefor is filed with the Sec2 retary of the Treasury before the date which is

3 6 months after the date of the enactment of

4 this Act, based on a request submitted to the

5 taxpayer before the date which is 3 months

6 after such date of enactment, by the dealer who

7 held the liquid on such date of enactment, and

8 (B) the taxpayer has repaid or agreed to

9 repay the amount so claimed to such dealer or

10 has obtained the written consent of such dealer

11 to the allowance of the credit or the making of

12 the refund.

13 (3) EXCEPTION FOR FUEL HELD IN RETAIL

14 STOCKS.—No credit or refund shall be allowed under

15 this subsection with respect to any liquid in retail

16 stocks held at the place where intended to be sold

17 at retail.

18 (4) DEFINITIONS.—For purposes of this sub19 section, the terms ‘‘dealer’’ and ‘‘held by a dealer’’

20 have the respective meanings given to such terms by

21 section 6412 of such Code.

22 (5) CERTAIN RULES TO APPLY.—Rules similar

23 to the rules of subsections (b) and (c) of section
8

•HR 1694 IH

1 6412 of such Code shall apply for purposes of this

2 subsection.

Æ