I

107TH CONGRESS

1ST SESSION H. R. 1915

To amend the Internal Revenue Code of 1986 to suspend for six months

the 4.3 cent increase in motor fuel taxes enacted in 1993.

IN THE HOUSE OF REPRESENTATIVES

MAY 17, 2001

Mr. SMITH of Michigan 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 suspend

for six months the 4.3 cent increase in motor fuel taxes

enacted in 1993.

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 ‘‘Gas Affordability Act

5 of 2001’’.

6 SEC. 2. SIX-MONTH SUSPENSION OF 1993 4.3 CENT IN7 CREASE IN FUEL TAXES.

8 (a) SIX-MONTH SUSPENSION OF FUEL TAXES.—Sec9 tion 4081 of the Internal Revenue Code of 1986 (relating

10 to imposition of tax on gasoline, diesel fuel, and kerosene)
2

•HR 1915 IH

1 is amended by adding at the end the following new sub2 section:

3 ‘‘(f) TEMPORARY SUSPENSION OF FUEL TAXES.—

4 ‘‘(1) IN GENERAL.—During the suspension pe5 riod, each rate of tax referred to in paragraph (2)

6 shall be reduced by 4.3 cents per gallon.

7 ‘‘(2) RATES OF TAX.—The rates of tax referred

8 to in this paragraph are the rates of tax otherwise

9 applicable under—

10 ‘‘(A) subsection (a)(2)(A) (relating to gas11 oline, diesel fuel, and kerosene),

12 ‘‘(B) sections 4091(b)(3)(A) (relating to

13 aviation fuel),

14 ‘‘(C) section 4042(b)(2)(C) (relating to

15 fuel used on inland waterways),

16 ‘‘(D) paragraph (1) or (2) of section

17 4041(a) (relating to diesel fuel, special fuels,

18 and compressed natural gas), and

19 ‘‘(E) section 4041(m)(1)(A)(i) (relating to

20 certain methanol or ethanol fuels).

21 ‘‘(3) COMPARABLE TREATMENT FOR COM22 PRESSED NATURAL GAS.—No tax shall be imposed

23 by section 4041(a)(3) on any sale or use during the

24 applicable period.
3

•HR 1915 IH

1 ‘‘(4) COMPARABLE TREATMENT UNDER CER2 TAIN REFUND RULES.—In the case of fuel on which

3 tax is imposed during the applicable period, each of

4 the rates specified in sections 6421(f)(2)(B),

5 6421(f)(3)(B)(iii), 6427(b)(2)(A), 6427(l)(3)(B)(iii),

6 and 6427(l)(4)(B) shall be reduced by 4.3 cents per

7 gallon.

8 ‘‘(5) SUSPENSION PERIOD.—For purposes of

9 this subsection, the term ‘suspension period’ means

10 the period beginning on July 1, 2001, and ending on

11 December 31, 2001.’’

12 (b) EFFECTIVE DATE.—The amendment made by

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

14 of this Act.

15 SEC. 3. FLOOR STOCK REFUNDS.

16 (a) IN GENERAL.—If—

17 (1) before the tax suspension date, tax has been

18 imposed under section 4081 or 4091 of the Internal

19 Revenue Code of 1986 on any liquid, and

20 (2) on such date such liquid is held by a dealer

21 and has not been used and is intended for sale,

22 there shall be credited or refunded (without interest) to

23 the person who paid such tax (hereafter in this section

24 referred to as the ‘‘taxpayer’’) an amount equal to the ex25 cess of the tax paid by the taxpayer over the amount of
4

•HR 1915 IH

1 such tax which would be imposed on such liquid had the

2 taxable event occurred on such date.

3 (b) TIME FOR FILING CLAIMS.—No credit or refund

4 shall be allowed or made under this section unless—

5 (1) claim therefor is filed with the Secretary of

6 the Treasury before the date which is 6 months

7 after the tax suspension date, and

8 (2) in any case where liquid is held by a dealer

9 (other than the taxpayer) on the tax suspension

10 date—

11 (A) the dealer submits a request for refund

12 or credit to the taxpayer before the date which

13 is 3 months after the tax suspension date, and

14 (B) the taxpayer has repaid or agreed to

15 repay the amount so claimed to such dealer or

16 has obtained the written consent of such dealer

17 to the allowance of the credit or the making of

18 the refund.

19 (c) EXCEPTION FOR FUEL HELD IN RETAIL

20 STOCKS.—No credit or refund shall be allowed under this

21 section with respect to any liquid in retail stocks held at

22 the place where intended to be sold at retail.

23 (d) DEFINITIONS.—For purposes of this section—

24 (1) the terms ‘‘dealer’’ and ‘‘held by a dealer’’

25 have the respective meanings given to such terms by
5

•HR 1915 IH

1 section 6412 of such Code; except that the term

2 ‘‘dealer’’ includes a producer, and

3 (2) the term ‘‘tax suspension date’’ means the

4 date on which the suspension period begins under

5 section 4081(f) of the Internal Revenue Code of

6 1986 (as added by section 2).

7 (e) CERTAIN RULES TO APPLY.—Rules similar to the

8 rules of subsections (b) and (c) of section 6412 of such

9 Code shall apply for purposes of this section.

10 SEC. 4. FLOOR STOCKS TAX.

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

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

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

14 to the excess of the tax which would be imposed under

15 section 4041, 4081, or 4091 of the Internal Revenue Code

16 of 1986 on such liquid had the taxable event occurred on

17 the floor stocks tax date over the tax paid under such sec18 tions on such liquid.

19 (b) LIABILITY FOR TAX AND METHOD OF PAY20 MENT.—

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

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

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

24 such tax.
6

•HR 1915 IH

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

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

3 the Secretary shall prescribe.

4 (3) TIME FOR PAYMENT.—The tax imposed by

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

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

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

8 (1) HELD BY A PERSON.—A liquid shall be con9 sidered as ‘‘held by a person’’ if title thereto has

10 passed to such person (whether or not delivery to

11 the person has been made).

12 (2) TAXABLE LIQUID.—The term ‘taxable liq13 uid’ means any liquid on which tax is imposed under

14 section 4041, 4081, or 4091 of the Internal Revenue

15 Code of 1986 on the floor stocks tax date.

16 (3) GASOLINE AND DIESEL FUEL.—The terms

17 ‘‘gasoline’’ and ‘‘diesel fuel’’ have the respective

18 meanings given such terms by section 4083 of such

19 Code.

20 (4) AVIATION FUEL.—The term ‘‘aviation fuel’’

21 has the meaning given such term by section 4093 of

22 such Code.

23 (5) FLOOR STOCKS TAX DATE.—The term

24 ‘‘floor stocks tax date’’ means the day after the end
7

•HR 1915 IH

1 of the suspension period under section 4081(f) of

2 such Code (as added by section 2).

3 (6) SECRETARY.—The term ‘‘Secretary’’ means

4 the Secretary of the Treasury or the Secretary’s del5 egate.

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 section 4041,

10 4081, or 4091 of such 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)—

18 (A) on gasoline held on the floor stocks tax

19 date by any person if the aggregate amount of

20 gasoline held by such person on such date does

21 not exceed 4,000 gallons, and

22 (B) on diesel fuel, kerosene, or aviation

23 fuel held on such date by any person if the ag24 gregate amount of diesel fuel, kerosene, or avia-
8

•HR 1915 IH

1 tion fuel held by such person on such date does

2 not exceed 2,000 gallons.

3 The preceding sentence shall apply only if such per4 son submits to the Secretary (at the time and in the

5 manner required by the Secretary) such information

6 as the Secretary shall require for purposes of this

7 paragraph.

8 (2) EXEMPT FUEL.—For purposes of para9 graph (1), there shall not be taken into account fuel

10 held by any person which is exempt from the tax im11 posed by subsection (a) by reason of subsection (d)

12 or (e).

13 (3) CONTROLLED GROUPS.—For purposes of

14 this subsection—

15 (A) CORPORATIONS.—

16 (i) IN GENERAL.—All persons treated

17 as a controlled group shall be treated as 1

18 person.

19 (ii) CONTROLLED GROUP.—The term

20 ‘‘controlled group’’ has the meaning given

21 to such term by subsection (a) of section

22 1563 of such Code; except that for such

23 purposes the phrase ‘‘more than 50 per24 cent’’ shall be substituted for the phrase
9

•HR 1915 IH

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

2 in such subsection.

3 (B) NONINCORPORATED PERSONS UNDER

4 COMMON CONTROL.—Under regulations pre5 scribed by the Secretary, principles similar to

6 the principles of subparagraph (A) shall apply

7 to a group of persons under common control

8 where 1 or more of such persons is not a cor9 poration.

10 (g) OTHER LAW APPLICABLE.—All provisions of law,

11 including penalties, applicable with respect to the taxes

12 imposed by section 4041(a)(2) of such Code in the case

13 of special fuels; by section 4081 of such Code in the case

14 of gasoline, diesel fuel, and kerosene; and by section 4091

15 of such Code in the case of aviation fuel shall, insofar as

16 applicable and not inconsistent with the provisions of this

17 subsection, apply with respect to the floor stock taxes im18 posed by subsection (a) to the same extent as if such taxes

19 were imposed by such section 4041, 4081, or 4091.

20 SEC. 5. PROTECTION OF HIGHWAY TRUST FUND.

21 The amounts transferred to the Highway Trust Fund

22 under section 9503 of the Internal Revenue Code of 1986

23 shall be determined as if this Act had not been acted.

Æ