I 

108TH CONGRESS 

1ST SESSION H. R. 578

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 HOUSE OF REPRESENTATIVES 

FEBRUARY 5, 2003

Mr. HULSHOF (for himself, Mr. JEFFERSON, Mr. MCCRERY, and Mr. COLLINS) 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 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’’. 
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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 is 

8 amended by striking ‘‘or a diesel-powered train’’ 

9 each place it appears and by striking ‘‘or train’’. 

10 (2) CONFORMING AMENDMENTS.—

11 (A) Subparagraph (C) of section 

12 4041(a)(1) of such Code is amended by striking 

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

14 clause (ii). 

15 (B) Subparagraph (C) of section 

16 4041(b)(1) of such Code is amended by striking 

17 all that follows ‘‘section 6421(e)(2)’’ and insert18 ing a period. 

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

20 Code is amended by redesignating paragraph 

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

22 paragraph (2) the following new paragraph: 

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

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

25 liquid other than gasoline (as defined in section 

26 4083)—
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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 (D) Subsection (e) of section 4082 of such 

11 Code is amended by striking ‘‘section 

12 4041(a)(1)’’ and inserting ‘‘subsections (d)(3) 

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

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

15 such Code is amended by striking ‘‘or a diesel16 powered train’’. 

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

18 such Code is amended to read as follows: 

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

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

21 shall not apply with respect to the Leaking Under22 ground Storage Tank Trust Fund financing rate 

23 under section 4081.’’

24 (G) Paragraph (3) of section 6427(l) of 

25 such Code is amended to read as follows: 
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1 ‘‘(3) REFUND OF CERTAIN TAXES ON FUEL

2 USED IN DIESEL-POWERED TRAINS.—For purposes 

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

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

5 sentence shall not apply to the tax imposed by sec6 tion 4041(d) and the Leaking Underground Storage 

7 Tank Trust Fund financing rate under section 4081 

8 except with respect to fuel sold for exclusive use by 

9 a State or any political subdivision thereof.’’

10 (b) FUEL USED ON INLAND WATERWAYS.—

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

12 4042(b) of such Code is amended by adding ‘‘and’’ 

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

14 at the end of subparagraph (B) and inserting a pe15 riod, and by striking subparagraph (C). 

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

17 of section 4042(b) of such Code is amended by strik18 ing subparagraph (C). 

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

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

21 of this Act.

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