I
106TH CONGRESS
1ST SESSION
H. R. 1001
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
MARCH 4, 1999
Mr. HULSHOF (for himself, Mr. JEFFERSON, Mr. MCCRERY, Mr. COLLINS,
Mr. CRANE, Mr. KLECZKA, Mr. HERGER, Mrs. THURMAN, Mr. RAMSTAD,
Mr. NUSSLE, Mr. SAM JOHNSON of Texas, Ms. DUNN, Mr. ENGLISH, Mr.
WATKINS, Mr. HAYWORTH, Mr. WELLER, Mr. MCINNIS, Mr. FOLEY, Mr.
PETRI, Ms. GRANGER, Mr. BACHUS, Mr. NEY, and Mr. TERRY) intro-
duced 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 gen-
eral fund of the Treasury.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Transportation Tax
Equity and Fairness Act’’.
SEC. 2. REPEAL OF 4.3-CENT MOTOR FUEL EXCISE TAXES
ON RAILROADS AND INLAND WATERWAY
TRANSPORTATION WHICH REMAIN IN GEN-
ERAL FUND.
(a) TAXES ON TRAINS.—
(1) IN GENERAL.—Subparagraph (A) of section
4041(a)(1) of the Internal Revenue Code of 1986 is
amended by striking ‘‘or a diesel-powered train’’
each place it appears and by striking ‘‘or train’’.
(2) CONFORMING AMENDMENTS.—
(A) 
Subparagraph 
(C) 
of 
section
4041(a)(1) of such Code is amended by striking
clause (ii) and by redesignating clause (iii) as
clause (ii).
(B) 
Subparagraph 
(C) 
of 
section
4041(b)(1) of such Code is amended by striking
all that follows ‘‘section 6421(e)(2)’’ and insert-
ing a period.
(C) Subsection (d) of section 4041 of such
Code is amended by redesignating paragraph
(3) as paragraph (4) and by inserting after
paragraph (2) the following new paragraph:
‘‘(3) DIESEL FUEL USED IN TRAINS.—There is
hereby imposed a tax of 0.1 cent per gallon on any
liquid other than gasoline (as defined in section
4083)—
‘‘(A) sold by any person to an owner, les-
see, or other operator of a diesel-powered train
for use as a fuel in such train, or
‘‘(B) used by any person as a fuel in a die-
sel-powered train unless there was a taxable
sale of such fuel under subparagraph (A).
No tax shall be imposed by this paragraph on the
sale or use of any liquid if tax was imposed on such
liquid under section 4081.’’
(D) Subsection (e) of section 4082 of such
Code 
is 
amended 
by 
striking 
‘‘section
4041(a)(1)’’ and inserting ‘‘subsections (d)(3)
and (a)(1) of section 4041, respectively’’.
(E) Paragraph (3) of section 4083(a) of
such Code is amended by striking ‘‘or a diesel-
powered train’’.
(F) Paragraph (3) of section 6421(f) of
such Code is amended to read as follows:
‘‘(3) GASOLINE USED IN TRAINS.—In the case
of gasoline used as a fuel in a train, this section
shall not apply with respect to the Leaking Under-
ground Storage Tank Trust Fund financing rate
under section 4081.’’
(G) Paragraph (3) of section 6427(l) of
such Code is amended to read as follows:
‘‘(3) REFUND
OF
CERTAIN
TAXES
ON
FUEL
USED IN DIESEL-POWERED TRAINS.—For purposes
of this subsection, the term ‘nontaxable use’ includes
fuel used in a diesel-powered train. The preceding
sentence shall not apply to the tax imposed by sec-
tion 4041(d) and the Leaking Underground Storage
Tank Trust Fund financing rate under section 4081
except with respect to fuel sold for exclusive use by
a State or any political subdivision thereof.’’
(b) FUEL USED ON INLAND WATERWAYS.—
(1) IN
GENERAL.—Paragraph (1) of section
4042(b) of such Code is amended by adding ‘‘and’’
at the end of subparagraph (A), by striking ‘‘, and’’
at the end of subparagraph (B) and inserting a pe-
riod, and by striking subparagraph (C).
(2) CONFORMING AMENDMENT.—Paragraph (2)
of section 4042(b) of such Code is amended by strik-
ing subparagraph (C).
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
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