I
104TH CONGRESS
1ST SESSION
H. R. 1956
To amend the Internal Revenue Code of 1986 to provide a moratorium
for the excise tax on diesel fuel sold for use or used in noncommercial
diesel-powered motorboats and to require the Secretary of the Treasury
to study the effectiveness of procedures to collect excises taxes on sales
of diesel fuel for noncommercial motorboat use.
IN THE HOUSE OF REPRESENTATIVES
JUNE 29, 1995
Mr. SHAW 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 provide
a moratorium for the excise tax on diesel fuel sold for
use or used in noncommercial diesel-powered motorboats
and to require the Secretary of the Treasury to study
the effectiveness of procedures to collect excises taxes
on sales of diesel fuel for noncommercial motorboat use.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
HR 1956 IH
SECTION 1. MORATORIUM FOR EXCISE TAX ON DIESEL
FUEL SOLD FOR USE OR USED IN DIESEL-
POWERED MOTORBOATS.
(a) Section 4041 of the Internal Revenue Code of
1986 (relating to the imposition of tax on diesel fuel and
special motor fuels), as amended by section 13163 of the
Omnibus Budget Reconciliation Act of 1993, is amended
by deleting subparagraph (D) of section 4041(a)(1) and
substituting the following new subparagraph (D):
‘‘(D) DIESEL
FUEL
USED
IN
MOTOR-
BOATS.—
‘‘(i) MORATORIUM.—No tax shall be
imposed by subsection (a) or (d)(1) on die-
sel fuel sold for use or used in a diesel-
powered motorboat during the period after
(the day before the date of enactment),
and before (the date 2 years after the date
of enactment).
‘‘(ii) SPECIAL TERMINATION DATE.—
In the case of any sale for use, or use, of
fuel in a diesel-powered motorboat—
‘‘(I) effective during the period
after September 30, 1999, and before
January 1, 2000, the rate of tax im-
posed by this paragraph is 24.3 cents
per gallon and
HR 1956 IH
‘‘(II) the termination of the tax
under subsection (d) shall not occur
before January 1, 2000.’’
(b) TECHNICAL AMENDMENTS.—
(1) Part II of subchapter B of chapter 68 of
the Internal Revenue Code of 1986 is amended by
redesignating section 6714 (relating to dyed fuel
sold for use or used in taxable use, et cetera), as
added by section 13242 of the Omnibus Budget Rec-
onciliation Act of 1993, as section 6715.
(2) The table of sections for such part is
amended by redesignating the item relating to sec-
tion 6714 (relating to dyed fuel sold for use or used
in taxable use, etc.), as added by section 13242 of
such Act, as section 6715.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of enactment.
SEC. 2. TREASURY STUDY OF EFFECTIVE PROCEDURES
FOR COLLECTING TAX ON THE SALE OF DIE-
SEL FUEL FOR NONCOMMERCIAL MOTOR-
BOAT USE.
(a) GENERAL RULE.—The Secretary of the Treasury
(or his delegate) shall study the effectiveness of various
procedures for collecting excise taxes imposed on diesel
fuel sold for use or used in a noncommercial diesel-pow-
HR 1956 IH
ered motorboat. In studying the effectiveness of possible
collection procedures, the Secretary (or his delegate) shall
examine the administrative burdens of each procedure on
and consult with noncommercial boat users and marine
fuel retailers and the effect of each procedure on the avail-
ability of diesel fuel to all boat users as well as any en-
forcement considerations. The following four collection
procedures shall specifically be studied, although the Sec-
retary (or his delegate) may study other collection proce-
dures:
(1) The collection procedure under current law,
which imposed tax upon the removal of diesel fuel
from a petroleum terminal and under no cir-
cumstances allows a marine fuel retailer to sell dyed
diesel fuel to a noncommercial boat user.
(2) A collection procedure which would allow a
marine fuel retailer to sell dyed diesel fuel to a non-
commercial boat user provided the retailer collected
the tax from the user and remitted the tax to the
Internal Revenue Service.
(3) A collection procedure which would allow a
marine fuel retailer to sell dyed diesel fuel to a non-
commercial boat user but would require the user to
remit the taxes due directly to the Internal Revenue
Service.
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(4) A collection procedure which would allow
(but not require) a marine fuel retailer to sell
undyed diesel fuel to exempt commercial boat users
and then to apply for refunds on those sales from
the Internal Revenue Service in a manner similar to
the current procedure under section 6427(1)(5) of
the Internal Revenue Code of 1986 for sales to
farmers and state and local governments.
(b) REPORT.—Not later than (the date 18 months
after the date of enactment), the Secretary (or his dele-
gate) shall submit to the Committee on Ways and Means
of the House of Representatives and the Committee on
Finance of the Senate a report on the study conducted
under subsection (a), together with such recommendations
as he may deem advisable.
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