586
HR 2264 PP
‘‘(iii) 8.422 cents a gallon for 5.7 per-
cent gasohol.
In the case of a mixture none of the alcohol in
which consists of ethanol, clauses (i), (ii), and
(iii) shall be applied by substituting ‘5.5 cents’
for ‘6.1 cents’, ‘6.88 cents’ for ‘7.342 cents’, and
‘8.08 cents’ for ‘8.422 cents’.
‘‘(B) 10 PERCENT GASOHOL.—The term ‘10
percent gasohol’ means any mixture of gasoline
with alcohol if at least 10 percent of such mix-
ture is alcohol.
‘‘(C) 7.7 PERCENT
GASOHOL.—The term
‘7.7 percent gasohol’ means any mixture of gaso-
line with alcohol if at least 7.7 percent, but not
10 percent or more, of such mixture is alcohol.
‘‘(D) 5.7 PERCENT
GASOHOL.—The term
‘5.7 percent gasohol’ means any mixture of gaso-
line with alcohol if at least 5.7 percent, but not
7.7 percent or more, of such mixture is alcohol.
‘‘(5) OTHERWISE APPLICABLE RATES FOR DIE-
SEL
FUEL
MIXTURES.—For purposes of this sub-
section, in the case of the Highway Trust Fund fi-
nancing rate, the otherwise applicable rate for diesel
fuel in a qualified alcohol mixture is 12.1 cents per
gallon (11.5 cents per gallon in the case of a qualified
587
HR 2264 PP
alcohol mixture none of the alcohol in which consists
of ethanol).
‘‘(6) TERMINATION.—Paragraph (1) shall not
apply to any removal or sale after September 30,
2000.
‘‘(d) TERMINATION.—
‘‘(1) HIGHWAY TRUST FUND FINANCING RATE.—
On and after October 1, 1999, the Highway Trust
Fund financing rate under subsection (a)(2) shall not
apply.
‘‘(2) LEAKING
UNDERGROUND
STORAGE
TANK
TRUST FUND FINANCING RATE.—The Leaking Under-
ground Storage Tank Trust Fund financing rate
under subsection (a)(2) shall not apply after Decem-
ber 31, 1995.
‘‘(e) REFUNDS IN CERTAIN CASES.—Under regulations
prescribed by the Secretary, if any person who paid the tax
imposed by this section with respect to any taxable fuel es-
tablishes to the satisfaction of the Secretary that a prior
tax was paid (and not credited or refunded) with respect
to such taxable fuel, then an amount equal to the tax paid
by such person shall be allowed as a refund (without inter-
est) to such person in the same manner as if it were an
overpayment of tax imposed by this section.
588
HR 2264 PP
‘‘SEC. 4082. EXEMPTIONS FOR DIESEL FUEL.
‘‘(a) IN GENERAL.—Except as provided in subsection
(d), the tax imposed by section 4081 shall not apply to die-
sel fuel—
‘‘(1) which the Secretary determines is destined
for a nontaxable use, and
‘‘(2) which is indelibly dyed in accordance with
regulations which the Secretary shall prescribe.
Such regulations shall allow an individual choice of dye
color approved by the Secretary or chosen from any list of
approved dye colors that the Secretary may publish.
‘‘(b) NONTAXABLE USE.—For purposes of this section,
the term ‘nontaxable use’ means—
‘‘(1) any use which is exempt from the tax im-
posed by section 4041(a)(1) other than by reason of
the imposition of tax on any sale thereof,
‘‘(2) any use in a train, and
‘‘(3) any use described in section 6427(b)(1).
‘‘(c) REGULATIONS.—The Secretary shall prescribe
such regulations as may be necessary to carry out this sec-
tion, including regulations requiring the conspicuous label-
ing of retail diesel fuel pumps and other delivery facilities
to assure that persons are aware of which fuel is available
only for nontaxable uses.
589
HR 2264 PP
‘‘(d) CROSS REFERENCE.—
‘‘For tax on train, motorboat, and certain bus uses
of fuel purchased tax-free, see section 4041(a)(1).
‘‘SEC. 4083. DEFINITIONS AND SPECIAL RULE.
‘‘(a) TAXABLE FUEL.—For purposes of this subpart—
‘‘(1) IN
GENERAL.—The term ‘taxable fuel’
means—
‘‘(A) gasoline, and
‘‘(B) diesel fuel.
‘‘(2) GASOLINE.—The term ‘gasoline’ includes, to
the extent prescribed in regulations—
‘‘(A) gasoline blend stocks, and
‘‘(B) products commonly used as additives
in gasoline.
For purposes of subparagraph (A), the term ‘gasoline
blend stock’ means any petroleum product component
of gasoline.
‘‘(3) DIESEL
FUEL.—The term ‘diesel fuel’
means any liquid (other than gasoline) which is suit-
able for use as a fuel in a diesel-powered highway ve-
hicle, a diesel-powered train, or a diesel-powered boat.
‘‘(b) CERTAIN USES DEFINED AS REMOVAL.—If any
person uses taxable fuel (other than in the production of
gasoline, diesel fuel, or special fuels referred to in section
4041), such use shall for the purposes of this chapter be con-
sidered a removal.
590
HR 2264 PP
‘‘SEC. 4084. CROSS REFERENCES.
‘‘(1) For provisions to relieve farmers from excise
tax in the case of gasoline used on the farm for farm-
ing purposes, see section 6420.
‘‘(2) For provisions to relieve purchasers of gaso-
line from excise tax in the case of gasoline used for
certain nonhighway purposes, used by local transit
systems, or sold for certain exempt purposes, see sec-
tion 6421.
‘‘(3) For provisions to relieve purchasers from ex-
cise tax in the case of taxable fuel not used for tax-
able purposes, see section 6427.
‘‘Subpart B—Aviation Fuel
‘‘Sec. 4091. Imposition of tax.
‘‘Sec. 4092. Exemptions.
‘‘Sec. 4093. Definitions.
‘‘SEC. 4091. IMPOSITION OF TAX.
‘‘(a) TAX ON SALE.—
‘‘(1) IN GENERAL.—There is hereby imposed a
tax on the sale of aviation fuel by the producer or the
importer thereof or by any producer of aviation fuel.
‘‘(2) USE TREATED AS SALE.—For purposes of
paragraph (1), if any producer uses aviation fuel
(other than for a nontaxable use as defined in section
6427(l)(2)(B)) on which no tax has been imposed
under such paragraph, then such use shall be consid-
ered a sale.
‘‘(b) RATE OF TAX.—
‘‘(1) IN GENERAL.—The rate of the tax imposed
by subsection (a) shall be the sum of—
‘‘(A) the Airport and Airway Trust Fund
financing rate,
591
HR 2264 PP
‘‘(B) the Leaking Underground Storage
Tank Trust Fund financing rate.
‘‘(2) AIRPORT AND AIRWAY TRUST FUND FINANC-
ING RATE.—For purposes of paragraph (1), the Air-
port and Airway Trust Fund financing rate is 17.5
cents per gallon.
‘‘(3) LEAKING
UNDERGROUND
STORAGE
TANK
TRUST
FUND
FINANCING
RATE.—For purposes of
paragraph (1), the Leaking Underground Storage
Tank Trust Fund financing rate is 0.1 cent per
gallon.
‘‘(4) DEFICIT REDUCTION RATE.—For purposes
of paragraph (1), the deficit reduction rate is 4.3
cents per gallon.
‘‘(5) TERMINATION OF RATES.—
‘‘(A) The Airport and Airway Trust Fund
financing rate shall not apply on and after Jan-
uary 1, 1996.
‘‘(B) The Leaking Underground Storage
Tank Fund financing rate shall not apply dur-
ing any period during which the Leaking Under-
ground Storage Tank Trust Fund financing rate
under section 4081 does not apply.
‘‘(c) REDUCED RATE OF TAX FOR AVIATION FUEL IN
ALCOHOL MIXTURE, ETC.—
593
HR 2264 PP
producer of such aviation fuel. The amount of tax im-
posed on any sale of such aviation fuel by such person
shall be reduced by the amount of tax imposed (and
not credited or refunded) on any prior sale of such
fuel.
‘‘(3) TERMINATION.—Paragraph (1) shall not
apply to any sale after September 30, 2000.
‘‘(d) LOWER RATES OF TAX ON ALCOHOL MIXTURES
NOT MADE FROM ETHANOL.—In the case of a mixture de-
scribed in subsection (c)(1)(A)(i) none of the alcohol in
which is ethanol—
‘‘(1) subsections (c)(1)(A) and (c)(2) shall each
be applied by substituting rates which are 0.6 cents
less than the rates contained therein, and
‘‘(2) subsection (c)(1)(B) shall be applied by sub-
stituting rates which are 10⁄9 of the rates determined
under paragraph (1).
‘‘SEC. 4092. EXEMPTIONS.
‘‘(a) NONTAXABLE USES.—The Airport and Airway
Trust Fund financing rate under section 4091 shall not
apply to aviation fuel sold by a producer or importer for
use by the purchaser in a nontaxable use (as defined in
section 6427(l)(2)(B)).
‘‘(b) SALES TO PRODUCER.—Under regulations pre-
scribed by the Secretary, the tax imposed by section 4091
594
HR 2264 PP
shall not apply to aviation fuel sold to a producer of such
fuel.
‘‘(c) SUPPLIES FOR VESSELS AND AIRCRAFT.—The
Leaking Underground Storage Tank Trust Fund financing
rate and the deficit reduction rate under section 4091 shall
not apply to aviation fuel sold for use or used as supplies
for vessels or aircraft (within the meaning of section
4221(d)(3)).
‘‘SEC. 4093. DEFINITIONS.
‘‘(a) AVIATION FUEL.—For purposes of this subpart,
the term ‘aviation fuel’ means any liquid (other than any
product taxable under section 4081) which is suitable for
use as a fuel in an aircraft.
‘‘(b) PRODUCER.—For purposes of this subpart—
‘‘(1) CERTAIN PERSONS TREATED AS PRODUC-
ERS.—
‘‘(A) IN GENERAL.—The term ‘producer’ in-
cludes any person described in subparagraph (B)
and registered under section 4101 with respect to
the tax imposed by section 4091.
‘‘(B) PERSONS
DESCRIBED.—A person is
described in this subparagraph if such person
is—
‘‘(i) a refiner, blender, or wholesale dis-
tributor of aviation fuel, or
595
HR 2264 PP
‘‘(ii) a dealer selling aviation fuel ex-
clusively to producers of aviation fuel.
‘‘(C) REDUCED RATE PURCHASERS TREAT-
ED AS PRODUCERS.—Any person to whom avia-
tion fuel is sold at a reduced rate under this sub-
part shall be treated as the producer of such fuel.
‘‘(2) WHOLESALE DISTRIBUTOR.—For purposes
of paragraph (1), the term ‘wholesale distributor’ in-
cludes any person who sells aviation fuel to producers,
retailers, or to users who purchase in bulk quantities
and deliver into bulk storage tanks. Such term does
not include any person who (excluding the term
‘wholesale distributor’ from paragraph (1)) is a pro-
ducer or importer.’’
(b) CIVIL PENALTY FOR USING REDUCED-RATE FUEL
FOR TAXABLE USE.—
(1) IN
GENERAL.—Part I of subchapter B of
chapter 68 (relating to assessable penalties) is amend-
ed by adding at the end thereof the following new sec-
tion:
‘‘SEC. 6714. DYED FUEL SOLD FOR USE OR USED IN TAX-
ABLE USE.
‘‘(a) IMPOSITION OF PENALTY.—If any dyed fuel—
596
HR 2264 PP
‘‘(1) is sold or held for sale by any person for
any use which such person knows or has reason to
know is not a reduced-tax use of such fuel, or
‘‘(2) is used by any person for a use other than
a reduced-tax use and such person knew, or had rea-
son to know, that such fuel was so dyed,
then, in addition to the tax, such person shall pay a penalty
on such sale or use.
‘‘(b) AMOUNT OF PENALTY.—The amount of the pen-
alty under subsection (a) on any sale or use shall be the
greater of—
‘‘(1) $1,000, or
‘‘(2) an amount equal to twice the excess of the
aggregate taxes which should have been imposed
under section 4081 on the fuel so sold or used over the
prior taxes (if any) imposed on such fuel under such
section which have not been credited or refunded.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) DYED FUEL.—The term ‘dyed fuel’ means
diesel fuel dyed in accordance with section 4082.
‘‘(2) REDUCED-TAX USE.—The term ‘reduced-tax
use’ means, with respect to any fuel, the use for which
such fuel was dyed.’’
597
HR 2264 PP
(2) CLERICAL AMENDMENT.—The table of sec-
tions for such part I is amended by adding at the end
thereof the following new item:
‘‘Sec. 6714. Dyed fuel sold for use or used in taxable use.’’
(c) REGISTERED VENDORS TO ADMINISTER CLAIMS
FOR REFUND OF DIESEL FUEL.—Section 6427(l) (relating
to nontaxable uses of diesel fuel and aviation fuel) is
amended by adding at the end the following new paragraph:
‘‘(5) REGISTERED
VENDORS
TO
ADMINISTER
CLAIMS
FOR
REFUND
OF
DIESEL
FUEL
SOLD
TO
FARMERS AND STATE AND LOCAL GOVERNMENTS.—
‘‘(A) IN
GENERAL.—Paragraph (1) shall
not apply to the ultimate purchaser of undyed
diesel fuel used on a farm for farming purposes
(within the meaning of section 6420(c)) or for
the exclusive use of a State or local government.
‘‘(B) PAYMENT TO ULTIMATE, REGISTERED
VENDOR.—The amount which would have other-
wise been paid under paragraph (1) (without re-
gard to subparagraph (A)) shall be paid to the
ultimate vendor of such fuel, if such vendor—
‘‘(i) is registered under section 4101,
and
‘‘(ii) meets the requirements of section
6416(a).’’
(d) TECHNICAL AND CONFORMING AMENDMENTS.—
598
HR 2264 PP
(1) Subsection (c) of section 40 is amended by
striking ‘‘, section 4081(c), or section 4091(c)’’ and
inserting ‘‘or section 4081(c)’’.
(2) Subsection (a) of section 4101 is amended by
striking ‘‘4081’’ and inserting ‘‘4041(a)(1), 4081,’’.
(3) Section 4102 is amended by striking ‘‘gaso-
line’’ and inserting ‘‘any taxable fuel (as defined in
section 4083)’’.
(4) Paragraph (1) of section 4041(a), as amend-
ed by subtitle A, is amended to read as follows:
‘‘(1) TAX ON DIESEL FUEL IN CERTAIN CASES.—
‘‘(A) IN
GENERAL.—There is hereby im-
posed a tax on any liquid other than gasoline (as
defined in section 4083)—
‘‘(i) sold by any person to an owner,
lessee, or other operator of a diesel-powered
highway vehicle, a diesel-powered train, or
a diesel-powered boat for use as a fuel in
such vehicle, train, or boat, or
‘‘(ii) used by any person as a fuel in
a diesel-powered highway vehicle, a diesel-
powered train, or a diesel-powered boat un-
less there was a taxable sale of such fuel
under clause (i).
599
HR 2264 PP
‘‘(B) EXEMPTION FOR PREVIOUSLY TAXED
FUEL.—No tax shall be imposed by this para-
graph on the sale or use of diesel fuel if there was
a taxable removal of such fuel under section 4081
and the tax thereon was not credited or refunded.
‘‘(C) RATE OF TAX.—
‘‘(i) IN GENERAL.—Except as otherwise
provided in this subparagraph, the rate of
the tax imposed by this paragraph shall be
the sum of the Highway Trust Fund financ-
ing rate on diesel fuel and the deficit reduc-
tion rate in effect under section 4081 at the
time of such sale or use.
‘‘(ii) CERTAIN RATES NOT TO APPLY TO
TRAINS.—
‘‘(I) HIGHWAY
TRUST
FUND
FI-
NANCING RATE.—The Highway Trust
Fund financing rate shall not apply to
any sale for use, or use, of fuel in a
train.
‘‘(II) 
DEFICIT
REDUCTION
RATE.—The deficit reduction rate shall
not apply to any sale for use, or use,
of fuel in a train if such fuel is used
600
HR 2264 PP
by a State or any political subdivision
thereof
‘‘(iii) CERTAIN BUS USES.—If the lim-
itation in section 6427(b)(2)(A) applies to
fuel sold for use or used in an automobile
bus, the Highway Trust Fund financing
rate shall be 3 cents per gallon and so much
of the deficit reduction rate as exceeds 4.3
cents per gallon shall not apply.’’
(5) Paragraph (2) of section 4041(a), as amend-
ed by subtitle A, is amended by striking ‘‘or para-
graph (1) of this subsection’’ and by inserting ‘‘on
gasoline’’ after ‘‘Highway Trust Fund financing
rate’’.
(6) Paragraph (1) of section 4041(c), as amend-
ed by subpart A, is amended by striking ‘‘the aviation
fuel deficit reduction rate’’ and inserting ‘‘the deficit
reduction rate imposed under section 4091 on’’.
(7) Paragraph (2) of section 4041(c) is amended
by striking ‘‘any product taxable under section 4081’’
and inserting ‘‘gasoline (as defined in section 4083)’’.
(8) Paragraph (2) of section 4041(d) is amend-
ed—
601
HR 2264 PP
(A) by striking ‘‘(other than a product tax-
able under section 4081)’’ and inserting ‘‘(other
than gasoline (as defined in section 4083))’’, and
(B) by striking ‘‘section 4091’’ and insert-
ing ‘‘section 4081’’.
(9) Paragraph (3) of section 4041(d) is amended
by striking ‘‘(other than any product taxable under
section 4081)’’ and inserting ‘‘(other than gasoline (as
defined in section 4083))’’.
(10) Subparagraph (A) of section 4041(k)(1) is
amended by striking ‘‘sections 4081(c) and 4091(c),
as the case may be’’ and inserting ‘‘section 4081(c)’’.
(11) Subparagraph (B) of section 4041(m)(1) is
amended by striking ‘‘section 4091(d)(1)’’ and insert-
ing ‘‘section 4091(c)(1)’’.
(12) Section 6206 is amended by striking ‘‘4041
or 4091’’ and inserting ‘‘4041, 4081, or 4091’’.
(13) The heading for subsection (f) of section
6302 is amended by inserting ‘‘AND DIESEL FUEL’’
after ‘‘GASOLINE’’.
(14) Paragraph (1) of section 6412(a) is amend-
ed by striking ‘‘gasoline’’ each place it appears (in-
cluding the heading) and inserting ‘‘taxable fuel’’.
616
HR 2264 PP
other Federal executive agency (as defined in sec-
tion 6050M), and any successor or subunit of
any of the foregoing, and
‘‘(C) any other corporation which is a di-
rect or indirect subsidiary of an entity referred
to in subparagraph (A) but only if, by virtue of
being affiliated with such entity, such other cor-
poration is subject to supervision and examina-
tion by a Federal or State agency which regu-
lates entities referred to in subparagraph (A).
‘‘(2) GOVERNMENTAL UNITS.—In the case of an
entity described in paragraph (1)(B), any return
under this section shall be made by the officer or em-
ployee appropriately designated for the purpose of
making such return.
‘‘(d) STATEMENTS TO BE FURNISHED TO PERSONS
WITH RESPECT TO WHOM INFORMATION IS REQUIRED TO
BE FURNISHED.—Every applicable financial entity re-
quired to make a return under subsection (a) shall furnish
to each person whose name is required to be set forth in
such return a written statement showing—
‘‘(1) the name and address of the entity required
to make such return, and
‘‘(2) the information required to be shown on the
return with respect to such person.