I
106TH CONGRESS
2D SESSION
H. R. 4776
To amend the Internal Revenue Code of 1986 to suspend all motor fuel
taxes until March 31, 2001, to permanently repeal the 4.3 cent per
gallon increases in rail, barge, and aviation fuel taxes enacted in 1993,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 28, 2000
Mr. COLLINS (for himself, Mr. HAYWORTH, Mr. KINGSTON, Mr. SAM JOHN-
SON of Texas, Mr. BLUNT, Mr. MCKEON, Mr. HOBSON, Mr. BISHOP, Mr.
ENGLISH, Mr. LOBIONDO, Mr. LINDER, Mr. COBURN, Mr. HEFLEY, and
Mr. NORWOOD) 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
all motor fuel taxes until March 31, 2001, to perma-
nently repeal the 4.3 cent per gallon increases in rail,
barge, and aviation fuel taxes enacted in 1993, and for
other purposes.
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 ‘‘Fuel Excise Tax Relief
Act’’.
SEC. 2. SUSPENSION OF FUEL TAXES THROUGH MARCH 31,
2001.
(a) TEMPORARY SUSPENSION OF FUEL TAXES.—
During the suspension period, each rate of tax referred
to in subsection (b) shall be reduced to zero.
(b) RATES OF TAX.—The rates of tax referred to in
this subsection are the rates of tax otherwise applicable
under—
(1) paragraphs (1), (2), and (3) of section
4041(a) of the Internal Revenue Code of 1986 (re-
lating to diesel fuel and special motor fuels),
(2) subsection (m) of section 4041 of such Code
(relating to certain alcohol fuels),
(3) subparagraphs (A) and (C) of section
4042(b)(1) of such Code (relating to tax on fuel
used in commercial transportation on inland water-
ways),
(4) clauses (i), (ii), and (iii) of section
4081(a)(2)(A) of such Code (relating to gasoline,
diesel fuel, and kerosene),
(5) paragraph (1) of section 4091(b) of such
Code (relating to aviation fuel), and
(6) paragraph (2) of section 4092(b) of such
Code (relating to fuel used in commercial aviation).
(c) SUSPENSION PERIOD.—For purposes of this sec-
tion, the term ‘‘suspension period’’ means period begin-
ning on the date of the enactment of this Act and ending
on March 31, 2001.
SEC. 3. REPEAL OF 1993 INCREASES IN CERTAIN MOTOR
FUEL TAXES.
(a) DIESEL FUEL USED IN TRAINS.—Subparagraph
(C) of section 4041(a)(1) of the Internal Revenue Code
of 1986 is amended by striking clause (ii) and by redesig-
nating clause (iii) as clause (ii).
(b) FUEL USED ON INLAND WATERWAYS.—
(1) Paragraph (1) of section 4042(b) of such
Code is amended by adding ‘‘and’’ at the end of sub-
paragraph (A), by striking ‘‘, and’’ at the end of
subparagraph (B) and inserting a period, and by
striking subparagraph (C).
(2) Paragraph (2) of section 4042(b) of such
Code is amended by striking subparagraph (C).
(c) GASOLINE USED IN TRAINS.—Clause (i) of sec-
tion 4081(a)(2)(A) of such Code is amended by inserting
before the comma at the end the following: ‘‘(14 cents in
the case of gasoline used in trains)’’.
(d) AVIATION GASOLINE.—Clause (ii) of section
4081(a)(2)(A) of such Code is amended by striking ‘‘19.3
cents’’ and inserting ‘‘15 cents’’.
(e) AVIATION
FUEL.—Paragraph (1) of section
4091(b) of such Code is amended by striking ‘‘21.8 cents’’
and inserting ‘‘17.5 cents’’.
(f) TECHNICAL AMENDMENTS.—
(1) Subparagraph (A) of section 4041(a)(1) of
such Code is amended by striking ‘‘or a diesel-pow-
ered train’’ each place it appears and by striking ‘‘or
train’’.
(2) Subparagraph (C) of section 4041(b)(1) of
such Code is amended by striking all that follows
‘‘section 6421(e)(2)’’ and inserting a period.
(3) Subsection (d) of section 4041 of such Code
is amended by redesignating paragraph (3) as para-
graph (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.’’
(4) Paragraph (2) of section 4081(d) of such
Code is amended to read as follows:
‘‘(2) AVIATION
GASOLINE.—The rate of tax
specified in subsection (a)(2)(A)(ii) shall be zero
after September 30, 2007.’’.
(5) Subsection (f) of section 4082 of such Code
is amended by striking ‘‘section 4041(a)(1)’’ and in-
serting ‘‘subsections (d)(3) and (a)(1) of section
4041, respectively’’.
(6) Paragraph (3) of section 4083(a) of such
Code is amended by striking ‘‘or a diesel-powered
train’’.
(7) Subparagraph (A) of section 4091(b)(3) of
such Code is amended to read as follows:
‘‘(A) The rate of tax specified in para-
graph (1) shall be zero after September 30,
2007.’’
(8) Paragraph (1) of section 4091(c) of such
Code is amended—
(A) by striking ‘‘14 cents’’ and inserting
‘‘9.7 cents’’,
(B) by striking ‘‘13.3 cents’’ and inserting
‘‘9 cents’’,
(C) by striking ‘‘13.2 cents’’ and inserting
‘‘8.9 cents’’,
(D) by striking ‘‘13.1 cents’’ and inserting
‘‘8.8 cents’’, and
(E) by striking ‘‘13.4 cents’’ and inserting
‘‘9.1 cents’’.
(9) Subsection (c) of section 4091 of such Code
is amended by striking paragraph (4), and by redes-
ignating paragraph (5) as paragraph (4).
(10) Subsection (b) of section 4092 of such
Code is amended by striking ‘‘attributable to’’ and
all that follows and inserting ‘‘attributable to the
Leaking Underground Storage Tank Trust Fund fi-
nancing rate imposed by such section. For purposes
of the preceding sentence, the term ‘commercial
aviation’ means any use of an aircraft other than in
noncommercial aviation (as defined in section
4041(c)(2)).’’
(11) Subparagraph (B) of section 6421(f)(2) of
such Code is amended by striking ‘‘and,’’ and all
that follows and inserting a period.
(12) 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.’’
(13) 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.’’
(14) Paragraph (4) of section 6427(l) of such
Code is amended by striking ‘‘attributable to’’ and
all that follows through the period and inserting ‘‘at-
tributable to the Leaking Underground Storage
Tank Trust Fund financing rate imposed by such
section.’’
(g) EFFECTIVE DATE.—The amendments made by
this section shall take effect on April 1, 2001.
curred on the floor stocks tax date over the tax paid under
any such section on such liquid.
(b) LIABILITY
FOR TAX
AND METHOD
OF PAY-
MENT.—
(1) LIABILITY FOR TAX.—A person holding a
liquid on the floor stocks tax date to which the tax
imposed by subsection (a) applies shall be liable for
such tax.
(2) METHOD OF PAYMENT.—The tax imposed
by subsection (a) shall be paid in such manner as
the Secretary shall prescribe.
(3) TIME FOR PAYMENT.—The tax imposed by
subsection (a) shall be paid on or before the date
which is 6 months after the floor stocks tax date.
(c) DEFINITIONS.—For purposes of this section—
(1) HELD BY A PERSON.—A liquid shall be con-
sidered as ‘‘held by a person’’ if title thereto has
passed to such person (whether or not delivery to
the person has been made).
(2) TAXABLE LIQUID.—The term ‘taxable liq-
uid’ means any liquid on which a tax referred to in
section 2(b) is imposed on the floor stocks tax date.
(3) FLOOR
STOCKS
TAX
DATE.—The term
‘‘floor stocks tax date’’ means April 1, 2001.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Treasury or the Secretary’s del-
egate.
(d) EXCEPTION FOR EXEMPT USES.—The tax im-
posed by subsection (a) shall not apply to taxable liquid
held by any person exclusively for any use to the extent
a credit or refund of the tax imposed by a section of the
Code referred to in section 2(b) is allowable for such use.
(e) EXCEPTION
FOR
FUEL
HELD
IN
VEHICLE
TANK.—No tax shall be imposed by subsection (a) on tax-
able liquid held in the tank of a motor vehicle or motor-
boat.
(f) EXCEPTION FOR CERTAIN AMOUNTS OF FUEL.—
(1) IN GENERAL.—No tax shall be imposed by
subsection (a) on any liquid held on the floor stocks
tax date by any person if the aggregate amount of
liquid held by such person on such date does not ex-
ceed 2,000 gallons. The preceding sentence shall
apply only if such person submits to the Secretary
(at the time and in the manner required by the Sec-
retary) such information as the Secretary shall re-
quire for purposes of this paragraph.
(2) EXEMPT
FUEL.—For purposes of para-
graph (1), there shall not be taken into account fuel
held by any person which is exempt from the tax im-
posed by subsection (a) by reason of subsection (d)
or (e).
(3) CONTROLLED
GROUPS.—For purposes of
this subsection—
(A) CORPORATIONS.—
(i) IN GENERAL.—All persons treated
as a controlled group shall be treated as 1
person.
(ii) CONTROLLED GROUP.—The term
‘‘controlled group’’ has the meaning given
to such term by subsection (a) of section
1563 of such Code; except that for such
purposes the phrase ‘‘more than 50 per-
cent’’ shall be substituted for the phrase
‘‘at least 80 percent’’ each place it appears
in such subsection.
(B) NONINCORPORATED PERSONS UNDER
COMMON
CONTROL.—Under regulations pre-
scribed by the Secretary, principles similar to
the principles of subparagraph (A) shall apply
to a group of persons under common control
where 1 or more of such persons is not a cor-
poration.
(g) OTHER LAW APPLICABLE.—All provisions of law,
including penalties, applicable with respect to the taxes
imposed by chapter 31 or 32 of such Code shall, insofar
as applicable and not inconsistent with the provisions of
this section, apply with respect to the floor stock taxes
imposed by subsection (a) to the same extent as if such
taxes were imposed by such chapter.
SEC. 6. MAINTENANCE OF TRUST FUND DEPOSITS.
In determining the amounts to be appropriated to
any trust fund, an amount equal to the reduction in reve-
nues to the Treasury by reason of a reduction under this
Act in any rate shall be treated as taxes received in the
Treasury under such rate.
SEC. 7. REPORTING REQUIREMENTS.
(a) CHANGES IN FUEL PRICES.—Not later than 30
days after the date of the enactment of this Act, the Sec-
retary of Treasury, in consultation with the Secretary of
Energy, shall prepare and submit to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a study which specifi-
cally addresses the following issues:
(1) Changes in the price of gasoline, diesel fuel,
and other transportation fuels over the previous 12
months.
(2) The impact on fuel prices posed by the re-
formulated gas mandate of the Clean Air Act.
(3) The economic feasibility and appropriate-
ness of maintaining the reformulated gas mandate.
(b) PASS THROUGH OF TAX REDUCTION.—
(1) The Comptroller General of the United
States shall conduct a study of the reduction of
taxes under this Act to determine whether there has
been a pass through to consumers of such reduction.
(2) Not later than 60 days after the date of the
enactment of this Act, the Comptroller General shall
submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Fi-
nance of the Senate a report containing the results
of the study conducted under paragraph (1).
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