I
106TH CONGRESS
2D SESSION
H. R. 3982
To amend the Internal Revenue Code of 1986 to repeal the 30-percent
tax increase on highway gasoline, diesel fuel, and kerosene imposed
by the 1993 tax bill.
IN THE HOUSE OF REPRESENTATIVES
MARCH 15, 2000
Mr. COX 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 30-percent tax increase on highway gasoline, diesel
fuel, and kerosene imposed by the 1993 tax bill.
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 ‘‘Emergency Tax Relief
for Motorists and Truckers Act of 2000’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds the following:
(1) Excessive taxation is a significant contrib-
uting factor to high gasoline and diesel fuel prices.
(2) Over the last decade, governments are in
fact directly responsible for the entirety of the in-
crease in retail gasoline prices. While the before-tax
cost of a gallon of gasoline actually declined from
1990 to 1999, State gas taxes were increased by 40
percent, and the Federal gas tax was increased by
100 percent.
(3) The 1993 tax bill boosted Federal motor
fuel taxes by 4.3 cents per gallon. It increased the
gasoline tax to 18.4 cents per gallon, and the diesel
fuel tax to 24.4 cents per gallon.
(4) Federal and State gas taxes are responsible
for nearly one-third of the average pump price, ac-
cording to the United States Department of Energy
figures. Federal and State gas taxes now average 42
cents per gallon of gasoline, and 48 cents per gallon
of diesel fuel.
(5) The revenue raised by the 1993 gas tax in-
crease was originally earmarked for deficit reduc-
tion. Now that the deficit has been eliminated, Con-
gress should repeal the 4.3-cent motor fuel tax in-
crease.
(6) Repeal of the 1993 motor fuel tax increase
will disproportionately benefit low- and middle-in-
come working families. According to one estimate,
23 percent of all gas taxes are paid by working men
and women earning less than $20,000 annually. The
average American family pays $660 a year in Fed-
eral and State gas taxes.
(7) Repeal of the 1993 motor fuel tax increase
will benefit all Americans by reducing the cost of
shipping food and other goods over long distances.
(b) PURPOSE.—It is the purpose of this Act to pro-
vide immediate financial relief to motorists and truckers
by reducing all motor fuel taxes by 4.3 cents per gallon
by repealing the 1993 tax increase.
SEC. 3. REPEAL OF 4.3-CENT INCREASE IN HIGHWAY GASO-
LINE, DIESEL FUEL, AND KEROSENE EN-
ACTED 
BY 
THE 
OMNIBUS 
BUDGET 
REC-
ONCILIATION ACT OF 1993.
(a) HIGHWAY GASOLINE.—Clause (i) of section
4081(a)(2)(A) of the Internal Revenue Code of 1986 is
amended by striking ‘‘18.3 cents’’ and inserting ‘‘14
cents’’.
(b) DIESEL FUEL AND KEROSENE.—Clause (iii) of
section 4081(a)(2)(A) of such Code is amended by striking
‘‘24.3 cents’’ and inserting ‘‘20 cents’’.
(c) TECHNICAL AMENDMENTS.—
(1) Subparagraph (B) of section 40(e)(1) of
such Code is amended by striking ‘‘are 4.3 cents per
gallon’’ and inserting ‘‘are zero’’.
(2) 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’’.
(3) Subparagraph (C) of section 4041(a)(1) of
such Code is amended by striking clause (ii) and by
redesignating clause (iii) as clause (ii).
(4) Subclause (I) of section 4041(a)(1)(C)(ii) of
such Code, as redesignated by paragraph (2), is
amended by striking ‘‘7.3 cents’’ and inserting ‘‘3
cents’’ and by striking ‘‘4.3 cents per gallon’’ and
inserting ‘‘zero’’.
(5) Subsection (a) of section 4041 of such Code
is amended by striking paragraph (3).
(6) 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.
(7) Paragraph (3) of section 4041(c) of such
Code is amended to read as follows:
‘‘(3) TERMINATION.—The rate of the taxes im-
posed by paragraph (1) shall be zero after Sep-
tember 30, 2007.’’
(8) 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.’’
(9) 
Clauses 
(i) 
and 
(ii) 
of 
section
4041(m)(1)(A) of such Code are amended to read as
follows:
‘‘(i) 7 cents per gallon on and after
the date of the enactment of this clause
and before October 1, 2005, and
‘‘(ii) zero after September 30, 2005,
and’’.
(10) Subsection (c) of section 4081 of such
Code is amended by striking paragraph (6) and by
redesignating paragraphs (7) and (8) as paragraphs
(6) and (7), respectively.
(11) Paragraphs (1) and (2) of section 4081(d)
of such Code (as amended by section 3) are each
amended by striking ‘‘4.3 cents per gallon’’ and in-
serting ‘‘zero’’.
(12) Subsection (f) of section 4082 of such
Code is amended by striking ‘‘section 4041(a)(1)’’
and inserting ‘‘subsections (d)(3) and (a)(1) of sec-
tion 4041, respectively’’.
(13) Paragraph (3) of section 4083(a) of such
Code is amended by striking ‘‘or a diesel-powered
train’’.
(14) 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.’’
(15) Subparagraph (A) of section 6427(b)(2) of
such Code is amended by striking ‘‘7.4 cents’’ and
inserting ‘‘3.1 cents’’.
(16) 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.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 4. FLOOR STOCK REFUNDS.
(a) IN GENERAL.—If—
(1) before the date of the enactment of this
Act, tax has been imposed under section 4081 of the
Internal Revenue Code of 1986 on any liquid, and
(2) on such date such liquid is held by a dealer
and has not been used and is intended for sale,
there shall be credited or refunded (without interest) to
the person who paid such tax (hereafter in this section
referred to as the ‘‘taxpayer’’) an amount equal to the ex-
cess of the tax paid by the taxpayer over the amount of
such tax which would be imposed on such liquid had the
taxable event occurred on such date.
(b) TIME FOR FILING CLAIMS.—No credit or refund
shall be allowed or made under this section unless—
(1) claim therefor is filed with the Secretary of
the Treasury before the date which is 6 months
after the date of the enactment of this Act, based
on a request submitted to the taxpayer before the
date which is 3 months after such date of enact-
ment, by the dealer who held the liquid on such date
of enactment, and
(2) the taxpayer has repaid or agreed to repay
the amount so claimed to such dealer or has ob-
tained the written consent of such dealer to the al-
lowance of the credit or the making of the refund.
(c) EXCEPTION
FOR
FUEL
HELD
IN
RETAIL
STOCKS.—No credit or refund shall be allowed under this
section with respect to any liquid in retail stocks held at
the place where intended to be sold at retail.
(d) DEFINITIONS.—For purposes of this section, the
terms ‘‘dealer’’ and ‘‘held by a dealer’’ have the respective
meanings given to such terms by section 6412 of such
Code.
(e) CERTAIN RULES TO APPLY.—Rules similar to the
rules of subsections (b) and (c) of section 6412 of such
Code shall apply for purposes of this section.
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