I
106TH CONGRESS
2D SESSION
H. R. 3749
To amend the Internal Revenue Code of 1986 to temporarily reduce the
rates of tax on highway gasoline, diesel fuel, and kerosene by 10 cents
per gallon.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 29, 2000
Mr. RAMSTAD 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 temporarily
reduce the rates of tax on highway gasoline, diesel fuel,
and kerosene by 10 cents per gallon.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TEMPORARY REDUCTION OF 10 CENTS PER
GALLON IN FUEL TAXES ON HIGHWAY GASO-
LINE, DIESEL FUEL, AND KEROSENE.
(a) IN GENERAL.—Section 4081 of the Internal Rev-
enue Code of 1986 (relating to imposition of tax on gaso-
line, diesel fuel, and kerosene) is amended by adding at
the end the following new subsection:
‘‘(f) TEMPORARY 10-CENT REDUCTION IN TAXES ON
HIGHWAY GASOLINE, DIESEL FUEL, AND KEROSENE.—
‘‘(1) IN GENERAL.—During the applicable pe-
riod, each rate of tax referred to in paragraph (2)
shall be reduced by 10 cents per gallon.
‘‘(2) RATES OF TAX.—The rates of tax referred
to in this paragraph are the rates of tax otherwise
applicable under—
‘‘(A) clause (i) or (iii) of subsection
(a)(2)(A) (relating to highway gasoline, diesel
fuel, and kerosene), and
‘‘(B) paragraph (1) of section 4041(a) (re-
lating to diesel fuel) with respect to fuel sold
for use or used in a diesel-powered highway ve-
hicle.
‘‘(3) COMPARABLE
TREATMENT
UNDER
CER-
TAIN REFUND RULE.—In the case of fuel on which
tax is imposed during the applicable period, the rate
specified in section 6427(b)(2)(A) shall be reduced
to zero.
‘‘(4) MAINTENANCE OF HIGHWAY TRUST FUND
DEPOSITS.—In determining the amounts to be ap-
propriated to the Highway Trust Fund under sec-
tion 9503, an amount equal to the reduction in reve-
nues to the Treasury by reason of this subsection
shall be treated as taxes received in the Treasury
under this section.
‘‘(5) APPLICABLE
PERIOD.—For purposes of
this subsection, the term ‘applicable period’ means
the 180-day period beginning on the 7th day after
the date of the enactment of this subsection.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 2. FLOOR STOCK REFUNDS.
(a) IN GENERAL.—If—
(1) before the tax reduction date, tax has been
imposed under section 4081 of the Internal Revenue
Code of 1986 on any liquid other than aviation gaso-
line, 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 the tax reduction date.
(b) TIME FOR FILING CLAIMS.—No credit or refund
shall be allowed or made under this section unless—
(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.
SEC. 3. FLOOR STOCKS TAX.
(a) IMPOSITION OF TAX.—In the case of any liquid
on which tax was imposed under section 4081 of the Inter-
nal Revenue Code of 1986 (other than aviation gasoline)
during the applicable period, and which is held on the floor
stocks tax date by any person, there is hereby imposed
a floor stocks tax of 10 cents per gallon.
(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) GASOLINE AND DIESEL FUEL.—The terms
‘‘gasoline’’ and ‘‘diesel fuel’’ have the respective
meanings given such terms by section 4083 of such
Code.
(3) FLOOR
STOCKS
TAX
DATE.—The term
‘‘floor stocks tax date’’ means the day after the end
of the applicable period.
(4) APPLICABLE PERIOD.—The term ‘‘applica-
ble period’’ means the 180-day period beginning on
the 7th day after the date of the enactment of this
Act.
(5) 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 gasoline, diesel
fuel, or kerosene held by any person exclusively for any
use to the extent a credit or refund of the tax imposed
by section 4081 of such Code is allowable for such use.
(e) EXCEPTION
FOR
FUEL
HELD
IN
VEHICLE
TANK.—No tax shall be imposed by subsection (a) on gas-
oline, diesel fuel, or kerosene held in the tank of a motor
vehicle or motorboat.
(f) EXCEPTION FOR CERTAIN AMOUNTS OF FUEL.—
(1) IN GENERAL.—No tax shall be imposed by
subsection (a)—
(A) on gasoline held on the floor stocks tax
date by any person if the aggregate amount of
gasoline held by such person on such date does
not exceed 4,000 gallons, and
(B) on diesel fuel or kerosene held on such
date by any person if the aggregate amount of
diesel fuel or kerosene fuel held by such person
on such date does not exceed 2,000 gallons.
The preceding sentence shall apply only if such per-
son submits to the Secretary (at the time and in the
manner required by the Secretary) such information
as the Secretary shall require 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 section 4081 of such Code shall, insofar as
applicable and not inconsistent with the provisions of this
subsection, apply with respect to the floor stock taxes im-
posed by subsection (a) to the same extent as if such taxes
were imposed by such section 4081.
SEC. 4. BENEFITS OF TAX REDUCTION SHOULD BE PASSED
ON TO CONSUMERS.
(a) PASSTHROUGH TO CONSUMERS.—
(1) SENSE OF CONGRESS.—It is the sense of
Congress that—
(A) consumers immediately receive the
benefit of the 10-cent reduction in taxes under
this Act, and
(B) transportation motor fuels producers
and other dealers take such actions as nec-
essary to reduce transportation motor fuels
prices to reflect such reduction, including imme-
diate credits to customer accounts representing
tax refunds allowed as credits against excise tax
deposit payments under the floor stocks refund
provisions of this Act.
(2) STUDY.—
(A) IN GENERAL.—The Comptroller Gen-
eral of the United States shall conduct a study
of the 10-cent reduction of taxes under this Act
to determine whether there has been a pass-
through of such reduction.
(B) REPORT.—Not later than 1 year after
the date of the enactment of this Act, the
Comptroller General of the United States shall
report to the Committee on Finance of the Sen-