I
107TH CONGRESS
1ST SESSION
H. R. 1694
To amend the Internal Revenue Code of 1986 to repeal the 1993 4.3-
cent increases in highway motor fuel taxes.
IN THE HOUSE OF REPRESENTATIVES
MAY 3, 2001
Mr. POMBO (for himself, Mr. PAUL, Mr. EHRLICH, Mr. SHADEGG, Mr. JONES
of North Carolina, Mr. SCARBOROUGH, Mr. CHABOT, Mr. TAYLOR of
North Carolina, Mr. MCHUGH, Mr. BONILLA, Mr. RADANOVICH, Mr.
OSE, and Mr. THORNBERRY) introduced the following bill; which was re-
ferred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to repeal
the 1993 4.3-cent increases in highway motor fuel taxes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. REPEAL OF 1993 INCREASES IN HIGHWAY
MOTOR FUEL TAXES.
(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 ‘‘during which the
rates of tax under section 4081(a)(2)(A) are 4.3
cents per gallon’’ and inserting ‘‘during which the
rate of tax under section 4081(a)(2)(A)(i) does not
apply’’.
(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 (3), 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) Subparagraph (B) of section 4041(a)(2) of
such Code is amended by striking all that follows
clause (i) and inserting the following new clauses:
‘‘(ii) 10.4 cents per gallon in the case
of liquefied petroleum gas, and
‘‘(iii) 9.1 cents per gallon in the case
of liquefied natural gas.’’
(8) 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.’’
(9) 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.’’
(10) 
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’’.
(11) 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.
(12) Paragraph (1) of section 4081(d) of such
Code is amended by striking ‘‘4.3 cents per gallon’’
and inserting ‘‘zero’’.
(13) 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’’.
(14) Paragraph (3) of section 4083(a) of such
Code is amended by striking ‘‘or a diesel-powered
train’’.
(15) 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.’’
(16) Subparagraph (A) of section 6427(b)(2) of
such Code is amended by striking ‘‘7.4 cents’’ and
inserting ‘‘3.1 cents’’.
(17) 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.
(e) FLOOR STOCK REFUNDS.—
(1) IN GENERAL.—If—
(A) 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
(B) 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
subsection referred to as the ‘‘taxpayer’’) an amount
equal to the excess 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.
(2) TIME FOR FILING CLAIMS.—No credit or re-
fund shall be allowed or made under this subsection
unless—