I
103D CONGRESS
1ST SESSION
H. R. 3386
To amend the Internal Revenue Code of 1986 to delay the effective date
for the change in the point of imposition of the tax on diesel fuel,
to provide that vendors of diesel fuel used for any nontaxable use may
claim refunds on behalf of the ultimate users, and to provide a similar
rule for vendors of gasoline used by State and local governments.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 27, 1993
Mr. MCCRERY (for himself, Mr. BOEHLERT, Mr. CRAPO, Mr. JEFFERSON, Mr.
OBERSTAR, Mr. WOLF, Mr. PAYNE of Virginia, and Mr. COMBEST) intro-
duced the following bill; which was referred to the Committee on Ways
and Means
A BILL
To amend the Internal Revenue Code of 1986 to delay the
effective date for the change in the point of imposition
of the tax on diesel fuel, to provide that vendors of
diesel fuel used for any nontaxable use may claim re-
funds on behalf of the ultimate users, and to provide
a similar rule for vendors of gasoline used by State
and local governments.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
(4) Subsection (d) of section 13243 of such Act
is amended by adding at the end thereof the follow-
ing new paragraph:
‘‘(3) EFFECTIVE
DATE.—The term ‘effective
date’ means the date on which the amendments
made by section 13242 of this Act take effect.’’
SEC. 2. EXPANSION OF VENDOR REFUND PROCEDURES
WITH RESPECT TO DIESEL FUEL.
(a) IN GENERAL.—Subsection (l) of section 6427 of
the Internal Revenue Code of 1986 (relating to nontaxable
uses of diesel fuel and aviation fuel) is amended by strik-
ing paragraph (5), by redesignating paragraphs (2), (3),
and (4) as paragraphs (3), (4), and (5), respectively, and
by striking paragraph (1) and inserting the following new
paragraphs:
‘‘(1) DIESEL FUEL.—Except as otherwise pro-
vided in this subsection and in subsection (k), if—
‘‘(A) any diesel fuel on which tax has been
imposed by section 4041 or 4081 is sold for use
by any person in a nontaxable use, and
‘‘(B) the ultimate vendor of such fuel—
‘‘(i) is registered under section 4101,
and
‘‘(ii) meets the requirements of sub-
paragraph (A), (B), or (D) of section
6416(a)(1),
the Secretary shall pay (without interest) to such ul-
timate vendor an amount equal to the aggregate
amount of tax imposed on such fuel under section
4041 or 4081, as the case may be.
‘‘(2) AVIATION
FUEL.—Except as otherwise
provided in this subsection and in subsection (k), if
any aviation fuel on which tax has been imposed by
section 4091 is used by any person in a nontaxable
use, the Secretary shall pay (without interest) to the
ultimate purchaser of such fuel an amount equal to
the aggregate amount of tax imposed on such fuel
under section 4091.’’
(b) CONFORMING AMENDMENTS.—
(1) Subparagraph (A) of section 6427(i)(5) of
such Code (relating to special rule for vendor re-
funds) is amended by striking ‘‘subsection (l)(5)’’
each place it appears and inserting ‘‘subsection
(l)(1)’’.
(2) Paragraph (5) of section 6427(l) of such
Code, as redesignated by subsection (a), is amended
by striking ‘‘paragraph (1)’’ and inserting ‘‘para-
graph (2)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the amend-
ments made by section 13242 of the Revenue Reconcili-
ation Act of 1993.
SEC. 3. VENDOR REFUNDS ON GASOLINE SOLD TO STATE
AND LOCAL GOVERNMENTS.
(a) IN GENERAL.—Subsection (c) of section 6421 of
the Internal Revenue Code of 1986 (relating to gasoline
used for certain exempt purposes) is amended to read as
follows:
‘‘(c) EXEMPT PURPOSES.—
‘‘(1) IN GENERAL.—If gasoline is sold to any
person for any purpose described in paragraph (2),
(3), or (5) of section 4221(a), the Secretary shall
pay (without interest) to such person an amount
equal to the product of the number of gallons of gas-
oline so sold multiplied by the rate at which tax was
imposed on such gasoline by section 4081.
‘‘(2) SALES
TO
STATE
AND
LOCAL
GOVERN-
MENTS.—
‘‘(A) IN GENERAL.—If—
‘‘(i) gasoline on which tax has been
imposed by section 4081 is sold to a State
or local government for the exclusive use of
a State or local government, and
‘‘(ii) the ultimate vendor of such
fuel—
‘‘(I) is registered under section
4101, and
‘‘(II) meets the requirements of
subparagraph (A), (B), or (D) of sec-
tion 6416(a)(1),
the Secretary shall pay (without interest) to
such ultimate vendor an amount equal to the
product of the number of gallons of gasoline so
sold multiplied by the rate at which tax was im-
posed on such gasoline by section 4081.
‘‘(B) PAYMENT OF CLAIM.—Notwithstand-
ing subparagraph (A), if the Secretary has not
paid a claim payable under this paragraph with-
in 20 days after the date such claim is filed,
such claim shall be paid with interest from such
date, determined by using the overpayment rate
and method under section 6621.’’
(b) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the amend-
ments made by section 13242 of the Revenue Reconcili-
ation Act of 1993.
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