I
103D CONGRESS
2D SESSION
H. R. 4588
To amend the Internal Revenue Code of 1986 to consolidate the retail
level and refinery level taxes on aviation gasoline by imposing the entire
tax at the refinery level.
IN THE HOUSE OF REPRESENTATIVES
JUNE 16, 1994
Mr. HANCOCK (for himself, Mr. BREWSTER, Mr. ARCHER, Mr. MINETA, Mr.
OBERSTAR, Mr. CLINGER, Mr. CARR of Michigan, Mr. HERGER, Mr.
PARKER, Mr. LIGHTFOOT, Mr. PETE GEREN of Texas, Mr. INHOFE, Mr.
MINGE, Mr. PETRI, Mr. SANGMEISTER, Mr. LEWIS of Florida, Mr.
COSTELLO, Mr. YOUNG of Alaska, Mr. BALLENGER, Mr. GENE GREEN
of Texas, Mr. ZELIFF, Mr. VALENTINE, Mr. SENSENBRENNER, and Mr.
DEFAZIO) introduced the following bill; which was referred to the Com-
mittee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to consolidate
the retail level and refinery level taxes on aviation gaso-
line by imposing the entire tax at the refinery level.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CONSOLIDATION OF TAXES ON AVIATION GASO-
LINE.
(a) IN GENERAL.—Subparagraph (A) of section
4081(a)(2) of the Internal Revenue Code of 1986 (relating
to imposition of tax on gasoline and diesel fuel) is amend-
ed by redesignating clause (ii) as clause (iii) and by strik-
ing clause (i) and inserting the following:
‘‘(i) in the case of gasoline other than
aviation gasoline, 18.3 cents per gallon,
‘‘(ii) in the case of aviation gasoline,
19.3 cents per gallon, and’’.
(b) TERMINATION.—Subsection (d) of section 4081
of such Code is amended by redesignating paragraph (2)
as paragraph (3) and by inserting after paragraph (1) the
following new paragraph:
‘‘(2) AVIATION GASOLINE.—On and after Janu-
ary 1, 1996, the rate specified in subsection
(a)(2)(A)(ii) shall be 4.3 cents per gallon.’’
(c) REPEAL OF RETAIL LEVEL TAX.—
(1) Subsection (c) of section 4041 of such Code
is amended by striking paragraphs (2) and (3) and
by redesignating paragraphs (4) and (5) as para-
graphs (2) and (3), respectively.
(2) Paragraph (3) of section 4041(c) of such
Code, as redesignated by paragraph (1), is amended
by striking ‘‘paragraphs (1) and (2)’’ and inserting
‘‘paragraph (1)’’.
(d) CONFORMING AMENDMENTS.—
(1) Paragraph (1) of section 4041(k) 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 (1) of section 4081(d) of such
Code is amended by striking ‘‘each rate of tax speci-
fied in subsection (a)(2)(A)’’ and inserting ‘‘the
rates of tax specified in clauses (i) and (iii) of sub-
section (a)(2)(A)’’.
(3) Sections 6421(f)(2)(A) and 9502(f)(1)(A)
of such Code are each amended by striking ‘‘section
4041(c)(4)’’ and inserting ‘‘section 4041(c)(2)’’.
(4) Paragraph (2) of section 9502(b) of such
Code is amended by striking ‘‘14 cents’’ and insert-
ing ‘‘15 cents’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 1994.
(f) FLOOR STOCKS TAX.—
(1) IMPOSITION OF TAX.—In the case of avia-
tion gasoline on which tax was imposed under sec-
tion 4081 of such Code before October 1, 1994, and
which is held on such date by any person, there is
hereby imposed a floor stocks tax of 1 cent per gal-
lon of such gasoline.
(2) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.—
(A) LIABILITY FOR TAX.—A person hold-
ing aviation gasoline on October 1, 1994, to
which the tax imposed by paragraph (1) applies
shall be liable for such tax.
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such
manner as the Secretary shall prescribe.
(C) TIME
FOR
PAYMENT.—The tax im-
posed by paragraph (1) shall be paid on or be-
fore March 31, 1995.
(3) DEFINITIONS.—For purposes of this sub-
section:
(A) HELD BY A PERSON.—Gasoline shall
be considered as ‘‘held by a person’’ if title
thereto has passed to such person (whether or
not delivery to the person has been made).
(B) SECRETARY.—The term ‘Secretary’
means the Secretary of the Treasury or his del-
egate.
(4) EXCEPTION FOR EXEMPT USES.—The tax
imposed by paragraph (1) shall not apply to gasoline
held by any person exclusively for any use to the ex-
tent a credit or refund of the tax imposed by section
4081 of such Code is allowable for such use.
(5) EXCEPTION FOR FUEL HELD IN AIRCRAFT
TANK.—No tax shall be imposed by paragraph (1)
on aviation gasoline held in the tank of an aircraft.
(6) EXCEPTION
FOR
CERTAIN
AMOUNTS
OF
FUEL.—
(A) IN
GENERAL.—No tax shall be im-
posed by paragraph (1) on aviation gasoline
held on October 1, 1994, by any person if the
aggregate amount of aviation gasoline held by
such person on such date does not exceed 6,000
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
require for purposes of this paragraph.
(B) EXEMPT FUEL.—For purposes of sub-
paragraph (A), there shall not be taken into ac-
count fuel held by any person which is exempt
from the tax imposed by paragraph (1) by rea-
son of paragraph (4) or (5).
(C) CONTROLLED GROUPS.—
(i) CORPORATIONS.—In the case of a
controlled group, the 6,000 gallon amount
in subparagraph (A) shall be apportioned
among the component members of such
group in such manner as the Secretary
shall by regulations prescribe. For pur-
poses of the preceding sentence, 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.
(ii) 
NONINCORPORATED
PERSONS
UNDER COMMON CONTROL.—Under regula-
tions prescribed by the Secretary, prin-
ciples similar to the principles of clause (i)
shall apply to a group under common con-
trol where 1 or more of the members is not
a corporation.
(7) OTHER LAWS 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 imposed by paragraph (1) to
the same extent as if such taxes were imposed by
such section 4081.
Æ