I
106TH CONGRESS
2D SESSION
H. R. 3849
To amend the Internal Revenue Code of 1986 to repeal the 4.3-cent per
gallon increases in motor fuel taxes enacted in 1993.
IN THE HOUSE OF REPRESENTATIVES
MARCH 8, 2000
Mr. COLLINS (for himself, Mr. WATKINS, and Mr. KINGSTON) 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 4.3-cent per gallon increases in motor fuel taxes
enacted in 1993.
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 ‘‘Fuel Tax Cost Reduc-
tion Act of 2000’’.
SEC. 2. REPEAL OF 1993 INCREASES IN 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) AVIATION GASOLINE.—Clause (ii) of section
4081(a)(2)(A) of such Code is amended by striking ‘‘19.3
cents’’ and inserting ‘‘15 cents’’.
(c) 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’’.
(d) AVIATION FUEL.—Paragraph (1) of section
4091(b) of such Code is amended by striking ‘‘21.8 cents’’
and inserting ‘‘17.5 cents’’.
(e) FUEL USED ON INLAND WATERWAYS.—
(1) Paragraph (1) of section 4042(b) 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 (2) of section 4042(b) of such
Code is amended by striking subparagraph (C).
(f) 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) Paragraphs (1) and (2) of section 4081(d)
of such Code are amended to read as follows:
‘‘(1) IN GENERAL.—The rates of tax specified
in clauses (i) and (iii) of subsection (a)(2)(A) shall
be zero after September 30, 2005.
‘‘(2) AVIATION
GASOLINE.—The rate of tax
specified in subsection (a)(2)(A)(ii) shall be zero
after September 30, 2007.’’
(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) Subparagraph (A) of section 4091(b)(3) of
such Code is amended to read as follows:
‘‘(A) The rate of tax specified in para-
graph (1) shall be zero after September 30,
2007.’’
(16) Paragraph (1) of section 4091(c) of such
Code is amended—
(A) by striking ‘‘14 cents’’ and inserting
‘‘9.7 cents’’,
(B) by striking ‘‘13.3 cents’’ and inserting
‘‘9 cents’’,
(C) by striking ‘‘13.2 cents’’ and inserting
‘‘8.9 cents’’,
(D) by striking ‘‘13.1 cents’’ and inserting
‘‘8.8 cents’’, and
(E) by striking ‘‘13.4 cents’’ and inserting
‘‘9.1 cents’’.
(17) Subsection (c) of section 4091 of such
Code is amended by striking paragraph (4), and by
redesignating paragraph (5) as paragraph (4).
(18) Subsection (b) of section 4092 of such
Code is amended by striking ‘‘attributable to’’ and
stocks held at the place where intended to be sold
at retail.
(4) DEFINITIONS.—For purposes of this sub-
section, the terms ‘‘dealer’’ and ‘‘held by a dealer’’
have the respective meanings given to such terms by
section 6412 of such Code.
(5) 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
subsection.
Æ