I
107TH CONGRESS
2D SESSION
H. R. 5660
To amend the Internal Revenue Code of 1986 to reduce the tax on aviation
fuel.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 16, 2002
Mr. COLLINS 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 reduce
the tax on aviation fuel.
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 ‘‘Aviation Fuel Tax Re-
lief Act of 2002’’.
SEC. 2. REPEAL OF 1993 INCREASES IN AVIATION FUEL
TAXES.
(a) IN GENERAL.—Paragraph (1) of section 4091(b)
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘21.8 cents’’ and inserting ‘‘17.5 cents’’.
(b) TECHNICAL AMENDMENTS.—
(1) 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.’’
(2) 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’’.
(3) Subsection (c) of section 4091 of such Code
is amended by striking paragraph (4), and by redes-
ignating paragraph (5) as paragraph (4).
(4) Subsection (b) of section 4092 of such Code
is amended by striking ‘‘attributable to’’ and all that
follows and inserting ‘‘attributable to the Leaking
Underground Storage Tank Trust Fund financing
rate imposed by such section. For purposes of the
preceding sentence, the term ‘commercial aviation’
means any use of an aircraft other than in non-
commercial 
aviation 
(as 
defined 
in 
section
4041(c)(2)).’’
(5) Paragraph (4) of section 6427(l) of such
Code is amended by striking ‘‘attributable to’’ and
all that follows through the period and inserting ‘‘at-
tributable to the Leaking Underground Storage
Tank Trust Fund financing rate imposed by such
section.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
(d) FLOOR STOCK REFUNDS.—
(1) IN GENERAL.—If—
(A) before the date of the enactment of
this Act, tax has been imposed under section
4091 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 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—
(A) claim therefor is filed with the Sec-
retary of the Treasury before the date which is
6 months after the date of the enactment of
this Act, based on a request submitted to the
taxpayer before the date which is 3 months
after such date of enactment, by the dealer who
held the liquid on such date of enactment, and
(B) the taxpayer has repaid or agreed to
repay the amount so claimed to such dealer or
has obtained the written consent of such dealer
to the allowance of the credit or the making of
the refund.
(3) EXCEPTION
FOR
FUEL
HELD
IN
RETAIL
STOCKS.—No credit or refund shall be allowed under
this subsection with respect to any liquid in retail
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.
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