IIA
104TH CONGRESS
2D SESSION
H. R. 3415
IN THE SENATE OF THE UNITED STATES
MAY 22, 1996
Received
JUNE 25, 1996
Read twice and referred to the Committee on Finance
AN ACT
To amend the Internal Revenue Code of 1986 to repeal
the 4.3-cent increase in the transportation motor fuels
excise tax rates enacted by the Omnibus Budget Rec-
onciliation Act of 1993 and dedicated to the general
fund of the Treasury.
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PURPOSE.
The purpose of this Act is to repeal the 4.3-cent in-
crease in the transportation motor fuels excise tax rates
enacted by the Omnibus Budget Reconciliation Act of
1993 and dedicated to the general fund of the Treasury.
SEC. 2. REPEAL OF 4.3-CENT INCREASE IN FUEL TAX RATES
ENACTED BY THE OMNIBUS BUDGET REC-
ONCILIATION ACT OF 1993 AND DEDICATED
TO GENERAL FUND OF THE TREASURY.
(a) IN GENERAL.—Section 4081 of the Internal Rev-
enue Code of 1986 (relating to imposition of tax on gaso-
line and diesel fuel) is amended by adding at the end the
following new subsection:
‘‘(f) REPEAL OF 4.3-CENT INCREASE IN FUEL TAX
RATES ENACTED BY THE OMNIBUS BUDGET RECONCILI-
ATION ACT OF 1993 AND DEDICATED TO GENERAL FUND
OF THE TREASURY.—
‘‘(1) IN GENERAL.—During the applicable pe-
riod, each rate of tax referred to in paragraph (2)
shall be reduced by 4.3 cents per gallon.
‘‘(2) RATES OF TAX.—The rates of tax referred
to in this paragraph are the rates of tax otherwise
applicable under—
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‘‘(A) subsection (a)(2)(A) (relating to gas-
oline and diesel fuel),
‘‘(B) 
sections 
4091(b)(3)(A) 
and
4092(b)(2) (relating to aviation fuel),
‘‘(C) section 4042(b)(2)(C) (relating to
fuel used on inland waterways),
‘‘(D) paragraph (1) or (2) of section
4041(a) (relating to diesel fuel and special
fuels),
‘‘(E) section 4041(c)(2) (relating to gaso-
line used in noncommercial aviation), and
‘‘(F) section 4041(m)(1)(A)(i) (relating to
certain methanol or ethanol fuels).
‘‘(3) COMPARABLE
TREATMENT
FOR
COM-
PRESSED NATURAL GAS.—No tax shall be imposed
by section 4041(a)(3) on any sale or use during the
applicable period.
‘‘(4) COMPARABLE
TREATMENT
UNDER
CER-
TAIN REFUND RULES.—In the case of fuel on which
tax is imposed during the applicable period, each of
the rates specified in sections 6421(f)(2)(B),
6421(f)(3)(B)(ii), 6427(b)(2)(A), 6427(l)(3)(B)(ii),
and 6427(l)(4)(B) shall be reduced by 4.3 cents per
gallon.
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‘‘(5) COORDINATION
WITH
HIGHWAY
TRUST
FUND DEPOSITS.—In the case of fuel on which tax
is imposed during the applicable period, each of the
rates specified in subparagraphs (A)(i) and (C)(i) of
section 9503(f)(3) shall be reduced by 4.3 cents per
gallon.
‘‘(6) APPLICABLE
PERIOD.—For purposes of
this subsection, the term ‘applicable period’ means
the period after the 6th day after the date of the en-
actment of this subsection and before January 1,
1997.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 3. FLOOR STOCK REFUNDS.
(a) IN GENERAL.—If—
(1) before the tax repeal date, tax has been im-
posed under section 4081 or 4091 of the Internal
Revenue Code of 1986 on any liquid, and
(2) 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 section
referred to as the ‘‘taxpayer’’) an amount equal to the ex-
cess of the tax paid by the taxpayer over the amount of
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such tax which would be imposed on such liquid had the
taxable event occurred on such date.
(b) TIME FOR FILING CLAIMS.—No credit or refund
shall be allowed or made under this section unless—
(1) claim therefor is filed with the Secretary of
the Treasury before the date which is 6 months
after the tax repeal date, and
(2) in any case where liquid is held by a dealer
(other than the taxpayer) on the tax repeal date—
(A) the dealer submits a request for refund
or credit to the taxpayer before the date which
is 3 months after the tax repeal date, 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.
(c) EXCEPTION
FOR
FUEL
HELD
IN
RETAIL
STOCKS.—No credit or refund shall be allowed under this
section with respect to any liquid in retail stocks held at
the place where intended to be sold at retail.
(d) DEFINITIONS.—For purposes of this section—
(1) the terms ‘‘dealer’’ and ‘‘held by a dealer’’
have the respective meanings given to such terms by
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section 6412 of such Code; except that the term
‘‘dealer’’ includes a producer, and
(2) the term ‘‘tax repeal date’’ means the 7th
day after the date of the enactment of this Act.
(e) 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 section.
SEC. 4. FLOOR STOCKS TAX.
(a) IMPOSITION OF TAX.—In the case of any liquid
on which tax was imposed under section 4081 or 4091
of the Internal Revenue Code of 1986 before January 1,
1997, and which is held on such date by any person, there
is hereby imposed a floor stocks tax of 4.3 cents per gal-
lon.
(b) LIABILITY
FOR TAX
AND METHOD
OF PAY-
MENT.—
(1) LIABILITY FOR TAX.—A person holding a
liquid on January 1, 1997, to which the tax imposed
by subsection (a) applies shall be liable for such tax.
(2) METHOD OF PAYMENT.—The tax imposed
by subsection (a) shall be paid in such manner as
the Secretary shall prescribe.
(3) TIME FOR PAYMENT.—The tax imposed by
subsection (a) shall be paid on or before June 30,
1997.
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(c) DEFINITIONS.—For purposes of this section—
(1) HELD BY A PERSON.—A liquid shall be con-
sidered as ‘‘held by a person’’ if title thereto has
passed to such person (whether or not delivery to
the person has been made).
(2) GASOLINE AND DIESEL FUEL.—The terms
‘‘gasoline’’ and ‘‘diesel fuel’’ have the respective
meanings given such terms by section 4083 of such
Code.
(3) AVIATION FUEL.—The term ‘‘aviation fuel’’
has the meaning given such term by section 4093 of
such Code.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Treasury or his delegate.
(d) EXCEPTION FOR EXEMPT USES.—The tax im-
posed by subsection (a) shall not apply to gasoline, diesel
fuel, or aviation fuel held by any person exclusively for
any use to the extent a credit or refund of the tax imposed
by section 4081 or 4091 of such Code is allowable for such
use.
(e) EXCEPTION
FOR
FUEL
HELD
IN
VEHICLE
TANK.—No tax shall be imposed by subsection (a) on gas-
oline or diesel fuel held in the tank of a motor vehicle or
motorboat.
(f) EXCEPTION FOR CERTAIN AMOUNTS OF FUEL.—
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(1) IN GENERAL.—No tax shall be imposed by
subsection (a)—
(A) on gasoline held on January 1, 1997,
by any person if the aggregate amount of gaso-
line held by such person on such date does not
exceed 4,000 gallons, and
(B) on diesel fuel or aviation fuel held on
such date by any person if the aggregate
amount of diesel fuel or aviation fuel held by
such person on such date does not exceed 2,000
gallons.
The preceding sentence shall apply only if such per-
son submits to the Secretary (at the time and in the
manner required by the Secretary) such information
as the Secretary shall require for purposes of this
paragraph.
(2) EXEMPT
FUEL.—For purposes of para-
graph (1), there shall not be taken into account fuel
held by any person which is exempt from the tax im-
posed by subsection (a) by reason of subsection (d)
or (e).
(3) CONTROLLED
GROUPS.—For purposes of
this subsection—
(A) CORPORATIONS.—
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(i) IN GENERAL.—All persons treated
as a controlled group shall be treated as 1
person.
(ii) CONTROLLED GROUP.—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.
(B) NONINCORPORATED PERSONS UNDER
COMMON
CONTROL.—Under regulations pre-
scribed by the Secretary, principles similar to
the principles of subparagraph (A) shall apply
to a group of persons under common control
where 1 or more of such persons is not a cor-
poration.
(g) OTHER LAW APPLICABLE.—All provisions of law,
including penalties, applicable with respect to the taxes
imposed by section 4081 of such Code in the case of gaso-
line and diesel fuel and section 4091 of such Code in the
case of aviation fuel shall, insofar as applicable and not
inconsistent with the provisions of this subsection, apply
with respect to the floor stock taxes imposed by subsection
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(a) to the same extent as if such taxes were imposed by
such section 4081 or 4091.
SEC. 5. BENEFITS OF TAX REPEAL SHOULD BE PASSED ON
TO CONSUMERS.
(a) PASSTHROUGH TO CONSUMERS.—
(1) SENSE OF CONGRESS.—It is the sense of
Congress that—
(A) consumers immediately receive the
benefit of the repeal of the 4.3-cent increase in
the transportation motor fuels excise tax rates
enacted by the Omnibus Budget Reconciliation
Act of 1993, and
(B) transportation motor fuels producers
and other dealers take such actions as nec-
essary to reduce transportation motor fuels
prices to reflect the repeal of such tax increase,
including immediate credits to customer ac-
counts representing tax refunds allowed as
credits against excise tax deposit payments
under the floor stocks refund provisions of this
Act.
(2) STUDY.—
(A) IN GENERAL.—The Comptroller Gen-
eral of the United States shall conduct a study
of the repeal of the 4.3-cent increase in the fuel
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tax imposed by the Omnibus Budget Reconcili-
ation of 1993 to determine whether there has
been a passthrough of such repeal.
(B) REPORT.—Not later than January 31,
1997, the Comptroller General of the United
States shall report to the Committee on Fi-
nance of the Senate and the Committee on
Ways and Means of the House of Representa-
tives the results of the study conducted under
subparagraph (A).
SEC. 6. AUTHORIZATION OF APPROPRIATIONS FOR EX-
PENSES OF ADMINISTRATION OF THE DE-
PARTMENT OF ENERGY.
Section 660 of the Department of Energy Organiza-
tion Act (42 U.S.C. 7270) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘APPROPRIATIONS’’; and
(2) by adding at the end the following:
‘‘(b) FISCAL YEARS 1997 THROUGH 2002.—There
are authorized to be appropriated for salaries and ex-
penses of the Department of Energy for departmental ad-
ministration and other activities in carrying out the pur-
poses of this Act—
‘‘(1) $104,000,000 for fiscal year 1997;
‘‘(2) $104,000,000 for fiscal year 1998;
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(i) been assigned or designated by
Commission regulation for assignment pur-
suant to such section;
(ii) been identified by the Secretary of
Commerce pursuant to section 113 of the
National Telecommunications and Infor-
mation Administration Organization Act
(47 U.S.C. 923); or
(iii) reserved for Federal Government
use pursuant to section 305 of the Com-
munications Act of 1934 (47 U.S.C. 305).
(2) CRITERIA FOR REASSIGNMENT.—In making
available bands of frequencies for competitive bid-
ding pursuant to paragraph (1), the Commission
shall—
(A) seek to promote the most efficient use
of the spectrum;
(B) take into account the cost to incum-
bent licensees of relocating existing uses to
other bands of frequencies or other means of
communication;
(C) take into account the needs of public
safety radio services;
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(D) comply with the requirements of inter-
national agreements concerning spectrum allo-
cations; and
(E) take into account the costs to satellite
service providers that could result from multiple
auctions of like spectrum internationally for
global satellite systems.
(b) PERMANENT AUCTION AUTHORITY.—Paragraph
(11) of section 309(j) of the Communications Act of 1934
(47 U.S.C. 309(j)(11)) is repealed.
Passed the House of Representatives May 21, 1996.
Attest:
ROBIN H. CARLE,
Clerk.
By LINDA NAVE,
Deputy Clerk.