I
104TH CONGRESS
2D SESSION
H. R. 3420
To amend the Internal Revenue Code of 1986 to suspend the 4.3-cent general
revenue portion of the fuel excise taxes.
IN THE HOUSE OF REPRESENTATIVES
MAY 8, 1996
Ms. JACKSON-LEE of Texas introduced the following bill; which was referred
to the Committee on Ways and Means, and in addition to the Committee
on National Security, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to suspend
the 4.3-cent general revenue portion of the fuel excise taxes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TEMPORARY SUSPENSION OF 4.3 CENTS OF
FUEL TAX RATES.
(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) TEMPORARY SUSPENSION
OF 4.3 CENTS
OF
FUEL TAX RATES.—
‘‘(1) IN GENERAL.—During the temporary rate
reduction period, each rate of tax referred to in
paragraph (2) shall be reduced by 4.3 cents per gal-
lon.
‘‘(2) RATES OF TAX.—The rates of tax referred
to in this paragraph are the rates of tax otherwise
applicable under—
‘‘(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
temporary rate reduction period.
‘‘(4) COMPARABLE
TREATMENT
UNDER
CER-
TAIN REFUND RULES.—In the case of fuel on which
tax is imposed during the temporary rate reduction
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 re-
duced by 4.3 cents per gallon.
‘‘(5) COORDINATION
WITH
HIGHWAY
TRUST
FUND DEPOSITS.—In the case of fuel on which tax
is imposed during the temporary rate reduction pe-
riod, each of the rates specified in subparagraphs
(A)(i) and (C)(i) of section 9503(f)(3) shall be re-
duced by 4.3 cents per gallon.
‘‘(6) TEMPORARY RATE REDUCTION PERIOD.—
For purposes of this subsection, the term ‘temporary
rate reduction period’ means the period after the
date of the enactment 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. 2. FLOOR STOCK REFUNDS.
(a) IN GENERAL.—If—
(1) before the date of the enactment of this
Act, tax has been imposed 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
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 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 enact-
ment, by the dealer who held the liquid on such date
of enactment, and
(2) the taxpayer has repaid or agreed to repay
the amount so claimed to such dealer or has ob-
tained the written consent of such dealer to the al-
lowance 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, the
terms ‘‘dealer’’ and ‘‘held by a dealer’’ have the respective
meanings given to such terms by section 6412 of such
Code.
(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. 3. 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.
(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