I
107TH CONGRESS
1ST SESSION
H. R. 1833
To amend the Internal Revenue Code of 1986 to suspend all motor fuel
taxes for six months.
IN THE HOUSE OF REPRESENTATIVES
MAY 15, 2001
Mr. SMITH of Michigan 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 suspend
all motor fuel taxes for six months.
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 ‘‘Gas Tax Fairness Act
of 2001’’.
SEC. 2. SIX-MONTH SUSPENSION OF FUEL TAXES.
(a) SIX-MONTH SUSPENSION OF FUEL TAXES.—Sec-
tion 4081 of the Internal Revenue Code of 1986 (relating
to imposition of tax on gasoline, diesel fuel, and kerosene)
is amended by adding at the end the following new sub-
section:
‘‘(f) TEMPORARY SUSPENSION OF FUEL TAXES.—
‘‘(1) IN GENERAL.—During the suspension pe-
riod, each rate of tax referred to in paragraph (2)
shall be reduced to zero.
‘‘(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, diesel fuel, and kerosene),
‘‘(B) sections 4091(b)(3)(A) (relating to
aviation fuel),
‘‘(C) section 4042(b)(2)(C) (relating to
fuel used on inland waterways),
‘‘(D) paragraph (1), (2), or (3) of section
4041(a) (relating to diesel fuel, special fuels,
and compressed natural gas), and
‘‘(E) section 4041(m)(1)(A)(i) (relating to
certain methanol or ethanol fuels).
‘‘(3) SUSPENSION
PERIOD.—For purposes of
this subsection, the term ‘suspension period’ means
the period beginning on July 1, 2001, and ending on
December 31, 2001.’’
(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 suspension date, 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 tax suspension date, and
(2) in any case where liquid is held by a dealer
(other than the taxpayer) on the tax suspension
date—
(A) the dealer submits a request for refund
or credit to the taxpayer before the date which
is 3 months after the tax suspension 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
section 6412 of such Code; except that the term
‘‘dealer’’ includes a producer, and
(2) the term ‘‘tax suspension date’’ means the
date on which the suspension period begins under
section 4081(f) of the Internal Revenue Code of
1986 (as added by section 2).
(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 taxable
liquid which is held on the floor stocks tax date by any
person, there is hereby imposed a floor stocks tax equal
to the excess of the tax which would be imposed under
section 4041, 4081, or 4091 of the Internal Revenue Code
of 1986 on such liquid had the taxable event occurred on
the floor stocks tax date over the tax paid under such sec-
tions on such liquid.
(b) LIABILITY
FOR TAX
AND METHOD
OF PAY-
MENT.—
(1) LIABILITY FOR TAX.—A person holding a
liquid on the floor stocks tax date 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 the date
which is 6 months after the floor stocks tax date.
(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) TAXABLE LIQUID.—The term ‘taxable liq-
uid’ means any liquid on which tax is imposed under
section 4041, 4081, or 4091 of the Internal Revenue
Code of 1986 on the floor stocks tax date.
(3) GASOLINE AND DIESEL FUEL.—The terms
‘‘gasoline’’ and ‘‘diesel fuel’’ have the respective
meanings given such terms by section 4083 of such
Code.
(4) AVIATION FUEL.—The term ‘‘aviation fuel’’
has the meaning given such term by section 4093 of
such Code.
(5) FLOOR
STOCKS
TAX
DATE.—The term
‘‘floor stocks tax date’’ means the day after the end
of the suspension period under section 4081(f) of
such Code (as added by section 2).
(6) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Treasury or the Secretary’s del-
egate.
(d) EXCEPTION FOR EXEMPT USES.—The tax im-
posed by subsection (a) shall not apply to taxable liquid
held by any person exclusively for any use to the extent
a credit or refund of the tax imposed by section 4041,
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 tax-
able liquid held in the tank of a motor vehicle or motor-
boat.
(f) EXCEPTION FOR CERTAIN AMOUNTS OF FUEL.—
(1) IN GENERAL.—No tax shall be imposed by
subsection (a)—
(A) on gasoline held on the floor stocks tax
date by any person if the aggregate amount of
gasoline held by such person on such date does
not exceed 4,000 gallons, and
(B) on diesel fuel, kerosene, or aviation
fuel held on such date by any person if the ag-
gregate amount of diesel fuel, kerosene, or avia-
tion 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.—
(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 4041(a)(2) of such Code in the case
of special fuels; by section 4081 of such Code in the case
of gasoline, diesel fuel, and kerosene; and by 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 im-
posed by subsection (a) to the same extent as if such taxes
were imposed by such section 4041, 4081, or 4091.
SEC. 5. PROTECTION OF HIGHWAY TRUST FUND.
The amounts transferred to the Highway Trust Fund
under section 9503 of the Internal Revenue Code of 1986
shall be determined as if this Act had not been acted.
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