[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4371 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4371

To amend the Internal Revenue Code of 1986 to permit tax-free sales of 
  diesel fuel for use in diesel-powered motorboats and to allow dyed 
   diesel fuel to be sold for such use, or so used, without penalty.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 10, 1994

 Mr. Hoyer (for himself, Mr. Studds, Mr. Young of Alaska, Mr. Tauzin, 
 Mr. Bateman, Mr. Hochbrueckner, Mr. Saxton, Mr. Reed, Mr. Coble, Mr. 
  Gilchrest, Mr. Ackerman, and Ms. DeLauro) 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 permit tax-free sales of 
  diesel fuel for use in diesel-powered motorboats and to allow dyed 
   diesel fuel to be sold for such use, or so used, without penalty.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. MODIFICATION OF TAX PROVISIONS RELATING TO DIESEL FUEL SOLD 
              FOR USE OR USED IN DIESEL-POWERED MOTORBOATS.

    (a) Tax-Free Sales.--Subsection (b) of section 4082 of the Internal 
Revenue Code of 1986 (relating to exemptions for diesel fuel), as added 
by section 13242 of the Omnibus Budget Reconciliation Act of 1993, is 
amended by striking ``and'' at the end of paragraph (2), by striking 
the period at the end of paragraph (3) and inserting ``, and'', and by 
adding at the end the following new paragraph:
            ``(4) any use in a diesel-powered motorboat.''
    (b) Penalty-free Taxable Sale or Use of Dyed Diesel Fuel.--
            (1) In general.--Section 6714 of such Code (relating to 
        dyed fuel sold for use or used in taxable use, etc.), as added 
        by section 13242 of the Omnibus Budget Reconciliation Act of 
        1993, is amended by redesignating subsections (c) and (d) as 
        subsections (d) and (e), respectively, and by inserting after 
        subsection (b) the following new subsection:
    ``(c) Exception.--No penalty shall be imposed under subsection (a) 
on any person who--
            ``(1) sells or holds for sale dyed fuel for use in, or uses 
        dyed fuel in, any diesel-powered motorboat, and
            ``(2) pays the tax imposed on such sale or use under 
        section 4041(a)(1)(A).''
            (2) Nontaxable use.--Paragraph (2) of section 6714(d) of 
        such Code, as redesignated by paragraph (1), is amended by 
        inserting ``paragraphs (1), (2), and (3) of'' before 
        ``section''.
            (3) Technical amendments.--
                    (A) Part II of subchapter B of chapter 68 of the 
                Internal Revenue Code of 1986 is amended by 
                redesignating section 6714 (relating to dyed fuel sold 
                for use or used in taxable use, etc.), as added by 
                section 13242(b)(1) of the Omnibus Budget 
                Reconciliation Act of 1993, as section 6715.
                    (B) The table of sections for such part is amended 
                by redesignating the item relating to section 6714 
                (relating to dyed fuel sold for use or used in taxable 
                use, etc.), as added by section 13242(b)(2) of such 
                Act, as section 6715.
    (c) Effective Dates.--
            (1) Tax-free sales.--The amendment made by subsection (a) 
        shall take effect on the date of the enactment of this Act.
            (2) Penalty-free sales.--The amendments made by subsection 
        (b) shall take effect as if included in the amendments made by 
        section 13242 of the Omnibus Budget Reconciliation Act of 1993.

                                 <all>