[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1693 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1693

To amend the Internal Revenue Code of 1986 to delay the effective date 
for the change in the point of imposition of the tax on diesel fuel, to 
  provide that vendors of diesel fuel used for any nontaxable use may 
claim refunds on behalf of the ultimate users, and to provide a similar 
   rule for vendors of gasoline used by State and local governments.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            November 19 (legislative day, November 2), 1993

   Mr. Reid introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to delay the effective date 
for the change in the point of imposition of the tax on diesel fuel, to 
  provide that vendors of diesel fuel used for any nontaxable use may 
claim refunds on behalf of the ultimate users, and to provide a similar 
   rule for vendors of gasoline used by State and local governments.

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

SECTION 1. DELAY IN EFFECTIVE DATE FOR CHANGE IN POINT OF IMPOSITION OF 
              TAX ON DIESEL FUEL.

    (a) In General.--Subsection (e) of section 13242 of the Revenue 
Reconciliation Act of 1993 is amended to read as follows:
    ``(e) Effective Date.--The amendments made by this section shall 
take effect on the earlier of--
            ``(1) July 1, 1994, or
            ``(2) the 60th day after the date that final regulations 
        are prescribed to carry out such amendments.
In no event shall such amendments take effect before January 1, 1994.''
    (b) Conforming Amendments to Floor Stocks Tax.--
            (1) Section 13243 of such Act is amended by striking 
        ``January 1, 1994'' each place it appears and inserting ``the 
        effective date''.
            (2) Paragraph (1) of section 13243(a) of such Act is 
        amended by striking ``December 31, 1993'' and inserting ``the 
        day before the effective date''.
            (3) Paragraph (3) of section 13243(c) of such Act is 
        amended by striking ``July 31, 1994'' and inserting ``the last 
        day of the 6th month beginning after the effective date''.
            (4) Subsection (d) of section 13243 of such Act is amended 
        by adding at the end thereof the following new paragraph:
            ``(3) Effective date.--The term `effective date' means the 
        date on which the amendments made by section 13242 of this Act 
        take effect.''

SEC. 2. EXPANSION OF VENDOR REFUND PROCEDURES WITH RESPECT TO DIESEL 
              FUEL.

    (a) In General.--Subsection (l) of section 6427 of the Internal 
Revenue Code of 1986 (relating to nontaxable uses of diesel fuel and 
aviation fuel) is amended by striking paragraph (5), by redesignating 
paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), 
respectively, and by striking paragraph (1) and inserting the following 
new paragraphs:
            ``(1) Diesel fuel.--Except as otherwise provided in this 
        subsection and in subsection (k), if--
                    ``(A) any diesel fuel on which tax has been imposed 
                by section 4041 or 4081 is sold for use by any person 
                in a nontaxable use, and
                    ``(B) the ultimate vendor of such fuel--
                            ``(i) is registered under section 4101, and
                            ``(ii) meets the requirements of 
                        subparagraph (A), (B), or (D) of section 
                        6416(a)(1),
        the Secretary shall pay (without interest) to such ultimate 
        vendor an amount equal to the aggregate amount of tax imposed 
        on such fuel under section 4041 or 4081, as the case may be.
            ``(2) Aviation fuel.--Except as otherwise provided in this 
        subsection and in subsection (k), if any aviation fuel on which 
        tax has been imposed by section 4091 is used by any person in a 
        nontaxable use, the Secretary shall pay (without interest) to 
        the ultimate purchaser of such fuel an amount equal to the 
        aggregate amount of tax imposed on such fuel under section 
        4091.''
    (b) Conforming Amendments.--
            (1) Subparagraph (A) of section 6427(i)(5) of such Code 
        (relating to special rule for vendor refunds) is amended by 
        striking ``subsection (l)(5)'' each place it appears and 
        inserting ``subsection (l)(1)''.
            (2) Paragraph (5) of section 6427(l) of such Code, as 
        redesignated by subsection (a), is amended by striking 
        ``paragraph (1)'' and inserting ``paragraph (2)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendments made by section 13242 of the 
Revenue Reconciliation Act of 1993.

SEC. 3. VENDOR REFUNDS ON GASOLINE SOLD TO STATE AND LOCAL GOVERNMENTS.

    (a) In General.--Subsection (c) of section 6421 of the Internal 
Revenue Code of 1986 (relating to gasoline used for certain exempt 
purposes) is amended to read as follows:
    ``(c) Exempt Purposes.--
            ``(1) In general.--If gasoline is sold to any person for 
        any purpose described in paragraph (2), (3), or (5) of section 
        4221(a), the Secretary shall pay (without interest) to such 
        person an amount equal to the product of the number of gallons 
        of gasoline so sold multiplied by the rate at which tax was 
        imposed on such gasoline by section 4081.
            ``(2) Sales to state and local governments.--
                    ``(A) In general.--If--
                            ``(i) gasoline on which tax has been 
                        imposed by section 4081 is sold to a State or 
                        local government for the exclusive use of a 
                        State or local government, and
                            ``(ii) the ultimate vendor of such fuel--
                                    ``(I) is registered under section 
                                4101, and
                                    ``(II) meets the requirements of 
                                subparagraph (A), (B), or (D) of 
                                section 6416(a)(1),
                the Secretary shall pay (without interest) to such 
                ultimate vendor an amount equal to the product of the 
                number of gallons of gasoline so sold multiplied by the 
                rate at which tax was imposed on such gasoline by 
                section 4081.
                    ``(B) Payment of claim.--Notwithstanding 
                subparagraph (A), if the Secretary has not paid a claim 
                payable under this paragraph within 20 days after the 
                date such claim is filed, such claim shall be paid with 
                interest from such date, determined by using the 
                overpayment rate and method under section 6621.''
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendments made by section 13242 of the 
Revenue Reconciliation Act of 1993.

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