[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 65 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 65

   To amend the Internal Revenue Code of 1986 to impose a fee on the 
        importation of crude oil and refined petroleum products.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 21 (legislative day, January 5), 1993

  Mr. Nickles 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 impose a fee on the 
        importation of crude oil and refined petroleum products.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Domestic Petroleum Security Act of 
1993''.

SEC. 2. FEE ON IMPORTED CRUDE OIL OR REFINED PETROLEUM PRODUCTS.

    (a) In General.--Subtitle E of the Internal Revenue Code of 1986 
(relating to alcohol, tobacco, and certain other excise taxes) is 
amended by adding at the end thereof the following new chapter:

     ``CHAPTER 55--IMPORTED CRUDE OIL OR REFINED PETROLEUM PRODUCTS

                              ``Sec. 5891. Imposition of tax.
                              ``Sec. 5892. Definitions.
                              ``Sec. 5893. Registration.
                              ``Sec. 5894. Procedures; returns; 
                                        penalties.

``SEC. 5891. IMPOSITION OF TAX.

    ``(a) Imposition of Tax.--In addition to any other tax imposed 
under this title, an excise tax is hereby imposed on--
            ``(1) the first sale within the United States of each 
        barrel (or its equivalent) of--
                    ``(A) any crude oil, or
                    ``(B) any refined petroleum product,
        that has been imported into the United States, and
            ``(2) the use within the United States of each barrel (or 
        its equivalent) of--
                    ``(A) any crude oil, or
                    ``(B) any refined petroleum product,
        that has been imported into the United States if no tax has 
        been imposed with respect to such crude oil or refined 
        petroleum product prior to such use.
    ``(b) Rate of Tax.--
            ``(1) Crude oil.--For purposes of paragraphs (1)(A) and 
        (2)(A) of subsection (a) the rate of tax on any barrel (or its 
        equivalent) shall be the excess, if any, of--
                    ``(A) $25, over
                    ``(B) the energy policy price per barrel of crude 
                oil.
            ``(2) Refined petroleum product.--For purposes of 
        paragraphs (1)(B) and (2)(B) of subsection (a), the rate of tax 
        on any barrel (or its equivalent) shall be equal to--
                    ``(A) $3, plus
                    ``(B) the tax determined under paragraph (1) of 
                this subsection.
            ``(3) Fractional parts of barrels.--In the case of a 
        fraction of a barrel, the tax imposed by subsection (a) shall 
        be the same fraction of the amount of such tax imposed on the 
        whole barrel.
    ``(c) Determination of Energy Policy Price.--
            ``(1) In general.--For purposes of this section, the energy 
        policy price with respect to any week during which the tax 
        under subsection (a) is imposed shall be determined by the 
        Secretary and published in the Federal Register on the first 
        day of such week.
            ``(2) Basis of determination.--For purposes of paragraph 
        (1), the energy policy price for any week is the weighted 
        average international price of a barrel of crude oil for the 
        preceding 4 weeks as determined by the Secretary, after 
        consultation with the Administrator of the Energy Information 
        Administration of the Department of Energy, pursuant to the 
        formula for determining such international price as used in 
        publishing the Weekly Petroleum Status Report and as in effect 
        on the date of the enactment of this section.
    ``(d) Liability for Payment of Tax.--
            ``(1) Sales.--The taxes imposed by subsection (a)(1) shall 
        be paid by the first person who sells the crude oil or refined 
        petroleum product within the United States.
            ``(2) Use.--The taxes imposed by subsection (a)(2) shall be 
        paid by the person who uses the crude oil or refined petroleum 
        product.
            ``(3) Tax-free exports.--
                    ``(A) In general.--Under regulations prescribed by 
                the Secretary, no tax shall be imposed under this 
                chapter on the sale of crude oil or refined petroleum 
                products for export or for resale by the purchaser to a 
                second purchaser for export.
                    ``(B) Proof of export.--Where any crude oil or 
                refined petroleum product has been sold free of tax 
                under subparagraph (A), such subparagraph shall cease 
                to apply with respect to the sale of such crude oil or 
                refined petroleum product, unless, within the 6-month 
                period which begins on the date of the sale, the seller 
                receives proof that the crude oil or refined petroleum 
                product, has been exported.

``SEC. 5892. DEFINITIONS.

    ``For purposes of this chapter--
            ``(1) Crude oil.--The term `crude oil' means crude oil 
        other than crude oil produced from a well located in the United 
        States (within the meaning of section 638(2)) or a possession 
        of the United States.
            ``(2) Barrel.--The term `barrel' means 42 United States 
        gallons.
            ``(3) Refined petroleum product.--The term `refined 
        petroleum product' shall have the same meaning given to such 
        term by section 3(5) of the Emergency Petroleum Allocation Act 
        of 1973 (15 U.S.C. 752(5)).
            ``(4) Export.--The term `export' includes shipment to a 
        possession of the United States; and the term `exported' 
        includes shipment to a possession of the United States.

``SEC. 5893. REGISTRATION.

    ``Every person subject to tax under section 5891 shall, before 
incurring any liability for tax under such section, register with the 
Secretary.

``SEC. 5894. PROCEDURES; RETURNS; PENALTIES.

    ``For purposes of this title, the tax imposed by section 5891 shall 
be treated in the same manner as the tax imposed by section 4986 (as in 
effect before its repeal).''
    (b) Conforming Amendment.--The table of chapters for subtitle E is 
amended by adding at the end thereof the following new item:

                              ``Chapter 55. Imported crude oil or 
                                        refined petroleum products.''
    (c) Deductibility of Imported Oil Tax.--The first sentence of 
section 164(a) (relating to deductions for taxes) is amended by 
inserting after paragraph (5) the following new paragraph:
            ``(6) The imported oil taxes imposed by section 5891.''

SEC. 3. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to sales 
and use of imported crude oil or imported refined petroleum products on 
or after the date of enactment.

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