[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3315 Introduced in House (IH)]

  2d Session
                                H. R. 3315

To amend the Internal Revenue Code of 1986 to provide that the rate of 
tax on liquefied natural gas shall be equivalent to the rate of tax on 
                        compressed natural gas.


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                    IN THE HOUSE OF REPRESENTATIVES

                             April 24, 1996

Mr. Thornberry 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 provide that the rate of 
tax on liquefied natural gas shall be equivalent to the rate of tax on 
                        compressed natural gas.

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

SECTION 1. RATE OF TAX ON LIQUEFIED NATURAL GAS TO BE EQUIVALENT TO 
              RATE OF TAX ON COMPRESSED NATURAL GAS.

    (a) In General.--Paragraph (3) of section 4041(a) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(3) Compressed or liquefied natural gas.--
                    ``(A) In general.--There is hereby imposed a tax on 
                compressed or liquefied natural gas--
                            ``(i) sold by any person to an owner, 
                        lessee, or other operator of a motor vehicle or 
                        motorboat for use as a fuel in such motor 
                        vehicle or motorboat, or
                            ``(ii) used by any person as a fuel in a 
                        motor vehicle or motorboat unless there was a 
                        taxable sale of such gas under clause (i).
                The rate of the tax imposed by this paragraph shall be 
                48.54 cents per MCF (determined at standard temperature 
                and pressure) in the case of compressed natural gas and 
                3.54 cents per gallon in the case of liquefied natural 
                gas.''
    (b) Conforming Amendment.--Paragraph (2) of section 4041(a) of such 
Code is amended by striking ``(other'' and all that follows through 
``4081)'' and inserting ``(other than liquefied natural gas, kerosene, 
gas oil, or fuel oil, or any product taxable under section 4081)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
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