[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3395 Introduced in House (IH)]


104th CONGRESS
  2d Session
                                H. R. 3395

   To amend the Internal Revenue Code of 1986 to provide a temporary 
suspension of 4.3 cents per gallon in the rates of tax on gasoline and 
                              diesel fuel.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 7, 1996

 Mr. Bentsen 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 a temporary 
suspension of 4.3 cents per gallon in the rates of tax on gasoline and 
                              diesel fuel.

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

SECTION 1. TEMPORARY 4.3-CENT REDUCTION IN CERTAIN FUEL TAX RATES.

    (a) In General.--Section 4081 of the Internal Revenue Code of 1986 
(relating to imposition of tax on gasoline and diesel fuel) is amended 
by adding at the end the following new subsection:
    ``(f) Temporary 4.3-Cent Reduction in Certain Fuel Tax Rates.--
            ``(1) In general.--During the temporary rate reduction 
        period, each rate of tax referred to in paragraph (2) shall be 
        reduced by 4.3 cents per gallon.
            ``(2) Rate of tax.--The rates of tax referred to in this 
        paragraph are--
                    ``(A) each rate of tax under subsection (a)(2)(A) 
                (relating to gasoline and diesel fuel),
                    ``(B) each rate of tax under paragraph (1) or (2) 
                of section 4041(a) (relating to diesel fuel and special 
                fuels), and
                    ``(C) the rate of tax under section 
                4041(m)(1)(A)(i) (relating to certain methanol or 
                ethanol fuels).
            ``(3) Comparable treatment for compressed natural gas.--No 
        tax shall be imposed by section 4041(a)(3) on any sale or use 
        during the temporary rate reduction period.
            ``(4) Comparable treatment under certain refund rules.--In 
        the case of fuel on which tax is imposed during the temporary 
        rate reduction period, each of the rates specified in sections 
        6421(f)(3)(B)(ii), 6427(b)(2)(A), and 6427(l)(3)(B)(ii) shall 
        be reduced by 4.3 cents per gallon.
            ``(5) Coordination with highway trust fund deposits.--In 
        the case of fuel on which tax is imposed during the temporary 
        rate reduction period, each of the rates specified in 
        subparagraphs (A)(i) and (C)(i) of section 9503(f)(3) shall be 
        reduced by 4.3 cents per gallon.
            ``(6) Temporary rate reduction period.--For purposes of 
        this subsection, the term `temporary rate reduction period' 
        means the period after the date of the enactment of this 
        subsection and before January 1, 1997.''
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 2. FLOOR STOCK REFUNDS.

    (a) In General.--If--
            (1) before the date of the enactment of this Act, tax has 
        been imposed under section 4081 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 excess 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 date of 
        the enactment of this Act, based on a request submitted to the 
        taxpayer before the date which is 3 months after such date of 
        enactment, by the dealer who held the liquid on such date of 
        enactment, and
            (2) 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, the terms 
``dealer'' and ``held by a dealer'' have the respective meanings given 
to such terms by section 6412 of such Code.
    (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. 3. FLOOR STOCKS TAX.

    (a) Imposition of Tax.--In the case of gasoline or diesel fuel on 
which tax was imposed under section 4081 of the Internal Revenue Code 
of 1986 before January 1, 1997, and which is held on such date by any 
person, there is hereby imposed a floor stocks tax of 4.3 cents per 
gallon.
    (b) Liability for Tax and Method of Payment.--
            (1) Liability for tax.--A person holding gasoline or diesel 
        fuel on January 1, 1997, 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 June 30, 1997.
    (c) Definitions.--For purposes of this section--
            (1) Held by a person.--Gasoline and diesel fuel shall be 
        considered as ``held by a person'' if title thereto has passed 
to such person (whether or not delivery to the person has been made).
            (2) Gasoline and diesel fuel.--The terms ``gasoline'' and 
        diesel fuel have the respective meanings given such terms by 
        section 4082 of such Code.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or his delegate.
    (d) Exception for Exempt Uses.--The tax imposed by subsection (a) 
shall not apply to gasoline or diesel fuel held by any person 
exclusively for any use to the extent a credit or refund of the tax 
imposed by section 4081 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 gasoline or diesel fuel held in the tank 
of a motor vehicle or motorboat.
    (f) Exception for Certain Amounts of Fuel.--
            (1) In general.--No tax shall be imposed by subsection 
        (a)--
                    (A) on gasoline held on January 1, 1997, 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 held on such date by any person 
                if the aggregate amount of diesel fuel held by such 
                person on such date does not exceed 2,000 gallons.
        The preceding sentence shall apply only if such person 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 paragraph (1), there 
        shall not be taken into account fuel held by any person which 
        is exempt from the tax imposed 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 percent'' 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 prescribed 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 
                corporation.
    (g) Other Law Applicable.--All provisions of law, including 
penalties, applicable with respect to the taxes imposed by section 4081 
of such Code shall, insofar as applicable and not inconsistent with the 
provisions of this subsection, apply with respect to the floor stock 
taxes imposed by subsection (a) to the same extent as if such taxes 
were imposed by such section 4081.

SEC. 4. REPEAL OF BENEFITS FOR ALCOHOL FUELS.

    (a) Repeal of Alcohol Fuels Credit.--
            (1) In general.--Section 40 of the Internal Revenue Code of 
        1986 (relating to alcohol used as fuel) is hereby repealed.
            (2) Conforming amendments.--
                    (A) Subsection (b) of section 38 of such Code is 
                amended by striking paragraph (3) and by redesignating 
                paragraphs (4) through (8) as paragraphs (3) through 
                (7), respectively.
                    (B) Section 87 of such Code is hereby repealed.
                    (C) Subsection (c) of section 196 of such Code is 
                amended by striking paragraph (3) and by redesignating 
                paragraphs (4) and (5) as paragraphs (3) and (4), 
                respectively.
                    (D) Subsection (n) of section 6501 of such Code is 
                amended by striking ``40(f)''.
                    (E) The table of sections for subpart D of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                striking the item relating to section 40.
                    (F) The table of sections for part II of subchapter 
                B of chapter 1 of such Code is amended by striking the 
                item relating to section 87.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act
    (b) Repeal of Reduced Fuel Tax Rates.--
            (1) Gasoline and diesel fuel.--Section 4081 of such Code is 
        amended by striking subsection (c) and by redesignating 
        subsections (d) and (e) as subsections (c) and (d), 
        respectively.
            (2) Aviation fuel.--Section 4091 of such Code is amended by 
        striking subsection (c).
            (3) Special motor fuels.--
                    (A) Section 4041 of such Code is amended by 
                striking subsections (k) and (m).
                    (B) Subsection (b) of section 4041 of such Code is 
                amended by striking paragraph (2).
            (4) Conforming amendments.--
                    (A) Section 6427 of such Code is amended by 
                striking subsection (f).
                    (B) Subsection (i) of section 6427 of such Code is 
                amended by striking paragraph (3) and by redesignating 
                paragraph (4) as paragraph (3).
                    (C)(i) Subsection (e) of section 9502 of such Code 
                is amended by striking paragraph (2).
                    (ii) Subsection (f) of section 9502 of such Code is 
                amended by striking paragraph (2) and by redesignating 
                paragraph (3) as paragraph (2).--
                    (D) Subsection (f) of section 9503 of such Code is 
                amended by striking paragraph (3) and by redesignating 
                paragraph (4) as paragraph (3).
            (5) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act.
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