[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 478 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 478

To amend the Internal Revenue Code of 1986 to allow the taxable sale or 
use, without penalty, of dyed diesel fuel with respect to recreational 
                                boaters.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            February 27 (legislative day, February 22), 1995

Mr. Breaux (for himself and Mr. Chafee) 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 allow the taxable sale or 
use, without penalty, of dyed diesel fuel with respect to recreational 
                                boaters.

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

SECTION 1. PENALTY-FREE TAXABLE SALE OR USE OF DYED DIESEL FUEL WITH 
              RESPECT TO RECREATIONAL BOATERS.

    (a) In General.--Section 6714 of the Internal Revenue Code of 1986 
(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, 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 boat, and
            ``(2) pays the tax imposed on such sale or use under 
        section 4041(a)(1)(A).''.
    (b) Technical Amendments.--
            (1) 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.
            (2) 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 Date.--The amendments made by this section shall take 
effect as if included in the amendments made by section 13242(b) of the 
Omnibus Budget Reconciliation Act of 1993.
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