[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 665 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 665

To amend the Internal Revenue Code of 1986 to increase motor fuel taxes 
    by 8 cents a gallon, the resulting revenues to be used for mass 
 transit, AMTRAK, and interstate, State, and local roads and bridges, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               April 4 (legislative day, March 27), 1995

   Mr. Simon 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 increase motor fuel taxes 
    by 8 cents a gallon, the resulting revenues to be used for mass 
 transit, AMTRAK, and interstate, State, and local roads and bridges, 
                        and for other purposes.

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

SECTION 1. INCREASE IN MOTOR FUEL TAXES.

    (a) In General.--Subparagraph (A) of section 4081(a)(2) of the 
Internal Revenue Code of 1986 (relating to imposition of tax on 
gasoline and diesel fuel) is amended--
            (1) by striking ``18.3 cents'' and inserting ``26.3 
        cents'', and
            (2) by striking ``24.3 cents'' and inserting ``32.3 
        cents''.
    (b) Technical Amendments.--
            (1) Subsection (c)(4)(A) of section 4081 of the Internal 
        Revenue Code of 1986 is amended--
                    (A) by striking ``5.4 cents'' both places it 
                appears and inserting ``13.4 cents'',
                    (B) by striking ``4.158 cents'' both places it 
                appears and inserting ``12.158 cents'',
                    (C) by striking ``3.078 cents'' both places it 
                appears and inserting ``11.078 cents'',
                    (D) by striking ``6 cents'' and inserting ``14 
                cents'',
                    (E) by striking ``4.62 cents'' and inserting 
                ``12.62 cents'', and
                    (F) by striking ``3.42 cents'' and inserting 
                ``11.42 cents''.
            (2) Subsection (c)(5) of section 4081 of such Code is 
        amended--
                    (A) by striking ``5.4 cents'' and inserting ``13.4 
                cents'', and
                    (B) by striking ``6 cents'' and inserting ``14 
                cents''.
            (3) Clause (i) of section 4041(a)(1)(D) of such Code is 
        amended by striking ``24.3 cents'' and inserting ``32.3 
        cents''.
            (4) Clause (i) of section 4041(b)(2)(A) of such Code is 
        amended--
                    (A) by striking ``5.4 cents'' and inserting ``13.4 
                cents'', and
                    (B) by striking ``6 cents'' and inserting ``14 
                cents''.
            (5) Clauses (i) and (ii) of section 4041(m)(1)(A) of such 
        Code are amended to read as follows:
                            ``(i) 11.3 cents per gallon after September 
                        30, 1993, and before October 1, 1995,
                            ``(ii) 19.3 cents per gallon after 
                        September 30, 1995, and before October 1, 1999, 
                        and
                            ``(iii) 4.3 cents per gallon after 
                        September 30, 1999, and''.
            (6) Paragraph (1) of section 9503(f) of such Code is 
        amended--
                    (A) by striking ``14 cents'' in subparagraph (A) 
                and inserting ``22 cents'', and
                    (B) by striking ``20 cents'' in subparagraph (B) 
                and inserting ``28 cents''.
            (7) Subparagraph (E) of section 9503(f)(2) of such Code is 
        amended by striking ``11.5 cents'' and inserting ``19.5 cents'' 
        and by striking ``17.5 cents'' and inserting ``25.5 cents''.
    (c) Floor Stocks Tax.--
            (1) Imposition of tax.--In the case of gasoline and diesel 
        fuel on which tax was imposed under section 4081 or 4091 of the 
        Internal Revenue Code of 1986 before October 1, 1995, and which 
        is held on such date by any person, there is hereby imposed a 
        floor stocks tax of 8 cents per gallon on such gasoline and 
        diesel fuel.
            (2) Liability for tax and method of payment.--
                    (A) Liability for tax.--A person holding gasoline 
                or diesel fuel on October 1, 1995, to which the tax 
                imposed by paragraph (1) applies shall be liable for 
                such tax.
                    (B) Method of payment.--The tax imposed by 
                paragraph (1) shall be paid in such manner as the 
                Secretary shall prescribe.
                    (C) Time for payment.--The tax imposed by paragraph 
                (1) shall be paid on or before December 31, 1995.
            (3) Definitions.--For purposes of this subsection--
                    (A) Held by a person.--Gasoline or 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).
                    (B) Gasoline.--The term ``gasoline'' has the 
                meaning given such term by section 4082 of such Code.
                    (C) Diesel fuel.--The term ``diesel fuel'' has the 
                meaning given such term by section 4092 of such Code.
                    (E) Secretary.--The term ``Secretary'' means the 
                Secretary of the Treasury or the Secretary's delegate.
            (4) Exception for exempt uses.--The tax imposed by 
        paragraph (1) 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 or 4091 of such Code, 
        as the case may be, is allowable for such use.
            (5) Exception for fuel held in vehicle tank.--No tax shall 
        be imposed by paragraph (1) on gasoline or diesel fuel held in 
        the tank of a motor vehicle or motorboat.
            (6) Exception for certain amounts of fuel.--
                    (A) In general.--No tax shall be imposed by 
                paragraph (1)--
                            (i) on gasoline held on October 1, 1995, by 
                        any person if the aggregate amount of gasoline 
                        held by such person on such date does not 
                        exceed 4,000 gallons, and
                            (ii) on diesel fuel held on October 1, 
                        1995, 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.
                    (B) Exempt fuel.--For purposes of subparagraph (A), 
                there shall not be taken into account fuel held by any 
                person which is exempt from the tax imposed by 
                paragraph (1) by reason of paragraph (4) or (5).
                    (C) Controlled groups.--For purposes of this 
                paragraph--
                            (i) 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.
                            (ii) Nonincorporated persons under common 
                        control.--Under regulations prescribed by the 
                        Secretary, principles similar to the principles 
                        of clause (i) shall apply to a group of persons 
                        under common control where 1 or more of such 
                        persons is not a corporation.
            (7) Articles in foreign trade zones.--Notwithstanding the 
        Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) and any 
        other provision of law, any article which is located in a 
        foreign trade zone on any tax-increase date shall be subject to 
        the taxes imposed by paragraph (1) if--
                    (A) internal revenue taxes have been determined, or 
                customs duties liquidated, with respect to such article 
                before such date pursuant to a request made under the 
                1st proviso of section 3(a) of such Act, or
                    (B) such article is held on such date under the 
                supervision of a customs officer pursuant to the 2d 
                proviso of such section 3(a).
            (8) 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 paragraph (1) to 
        the same extent as if such taxes were imposed by such section 
        4081.
    (d) Use of resulting revenues.--
            (1) Mass transit.--Paragraph (2) of section 9503(e) of the 
        Internal Revenue Code of 1986 (relating to establishment of 
        mass transit account) is amended by striking ``2 cents'' and 
        inserting ``4 cents''.
    (2) Amtrak and interstate, state, and local roads and bridges.--
Section 9503 of such Code (relating to highway trust fund) is amended 
by redesignating subsection (f) as subsection (i) and by inserting 
after subsection (e) the following new subsections:
    ``(f) Establishment of AMTRAK Account.--
            ``(1) Creation of account.--There is established in the 
        Highway Trust Fund a separate account to be known as the 
        `AMTRAK Account' consisting of such amounts as may be 
        transferred or credited to the AMTRAK Account as provided in 
        this subsection or section 9602(b).
            ``(2) Transfers to amtrak account.--The Secretary of the 
        Treasury shall transfer to the AMTRAK Account the AMTRAK 
        portion of the amounts appropriated to the Highway Trust Fund 
        under subsection (b) which are attributable to taxes under 
        sections 4041 and 4081 imposed after September 30, 1995. For 
        purposes of the preceding sentence, the term `AMTRAK portion' 
        means an amount determined at the rate of 2 cents for each 
        gallon with respect to which tax was imposed under section 4041 
        or 4081.
            ``(3) Expenditures from account.--Amounts in the AMTRAK 
        Account shall be available, as provided by appropriation Acts, 
        for making capital or capital-related expenditures before 
        October 1, 1997 (including capital expenditures for new 
        projects) for AMTRAK in accordance with section 24104 of title 
        49, United States Code, as in effect on the date of the 
        enactment of this subsection.
            ``(4) Applicable rules.--Rules similar to the rules of 
        paragraphs (4) and (5) shall be applied.
    ``(g) Establishment of Interstate and Federal-Aid Highway 
Account.--
            ``(1) Creation of account.--There is established in the 
        Highway Trust Fund a separate account to be known as the 
        `Interstate and Federal-Aid Highway Account' consisting of such 
        amounts as may be transferred or credited to the Interstate and 
        Federal-Aid Highway Account as provided in this subsection or 
        section 9602(b).
            ``(2) Transfers to interstate and federal-aid highway 
        account.--The Secretary of the Treasury shall transfer to the 
        Interstate and Federal-Aid Highway Account the interstate and 
        Federal-aid highway portion of the amounts appropriated to the 
        Highway Trust Fund under subsection (b) which are attributable 
        to taxes under sections 4041 and 4081 imposed after September 
        30, 1995. For purposes of the preceding sentence, the term 
        `interstate and Federal-aid highway portion' means an amount 
        determined at the rate of 2 cents for each gallon with respect 
        to which tax was imposed under section 4041 or 4081.
            ``(3) Expenditures from account.--Amounts in the Interstate 
        and Federal-Aid Highway Account shall be available, as provided 
        by appropriation Acts, for making capital or capital-related 
        expenditures before October 1, 1997 (including capital 
        expenditures for new projects) for the Dwight D. Eisenhower 
        National System of Interstate and Defense Highways and the 
        Federal-Aid Highway System in accordance with the Intermodal 
        Surface Transportation Efficiency Act of 1991, as in effect on 
        the date of the enactment of this subsection.
            ``(4) Applicable rules.--Rules similar to the rules of 
        paragraphs (4) and (5) shall be applied.
    ``(h) Establishment of State and Local Roads and Bridges Account.--
            ``(1) Creation of account.--There is established in the 
        Highway Trust Fund a separate account to be known as the `State 
        and Local Roads and Bridges Account' consisting of such amounts 
        as may be transferred or credited to the State and Local Roads 
        and Bridges Account as provided in this subsection or section 
        9602(b).
            ``(2) Transfers to state and local roads and bridges 
        account.--The Secretary of the Treasury shall transfer to the 
        State and Local Roads and Bridges Account the State and local 
        roads and bridges portion of the amounts appropriated to the 
        Highway Trust Fund under subsection (b) which are attributable 
        to taxes under sections 4041 and 4081 imposed after September 
        30, 1995. For purposes of the preceding sentence, the term 
        `State and local roads and bridges portion' means an amount 
        determined at the rate of 2 cents for each gallon with respect 
        to which tax was imposed under section 4041 or 4081.
            ``(3) Expenditures from account.--Amounts in the State and 
        Local Roads and Bridges Account shall be available, as provided 
        by appropriation Acts, for making capital or capital-related 
        expenditures before October 1, 1997 (including capital 
        expenditures for new projects) for any State or local road or 
        bridge project in accordance with the Intermodal Surface 
        Transportation Efficiency Act of 1991, as in effect on the date 
        of the enactment of this subsection.
            ``(4) Applicable rules.--Rules similar to the rules of 
        paragraphs (4) and (5) shall be applied.''
    (e) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1995.
                                 <all>