[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3966 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3966

 To amend title 23, United States Code, to provide for collection and 
   payment of State taxes imposed on motor fuel sold on Indian lands.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 1998

   Mr. LaHood (for himself, Mr. Sandlin, Mr. Istook, Ms. Danner, Mr. 
Blunt, Mr. Coburn, Mr. Barrett of Nebraska, Mr. Hastings of Washington, 
 and Mr. Ehlers) introduced the following bill; which was referred to 
           the Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
 To amend title 23, United States Code, to provide for collection and 
   payment of State taxes imposed on motor fuel sold on Indian lands.

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

SECTION 1. FINDINGS.

    The Congress finds that--
            (1) under the United States Constitution, Congress is 
        charged with regulating commerce among the States and with 
        Indian tribes;
            (2) an aspect of the responsibility of regulating commerce 
        is to establish appropriate relations between Indian tribes and 
        the States in which Indian reservations are located;
            (3) Congress has not established such appropriate relations 
        regarding collection and payment of State motor fuel taxes;
            (4) several States have been unable to adequately resolve 
        this issue; and
            (5) the failure of certain Indian tribes to collect and pay 
        to States lawfully imposed State motor fuel tax results in the 
        loss of highway revenues which could be used for highway and 
        economic development and creates an unfair competitive 
        advantage to individuals that sell motor fuel without incurring 
        State motor fuel tax.

SEC. 2. COLLECTION AND PAYMENT OF STATE MOTOR FUEL TAX.

    (a) In General.--Section 204 of title 23, United States Code, is 
amended by adding at the end the following:
    ``(k) Restriction on Use of Funds for Indian Reservation Roads.--
            ``(1) In general.--The Secretary shall not allocate sums 
        for construction or maintenance of a public lands highway 
        within the boundaries of nontaxable Indian lands or any other 
        Federal reservation or for an Indian reservation road unless 
        the Secretary determines that--
                    ``(A) the Indian tribe or Alaskan Native 
                governmental entity with jurisdiction over the land 
                upon which the highway or road is to be constructed has 
                entered into a written agreement with the State in 
                which such highway or road is to be constructed which 
                provides for payment and collection of State motor fuel 
                taxes on any motor fuel sold by a retail establishment 
                located on such land; or
                    ``(B)(i) the Indian tribe or Alaskan Native 
                governmental entity with jurisdiction over the land 
                upon which the highway or road is to be constructed 
                refuses to enter into a written agreement described in 
                subparagraph (A); and
                    ``(ii) the allocation of such sums is essential to 
                the construction or maintenance of a highway or road 
                that is a critical component of the National Highway 
                System and is essential to the maintenance of 
                interstate commerce.
            ``(2) Effective date.--Paragraph (1) shall take effect 6 
        months after the date of enactment of this subsection.''.
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