[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 444 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 444

 To amend the Internal Revenue Code to impose a tax on the manufacture 
           and importation of tires, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 14, 1997

 Mr. Chafee (for himself and Mr. Dodd) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code to impose a tax on the manufacture 
           and importation of tires, 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. EXCISE TAX ON MANUFACTURE AND IMPORTATION OF TIRES.

    (a) In General.--Chapter 38 of the Internal Revenue Code of 1986 
(relating to environmental taxes) is amended by adding at the end the 
following:

                      ``Subchapter E--Tax on Tires

                              ``Sec. 4691. Imposition of tax.

``SEC. 4691. IMPOSITION OF TAX.

    ``(a) General Rule.--There is imposed a tax on the manufacture or 
importation of tires of any type, including solid and pneumatic tires.
    ``(b) Amount of Tax.--The amount of the tax imposed by subsection 
(a) shall be 50 cents per tire.
    ``(c) Liability for Tax.--The tax imposed by subsection (a) shall 
be paid by the manufacturer or importer of the tire not later than 30 
days after the end of each calendar quarter for each tire manufactured 
or imported during such quarter.
    ``(d) Tires on Imported Articles.--For purposes of subsection (a), 
if an article imported into the United States is equipped with tires, 
the importer of the article shall be treated as the importer of the 
tires with which such article is equipped.
    ``(e) Effective Date.--The tax imposed by this section shall apply 
to tires manufactured or imported after December 31, 1997, and before 
January 1, 2003.''.
    (b) Conforming Amendment.--The table of subchapters for chapter 38 
of such Code is amended by adding after the item relating to subchapter 
D the following:

                              ``Subchapter E. Tax on tires.''.

SEC. 2. ESTABLISHMENT OF TIRE RECYCLING, ABATEMENT, AND DISPOSAL TRUST 
              FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to the establishment of trust funds) is amended 
by adding after section 9511 the following:

``SEC. 9512. WASTE TIRE RECYCLING, ABATEMENT, AND DISPOSAL TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the ``Waste Tire 
Recycling, Abatement, and Disposal Trust Fund'' consisting of such 
amounts as may be appropriated or credited to such Trust Fund as 
provided in this section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are appropriated to the Waste 
Tire Recycling, Abatement, and Disposal Trust Fund amounts equivalent 
to--
            ``(1) taxes received in the Treasury under section 4691 
        (relating to an assessment on motor vehicle tires); and
            ``(2) amounts received in the Treasury and collected under 
        section 4011 of the Solid Waste Disposal Act.
    ``(c) Expenditures.--Amounts in the Waste Tire Recycling, 
Abatement, and Disposal Trust Fund shall be available, as provided in 
appropriation Acts, only for the purpose of making expenditures to 
carry out the purposes of section 4011 of the Solid Waste Disposal Act.
    ``(d) Authority to Borrow.--
            ``(1) In general.--There are authorized to be appropriated 
        to the Waste Tire Recycling, Abatement, and Disposal Trust 
        Fund, as repayable advances, such sums as may be necessary to 
        carry out the purposes of section 4011(k) of the Solid Waste 
        Disposal Act.
            ``(2) Limitation on aggregate advances.--The maximum 
        aggregate amount of repayable advances to the Waste Tire 
        Recycling, Abatement, and Disposal Trust Fund which is 
        outstanding at any one time shall not exceed an amount equal to 
        the amount which the Secretary estimates will be equal to the 
        sum of the amounts received from the tax imposed by section 
        4691 during any 2-year period.
            ``(3) Repayment of advances.--
                    ``(A) In general.--Advances made to the Waste Tire 
                Recycling, Abatement, and Disposal Trust Fund shall be 
                repaid, and interest on such advances shall be paid, to 
                the general fund of the Treasury when the Secretary 
                determines that moneys are available for such purposes 
                in the Waste Tire Recycling, Abatement, and Disposal 
                Trust Fund.
                    ``(B) Date for termination of advances.--No advance 
                shall be paid to the Trust Fund after December 31, 2001 
                and all advances to the Trust Fund shall be repaid on 
                or before such date.
                    ``(C) Interest rate on advances.--Interest on 
                advances made to the Trust Fund shall be at a rate 
                determined by the Secretary to be equal to the current 
                market yield on outstanding marketable obligations of 
                the United States with remaining periods to maturity 
                comparable to the anticipated period during which the 
                advance will be outstanding, and shall be compounded 
                annually.''.
            (b) Conforming Amendment.--The table of sections for 
        subchapter A of chapter 98 of such Code is amended by adding 
        after the item relating to section 9511 the following:

                              ``Sec. 9511. Waste Tire Recycling, 
                                        Abatement, and Disposal Trust 
                                        Fund.''.
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