[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3749 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 3749

 To amend the Internal Revenue Code of 1986 to temporarily reduce the 
rates of tax on highway gasoline, diesel fuel, and kerosene by 10 cents 
                              per gallon.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 29, 2000

 Mr. Ramstad 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 temporarily reduce the 
rates of tax on highway gasoline, diesel fuel, and kerosene by 10 cents 
                              per gallon.

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

SECTION 1. TEMPORARY REDUCTION OF 10 CENTS PER GALLON IN FUEL TAXES ON 
              HIGHWAY GASOLINE, DIESEL FUEL, AND KEROSENE.

    (a) In General.--Section 4081 of the Internal Revenue Code of 1986 
(relating to imposition of tax on gasoline, diesel fuel, and kerosene) 
is amended by adding at the end the following new subsection:
    ``(f) Temporary 10-Cent Reduction in Taxes on Highway Gasoline, 
Diesel Fuel, and Kerosene.--
            ``(1) In general.--During the applicable period, each rate 
        of tax referred to in paragraph (2) shall be reduced by 10 
        cents per gallon.
            ``(2) Rates of tax.--The rates of tax referred to in this 
        paragraph are the rates of tax otherwise applicable under--
                    ``(A) clause (i) or (iii) of subsection (a)(2)(A) 
                (relating to highway gasoline, diesel fuel, and 
                kerosene), and
                    ``(B) paragraph (1) of section 4041(a) (relating to 
                diesel fuel) with respect to fuel sold for use or used 
                in a diesel-powered highway vehicle.
            ``(3) Comparable treatment under certain refund rule.--In 
        the case of fuel on which tax is imposed during the applicable 
        period, the rate specified in section 6427(b)(2)(A) shall be 
        reduced to zero.
            ``(4) Maintenance of highway trust fund deposits.--In 
        determining the amounts to be appropriated to the Highway Trust 
        Fund under section 9503, an amount equal to the reduction in 
        revenues to the Treasury by reason of this subsection shall be 
        treated as taxes received in the Treasury under this section.
            ``(5) Applicable period.--For purposes of this subsection, 
        the term `applicable period' means the 180-day period beginning 
        on the 7th day after the date of the enactment of this 
        subsection.''
    (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 tax reduction date, tax has been imposed 
        under section 4081 of the Internal Revenue Code of 1986 on any 
        liquid other than aviation gasoline, 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 the tax reduction 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 tax 
        reduction date, and
            (2) in any case where liquid is held by a dealer (other 
        than the taxpayer) on the tax reduction date--
                    (A) the dealer submits a request for refund or 
                credit to the taxpayer before the date which is 3 
                months after the tax reduction date, and
                    (B) 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--
            (1) the terms ``dealer'' and ``held by a dealer'' have the 
        respective meanings given to such terms by section 6412 of such 
        Code; except that the term ``dealer'' includes a producer, and
            (2) the term ``tax reduction date'' means the 7th day after 
        the date of the enactment of this Act.
    (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 any liquid on which tax was 
imposed under section 4081 of the Internal Revenue Code of 1986 (other 
than aviation gasoline) during the applicable period, and which is held 
on the floor stocks tax date by any person, there is hereby imposed a 
floor stocks tax of 10 cents per gallon.
    (b) Liability for Tax and Method of Payment.--
            (1) Liability for tax.--A person holding a liquid on the 
        floor stocks tax date 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 the date which is 6 months after the 
        floor stocks tax date.
    (c) Definitions.--For purposes of this section--
            (1) Held by a person.--A liquid 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 4083 of such Code.
            (3) Floor stocks tax date.--The term ``floor stocks tax 
        date'' means the day after the end of the applicable period.
            (4) Applicable period.--The term ``applicable period'' 
        means the 180-day period beginning on the 7th day after the 
        date of the enactment of this Act.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.
    (d) Exception for Exempt Uses.--The tax imposed by subsection (a) 
shall not apply to gasoline, diesel fuel, or kerosene 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, diesel fuel, or kerosene 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 the floor stocks tax date 
                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 or kerosene held on such date by 
                any person if the aggregate amount of diesel fuel or 
                kerosene 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. BENEFITS OF TAX REDUCTION SHOULD BE PASSED ON TO CONSUMERS.

    (a) Passthrough to Consumers.--
            (1) Sense of congress.--It is the sense of Congress that--
                    (A) consumers immediately receive the benefit of 
                the 10-cent reduction in taxes under this Act, and
                    (B) transportation motor fuels producers and other 
                dealers take such actions as necessary to reduce 
                transportation motor fuels prices to reflect such 
                reduction, including immediate credits to customer 
                accounts representing tax refunds allowed as credits 
                against excise tax deposit payments under the floor 
                stocks refund provisions of this Act.
            (2) Study.--
                    (A) In general.--The Comptroller General of the 
                United States shall conduct a study of the 10-cent 
                reduction of taxes under this Act to determine whether 
                there has been a passthrough of such reduction.
                    (B) Report.--Not later than 1 year after the date 
                of the enactment of this Act, the Comptroller General 
                of the United States shall report to the Committee on 
                Finance of the Senate and the Committee on Ways and 
                Means of the House of Representatives the results of 
                the study conducted under subparagraph (A).
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