[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3881 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 3881

To amend the Internal Revenue Code of 1986 to repeal the 1993 4.3-cent 
                     increases in motor fuel taxes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 9, 2000

  Mr. Graham 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 repeal the 1993 4.3-cent 
                     increases in motor fuel taxes.

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

SECTION 1. REPEAL OF 1993 INCREASES IN MOTOR FUEL TAXES.

    (a) Highway Gasoline.--Clause (i) of section 4081(a)(2)(A) of the 
Internal Revenue Code of 1986 is amended by striking ``18.3 cents'' and 
inserting ``14 cents''.
    (b) Aviation Gasoline.--Clause (ii) of section 4081(a)(2)(A) of 
such Code is amended by striking ``19.3 cents'' and inserting ``15 
cents''.
    (c) Diesel Fuel and Kerosene.--Clause (iii) of section 
4081(a)(2)(A) of such Code is amended by striking ``24.3 cents'' and 
inserting ``20 cents''.
    (d) Aviation Fuel.--Paragraph (1) of section 4091(b) of such Code 
is amended by striking ``21.8 cents'' and inserting ``17.5 cents''.
    (e) Fuel Used on Inland Waterways.--
            (1) Paragraph (1) of section 4042(b) of such Code is 
        amended by adding ``and'' at the end of subparagraph (A), by 
        striking ``, and'' at the end of subparagraph (B) and inserting 
        a period, and by striking subparagraph (C).
            (2) Paragraph (2) of section 4042(b) of such Code is 
        amended by striking subparagraph (C).
    (f) Technical Amendments.--
            (1) Subparagraph (A) of section 4041(a)(1) of such Code is 
        amended by striking ``or a diesel-powered train'' each place it 
        appears and by striking ``or train''.
            (2) Subparagraph (C) of section 4041(a)(1) of such Code is 
        amended by striking clause (ii) and by redesignating clause 
        (iii) as clause (ii).
            (3) Subclause (I) of section 4041(a)(1)(C)(ii) of such 
        Code, as redesignated by paragraph (2), is amended by striking 
        ``7.3 cents'' and inserting ``3 cents'' and by striking ``4.3 
        cents per gallon'' and inserting ``zero''.
            (4) Subsection (a) of section 4041 of such Code is amended 
        by striking paragraph (3).
            (5) Subparagraph (C) of section 4041(b)(1) of such Code is 
        amended by striking all that follows ``section 6421(e)(2)'' and 
        inserting a period.
            (6) Paragraph (3) of section 4041(c) of such Code is 
        amended to read as follows:
            ``(3) Termination.--The rate of the taxes imposed by 
        paragraph (1) shall be zero after September 30, 2007.''
            (7) Clauses (i) and (ii) of section 4041(m)(1)(A) of such 
        Code are amended to read as follows:
                            ``(i) 7 cents per gallon on and after the 
                        date of the enactment of this clause and before 
                        October 1, 2005, and
                            ``(ii) zero after September 30, 2005, 
                        and''.
            (8) Subsection (c) of section 4081 of such Code is amended 
        by striking paragraph (6) and by redesignating paragraphs (7) 
        and (8) as paragraphs (6) and (7), respectively.
            (9) Paragraphs (1) and (2) of section 4081(d) of such Code 
        are amended to read as follows:
            ``(1) In general.--The rates of tax specified in clauses 
        (i) and (iii) of subsection (a)(2)(A) shall be zero after 
        September 30, 2005.
            ``(2) Aviation gasoline.--The rate of tax specified in 
        subsection (a)(2)(A)(ii) shall be zero after September 30, 
        2007.''
            (10) Paragraph (3) of section 4083(a) of such Code is 
        amended by striking ``or a diesel-powered train''.
            (11) Subparagraph (A) of section 4091(b)(3) of such Code is 
        amended to read as follows:
                    ``(A) The rate of tax specified in paragraph (1) 
                shall be zero after September 30, 2007.''
            (12) Subsection (c) of section 4091 of such Code is 
        amended--
                    (A) by striking ``13.4 cents'' each place it 
                appears in paragraph (1) and inserting ``9.1 cents'',
                    (B) by striking ``14 cents'' in paragraph (1) and 
                inserting ``9.7 cents'',
                    (C) by striking paragraph (4), and
                    (D) by redesignating paragraph (5) as paragraph 
                (4).
            (13) Subsection (b) of section 4092 of such Code is amended 
        by striking ``attributable to'' and all that follows and 
        inserting ``attributable to the Leaking Underground Storage 
        Tank Trust Fund financing rate imposed by such section. For 
        purposes of the preceding sentence, the term `commercial 
        aviation' means any use of an aircraft other than in 
        noncommercial aviation (as defined in section 4041(c)(2)).''
            (14) Subparagraph (B) of section 6421(f)(2) of such Code is 
        amended by striking ``and,'' and all that follows and inserting 
        a period.
            (15) Paragraph (3) of section 6421(f) of such Code is 
        amended to read as follows:
            ``(3) Gasoline used in trains.--In the case of gasoline 
        used as a fuel in a train, this section shall not apply with 
        respect to the Leaking Underground Storage Tank Trust Fund 
        financing rate under section 4081.''
            (16) Subparagraph (A) of section 6427(b)(2) of such Code is 
        amended by striking ``7.4 cents'' and inserting ``3.1 cents''.
            (17) Paragraph (3) of section 6427(l) of such Code is 
        amended to read as follows:
            ``(3) Refund of certain taxes on fuel used in diesel-
        powered trains.--For purposes of this subsection, the term 
        `nontaxable use' includes fuel used in a diesel-powered train. 
        The preceding sentence shall not apply to the Leaking 
        Underground Storage Tank Trust Fund financing rate under 
        section 4081 except with respect to fuel sold for exclusive use 
        by a State or any political subdivision thereof.''
            (18) Paragraph (4) of section 6427(l) of such Code is 
        amended by striking ``attributable to'' and all that follows 
        through the period and inserting ``attributable to the Leaking 
        Underground Storage Tank Trust Fund financing rate imposed by 
        such section.''
    (g) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
    (h) Floor Stock Refunds.--
            (1) In general.--If--
                    (A) before the date of the enactment of this Act, 
                tax has been imposed under section 4081 or 4091 of the 
                Internal Revenue Code of 1986 on any liquid, and
                    (B) 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 subsection 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 such date.
            (2) Time for filing claims.--No credit or refund shall be 
        allowed or made under this subsection unless--
                    (A) claim therefor is filed with the Secretary of 
                the Treasury before the date which is 6 months after 
                the date of the enactment of this Act, based on a 
                request submitted to the taxpayer before the date which 
                is 3 months after such date of enactment, by the dealer 
                who held the liquid on such date of enactment, 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.
            (3) Exception for fuel held in retail stocks.--No credit or 
        refund shall be allowed under this subsection with respect to 
        any liquid in retail stocks held at the place where intended to 
        be sold at retail.
            (4) Definitions.--For purposes of this subsection, the 
        terms ``dealer'' and ``held by a dealer'' have the respective 
        meanings given to such terms by section 6412 of such Code.
            (5) 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 subsection.
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