[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3982 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 3982

To amend the Internal Revenue Code of 1986 to repeal the 30-percent tax 
increase on highway gasoline, diesel fuel, and kerosene imposed by the 
                             1993 tax bill.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 15, 2000

   Mr. Cox 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 30-percent tax 
increase on highway gasoline, diesel fuel, and kerosene imposed by the 
                             1993 tax bill.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Emergency Tax Relief for Motorists 
and Truckers Act of 2000''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) Excessive taxation is a significant contributing factor 
        to high gasoline and diesel fuel prices.
            (2) Over the last decade, governments are in fact directly 
        responsible for the entirety of the increase in retail gasoline 
        prices. While the before-tax cost of a gallon of gasoline 
        actually declined from 1990 to 1999, State gas taxes were 
        increased by 40 percent, and the Federal gas tax was increased 
        by 100 percent.
            (3) The 1993 tax bill boosted Federal motor fuel taxes by 
        4.3 cents per gallon. It increased the gasoline tax to 18.4 
        cents per gallon, and the diesel fuel tax to 24.4 cents per 
        gallon.
            (4) Federal and State gas taxes are responsible for nearly 
        one-third of the average pump price, according to the United 
        States Department of Energy figures. Federal and State gas 
        taxes now average 42 cents per gallon of gasoline, and 48 cents 
        per gallon of diesel fuel.
            (5) The revenue raised by the 1993 gas tax increase was 
        originally earmarked for deficit reduction. Now that the 
        deficit has been eliminated, Congress should repeal the 4.3-
        cent motor fuel tax increase.
            (6) Repeal of the 1993 motor fuel tax increase will 
        disproportionately benefit low- and middle-income working 
        families. According to one estimate, 23 percent of all gas 
        taxes are paid by working men and women earning less than 
        $20,000 annually. The average American family pays $660 a year 
        in Federal and State gas taxes.
            (7) Repeal of the 1993 motor fuel tax increase will benefit 
        all Americans by reducing the cost of shipping food and other 
        goods over long distances.
    (b) Purpose.--It is the purpose of this Act to provide immediate 
financial relief to motorists and truckers by reducing all motor fuel 
taxes by 4.3 cents per gallon by repealing the 1993 tax increase.

SEC. 3. REPEAL OF 4.3-CENT INCREASE IN HIGHWAY GASOLINE, DIESEL FUEL, 
              AND KEROSENE ENACTED BY THE OMNIBUS BUDGET RECONCILIATION 
              ACT OF 1993.

    (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) 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''.
    (c) Technical Amendments.--
            (1) Subparagraph (B) of section 40(e)(1) of such Code is 
        amended by striking ``are 4.3 cents per gallon'' and inserting 
        ``are zero''.
            (2) 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''.
            (3) Subparagraph (C) of section 4041(a)(1) of such Code is 
        amended by striking clause (ii) and by redesignating clause 
        (iii) as clause (ii).
            (4) 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''.
            (5) Subsection (a) of section 4041 of such Code is amended 
        by striking paragraph (3).
            (6) 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.
            (7) 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.''
            (8) Subsection (d) of section 4041 of such Code is amended 
        by redesignating paragraph (3) as paragraph (4) and by 
        inserting after paragraph (2) the following new paragraph:
            ``(3) Diesel fuel used in trains.--There is hereby imposed 
        a tax of 0.1 cent per gallon on any liquid other than gasoline 
        (as defined in section 4083)--
                    ``(A) sold by any person to an owner, lessee, or 
                other operator of a diesel-powered train for use as a 
                fuel in such train, or
                    ``(B) used by any person as a fuel in a diesel-
                powered train unless there was a taxable sale of such 
                fuel under subparagraph (A).
        No tax shall be imposed by this paragraph on the sale or use of 
        any liquid if tax was imposed on such liquid under section 
        4081.''
            (9) 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''.
            (10) 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.
            (11) Paragraphs (1) and (2) of section 4081(d) of such Code 
        (as amended by section 3) are each amended by striking ``4.3 
        cents per gallon'' and inserting ``zero''.
            (12) Subsection (f) of section 4082 of such Code is amended 
        by striking ``section 4041(a)(1)'' and inserting ``subsections 
        (d)(3) and (a)(1) of section 4041, respectively''.
            (13) Paragraph (3) of section 4083(a) of such Code is 
        amended by striking ``or a diesel-powered train''.
            (14) 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.''
            (15) Subparagraph (A) of section 6427(b)(2) of such Code is 
        amended by striking ``7.4 cents'' and inserting ``3.1 cents''.
            (16) 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 tax imposed by 
        section 4041(d) and 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.''
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 4. FLOOR STOCK REFUNDS.

    (a) In General.--If--
            (1) before the date of the enactment of this Act, tax has 
        been imposed under section 4081 of the Internal Revenue Code of 
        1986 on any liquid, 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 such 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 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
            (2) 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, the terms 
``dealer'' and ``held by a dealer'' have the respective meanings given 
to such terms by section 6412 of such Code.
    (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.
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