[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1980 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1980

   To amend the Internal Revenue Code of 1986 to reduce the highway 
    gasoline excise tax rate by 6.8 cents per gallon, the rate that 
   originally was enacted to reduce the deficit but which remains in 
       effect as a source of funding for the Highway Trust Fund.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 24, 2001

   Mr. Hyde 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 reduce the highway 
    gasoline excise tax rate by 6.8 cents per gallon, the rate that 
   originally was enacted to reduce the deficit but which remains in 
       effect as a source of funding for the Highway Trust Fund.

    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 ``Gas Tax Reduction Act of 2001''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) Excessive taxation is a significant contributing factor 
        to high gasoline prices.
            (2) In 1990 the Federal motor fuel taxes increased by 5 
        cents per gallon. 2.5 cents was dedicated to the Highway Trust 
        Fund and 2.5 cents was dedicated to deficit reduction. This 
        increased the gasoline tax to 14.1 cents per gallon.
            (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.
            (4) The revenue raised by the 1990 2.5 cents increase and 
        the 1993 gas tax increase were originally earmarked for deficit 
        reduction. Now that the deficit has been eliminated, Congress 
        should repeal the 6.8 cents gas tax increase.
    (b) Purpose.--It is the purpose of this Act to provide immediate 
financial relief to motorists by reducing the federal tax on gasoline 
by 6.8 cents per gallon.

SEC. 3. REDUCTION OF HIGHWAY GASOLINE EXCISE TAX RATE BY 6.8 CENTS PER 
              GALLON.

    (a) In General.--Clause (i) of section 4081(a)(2)(A) of the 
Internal Revenue Code of 1986 is amended by striking ``18.3 cents'' and 
inserting ``11.5 cents''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.
    (c) Floor Stock Refunds.--
            (1) In general.--If--
                    (A) 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 gasoline, and
                    (B) on such date such gasoline 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 gasoline 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 gasoline 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 gasoline 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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