[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 878 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 878

To amend the Internal Revenue Code of 1986 to prorate the heavy vehicle 
use tax between the first and subsequent purchasers of the same vehicle 
                         in one taxable period.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 15, 2001

  Mr. Inhofe introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to prorate the heavy vehicle 
use tax between the first and subsequent purchasers of the same vehicle 
                         in one taxable period.

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

SECTION 1. PRORATION OF HEAVY VEHICLE USE TAX BETWEEN PURCHASERS OF 
              SAME VEHICLE.

    (a) In General.--Section 4481(c) of the Internal Revenue Code of 
1986 (relating to proration of tax) is amended by adding at the end the 
following new paragraph:
            ``(3) Where vehicle sold.--
                    ``(A) In general.--If in any taxable period a 
                highway motor vehicle is sold before the last day in 
                such period by the person who paid the tax imposed by 
                this section for any portion of such period ending with 
                such last day, the tax shall be reckoned 
                proportionately between such person and the purchaser 
                from the date of the sale.
                    ``(B) Treatment of taxpayer.--In the case of a 
                person described in subparagraph (A), that portion of 
                the tax imposed by this section so reckoned from the 
                date of the sale shall be credited or refunded (without 
                interest) to such person.
                    ``(C) Treatment of purchaser.--In the case of the 
                purchaser described in subparagraph (A), the tax 
                imposed by this section shall be reckoned from the date 
                of the sale to and including the last day in the 
                taxable period.''.
    (b) Conforming Amendments.--
            (1) Section 4481(c)(1) of the Internal Revenue Code of 1986 
        is amended by striking ``If'' and inserting ``Except as 
        provided in paragraph (3), if''.
            (2) Section 4481(d)(1) of such Code is amended by striking 
        ``To'' and inserting ``Except as provided in subsection (c)(3), 
        to''.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales occurring after the date of the enactment of this Act.
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