[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 251 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 251

To amend the Internal Revenue Code of 1986 to repeal the 4.3-cent motor 
fuel excise taxes on railroads and inland waterway transportation which 
              remain in the general fund of the Treasury.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 30, 2003

 Mr. Lott (for himself and Mr. Breaux) 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 repeal the 4.3-cent motor 
fuel excise taxes on railroads and inland waterway transportation which 
              remain in the general fund of the Treasury.

    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 ``Transportation Tax Equity and 
Fairness Act''.

SEC. 2. REPEAL OF 4.3-CENT MOTOR FUEL EXCISE TAXES ON RAILROADS AND 
              INLAND WATERWAY TRANSPORTATION WHICH REMAIN IN GENERAL 
              FUND.

    (a) Taxes on Trains.--
            (1) In general.--Subparagraph (A) of section 4041(a)(1) of 
        the Internal Revenue Code of 1986 (relating to tax on diesel 
        fuel in certain cases) is amended--
                    (A) by striking ``or a diesel-powered train'' in 
                clauses (i) and (ii), and
                    (B) by striking ``or train'' in clause (i).
            (2) Conforming amendments.--
                    (A) Subparagraph (C) of section 4041(a)(1) of such 
                Code is amended by striking clause (ii) and by 
                redesignating clause (iii) as clause (ii).
                    (B) 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.
                    (C) 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.''.
                    (D) 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''.
                    (E) Paragraph (3) of section 4083(a) of such Code 
                is amended by striking ``or a diesel-powered train''.
                    (F) 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.''.
                    (G) 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.''.
    (b) Fuel Used on Inland Waterways.--
            (1) In general.--Paragraph (1) of section 4042(b) of the 
        Internal Revenue Code of 1986 (relating to amount of tax) 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) Conforming amendment.--Paragraph (2) of section 4042(b) 
        of such Code is amended by striking subparagraph (C).
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2003.
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