[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5240 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5240

To amend the Internal Revenue Code of 1986 to suspend the excise tax on 
 highway motor fuels when average United States retail gasoline prices 
                        exceed $2.75 per gallon.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 27, 2006

  Mr. McHugh 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 suspend the excise tax on 
 highway motor fuels when average United States retail gasoline prices 
                        exceed $2.75 per gallon.

    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 ``Gasoline Tax Relief Act of 2006''.

SEC. 2. SUSPENSION OF FUEL TAXES ON HIGHWAY MOTOR FUELS WHEN WEEKLY 
              UNITED STATES RETAIL GASOLINE PRICES EXCEED BENCHMARK.

    (a) In General.--Section 4081 of the Internal Revenue Code of 1986 
(relating to imposition of tax on motor and aviation fuels) is amended 
by adding at the end the following new subsection:
    ``(f) Suspension of Highway Motor Fuel Taxes When Retail Gasoline 
Exceeds Benchmark.--
            ``(1) In general.--During any suspension period, the tax 
        imposed by section 4041 or 4081 on highway motor fuel shall be 
        suspended.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Suspension period.--The term `suspension 
                period' means--
                            ``(i) the 60-day period beginning 7 days 
                        after the date of enactment of this subsection, 
                        and
                            ``(ii) after such 60-day period, any 
                        period--
                                    ``(I) beginning 7 days after the 
                                date on which the weekly United States 
                                retail gasoline price for regular grade 
                                conventional areas (as published by the 
                                Energy Information Administration, 
                                Department of Energy), inclusive of 
                                such tax, is greater than the benchmark 
                                price, and
                                    ``(II) ending 7 days after the date 
                                on which such price (as so published), 
                                without regard to this subsection, does 
                                not exceed the benchmark price.
                    ``(B) Benchmark price.--For purposes of this 
                subsection--
                            ``(i) In general.--The term `benchmark 
                        price' means $2.75 per gallon.
                            ``(ii) Adjustment for inflation.--In the 
                        case of any calendar year beginning after 2006, 
                        the dollar amount in clause (i) shall be 
                        increased by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for such calendar year, 
                                determined by substituting `calendar 
                                year 2005' for `calendar year 1992' in 
                                subparagraph (B) thereof.
                        Any increase determined under subclause (II) 
                        shall be rounded to the nearest cent.
                    ``(C) Highway motor fuel.--The term `highway motor 
                fuel' means any fuel subject to tax under section 4041 
                or 4081 other than aviation gasoline and aviation-grade 
                kerosene.''.
    (b) Maintenance of Trust Funds Deposits; Amounts Appropriated to 
Trust Funds Treated as Taxes.--
            (1) In general.--There is hereby appropriated (out of any 
        money in the Treasury not otherwise appropriated) to each trust 
        fund which would (but for this subsection) receive reduced 
        revenues as a result of a suspension in a rate of tax by reason 
        of section 4081(f)(1) of the Internal Revenue Code of 1986 (as 
        added by this section) an amount equal to such reduction in 
        revenues. Amounts appropriated by the preceding sentence to any 
        trust fund--
                    (A) shall be transferred from the general fund at 
                such times and in such manner as to replicate to the 
                extent possible the transfers which would have occurred 
                had subsection (a) not been enacted, and
                    (B) shall be treated for all purposes of Federal 
                law as taxes received under the appropriate section 
                referred to in such section 4081(f)(1).
    (c) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.
    (d) Floor Stock Refunds.--
            (1) In general.--If--
                    (A) before the tax suspension date, tax has been 
                imposed under section 4081 of the Internal Revenue Code 
                of 1986 on any highway motor fuel, and
                    (B) on such date such fuel 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 tax which would be imposed on 
        such fuel 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 tax suspension date based on a request submitted to 
                the taxpayer before the date which is 3 months after 
                the tax suspension date by the dealer who held the 
                highway motor fuel on such date, 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 highway motor fuel in retail stocks held at the place where 
        intended to be sold at retail.
            (4) Definitions.--For purposes of this subsection--
                    (A) Tax suspension date.--The term ``tax suspension 
                date'' means the first day of any suspension period in 
                effect under section 4081(f) of the Internal Revenue 
                Code of 1986 (as added by subsection (a) of this 
                section).
                    (B) Other terms.--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.
    (e) Floor Stocks Tax.--
            (1) Imposition of tax.--In the case of any highway motor 
        fuel which is held on the tax restoration date by any person, 
        there is hereby imposed a floor stocks tax equal to the excess 
        of the tax which would be imposed on such fuel had the taxable 
        event occurred on such date over the tax (if any) previously 
        paid (and not credited or refunded) on such fuel.
            (2) Liability for tax and method of payment.--
                    (A) Liability for tax.--The person holding highway 
                motor fuel on the tax restoration date to which the tax 
                imposed by paragraph (1) applies shall be liable for 
                such tax.
                    (B) Method of payment.--The tax imposed by 
                paragraph (1) shall be paid in such manner as the 
                Secretary shall prescribe.
                    (C) Time for payment.--The tax imposed by paragraph 
                (1) shall be paid on or before the 45th day after the 
                tax restoration date.
            (3) Definitions.--For purposes of this subsection--
                    (A) Tax restoration date.--The term ``tax 
                restoration date'' means the first day after the end of 
                any suspension period (as defined in section 4081(f) of 
                the Internal Revenue Code of 1986).
                    (B) Highway motor fuel.--The term ``highway motor 
                fuel'' has the meaning given to such term by section 
                4081(f) of such Code.
                    (C) Held by a person.--A highway motor fuel shall 
                be considered as held by a person if title thereto has 
                passed to such person (whether or not delivery to the 
                person has been made).
                    (D) Secretary.--The term ``Secretary'' means the 
                Secretary of the Treasury or the Secretary's delegate.
            (4) Exception for exempt uses.--The tax imposed by 
        paragraph (1) shall not apply to any highway motor fuel held by 
        any person exclusively for any use to the extent a credit or 
        refund of the tax is allowable for such use.
            (5) Exception for certain amounts of fuel.--
                    (A) In general.--No tax shall be imposed by 
                paragraph (1) on any highway motor fuel held on the tax 
                restoration date by any person if the aggregate amount 
                of such highway motor fuel held by such person on such 
                date does not exceed 2,000 gallons. The preceding 
                sentence shall apply only if such person submits to the 
                Secretary (at the time and in the manner required by 
                the Secretary) such information as the Secretary shall 
                require for purposes of this subparagraph.
                    (B) Exempt fuel.--For purposes of subparagraph (A), 
                there shall not be taken into account any highway motor 
                fuel held by any person which is exempt from the tax 
                imposed by paragraph (1) by reason of paragraph (4).
                    (C) Controlled groups.--For purposes of this 
                subsection--
                            (i) Corporations.--
                                    (I) In general.--All persons 
                                treated as a controlled group shall be 
                                treated as 1 person.
                                    (II) Controlled group.--The term 
                                ``controlled group'' has the meaning 
                                given to such term by subsection (a) of 
                                section 1563 of such Code; except that 
                                for such purposes the phrase ``more 
                                than 50 percent'' shall be substituted 
                                for the phrase ``at least 80 percent'' 
                                each place it appears in such 
                                subsection.
                            (ii) Nonincorporated persons under common 
                        control.--Under regulations prescribed by the 
                        Secretary, principles similar to the principles 
                        of subparagraph (A) shall apply to a group of 
                        persons under common control if 1 or more of 
                        such persons is not a corporation.
            (6) Other laws applicable.--All provisions of law, 
        including penalties, applicable with respect to the taxes 
        imposed by section 4081 of such Code shall, insofar as 
        applicable and not inconsistent with the provisions of this 
        subsection, apply with respect to the floor stock taxes imposed 
        by paragraph (1) to the same extent as if such taxes were 
        imposed by such section.
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