I 111th CONGRESS 2d Session H. R. 6312 IN THE HOUSE OF REPRESENTATIVES September 29, 2010 Mr. Blumenauer 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 excise tax on heavy trucks and trailers, and for other purposes.

1.

Short title

This Act may be cited as the Heavy Truck Tax Fairness Act of 2010.

2.

Repeal of excise tax on heavy trucks and trailers

(a)

In general

Chapter 31 of the Internal Revenue Code of 1986 (relating to retail excise taxes) is amended by striking subchapter C (relating to heavy trucks and trailers). (b)

Conforming amendments

(1)Section 4002(d)(2) of such Code is amended by inserting (as in effect be the date of the enactment of the Heavy Truck Tax Fairness Act of 2010) after section 4052(b). (2)Section 4072(c) of such Code is amended by inserting (as in effect be the date of the enactment of the Heavy Truck Tax Fairness Act of 2010) after section 4053(8). (3)Section 4221 of such Code is amended— (A)in subsection (a) by striking 4051, or, and (B)in subsection (c) by striking , 4001(d) or 4053(6) and inserting or 4001(d). (4)Section 4222(d) of such Code is amended by striking 4053(6),. (5)Section 4293 of such Code is amended by striking section 4051,. (6)Section 6416(b)(6) of such Code is amended— (A)in subparagraph (A) by inserting on or before the date of the enactment of Heavy Truck Tax Fairness Act of 2010 after section 4051, and (B)in subparagraph (B) by inserting on or before such date after section 4051. (7)Section 9503(b)(1) of such Code is amended by striking subparagraph (B) and redesignating subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (D), respectively. (8)The table of subchapters for chapter 31 of such Code is amended by striking the item relating to subchapter C. (c)

Effective date

The amendments made by this section shall apply to articles sold by the manufacturer, producer, or importer after the date of the enactment of this Act.

3.

Increase in tax on diesel fuel or kerosene

(a)

In general

(1)Clause (iii) of section 4081(a)(2)(A) of the Internal Revenue Code of 1986 is amended by striking 24.3 cents and inserting 31.6 cents. (2)

Effective date

The amendment made by paragraph (1) shall apply to fuel removed, entered, or sold after the date of the enactment of this Act. (b)

Floor stocks tax

(1)

Imposition of tax

In the case of any taxable liquid which is held on the floor stocks tax 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 liquid under section 4041 or 4081 of the Internal Revenue Code of 1986 had the taxable event occurred on the floor stocks tax date over the tax paid under any such section on such liquid. (2)

Liability for tax and method of payment

(A)

Liability for tax

A person holding a liquid on the floor stocks tax 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 of payment

The tax imposed by paragraph (1) shall be paid on or before the date which is 6 months after the floor stocks tax date. (3)

Definitions

For purposes of this subsection— (A)

Held by a person

A liquid 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). (B)

Taxable liquid

The term taxable liquid means diesel fuel and kerosene (other than aviation-grade kerosene). (C)

Floor stocks date

The term floor stocks tax date means the date of the enactment of this Act. (D)

Secretary

The term Secretary means the Secretary of the Treasury. (4)

Exception for exempt uses

The tax imposed by paragraph (1) shall not apply to taxable liquid held by any person exclusively for any use to the extent a credit or refund of the tax imposed by a section of such Code is allowable for such use. (5)

Exception for fuel held in vehicle tank

No tax shall be imposed by paragraph (1) on taxable liquid held in the tank of a motor vehicle or motorboat. (6)

Exception for certain amounts of fuel

(A)

In general

No tax shall be imposed by paragraph (1) on any liquid held on the floor stocks tax date by any person if the aggregate amount of liquid 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 (1), there shall not be taken into account fuel held by any person which is exempt from the tax imposed by paragraph (1) by reason of paragraph (4) or (5). (C)

Controlled groups

For purposes of this section— (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 clause (i) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation. (7)

Other laws applicable

All provisions of law, including penalties, applicable with respect to the taxes imposed by chapter 31 or 32 of such Code shall, insofar as applicable and not inconsistent with the provisions of this section, apply with respect to the floor stock taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such chapter.