[Congressional Record Volume 141, Number 62 (Tuesday, April 4, 1995)]
[Senate]
[Page S5159]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                               DIESEL TAX

 Mr. GORTON. Mr. President, I am pleased to join my 
distinguished colleagues, Senator Breaux and Senator Chafee, by 
cosponsoring S. 478, a bill that will correct the diesel fuel problem 
affecting the boating community, ports, and marinas in my home State of 
Washington and across the nation.
  The problem results from the 24.4 cents per gallon tax imposed by the 
Omnibus Budget Reconciliation Act of 1993 on diesel fuel used in 
recreational boats. The bill mandated two types of fuel: clear, taxable 
fuel used in recreational boats and dyed, nontaxable fuel used in 
commercial boats. By law, the dyed nontaxable commercial diesel fuel 
cannot be sold to the recreational boaters.
  These changes have wreaked havoc on the boating communities in 
Washington State. Many marinas are not equipped with the two separate 
tanks necessary to store the two different types of fuel. Unable to 
afford the exorbitant expense of new fuel tanks and dispensing 
equipment, these marinas are faced with the difficult choice of whether 
to sell only dyed fuel, tax free to commercial vessels, or taxable, 
clear fuel, to recreational vessels.
  Since many marinas rely on commercial boats for a majority of their 
business, they choose to sell diesel fuel to commercial vessels. This 
leads to a severe shortage of diesel fuel available to recreational 
boaters.
  This is not only a problem for recreational boaters, but also for 
marinas, which are forced to turn away part of their consumer base. 
These regulations do not promote jobs and economic opportunities for 
the employees of these businesses. It is outrageous for a small 
business owner to have to turn away good business.
  Faced with a severe shortage of fuel, recreational boaters are forced 
to travel hundreds of miles to find fuel. This creates a safety hazard, 
as boaters could end up stranded on their way to find fuel or be 
required to carry large amounts of extra fuel on board.
  Last year, I introduced an amendment that would have temporarily 
resolved the burdensome problem facing boaters and marinas. The 
amendment passed overwhelmingly in the Senate, but, unfortunately, was 
killed in the House. Therefore, we have the same problem today as we 
did last summer. The only way to permanently fix this problem is to 
pass S. 478.
  S. 478 will allow marinas to purchase the dyed fuel, collect the tax 
from the recreational boaters and pay the tax directly to the 
Government. It will solve the problem of inadequate fuel facilities for 
recreational boaters and remedy the problems faced by marinas and 
ports.
  With the boating season soon approaching, we need to correct this 
problem now. That is why I cosponsored S. 478. I encourage my 
colleagues to keep me pass this bill and bring relief to our boating 
communities.


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