[Congressional Record Volume 141, Number 97 (Wednesday, June 14, 1995)]
[Extensions of Remarks]
[Page E1238]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


INTRODUCTION OF LEGISLATION TO CORRECT THE IMPLEMENTATION OF THE MARINE 
                            DIESEL FUEL TAX

                                 ______


                             HON. SAM FARR

                             of california

                    in the house of representatives

                         Tuesday, June 13, 1995
  Mr. FARR. Mr. Speaker, I rise today to call attention to an issue of 
great importance to the boating community nationwide; the problems 
caused by the marine diesel fuel tax provisions imposed under the 
Omnibus Reconciliation Act of 1993.
  Under this provision, two types of marine diesel fuel are available 
to boaters. Clear, taxable fuel is offered for sale to recreational 
boaters, while blue-dyed non-taxable diesel fuel is offered for sale to 
commercial boaters. In effect, this provision forces commercial vendors 
of marine diesel fuel to either dispense two types of diesel fuel which 
must be stored in separate tanks, often at the unnecessary and 
excessively burdensome cost of building an additional tank, or to offer 
only one type of diesel fuel, usually the dyed, which is not readily 
available for sale to pleasure boaters.
  While this tax provision was meant to ensure that recreational 
boaters pay their fair share of marine diesel fuel taxes, it has 
instead created a disastrous situation where many recreational boaters 
cannot find clear, non-dyed taxable fuel for their use. This provision 
often forces boaters to travel long, often perilous distances at sea, 
in the search for diesel fuel.
  I am offering a practical solution to this problem. My bill would 
amend the marine diesel fuel tax provision to all boaters, both 
commercial and recreational, to purchases dyed diesel fuel and pay 
applicable taxes at the pump. The bill would make it easier for fuel 
vendors to offer taxable fuel for sale while making it easier and safer 
for recreational boaters to purchase this fuel. The greater 
availability of dyed diesel fuel could even lead to an increase in 
current revenues to the United States Treasury. Commercial boaters 
would remain exempted from this tax.
  Mr. Speaker, this problem is not specific to one particular district 
or State. Boaters nationwide are suffering from the unavailability of 
diesel fuel at local marinas. I urge my colleagues in the House to act 
on this legislation as soon as possible to ensure safe and fair access 
to diesel fuel for all boaters.


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