[Congressional Record Volume 143, Number 33 (Friday, March 14, 1997)]
[Senate]
[Page S2324]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CHAFEE (for himself and Mr. Dodd):
  S. 444. A bill to amend the Internal Revenue Code to impose a tax on 
the manufacture and importation of tires, and for other purposes; to 
the Committee on Finance.


                            tax legislation

  Mr. CHAFEE. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 444

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXCISE TAX ON MANUFACTURE AND IMPORTATION OF 
                   TIRES.

       (a) In General.--Chapter 38 of the Internal Revenue Code of 
     1986 (relating to environmental taxes) is amended by adding 
     at the end the following:

                      ``Subchapter E--Tax on Tires

``Sec. 4691. Imposition of tax.

     ``SEC. 4691. IMPOSITION OF TAX.

       ``(a) General Rule.--There is imposed a tax on the 
     manufacture or importation of tires of any type, including 
     solid and pneumatic tires.
       ``(b) Amount of Tax.--The amounts of the tax imposed by 
     subsection (a) shall be 50 cents per tire.
       ``(c) Liability for Tax.--The tax imposed by subsection (a) 
     shall be paid by the manufacturer or importer of the tire not 
     later than 30 days after the end of each calendar quarter for 
     each tire manufactured or imported during such quarter.
       ``(d) Tires on Imported Articles.--For purposes of 
     subsection (a), if an article imported into the United States 
     is equipped with tires, the importer of the article shall be 
     treated as the importer of the tires with which such article 
     is equipped.
       ``(e) Effective Date.--The tax imposed by this section 
     shall apply to tires manufactured or imported after December 
     31, 1997, and before January 1, 2003.''.
       ``(b) Conforming Amendment.--The table of subchapters for 
     chapter 38 of such Code is amended by adding after the item 
     relating to subchapter D the following:
``Subchapter E. Tax on tires.''.

     SEC. 2. ESTABLISHMENT OF TIRE RECYCLING, ABATEMENT, AND 
                   DISPOSAL TRUST FUND.

       ``(a) In General.--Subchapter A of chapter 98 of the 
     Internal Revenue Code of 1986 (relating to the establishment 
     of trust funds) is amended by adding after section 951 the 
     following:

     ``SEC. 9512. WASTE TIRE RECYCLING, ABATEMENT, AND DISPOSAL 
                   TRUST FUND.

       ``(a) Creation of Trust Fund.--There is established in the 
     Treasury of the United States a trust fund to be known as the 
     ``Waste Tire Recycling, Abatement, and Disposal Trust Fund'' 
     consisting of such amounts as may be appropriated or credited 
     to such Trust Fund as provided in this section or section 
     9602(b).
       ``(b) Transfers to Trust Fund.--There are appropriated to 
     the Waste Tire Recycling, Abatement, and Disposal Trust Fund 
     amounts equivalent to--
       ``(1) taxes received in the Treasury under section 4691 
     (relating to an assessment on motor vehicles tires); and
       ``(2) amounts received in the Treasury and collected under 
     section 4011 of the Solid Waste Disposal Act.
       ``(c) Expenditures.--Amounts in the Waste Tire Recycling, 
     Abatement, and Disposal Trust Fund shall be available, as 
     provided in appropriation Acts, only for the purpose of 
     making expenditures to carry out the purposes of section 
     4011 of the Solid Waste Disposal Act.
       ``(d) Authority To Borrow.--
       ``(1) In general.--There are authorized to be appropriated 
     to the Waste Tire Recycling, Abatement, and Disposal Trust 
     Fund, as repayable advances, such sums as may be necessary to 
     carry out the purposes of section 4011(k) of the Solid Waste 
     Disposal Act.
       ``(2) Limitation on aggregate advances.--The maximum 
     aggregate amount of repayable advances to the Waste Tire 
     Recycling, Abatement, and Disposal Trust Fund which is 
     outstanding at any one time shall not exceed an amount equal 
     to the amount which the Secretary estimates will be equal to 
     the sum of the amounts received from the tax imposed by 
     section 4691 during any 2-year period.
       ``(3) Repayment of advances.--
       ``(A) In general.--Advances made to the Waste Tire 
     Recycling, Abatement, and Disposal Trust Fund shall be 
     repaid, and interest on such advances shall be paid, to the 
     general fund of the Treasury when the Secretary determines 
     that moneys are available for such purposes in the Waste Tire 
     Recycling, Abatement, and Disposal Trust Fund.
       ``(B) Date for termination and advances.--No advance shall 
     be paid to the Trust Fund after December 31, 2001 and all 
     advances to the Trust Fund shall be repaid on or before such 
     date.
       ``(C) Interest rate on advances.--Interest on advances made 
     to the Trust Fund shall be at a rate determined by the 
     Secretary to be equal to the current market yield on 
     outstanding marketable obligations of the United States with 
     remaining periods to maturity comparable to the anticipated 
     period during which the advance will be outstanding, and 
     shall be compounded annually.''.
       (b) Conforming Amendment.--The table of sections for 
     subchapter A of chapter 98 of such Code is amended by adding 
     after the item relating to section 9511 the following:

``Sec. 9511. Waste Tire Recycling, Abatement, and Disposal Trust 
              Fund.''.
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