[Congressional Record Volume 146, Number 82 (Monday, June 26, 2000)]
[Senate]
[Pages S5812-S5813]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. HUTCHISON:
  S. 2791. A bill instituting a Federal fuels tax suspension; to the 
Committee on Finance.


              the federal fuels tax suspension act of 2000

  Mrs. HUTCHISON. 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. 2791

       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 ``Federal Fuels Tax Suspension 
     Act of 2000''.

     SEC. 2. TEMPORARY REDUCTION IN FUEL TAXES ON GASOLINE, DIESEL 
                   FUEL, KEROSENE, AND SPECIAL FUELS TO ZERO.

       (a) In General.--Section 4081 of the Internal Revenue Code 
     of 1986 (relating to imposition of tax on gasoline, diesel 
     fuel, and kerosene) is amended by adding at the end the 
     following new subsection:
       ``(f) Temporary Reduction in Taxes on Gasoline, Diesel 
     Fuel, Kerosene, and Special Fuels.--
       ``(1) In general.--During the applicable period, each rate 
     of tax referred to in paragraph (2) shall be reduced to zero.
       ``(2) Rates of tax.--The rates of tax referred to in this 
     paragraph are the rates of tax otherwise applicable under--
       ``(A) clauses (i) and (iii) of subsection (a)(2)(A) 
     (relating to gasoline, diesel fuel, and kerosene), and
       ``(B) paragraphs (1), (2), and (3) of section 4041(a) 
     (relating to diesel fuel and special fuels) and section 
     4041(m) (relating to certain alcohol fuels) with respect to 
     fuel sold for use or used in a highway vehicle.
       ``(3) Special Reduction Rules.--In the case of a reduction 
     under paragraph (1)--
       ``(A) subsection (c) shall be applied without regard to 
     paragraph (6) thereof,
       ``(B) section 40(e)(1) shall be applied without regard to 
     subparagraph (B) thereof,
       ``(C) section 4041(d)(1) shall be applied by disregarding 
     `if tax is imposed by subsection (a)(1) or (2) on such sale 
     or use', and
       ``(D) section 6427(b) shall be applied without regard to 
     paragraph (2) thereof.
       ``(4) Protecting Social Security Trust Fund.--If the 
     Secretary, after consultation with the Director of the Office 
     of Management and Budget, determines that such reduction 
     would result in an aggregate reduction in revenues to the 
     Treasury exceeding the Federal on-budget surplus during the 
     remainder of the applicable period, the Secretary shall 
     modify such reduction such that each rate of tax referred to 
     in paragraph (2) is reduced in a pro rata manner and such 
     aggregate reduction does not exceed such surplus.
       ``(5) Maintenance of trust fund deposits.--In determining 
     the amounts to be appropriated to the Highway Trust Fund 
     under section 9503 an amount equal to the reduction in 
     revenues to the Treasury by reason of this subsection shall 
     be treated as taxes received in the Treasury under this 
     section.
       ``(6) Applicable period.--For purposes of this subsection, 
     the term `applicable period' means the period beginning after 
     June 25, 2000, and ending before September 5, 2000.''
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 3. FLOOR STOCK REFUNDS.

       (a) In General.--If--
       (1) before the tax reduction date, tax has been imposed 
     under section 4081 of the Internal Revenue Code of 1986 on 
     any liquid, and
       (2) on such date such liquid 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 section referred 
     to as the ``taxpayer'') an amount equal to the excess of the 
     tax paid by the taxpayer over the amount of such tax which 
     would be imposed on such liquid had the taxable event 
     occurred on the tax reduction date.
       (b) Time for Filing Claims.--No credit or refund shall be 
     allowed or made under this section unless--
       (1) claim therefor is filed with the Secretary of the 
     Treasury before the date which is 6 months after the tax 
     reduction date, and
       (2) in any case where liquid is held by a dealer (other 
     than the taxpayer) on the tax reduction date--
       (A) the dealer submits a request for refund or credit to 
     the taxpayer before the date which is 3 months after the tax 
     reduction 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.
       (c) Exception for Fuel Held in Retail Stocks.--No credit or 
     refund shall be allowed under this section with respect to 
     any liquid in retail stocks held at the place where intended 
     to be sold at retail.
       (d) Definitions.--For purposes of this section--
       (1) the terms ``dealer'' and ``held by a dealer'' have the 
     respective meanings given to such terms by section 6412 of 
     such Code; except that the term ``dealer'' includes a 
     producer, and
       (2) the term ``tax reduction date'' means June 26, 2000.
       (e) 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 section.

     SEC. 4. FLOOR STOCKS TAX.

       (a) Imposition of Tax.--In the case of any liquid on which 
     tax would have been imposed under section 4081 of the 
     Internal Revenue Code of 1986 during the applicable period 
     but for the amendments made by this Act, and which is held on 
     the floor stocks tax date by any person, there is hereby 
     imposed a floor stocks tax in an amount equal to the tax 
     which would be imposed on such liquid had the taxable event 
     occurred on the floor stocks tax date.
       (b) Liability for Tax and Method of Payment.--
       (1) Liability for tax.--A person holding a liquid on the 
     floor stocks tax date to which the tax imposed by subsection 
     (a) applies shall be liable for such tax.
       (2) Method of payment.--The tax imposed by subsection (a) 
     shall be paid in such manner as the Secretary of the Treasury 
     shall prescribe.
       (3) Time for payment.--The tax imposed by subsection (a) 
     shall be paid on or before the date which is 6 months after 
     the floor stocks tax date.
       (c) Definitions.--For purposes of this section--
       (1) 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).
       (2) Floor stocks tax date.--The term ``floor stocks tax 
     date'' means September 5, 2000.
       (3) Applicable period.--The term ``applicable period'' 
     means the period beginning after June 25, 2000, and ending 
     before September 5, 2000.
       (d) Exception for Exempt Uses.--The tax imposed by 
     subsection (a) shall not apply to any liquid held by any 
     person exclusively for any use to the extent a credit or 
     refund of the tax imposed by section 4081 of such Code is 
     allowable for such use.
       (e) Exception for Fuel Held in Vehicle Tank.--No tax shall 
     be imposed by subsection (a) on any liquid held in the tank 
     of a motor vehicle.

[[Page S5813]]

       (f) Exception for Certain Amounts of Fuel.--
       (1) In general.--No tax shall be imposed by subsection 
     (a)--
       (A) on gasoline (as defined in section 4083 of such Code) 
     held on the floor stocks tax date by any person if the 
     aggregate amount of gasoline held by such person on such date 
     does not exceed 4,000 gallons, and
       (B) on diesel fuel or kerosene (as so defined) held on such 
     date by any person if the aggregate amount of diesel fuel or 
     kerosene 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 paragraph.
       (2) Exempt fuel.--For purposes of paragraph (1), there 
     shall not be taken into account fuel held by any person which 
     is exempt from the tax imposed by subsection (a) by reason of 
     subsection (d) or (e).
       (3) Controlled groups.--For purposes of this subsection--
       (A) 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.
       (B) 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 where 1 or more of such 
     persons is not a corporation.
       (g) Other Law 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 
     subsection (a) to the same extent as if such taxes were 
     imposed by such section 4081.

     SEC. 5. BENEFITS OF TAX REDUCTION SHOULD BE PASSED ON TO 
                   CONSUMERS.

       (a) Passthrough to Consumers.--
       (1) Sense of congress.--It is the sense of Congress that--
       (A) consumers immediately receive the benefit of the 
     reduction in taxes under this Act, and
       (B) transportation motor fuels producers and other dealers 
     take such actions as necessary to reduce transportation motor 
     fuels prices to reflect such reduction, including immediate 
     credits to customer accounts representing tax refunds allowed 
     as credits against excise tax deposit payments under the 
     floor stocks refund provisions of this Act.
       (2) Study.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct a study of the reduction of taxes under 
     this Act to determine whether there has been a passthrough of 
     such reduction.
       (B) Report.--Not later than September 30, 2000, the 
     Comptroller General of the United States shall report to the 
     Committee on Finance of the Senate and the Committee on Ways 
     and Means of the House of Representatives the results of the 
     study conducted under subparagraph (A).

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