INCREASE AND EXTENSION OF HIGHWAY-RELATED TAXES AND TRUST FUND.

SEC. 11211. INCREASE AND EXTENSION OF HIGHWAY-RELATED TAXES AND TRUST FUND. (a) Increase in Tax on Gasoline.— (1) In general.— Subparagraph (A) of section 4081(a)(2) (relating to rate of tax) is amended— (A) by striking “and” at the end of clause (i), (B) by striking the period at the end of clause (ii) and inserting “, and”, and (C) by adding at the end thereof the following new clause: “(iii) the deficit reduction rate.” (2) Rates of tax.— Subparagraph (B) of section 4081(a)(2) is amended— (A) by striking “9 cents a gallon, and” and inserting “11.5 cents a gallon,”, (B) by striking the period at the end of clause (ii) and inserting “, and”, and (C) by adding at the end thereof the following new clause: “(iii) the deficit reduction rate is 2.5 cents a gallon.” (3) Termination of deficit reduction rate.— Subsection (d) of section 4081 is amended by adding at the end thereof the following new paragraph: “(3) Deficit reduction rate.— On and after October 1, 1995, the deficit reduction rate under subsection (a)(2) shall not apply.” (4) 15-cent tax on gasoline used in noncommercial aviation.— Paragraph (3) of section 4041(c) is amended— (A) by striking “12 cents” and inserting “15 cents”, and (B) by striking “the Highway Trust Fund financing rate” and inserting “the sum of the Highway Trust Fund financing rate plus the deficit reduction rate”. (5) Conforming amendments.— (A) Paragraph (1) of section 4081(c) is amended— (i) by striking “applied by” and all that follows through “in the case” and inserting “applied by substituting rates which are 10/9th of the otherwise applicable rates in the case”, and (ii) by adding at the end thereof the following: “For purposes of this subsection, in the case of the Highway Trust Fund financing rate, the otherwise applicable rate is 6.1 cents a gallon.” 104 STAT. 1388–424 (B) Paragraph (2) of section 4081(c) is amended by striking “at a rate equivalent to 3 cents” and inserting “at a High-way Trust Fund financing rate equivalent to 6.1 cents”. (C) Subsection (c) of section 4081 is amended by re-designating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: “(4) Lower rate on gasohol made other than from ethanol.— In the case of gasohol none of the alcohol in which consists of ethanol, paragraphs (1) and (2) shall be applied by substituting ‘5.5 cents’ for ‘6.1 cents’. (D) Subparagraph (B) of section 9503(b)(4) is amended by striking “4081” and inserting “4041, 4081,”. (E) Subparagraph (A) of section 9503(c)(2) is amended by adding at the end thereof the following new sentence: “The amounts payable from the Highway Trust Fund under this subparagraph or paragraph (3) shall be determined by taking into account only the Highway Trust Fund financing rate applicable to any fuel.” (F) Subsection (b) of section 9503 is amended by adding at the end thereof the following new paragraph: “(5) General revenue deposits of certain taxes on alcohol mixtures.— For purposes of this section, the amounts which would (but for this paragraph) be required to be appropriated under subparagraphs (A), (E), and (F) of paragraph (1) shall be reduced by— “(A) 0.6 cent per gallon in the case of taxes imposed on any mixture at least 10 percent of which is alcohol (as defined in section 4081(c)(3)) if any portion of such alcohol is ethanol, and “(B) 0.67 cent per gallon in the case of gasoline or diesel fuel used in producing a mixture described in subparagraph (A).” (6) Effective date.— Except as otherwise provided in this subsection, the amendments made by this subsection shall apply to gasoline removed (as defined in section 4082 of the Internal Revenue Code of 1986) after November 30, 1990. (b) Increase in Other Taxes.— (1) Deficit reduction rate.— (A) Clause (i) of section 4091(b)(l)(A) is amended by inserting “and the diesel fuel deficit reduction rate” after “financing rate”. (B) Subsection (b) of section 4091 is amended by re-designating paragraphs (4) and (5) as paragraphs (5) and (6), respectively, and by inserting after paragraph (3) the fol-lowing new paragraph: “(4) Diesel fuel deficit reduction rate.— For purposes of paragraph (1), except as provided in subsection (c), the diesel fuel deficit reduction rate is 2.5 cents per gallon.” (C) Paragraph (6) of section 4091(b), as redesignated by subparagraph (A), is amended by adding at the end thereof the following new subparagraph: “(D) The diesel fuel deficit reduction rate shall not apply on and after October 1, 1995.” (2) Increase in highway trust fund financing rate.— Paragraph (2) of section 4091(b) is amended by striking “15 cents” and inserting “17.5 cents”. 104 STAT. 1388–425 (3) Increase in tax on special motor fuels.— Paragraph (2) of section 4041(a) is amended by striking “of 9 cents a gallon” and by inserting at the end thereof the following new sentence: “The rate of the tax imposed by this paragraph shall be the sum of the Highway Trust Fund financing rate and the deficit reduction rate in effect under section 4081 at the time of such sale or use.” (4) Deficit reduction tax to apply to fuel used in trains.— (A) Paragraph (2) of section 4093(c) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph: “(B) Deficit reduction tax on fuel used in trains.— In the case of fuel sold for use in a diesel-powered train, paragraph (1) also shall not apply to so much of the tax imposed by section 4091 as is attributable to the diesel fuel deficit reduction rate imposed by such section.” (B) (i) Subsection (1) of section 6427 is amended by adding at the end thereof the following new paragraph: “(4) No refund of deficit reduction tax on fuel used in trains.— In the case of fuel used in a diesel-powered train, paragraph (1) also shall not apply to so much of the tax imposed by section 4091 as is attributable to the diesel fuel deficit reduction rate imposed by such section.” (ii) Paragraph (1) of section 6427(1) is amended by striking “paragraph (3)” and inserting “paragraphs (3) and (4)”, (5) Increases in taxes not to apply to certain buses.— Subparagraph (A) of section 6427(b)(2) is amended by striking “shall not exceed 12 cents” and inserting “shall be 3.1 cents per gallon less than the aggregate rate at which tax was imposed on such fuel by section 4041(a) or 4091, as the case may be”, (6) Conforming amendments.— (A) Paragraph (1) of section 4091(c) is amended— (i) by striking “9 cents” and inserting “12.1 cents” and by striking “10 cents” and inserting “13.44 cents”, and (ii) by striking “shall be 1/9 cent per gallon” and inserting “and the diesel fuel deficit reduction rate shall be 10/9th of the otherwise applicable such rates”. (B) Paragraph (2) of section 4091(c) is amended by striking “9 cents” and inserting “12.1 cents”. (C) (i) Paragraph (1) of section 4041(a) is amended by striking “of 15 cents a gallon” and by inserting before the last sentence the following new sentence: “The rate of the tax imposed by this paragraph shall be the sum of the Highway Trust Fund financing rate and the diesel fuel deficit reduction rate in effect under section 4091 at the time of such sale or use.” (ii) Subsection (a) of section 4041 is amended by striking paragraph (3). (D) Clause (i) of section 4041(b)(2)(A) is amended to read as follows: “(i) the Highway Trust Fund financing rate applicable under subsection (a)(2) shall be 5.4 cents per gallon less than the otherwise applicable rate (6 cents per gallon in the case of a mixture none of the alcohol in which consists of ethanol), and”. 104 STAT. 1388–426 (E) (i) Paragraph (1) of section 4041(k) is amended by striking subparagraphs (A), (B), and (C) and inserting the following new subparagraphs: “(A) the Highway Trust Fund financing rates under para graphs (1) and (2) of subsection (a) shall be the comparable rates under sections 4081(c) and 4091(c), as the case may be, “(B) no tax shall be imposed by subsection (c)(1), and “(C) no tax shall be imposed by subsection (c)(2).” (ii) Subsection (q) of section 6427 is amended to read as follows: “(q) Gasohol Used in Noncommercial Aviation.— Except as provided in subsection (k), if— “(1) any tax is imposed by section 4081 at a rate determined under subsection (c) thereof on gasohol (as defined in such subsection), and , “(2) such gasohol is used as a fuel in any aircraft in non-commercial aviation (as defined in section 4041(c)(4)), the Secretary shall pay (without interest) to the ultimate purchaser of such gasohol an amount equal to 1.4 cents (2 cents in the case of a mixture none of the alcohol in which consists of ethanol) multiplied by the number of gallons of gasohol so used.” (F) Subparagraph (A) of section 4041(m)(1) is amended to read as follows: “(A) under subsection (a)(2) the Highway Trust Fund financing rate shall be 5.75 cents per gallon and the deficit reduction rate shall be 1.25 cents per gallon, and”. (G) Subsection (d) of section 9502 is amended by adding at the end thereof the following new paragraph: “(4) Transfers for refunds and credits not to exceed trust fund revenues attributable to fuel used.— The amounts payable from the Airport and Airway Trust Fund under paragraph (2) or (3) shall not exceed the amounts required to be appropriated to such Trust Fund with respect to fuel so used.” (H) Subparagraph (D) of section 9503(c)(4) is amended by striking “(to the extent attributable to the Highway Trust Fund financing rate)” and by inserting before the period “, but only to the extent such taxes are attributable to the Highway Trust Fund financing rates under such sections”. (7) Effective date.— The amendments made by this subsection shall take effect on December 1, 1990. (c) Extension of Taxes.— The following provisions are each amended by striking “1993” each place it appears and inserting “1995”: (1) Section 4051(c) (relating to tax on heavy trucks and trailers sold at retail). (2) Section 4071(d) (relating to tax on tires and tread rubber). (3) Section 4081(d)(1) (relating to gasoline tax). (4) Section 4091(b)(6)(A) (relating to diesel fuel tax), as redesignated by subsection (b). (5) Sections 4481(e), 4482(c)(4), and 4482(d) (relating to high-way use tax). (d) Extension of Exemptions.— The following provisions are each amended by striking “1993” each place it appears and inserting “1995”; (1) Section 4041(f)(3) (relating to exemptions for farm use). (2) Section 4041(g) (relating to other exemptions). 104 STAT. 1388–427 (3) Section 4221(a) (relating to certain tax-free sales), (4) Section 4483(g) (relating to termination of exemptions for highway use tax). (5) Section 6420(h) (relating to gasoline used on farms). (6) Section 6421(i) (relating to gasoline used for certain non-highway purposes, etc,). (7) Section 6427(g)(5) (relating to advance repayment of in-creased diesel fuel tax). (8) Section 6427(o) (relating to fuels not used for taxable purposes). (e) Extension of Reduced Rates of Tax on Fuels Containing Alcohol.— The following provisions are each amended by striking “1993” each place it appears and inserting “2000”: (1) Section 4041(b)(2)(O (relating to qualified methanol and ethanol fuel). (2) Section 4041(k)(8) (relating to fuels containing alcohol). (3) Section 4081(c)(5) (relating to gasoline mixed with alcohol), as redesignated by subsection (a). (4) Subsections (c)(3) and (d)(3) of section 4091 (relating to diesel fuel and aviation fuel mixed with alcohol and aviation fuel used to produce certain alcohol fuels), (f) Other Provisions.— (1) Floor stocks refunds.— Section 6412(a)(1) (relating to floor stocks refunds) is amended— (A) by striking “1993” each place it appears and inserting “1995”, and (B) by striking “1994” each place it appears and inserting “1996”. (2) Installment payments of highway use tax.— Section 6156(e)(2) (relating to installment payments of tax on use of highway motor vehicles) is amended by striking “1993” and inserting “1995”. (g) Extension of Deposits Into Trust Fund.— (1) In general.— Subsection (b), and paragraphs (2), (3), and (4) of subsection (c), of section 9503 (relating to the Highway Trust Fund) are each amended— (A) by striking “1993” each place it appears and inserting “1995”, and (B) by striking “1994” each place it appears and inserting “1996”. (2) Conforming amendments to land and water conservation fund.— Section 201(b) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 4601–11) is amended— (A) by striking “1993” and inserting “1995”, and (B) by striking “1994” each place it appears and inserting “1996”. (h) Increase in Transfers to Mass Transit Account.— (1) In general.— Paragraph (2) of section 9503(e) is amended by striking “1 cent” and inserting “1.5 cents”. (2) Effective date.— The amendment made by paragraph (1) shall apply to amounts attributable to taxes imposed on or after December 1, 1990. (i) Transfers of Small-Engine Fuel Taxes into Sport Fish Restoration Account.— (1) In general.— Section 9503(c) (relating to expenditures from highway trust fund) is amended by adding at the end thereof the following new paragraph: 104 STAT. 1388–428 “(5) Transfers from the trust fund for small-engine fuel taxes.— “(A) In general.— The Secretary shall pay from time to time from the Highway Trust Fund into the Sport Fish Restoration Account in the Aquatic Resources Trust Fund amounts (as determined by him) equivalent to the small-engine fuel taxes received on or after December 1, 1990, and before October 1, 1995. “(B) Small-engine fuel taxes.— For purposes of this paragraph, the term ‘small-engine fuel taxes’ means the taxes under section 4081 with respect to gasoline used as a fuel in the nonbusiness use of small-engine outdoor power equipment, but only to the extent such taxes are attributable to the Highway Trust Fund financing rate under such section.” (2) Conforming amendment.— Section 9504(a)(2) (relating to accounts in aquatic resources trust fund) is amended by inserting “section 9503(c)(5),” after “section 9503(c)(4),”. (3) Expenditures for coastal wetlands restoration.— Section 9504(b)(2) (relating to expenditures from sport fish restoration account) is amended to read as follows: “(2) Expenditures from account.— Amounts in the Sport Fish Restoration Account shall be available, as provided by appropriation Acts, for making expenditures— “(A) to carry out the purposes of the Act entitled ‘An Act to provide that the United States shall aid the States in fish restoration and management projects, and for other purposes’, approved August 9, 1950 (as in effect on October 1, 1988), and “(B) to carry out the purposes of any law which is substantially identical to S. 3252 of the 101st Congress, as introduced. Amounts transferred to such account under section 9503(c)(5) may be used only for making expenditures described in subparagraph (B) of this paragraph. (4) Effective date.— The amendments made by this subsection shall take effect on December 1, 1990. (j) Floor Stocks Taxes.— (1) Imposition of tax.— In the case of— (A) gasoline and diesel fuel on which tax was imposed under section 4081 or 4091 of such Code before December 1, 1990, and which is held on such date by any person, or (B) diesel fuel on which no tax was imposed under section 4091 of such Code at the Highway Trust Fund financing rate before December 1, 1990, and which is held on such date by any person for use as a fuel in a train, there is hereby imposed a floor stocks tax on such gasoline and diesel fuel. (2) Rate of tax.— The rate of the tax imposed by paragraph (1) shall be— (A) 5 cents per gallon in the case of fuel described in paragraph (1)(A), and (B) 2.5 cents per gallon in the case of fuel described in paragraph (1)(B). In the case of any fuel held for use in producing a mixture described in section 4081(c)(1) or section 4091(c)(1)(A) of such Code, subparagraph (A) shall be applied by substituting “6.22 104 STAT. 1388–429cents” for “5 cents”. If no alcohol in such mixture is ethanol, the preceding sentence shall be applied by substituting “5.56 cents” for “6.22 cents”. (3) Liability for tax and method of payment.— (A) Liability for tax.— A person holding gasoline or diesel fuel on December 1, 1990, 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 for payment.— The tax imposed by paragraph (1) shall be paid on or before May 31, 1991. (4) Definitions.— For purposes of this subsection— (A) Held by a person.— Gasoline and diesel fuel 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) Gasoline.— The term “gasoline” has the meaning given such term by section 4082 of such Code. (C) Diesel fuel.— The term “diesel fuel” has the meaning given such term by section 4092 of such Code. (D) Secretary.— The term “Secretary” means the Secretary of the Treasury or his delegate. (5) Exception for exempt uses.— The tax imposed by paragraph (1) shall not apply to gasoline or diesel fuel held by any person exclusively for any use to the extent a credit or refund of the tax imposed by section 4081 or 4091 of such Code, as the case may be, is allowable for such use. (6) Exception for fuel held in vehicle tank.— No tax shall be imposed by paragraph (1) on gasoline or diesel fuel held in the tank of a motor vehicle or motorboat. (7) Exception for certain amounts of fuel.— (A) In general.— No tax shall be imposed by paragraph (1)— (i) on gasoline held on December 1, 1990, by any person if the aggregate amount of gasoline held by such person on such date does not exceed 4,000 gallons, and (ii) on diesel fuel held on December 1, 1990, by any person if the aggregate amount of diesel fuel 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. (B) Exempt fuel.— For purposes of subparagraph (A), 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 (5) or (6). (C) Controlled groups.— For purposes of this paragraph, rules similar to the rules of paragraph (6) of section 11201(e) of this Act shall apply. (8) Other laws applicable.— All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 of such Code in the case of gasoline and section 4091 of such Code in the case of diesel fuel shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply with respect to the floor stock taxes imposed by para-104 STAT. 1388–430graph (1) to the same extent as if such taxes were imposed by such section 4081 or 4091. (9) Transfer of portion of floor stocks revenue to high-way trust fund.— For purposes of determining the amount transferred to the Highway Trust Fund, the tax imposed by paragraph (1) on fuel described in subparagraph (A) thereof shall be treated as imposed at a Highway Trust Fund financing rate to the extent of 2.5 cents per gallon.