DIESEL FUEL USED IN HIGHWAY VEHICLES.

SEC. 441. DIESEL FUEL USED IN HIGHWAY VEHICLES. (a) Imposition of Tax.—The Internal Revenue Code is hereby amended by adding after chapter 19 the following new chapter: “CHAPTER 20—DIESEL FUEL “SEC. 2450. TAX ON DIESEL FUEL. “There is hereby imposed a tax of 2 cents a gallon upon any liquid (other than any product taxable under section 3412)— “(1) sold by any person to an owner, lessee, or other operator of a diesel-powered highway vehicle, for use as a fuel in such vehicle, or “(2) used by any person as a fuel in a diesel-powered highway vehicle unless there was a taxable sale of such liquid under clause (1). On and after April 1, 1954, the tax imposed by this section shall be 1½ cents a gallon in lieu of 2 cents a gallon. “SEC. 2451. RETURNS AND PAYMENT. “(a) Requirement.—Every person liable for tax under this chapter shall make returns and pay the taxes due to the collector for the district in which is located his principal place of business, or if he has no principal place of business in the United States, then to the collector at Baltimore, Maryland. Such returns shall contain such information and be made at such times and in such manner as the Secretary may by regulations prescribe. “(b) Interest.—The tax shall, without assessment or notice, be due and payable to the collector at the time prescribed for filing the return. If the tax is not paid when due, there shall be added as part of the tax interest at the rate of 6 per centum per annum from the time when the tax became due until paid. 65 Stat. 524 “SEC. 2452. CREDITS AND REFUNDS. “(a) Non-Taxable Use or Sale by Vendee.—A credit against tax under this chapter, or a refund, may be allowed or made to a person in the amount of tax paid by him under this chapter with respect to his sale of any liquid to a vendee for use as fuel in a diesel-powered highway vehicle, if such person establishes, in accordance with regulations prescribed by the Secretary, that— “(1) the vendee used such liquid otherwise than as fuel in such a vehicle or resold such liquid, and “(2) such person has repaid or agreed to repay the amount of such tax to such vendee, or has obtained the consent of the vendee to the allowance of the credit or refund. No interest shall be allowed with respect to any amount of tax credited or refunded under the provisions of this subsection. “(b) Proof Required in Case of Certain Overpayments.—No overpayment of tax under this chapter shall be credited or refunded (otherwise than under subsection (a)) in pursuance of a court decision or otherwise, unless the person who paid the tax establishes, in accordance with regulations prescribed by the Secretary, (1) that he has not included the tax in the price of the article with respect to which it was imposed, or collected the amount of tax from the vendee, or (2) that he has repaid the amount of the tax to the ultimate purchaser of the article, or files with the Secretary written consent of such ultimate purchaser to the allowance of the credit or refund. “SEC. 2453. TAX-FREE SALES. “Under regulations prescribed by the Secretary, no tax under this chapter shall be imposed with respect to the sale of any liquid for the exclusive use of any State, Territory of the United States, or any political subdivision of the foregoing, or the District of Columbia, or with respect to the use by any of the foregoing of any liquid as fuel in a diesel-powered highway vehicle. “SEC. 2454. APPLICABILITY OF ADMINISTRATIVE PROVISIONS. “All provisions of law (including penalties) applicable in respect of the taxes imposed by section 2700 shall, insofar as applicable and not inconsistent with this chapter, be applicable in respect of the taxes imposed by this chapter. “SEC. 2455. RULES AND REGULATIONS. “The Secretary shall prescribe and publish all needful rules and regulations for the enforcement of this chapter.” (b) Effective Date.—The amendment made by subsection (a) shall take effect on the first day of the first month which begins more than ten days after the date of the enactment of this Act.