CREDIT OR REFUND OF TAX.

SEC. 208. CREDIT OR REFUND OF TAX. (a) Floor Stocks Refunds.— So much of section 6412 (relating to floor stocks refunds) as precedes subsection (d) is amended to read as follows: “SEC. 6412. FLOOR STOCKS REFUNDS. “(a) In General.— “(1) Passenger automobiles, etc.— Where before April 1, 1957, any article subject to the tax imposed by section 4061 (a) (2) has been sold by the manufacturer, producer, or importer and on such date 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 manufacturer, producer, or importer an amount equal to the difference between the tax paid by such manufacturer, producer, or importer on his sale of the article and the amount of tax made applicable to such article on and after April 1, 1957, if claim for such credit or refund is filed with the Secretary or his delegate on or before August 10, 1957, based upon a request submitted to 70 Stat. 393 the manufacturer, producer; or importer before July 1, 1957, by the dealer who held the article in respect of which the credit or refund is claimed, and, on or before August 10, 1957, reimbursement has been made to such dealer by such manufacturer, producer, or importer for the tax reduction on such article or written consent has been obtained from such dealer to allowance of such credit or refund. “(2) Trucks and buses, tires, tread rubber, and gasoline.—Where before July 1, 1972, any article subject to the tax imposed by section 4061 (a) (1), 4071 (a) (1) or (4), or 4081 has been sold by the manufacturer, producer, or importer and on such date is held by a dealer and has not been used and is intended for sale (or, in the case of tread rubber, is intended for sale or is held for use), there shall be credited or refunded (without interest) to the manufacturer, producer, or importer an amount equal to the difference between the tax paid by such manufacturer, producer, or importer on his sale of the article and the amount of tax made applicable to such article on and after July 1, 1972, if claim for such credit or refund is filed with the Secretary or his delegate on or before November 10, 1972, based upon a request submitted to the manufacturer, producer, or importer before October 1, 1972, by the dealer who held the article in respect of which the credit or refund is claimed, and, on or before November 10, 1972, reimbursement has been made to such dealer by such manufacturer, producer, or importer for the tax reduction on such article or written consent has been obtained from such dealer to allowance of such credit or refund. No credit or refund shall be allowable under this paragraph with respect to gasoline in retail stocks held at the place where intended to be sold at retail, nor with respect to gasoline held for sale by a producer or importer of gasoline. “(3) Definitions.—For purposes of this section— “(A) The term ‘dealer’ includes a wholesaler, jobber, distributor, or retailer, or, in the case of tread rubber subject to tax under section 4071 (a) (4), includes any person (other than the manufacturer, producer, or importer thereof) who holds such tread rubber for sale or use. “(B) An article shall be considered as ‘held by a dealer’ if title thereto has passed to such dealer (whether or not delivery to him has been made), and if for purposes of consumption title to such article or possession thereof has not at any time been transferred to any person other than a dealer. “(b) Limitation on Eligibility for Credit or Refund.—No manufacturer, producer, or importer shall be entitled to credit or refund under subsection (a) unless he has in his possession such evidence of the inventories with respect to which the credit or refund is claimed as may be required by regulations prescribed under this section. “(c) Other Laws Applicable.—All provisions of law, including penalties, applicable in respect of the taxes imposed by sections 4061, 4071, and 4081 shall, insofar as applicable and not inconsistent with subsections (a) and (b) of this section, apply in respect of the credits and refunds provided for in subsection (a) to the same extent as if such credits or refunds constituted overpayments of such taxes.” (b) Special Cases.—Section 6416 (b) (2) (special cases in which tax payments considered overpayments) is amended by striking out the period at the end of subparagraph (I) and inserting in lieu thereof a semicolon, and by adding at the end thereof the following: “(J) In the case of a liquid in respect of which tax was paid under section 4041 (a) (1) at the rate of 3 cents a gal-70 Stat. 394lon, used or resold for use as a fuel in a diesel-powered highway vehicle (i) which (at the time of such use or resale) is not registered, and is not required to be registered, for highway use under the laws of any State or foreign country, or (ii) which, in the case of a diesel-powered highway vehicle owned by the United States, is not used on the highway; except that the amount of any overpayment by reason of this subparagraph shall not exceed an amount computed at the rate of 1 cent a gallon; “(K) In the case of a liquid in respect of which tax was paid under section 4041 (b) (1) at the rate of 3 cents a gallon, used or resold for use otherwise than as a fuel for the propulsion of a highway vehicle (i) which (at the time of such use or resale) is registered, or is required to be registered, for highway use under the laws of any State or foreign country or (ii) which, in the case of a highway vehicle owned by the United States, is used on the highway; except that the amount of any overpayment by reason of this subparagraph shall not exceed an amount computed at the rate of 1 cent a gallon; “(L) In the case of a liquid in respect of which tax was paid under section 4041 at the rate of 3 cents a gallon, used during any calendar quarter in vehicles while engaged in furnishing scheduled common carrier public passenger land transportation service along regular route); except that (i) this subparagraph shall apply only if the 60 percent passenger fare revenue test set forth in section 6421 (b) (2) is met with respect to such quarter, and (ii) the amount of such overpayment for such quarter shall be an amount determined by multiplying 1 cent for each gallon of liquid so used by the percents e which such person s tax-exempt passenger fare revenue (as defined in section 6421 (d) (2)) derived from such scheduled service during such quarter was of his total passenger fare revenue (not including the tax imposed by section 4261, relating to the tax on transportation of persons) derived from such scheduled service during such quarter; “(M) In the case of tread rubber in respect of which tax was paid under section 4071 (a) (4), used or resold for use otherwise than in the recapping or retreading of tires of the type used on highway vehicles (as defined in section 4072 (c)), unless credit or refund of such tax is allowable under subsection (b) (3).” (c) Payments to Ultimate Purchases.—Subchapter B of chapter 65 (relating to rules of special application for abatements, credits, and refunds) is amended by renumbering section 6421 as 6422 and by inserting after section 6420 the following new section: “SEC. 6421. GASOLINE USED FOR CERTAIN NONHIGHWAY PURPOSES OR BY LOCAL TRANSIT SYSTEMS. “(a) Nonhighway Uses.—If gasoline is used otherwise than as a fuel in a highway vehicle (1) which (at the time of such use) is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or (2) which, in the case of a highway vehicle owned by the United States, is used on the highway, the Secretary or his delegate shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to 1 cent for each gallon of gasoline so used. “(b) Local Transit Systems.— “(1) Allowance.—If gasoline is used during any calendar quarter in vehicles while engaged in furnishing scheduled common 70 Stat. 395 carrier public passenger land transportation service along regular routes, the Secretary or his delegate shall, subject to the provisions of paragraph (2), pay (without interest) to the ultimate purchaser of such gasoline the amount determined by multiplying— “(A) 1 cent for each gallon of gasoline so used, by “(B) the percentage which the ultimate purchaser’s tax-exempt passenger fare revenue derived from such scheduled service during such quarter was of his total passenger fare revenue (not including the tax imposed by section 4261, relating to the tax on transportation of persons) derived from such scheduled service during such quarter. “(2) Limitation.—Paragraph (1) shall apply in respect of gasoline used during any calendar quarter only if at least 60 percent of the total passenger fare revenue (not including the tax imposed by section 4261, relating to the tax on transportation of persons) derived during such quarter from scheduled service described in paragraph (1) by the person filing the claim was attributable to tax-exempt passenger fare revenue derived during such quarter by such person from such scheduled service. “(c) Time for Filing Claim; Period Covered.—Not more than one claim may be filed under subsection (a), and not more than one claim may be filed under subsection (b), by any person with respect to gasoline used during the one-year period ending on June 30 of any year. No claim shall be allowed under this section with respect to any one-year period unless filed on or before September 30 of the year in which such one-year period ends. “(d) Definitions.—For purposes of this section— “(1) Gasoline.—The term ‘gasoline’ has the meaning given to such term by section 4082 (b). “(2) Tax-exempt passenger fare revenue.—The term ‘tax-exempt passenger fare revenue’ means revenue attributable to fares which were exempt from the tax imposed by section 4261 by reason of section 4262 (b) (relating to the exemption for commutation travel, etc.). “(e) Exempt Sales; Other Payments or Refunds Available.— “(1) Exempt sales.—No amount shall be paid under this section with respect to any gasoline which the Secretary or his delegate determines was exempt from the tax imposed by section 4081. The amount which (but for this sentence) would be payable under this section with respect to any gasoline shall be reduced by any other amount which the Secretary or his delegate determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such gasoline. “(2) Gasoline used on farms.—This section shall not apply in respect of gasoline which was (within the meaning of paragraphs (1), (2), and (3) of section 6420 (c)) used on a farm for farming purposes. “(f) Applicable Laws.— “(1) In general.—All provisions of law, including penalties, applicable in respect of the tax imposed by section 4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed. “(2) Examination of books and witnesses.—For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary or his delegate shall have the authority 70 Stat. 396 granted by paragraphs (1), (2), and (3) of section 7602 (relating to examination of books and witnesses) as if the claimant were the person liable for tax. “(g) Regulations.—The Secretary or his delegate may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section. “(h) Effective Date.—This section shall apply only with respect to gasoline purchased after June 30, 1956, and before July 1, 1972. “(i) Cross References.— “(1) For reduced rate of tax in case of diesel fuel and special motor fuels used for certain nonhighway purposes, see subsections (a) and (b) of section 4041. “(2) For partial refund of tax in case of diesel fuel and special motor fuels used for certain nonhighway purposes, see section 6416 (b) (2) (J) and (A). “(3) For partial refund of tax in case of diesel fuel and special motor fuels used by local transit systems, see section 6416 (b) (2) (L). “(4) For civil penalty for excessive claims under this section, see section 6675. “(5) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).” (d) Technical Amendments.— (1) Section 6206 (relating to special rules applicable to excessive claims) is amended— (A) by striking out “SECTION 6420” in the heading and inserting in lieu thereof “SECTIONS 6420 AND 6421”; (B) by inserting after “6420” in the first sentence thereof “or 6421”; and (C) by inserting after “6420” in the second sentence thereof “or 6421, as the case may be”. (2) Section 6675 (relating to excessive claims for gasoline used on farms) is amended— (A) by striking out “FOR GASOLINE USED ON FARMS” in the heading and inserting in lieu thereof “WITH RESPECT TO THE USE OF CERTAIN GASOLINE”; (B) by inserting after “6420 (relating to gasoline used on farms)” in subsection (a) thereof “or 6421 (relating to gasoline used for certain nonhighway purposes or by local transit systems)”; and (C) by inserting after “6420” in subsection (b) thereof “or 6421, as the case may be,”. (3) Section 7210 (relating to failure to obey summons) is amended by inserting after “sections 6420 (e) (2),” the following: “6421 (f) (2),”. (4) Section 7803 (relating to service of summons) and 7604 (relating to enforcement of summons) and the first sentence of section 7605 (relating to time and place of examination) are each amended by inserting after “section 6420 (e) (2)” wherever it appears a comma and the following: “6421 (f) (2),”. The second sentence of section 7605 is amended by inserting after “section 6420 (e) (2)” the following: “or 6421 (f) (2)”. (e) Clerical Amendments.— (1) Section 4084 is amended to read as follows: “SEC. 1084. CROSS REFERENCES. “(1) For provisions to relieve farmers from excise tax in the ease of gasoline used on the farm for farming purposes, see section 6420. “(2) For provisions to relieve purchasers of gasoline from excise tax in the case of gasoline used for certain nonhighway purposes or by local transit systems, see section 6421.” 70 Stat. 397 (2) The table of sections for subpart A of part III of subchapter A of chapter 32 is amended by striking out “Sec. 4084. Relief of farmers from tax in ease of gasoline used on the farm.” and inserting in lieu thereof “Sec. 4084. Cross references.” (3) The table of sections for subchapter A of chapter 63 is amended by striking out “Sec. 6206. Special rules applicable to excessive claims under section 6420.” and inserting in lieu thereof “Sec. 6206. Special rules applicable to excessive claims under sections 6420 and 4421.” (4) The table of sections for subchapter B of chapter 65 is amended by striking out “Sec. 6421. Cross references.” and inserting in lieu thereof “Sec. 6421. Gasoline used for certain nonhighway purposes or by local transit systems. “Sec. 6422. Cross references.” (5) Section 6504 is amended by adding at the end thereof the following: “(14) Assessments to recover excessive amounts paid under section 6421 (relating to gasoline used for certain nonhighway purposes or by local transit systems) and assessments of civil penalties under section 6675 for excessive claims under section 6421, see section 6206.” (6) Section 6511 (f) is amended by adding at the end thereof the following: “(6) For limitations in case of payments under section 6421 (relating to gasoline used for certain nonhighway purposes or by local transit systems), see section 6421 (c).” (7) Section 6612 (c) is amended by striking out “and” before “6420” and by inserting before the period at the end thereof the following: “, and 6421 (relating to payments in the case of gasoline used for certain nonhighway purposes or by local transit systems)”. (8) The table of sections for subchapter B of chapter 68 is amended by striking out “Sec. 6675. Excessive claims for gasoline used on farms.” and inserting in lieu thereof “Sec. 6675. Excessive claims with respect to the use of certain gasoline.”