TEMPORARY INCREASE IN MOTOR FUEL TAXES, ETC.

SEC. 201. TEMPORARY INCREASE IN MOTOR FUEL TAXES, ETC. (a) Gasoline.—Section 4081 of the Internal Revenue Code of 1954 (relating to imposition of tax on gasoline) is amended by adding at the end thereof the following new subsection: “(c) Temporary Increase in Tax.—On and after October 1, 1959, and before July 1, 1961, the tax imposed by this section shall be 4 cents a gallon.” (b) Diesel Fuel and Special Motor Fuels.— (1) Imposition of tax.—Section 4041 of such Code (relating to imposition of tax on diesel fuel and special motor fuels) is amended by adding at the end thereof the following new subsection: “(f) Temporary Increases in Tax.—On and after October 1, 1959, and before July 1, 1961— “(1) if (without regard to this subsection) the tax imposed by subsection (a) or (b) is 3 cents a gallon, the tax imposed by such subsection shall be 4 cents a gallon, and 73 Stat. 614 “(2) if (without regard to this subsection) the tax imposed under paragraph (2) of subsection (a) or (b) is 1 cent a gallon, the tax imposed under such paragraph shall be 2 cents a gallon.” (2) Technical amendments.—The second sentences of subsections (a) and (b) of such section 4041 are each amended by striking out “in lieu of 3 cents a gallon”. (c) Floor Stocks Tax and Refunds on Gasoline.— (1) Tax.—Section 4226(a) of such Code (relating to floor stocks taxes) is amended by adding at the end thereof the following new paragraph: “(5) 1959 tax on gasoline.—On gasoline subject to tax under section 4081 which, on October 1, 1959, is held by a dealer for sale, there is hereby imposed a floor stocks tax at the rate of 1 cent a gallon. The tax imposed by this paragraph shall not apply to gasoline in retail stocks held at the place where intended to be sold at retail, nor to gasoline held for sale by a producer or importer of gasoline.” (2) Date for payment of tax.—Section 4226(d) of such Code (relating to due date of taxes) is amended by inserting before the period at the end thereof the following: “; except that the tax imposed by paragraph (5) shall be paid at such time after December 31, 1959, as may be prescribed by the Secretary or his delegate”. (3) Technical amendment.—Section 4226(c) of such Code (relating to definition of dealer, etc.) is amended by striking out “section 6412(a) (3)” and inserting in lieu thereof “section 6412 (a)(4)”. (4) Refunds.—Section 6412(a) of such Code (relating to floor stocks refunds) is amended by renumbering paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: “(3) Gasoline held on July 1, 1961.—Where before July 1, 1961, any gasoline subject to the tax imposed by section 4081 has been sold by the producer or importer and on such date is held by a dealer and is intended for sale, there shall be credited or refunded (without interest) to the producer or importer an amount equal to the difference between the tax paid by such producer or importer on his sale of the gasoline and the amount of tax made applicable to such gasoline on and after July 1, 1961, if claim for such credit or refund is filed with the Secretary or his delegate on or before November 10, 1961, based upon a request submitted to the producer or importer before October 1, 1961, by the dealer who held the gasoline in respect of which the credit or refund is claimed, and, on or before November 10, 1961, reimbursement has been made to such dealer by such producer or importer for the tax reduction on such gasoline 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.” (d) Credits and Refunds.— (1) Tax payments considered overpayments.—Section 6416(b)(2) of such Code (relating to special cases in which tax payments are considered overpayments) is amended— (A) by striking out “at the rate of 3 cents a gallon” each place it appears in subparagraphs (H), (I), and (J) and inserting m lieu thereof “at the rate of 3 cents or 4 cents a gallon”; 73 Stat. 615 (B) by striking out “1 cent for each gallon” in subparagraph (H) and inserting in lieu thereof “1 cent (where tax was paid at the 3-cent rate) or 2 cents (where tax was paid at the 4-cent rate) for each gallon”; and (C) by striking out “at the rate of 1 cent a gallon;” at the end of subparagraphs (I) and (J) and inserting in lieu thereof the following: “at the rate of 1 cent a gallon where tax was paid at the 3-cent rate or at the rate of 2 cents a gallon where tax was paid at the 4-cent rate;”. (2) Gasoline used for certain nonhighway purposes or by local transit systems.—Subsections (a) and (b)(1)(A) of section 6421 of such Code (relating to gasoline used for certain nonhighway purposes or by local transit systems) are each amended by striking out “1 cent for each gallon of gasoline so used” and inserting in lieu thereof “1 cent for each gallon of gasoline so used on which tax was paid at the rate of 3 cents a gallon and 2 cents for each gallon of gasoline so used on which tax was paid at the rate of 4 cents a gallon”. (e) Collection of Gasoline Tax at Wholesale Distributor Level.— (1) Treatment of wholesale distributor as producer.—The first sentence of section 4082(a) of the Internal Revenue Code of 1954 (relating to definition of “producer” for purposes of tax on gasoline) is amended to read as follows: “As used in this sub-part, the term ‘producer’ includes a refiner, compounder, blender, or wholesale distributor, and a dealer selling gasoline exclusively to producers of gasoline, as well as a producer.” (2) Wholesale distributor defined.—Section 4082 of such Code is amended by adding at the end thereof the following new subsection: “(d) Wholesale Distributor.—As used in subsection (a), the term ‘wholesale distributor’ includes any person who— “(1) sells gasoline to producers, to retailers, or to users who purchase in bulk quantities for delivery into bulk storage tanks, and “(2) elects to register and give a bond with respect to the tax imposed by section 4081. Such term does not include any person who (excluding the term ‘wholesale distributor’ from subsection (a)) is a producer or importer.” (3) Effective date.—The amendments made by paragraphs (1) and (2) shall take effect on January 1, 1960.