IMPOSITION OF TAX.

SEC. 202. IMPOSITION OF TAX. (a) In General.—Chapter 31 of the Internal Revenue Code of 1954 (relating to special fuels) is amended by adding at the end thereof the following new section: “SEC. 4042. TAX ON FUEL USED IN COMMERCIAL TRANSPORTATION ON INLAND WATERWAYS. “(a) In General.—There is hereby imposed a tax on any liquid used during any calendar quarter by any person as a fuel in a vessel in commercial waterway transportation. “(b) Amount of Tax.—The tax imposed by subsection (a) shall be determined from the following table: “If the use occurs— The tax is— “After September 30, 1980 and before October 1, 1981 4 cents a gallon “After September 30, 1981 and before October 1, 1983 6 cents a gallon “After September 30, 1983 and before October 1, 1985 8 cents a gallon “After September 30, 1985 10 cents a gallon “(c) Exemptions.— “(1) Deep-draft ocean-going vessels.—The tax imposed by subsection (a) shall not apply with respect to any vessel designed primarily for use on the high seas which has a draft of more than 12 feet. “(2) Passenger vessels.—The tax imposed by subsection (a) shall not apply with respect to any vessel used primarily for the transportation of persons. “(3) Use by state or local government in transporting property in a state or local business.—Subparagraph (B) of subsection (d)(1) shall not apply with respect to use by a State or political subdivision thereof. “(4) Use in moving lash and seabee ocean-going barges.—The tax imposed by subsection (a) shall not apply with respect to use for movement by tug of exclusively LASH (Lighter-aboard-ship) and SEABEE ocean-going barges released by their ocean-going carriers solely to pick up or deliver international cargoes. “(d) Definitions.—For purposes of this section— “(1) Commercial waterway transportation.—The term ‘commercial waterway transportation’ means any use of a vessel on any inland or intracoastal waterway of the United States— “(A) in the business of transporting property for compensation or hire, or “(B) in transporting property in the business of the owner, lessee, or operator of the vessel (other than fish or other aquatic animal life caught on the voyage). “(2) Inland or intracoastal waterway of the united states.—The term ‘inland or intracoastal waterway of the United 92 STAT. 1697States’ means any inland or intracoastal waterway of the United States which is described in section 206 of the Inland Waterways Revenue Act of 1978. “(3) Person.—The term ‘person’ includes the United States, a State, a political subdivision of a State, or any agency or instrumentality of any of the foregoing. “(e) Date for Filing Return.—The date for filing the return of the tax imposed by this section for any calendar quarter shall be the last day of the first month following such quarter.”. (b) Technical Amendment.—Section 4293 of such Code (relating to exemption for United States and possessions) is amended by striking out “chapters 31 and 32” and inserting in lieu thereof “section 4041, chapter 32”. (c) Clerical Amendment.—The table of sections for chapter 31 of such Code is amended by adding at the end thereof the following new item: “Sec. 4042. Tax on fuel used in commercial transportation on inland waterways.”. (d) Effective Date.—The amendments made by this section shall take effect on October 1, 1980.