TRANSPORTATION FUELS TAX

SEC. 13241. TRANSPORTATION FUELS TAX (a) Gasoline.— Clause (iii) of section 4081(a)(2)(B) (relating to rates of tax) is amended to read as follows: “(iii) the deficit reduction rate is 6.8 cents per gallon.” (b) Diesel Fuel and Noncommercial Aviation Fuel.— (1) Diesel fuel.— Paragraph (4) of section 4091(b) (relating to rate of tax) is amended by striking “2.5 cents” and inserting “6.8 cents”. (2) Aviation fuel.— (A) Gasoline in noncommercial aviation.— Paragraph (3) of section 4041(c) is amended to read as follows: “(3) Rate of tax.— The rate of tax imposed by paragraph (2) on any gasoline is 1 cent per gallon.” (B) Fuel other than gasoline.— (i) Clause (ii) of section 4091(b)(1)(A) is amended by inserting “and the aviation fdel deficit reduction rate” after “financing rate”. (ii) Subsection (b) of section 4091 is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph: “(6) Aviation fuel deficit reduction rate.— For purposes of paragraph (1), the aviation fuel deficit reduction rate is 4.3 cents per gallon.” (iii) Paragraph (1) of section 4041(c) is amended— (I) by striking “of 17.5 cents a gallon”, and (II) 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 Airport and Airway Trust Fund financing rate and the aviation fuel deficit reduction rate in effect under section 4091 at the time of such sale or use.” (c) Certain Alcohol Fuels.— Section 4041(m)(1)(A) is amended to read as follows: “(A) under subsection (a)(2)— “(i) the Highway Trust Fund financing rate shall be 5.75 cents per gallon, and “(ii) the deficit reduction rate shall be 5.55 cents per gallon.” (d) Fuel Used in Commercial Transportation on Inland Waterways.— (1) In general.— Section 4042(b)(1) (relating to amount of tax) is amended— (A) by striking “and” at the end of subparagraph (A), (B) by striking the period at the end of subparagraph (B) and inserting “, and”, and (C) by adding at the end thereof the following new subparagraph: “(C) the deficit reduction rate.” 107 STAT. 511 (2) Rate.— Section 4042(b)(2) (relating to rates) is amended by adding at the end the following new subparagraph: “(C) The deficit reduction rate is 4.3 cents per gallon.” (e) Compressed Natural Gas.— (1) In general.— Subsection (a) of section 4041 is amended by adding at the end thereof the following new paragraph: “(3) Compressed natural gas.— “(A) In general.— There is hereby imposed a tax on compressed natural gas— “(i) sold by any person to an owner, lessee, or other operator of a motor vehicle or motorboat for use as a fuel in such motor vehicle or motorboat, or “(ii) used by any person as a fuel in a motor vehicle or motorboat unless there was a taxable sale of such gas under clause (i). The rate of the tax imposed by this paragraph shall be 48.54 cents per MCF (determined at standard temperature and pressure). “(B) Bus uses.— No tax shall be imposed by this paragraph on any sale for use, or use, described in subparagraph (B) or (C) of section 6427(b)(2) (relating to school bus and intracity transportation). “(C) Administrative provisions.— For purposes of applying this title with respect to the taxes imposed by this subsection, references to any liquid subject to tax under this subsection shall be treated as including references to compressed natural gas subject to tax under this paragraph, and references to gallons shall be treated as including references to MCF with respect to such gas.” (2) Exemption from leaking underground storage tank trust fund tax.— Paragraph (1) of section 4041(d) is amended by striking “subsection (a)” the second place it appears in the text and inserting “subsection (a)(1) or (2)”. (f) Conforming Amendments.— (1) Paragraph (3) of section 4041(f) is hereby repealed. (2) Subsection (g) of section 4041 is amended by striking the last sentence. (3) Subparagraphs (A) and (B) of section 4093(c)(2) are amended to read as follows: “(A) No exemption from certain taxes on fuel used in diesel-powered trains.— In the case of fuel sold for use in a diesel-powered train, paragraph (1) shall not apply to so much of the tax imposed by section 4091 as is attributable to the Leaking Underground Storage Tank Trust Fund financing rate and the diesel fuel deficit reduction rate imposed under such section. The preceding sentence shall not apply in the case of fuel sold for exclusive use by a State or any political subdivision thereof. “(B) No exemption from leaking underground storage tank trust fund taxes on fuel used in commercial aviation.— In the case of fuel sold for use in commercial aviation (other than supplies for vessels or aircraft within the meaning of section 4221(d)(3)), paragraph (1) also shall not apply to so much of the tax imposed by section 4091 as is attributable to the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section. For purposes of the preceding sentence, 107 STAT. 512the term ‘commercial aviation’ means any use of an aircraft other than in noncommercial aviation (as defined in section 4041(c)(4)).” (4) Section 4093(d) is amended by inserting “and the aviation fuel deficit reduction rate” after “rate”. (5) Section 6420 is amended by striking subsection (h). (6) Paragraph (3) of section 6421(f) is amended by inserting “and at the deficit reduction rate” after “financing rate”, and by inserting “and deficit reduction tax” after “tax” in the heading. (7) Section 6421 is amended by striking subsection (i). (8) Paragraph (2) of section 6427(b) is amended— (A) by striking “3.1 cents” in subparagraph (A) and inserting “7.4 cents”, and (B) by striking “3-cent reduction” in the paragraph heading and inserting “Reduction”. (9) Section 6427(1) is amended by striking paragraphs (3) and (4) and inserting the following new paragraphs: “(3) No refund of certain taxes on fuel used in diesel-powered trains.— In the case of fuel used in a diesel-powered train, paragraph (1) shall not apply to so much of the tax imposed by section 4091 as is attributable to the Leaking Underground Storage Tank Trust Fund financing rate and the diesel fuel deficit reduction rate imposed by such section. The preceding sentence shall not apply in the case of fuel sold tor exclusive use by a State or any political subdivision thereof. “(4) No refund of leaking underground storage tank trust fund taxes on fuel used in commercial aviation.— In the case of fuel used in commercial aviation (as defined in section 4093(c)(2)(B)) (other than supplies for vessels or aircraft within the meaning of section 4221(d)(3)), paragraph (1) shall not apply to so much of the tax imposed by section 4091 as is attributable to the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section.” (10) Section 6427 is amended by striking subsections (m) and (o). (g) Effective Date.— The amendments made by this section shall take effect on October 1, 1993. (h) Floor Stocks Taxes.— (1) Imposition of tax.— In the case of gasoline, diesel fuel, and aviation fuel on which tax was imposed under section 4081 or 4091 of the Internal Revenue Code of 1986 before October 1, 1993, and which is held on such date by any person, there is hereby imposed a floor stocks tax of 4.3 cents per gallon on such gasoline, diesel fuel, and aviation fuel. (2) Liability for tax and method of payment.— (A) Liability for tax.— A person holding gasoline, diesel fuel, or aviation fuel on October 1, 1993, 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 November 30, 1993. (3) Definitions.— For purposes of this subsection— 107 STAT. 513 (A) Held by a person.— Gasoline, diesel fuel, and aviation 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) Aviation fuel.— The term “aviation fuel” has the meaning given such term by section 4092 of such Code. (E) Secretary.— The term “Secretary” means the Secretary of the Treasury or his delegate. (4) Exception for exempt uses.— The tax imposed by paragraph (1) shall not apply to gasoline, diesel fuel, or aviation 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. (5) 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. (6) Exception for certain amounts of fuel.— (A) In general.— No tax shall be imposed by paragraph (1)— (i) on gasoline held on October 1, 1993, 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 or aviation fuel held on October 1, 1993, by any person if the aggregate amount of diesel fuel or aviation 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 (4) or (5). (C) Controlled groups.— For purposes of this paragraph— (i) Corporations.— (I) In general.— All persons treated as a controlled group shall be treated as 1 person. (II) Controlled group.— The term “controlled group” has the meaning given to such term by subsection (a) of section 1563 of such Code; except that for such purposes the phrase “more than 50 percent” shall be substituted for the phrase “at least 80 percent” each place it appears in such subsection. (ii) Nonincorporated persons under common control.— Under regulations prescribed by the Secretary, principles similar to the principles of clause (i) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation. 107 STAT. 514 (7) Other law 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 and aviation fuel shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply with respect to the floor stock taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section 4081 or 4091.