S 2890 ISCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide for a highway fuel tax holiday.CommentsClose CommentsPermalink

April 17, 2008

Mr. MCCAIN (for himself, Mr. KYL, Mr. BURR, Mr. GRAHAM, Mr. MARTINEZ, Mr. WARNER, Mr. CHAMBLISS, Mr. LIEBERMAN, and Mr. SUNUNU) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide for a highway fuel tax holiday.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. HIGHWAY FUEL TAX HOLIDAY.

(a) Temporary Suspension of Highway Fuel Taxes on Gasoline and Diesel Fuel-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 4081 of the Internal Revenue Code of 1986 (relating to imposition of tax on gasoline, diesel fuel, and kerosene) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(f) Temporary Suspension of Taxes on Gasoline and Diesel Fuel-CommentsClose CommentsPermalink





`(1) IN GENERAL- During the applicable period, each rate of tax referred to in paragraph (2) shall be reduced to zero cents per gallon.CommentsClose CommentsPermalink





`(2) RATES OF TAX- The rates of tax referred to in this paragraph are--CommentsClose CommentsPermalink





`(A) the rate of tax otherwise applicable to gasoline under clause (i) of subsection (a)(2)(A), determined with regard to subsection (a)(2)(B) and without regard to subsection (a)(2)(C),CommentsClose CommentsPermalink





`(B) the rate of tax otherwise applicable to diesel fuel under clause (iii) of subsection (a)(2)(A), determined with regard to subsection (a)(2)(B) and without regard to subsection (a)(2)(C), andCommentsClose CommentsPermalink





`(C) the rate of tax otherwise applicable to diesel fuel under paragraph (1) of section 4041(a) with respect to fuel sold for use or used in a diesel-powered highway vehicle.CommentsClose CommentsPermalink





`(3) APPLICABLE PERIOD- For purposes of this subsection, the term `applicable period' means the period beginning on May 26, 2008, and ending on September 1, 2008.CommentsClose CommentsPermalink





`(4) MAINTENANCE OF TRUST FUND DEPOSITS- In determining the amounts to be appropriated to the Highway Trust Fund under section 9503 and to the Leaking Underground Storage Tank Trust Fund under 9508, an amount equal to the reduction in revenues to the Treasury by reason of this subsection shall be treated as taxes received in the Treasury under this section or section 4041.'.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendment made by this subsection shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink





(b) Floor Stock Refunds-CommentsClose CommentsPermalink





(1) IN GENERAL- If--CommentsClose CommentsPermalink





(A) before the tax suspension date, a tax referred to in section 4081(f)(2) of the Internal Revenue Code of 1986 has been imposed under such Code on any liquid, andCommentsClose CommentsPermalink





(B) on such date such liquid is held by a dealer and has not been used and is intended for sale,CommentsClose CommentsPermalink





there shall be credited or refunded (without interest) to the person who paid such tax (hereafter in this subsection referred to as the `taxpayer'), against the taxpayer's subsequent semi-monthly deposit of such tax, an amount equal to the excess of the tax paid by the taxpayer over the amount of such tax which would be imposed on such liquid had the taxable event occurred on the tax suspension date.CommentsClose CommentsPermalink





(2) TIME FOR FILING CLAIMS; CERTIFICATIONS NECESSARY TO FILE CLAIMS-CommentsClose CommentsPermalink





(A) IN GENERAL- No credit or refund shall be allowed or made under this subsection--CommentsClose CommentsPermalink





(i) unless claim therefore is filed with the Secretary before the date which is 6 months after the tax suspension date, andCommentsClose CommentsPermalink





(ii) in any case where liquid is held by a dealer (other than the taxpayer) on the tax suspension date, unless the taxpayer files with the Secretary--CommentsClose CommentsPermalink





(I) a certification that the taxpayer has given a credit to such dealer with respect to such liquid against the dealer's first purchase of liquid from the taxpayer subsequent to the tax suspension date, andCommentsClose CommentsPermalink





(II) a certification by such dealer that such dealer has given a credit to a succeeding dealer (if any) with respect to such liquid against the succeeding dealer's first purchase of liquid from such dealer subsequent to the tax suspension date.CommentsClose CommentsPermalink





(B) REASONABLENESS OF CLAIMS CERTIFIED- Any certification made under subparagraph (A) shall include an additional certification that the claim for credit was reasonably based on the taxpayer's or dealer's past business relationship with the succeeding dealer.CommentsClose CommentsPermalink





(3) DEFINITIONS- For purposes of this subsection--CommentsClose CommentsPermalink





(A) the terms `dealer' and `held by a dealer' have the respective meanings given to such terms by section 6412 of such Code; except that the term `dealer' includes a producer, andCommentsClose CommentsPermalink





(B) the term `tax suspension date' means May 26, 2008.CommentsClose CommentsPermalink





(4) CERTAIN RULES TO APPLY- Rules similar to the rules of subsections (b) and (c) of section 6412 of such Code shall apply for purposes of this subsection.CommentsClose CommentsPermalink





(c) Floor Stocks Tax-CommentsClose CommentsPermalink





(1) IMPOSITION OF TAX- In the case of any liquid on which tax would have been imposed under section 4081 of the Internal Revenue Code of 1986 during the applicable period but for the amendment made by subsection (a), and which is held on the floor stocks tax date by any person, there is hereby imposed a floor stocks tax in an amount equal to the tax which would be imposed on such liquid had the taxable event occurred on the floor stocks tax date.CommentsClose CommentsPermalink





(2) LIABILITY FOR TAX AND METHOD OF PAYMENT-CommentsClose CommentsPermalink





(A) LIABILITY FOR TAX- A person holding a liquid on the floor stocks tax date to which the tax imposed by paragraph (1) applies shall be liable for such tax.CommentsClose CommentsPermalink





(B) METHOD OF PAYMENT- The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe.CommentsClose CommentsPermalink





(C) TIME FOR PAYMENT- The tax imposed by paragraph (1) shall be paid on or before the date which is 6 months after the floor stocks tax date.CommentsClose CommentsPermalink





(3) DEFINITIONS- For purposes of this subsection--CommentsClose CommentsPermalink





(A) HELD BY A PERSON- A liquid 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).CommentsClose CommentsPermalink





(B) GASOLINE AND DIESEL FUEL- The terms `gasoline' and `diesel fuel' have the respective meanings given such terms by section 4083 of such Code.CommentsClose CommentsPermalink





(C) FLOOR STOCKS TAX DATE- The term `floor stocks tax date' means September 2, 2008.CommentsClose CommentsPermalink





(D) APPLICABLE PERIOD- The term `applicable period' means the period described in section 4081(f)(3) of such Code.CommentsClose CommentsPermalink





(4) EXCEPTION FOR EXEMPT USES- The tax imposed by paragraph (1) shall not apply to gasoline or diesel fuel held by any person exclusively for any use to the extent a credit or refund of the tax imposed by section 4081 of such Code is allowable for such use.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(6) EXCEPTION FOR CERTAIN AMOUNTS OF FUEL-CommentsClose CommentsPermalink





(A) IN GENERAL- No tax shall be imposed by paragraph (1)--CommentsClose CommentsPermalink





(i) on gasoline (other than aviation gasoline) held on the floor stocks tax date by any person if the aggregate amount of gasoline held by such person on such date does not exceed 4,000 gallons, andCommentsClose CommentsPermalink





(ii) on diesel fuel held on such date by any person if the aggregate amount of diesel fuel held by such person on such date does not exceed 2,000 gallons.CommentsClose CommentsPermalink





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 subparagraph.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(C) CONTROLLED GROUPS- For purposes of this paragraph--CommentsClose CommentsPermalink





(i) CORPORATIONS-CommentsClose CommentsPermalink





(I) IN GENERAL- All persons treated as a controlled group shall be treated as 1 person.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(7) OTHER LAW APPLICABLE- All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 of such Code shall, insofar as applicable and not inconsistent with the provisions of this paragraph, 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.CommentsClose CommentsPermalink





(d) Secretary- For purposes of this section, the term `Secretary' means the Secretary of the Treasury or the Secretary's delegate.CommentsClose CommentsPermalink





(e) Benefits of Tax Reduction Should Be Passed on to Consumers- It is the policy of Congress that--CommentsClose CommentsPermalink





(1) consumers immediately receive the benefit of the reduction in taxes resulting from the amendment made by subsection (a), andCommentsClose CommentsPermalink





(2) transportation motor fuels producers and other dealers take such actions as necessary to reduce transportation motor fuels prices to reflect such reduction, including immediate credits to customer accounts representing tax refunds allowed as credits against excise tax deposit payments under the floor stocks refund provisions of subsection (b).CommentsClose CommentsPermalink