Fuels Excise Tax Equity Act of 1988

Fuels Excise Tax Equity Act of 1988 - Amends the Internal Revenue Code with respect to the excise tax on diesel and aviation fuels. Declares the tax inapplicable in connection with sales of these fuels for use on a farm for farming purposes. (Although fuel sold for these purposes is tax-exempt under current law, provisions of the Revenue Act of 1987 require purchasers to pay the tax and subsequently apply for a refund based on nontaxable uses of the fuel.)

Exempts from the same excise tax any sale of fuel for exclusive State or local governmental use. (Under current law, the Secretary of the Treasury is authorized to issue regulations exempting such sales.)

Permits wholesale distributors of gasoline who have registered with the Secretary of the Treasury and posted the required bond to pay the gasoline tax (in lieu of the person otherwise liable for the tax).