Expresses the sense of the Congress that the benefits of the tax reduction should be passed on to consumers. Requires a study and report.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2791 Introduced in Senate (IS)]
106th CONGRESS
2d Session
S. 2791
Instituting a Federal fuels tax suspension.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 26, 2000
Mrs. Hutchison introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
Instituting a Federal fuels tax suspension.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Fuels Tax Suspension Act of
2000''.
SEC. 2. TEMPORARY REDUCTION IN FUEL TAXES ON GASOLINE, DIESEL FUEL,
KEROSENE, AND SPECIAL FUELS TO ZERO.
(a) 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:
``(f) Temporary Reduction in Taxes on Gasoline, Diesel Fuel,
Kerosene, and Special Fuels.--
``(1) In general.--During the applicable period, each rate
of tax referred to in paragraph (2) shall be reduced to zero.
``(2) Rates of tax.--The rates of tax referred to in this
paragraph are the rates of tax otherwise applicable under--
``(A) clauses (i) and (iii) of subsection (a)(2)(A)
(relating to gasoline, diesel fuel, and kerosene), and
``(B) paragraphs (1), (2), and (3) of section
4041(a) (relating to diesel fuel and special fuels) and
section 4041(m) (relating to certain alcohol fuels)
with respect to fuel sold for use or used in a highway
vehicle.
``(3) Special reduction rules.--In the case of a reduction
under paragraph (1)--
``(A) subsection (c) shall be applied without
regard to paragraph (6) thereof,
``(B) section 40(e)(1) shall be applied without
regard to subparagraph (B) thereof,
``(C) section 4041(d)(1) shall be applied by
disregarding `if tax is imposed by subsection (a)(1) or
(2) on such sale or use', and
``(D) section 6427(b) shall be applied without
regard to paragraph (2) thereof.
``(4) Protecting social security trust fund.--If the
Secretary, after consultation with the Director of the Office
of Management and Budget, determines that such reduction would
result in an aggregate reduction in revenues to the Treasury
exceeding the Federal on-budget surplus during the remainder of
the applicable period, the Secretary shall modify such
reduction such that each rate of tax referred to in paragraph
(2) is reduced in a pro rata manner and such aggregate
reduction does not exceed such surplus.
``(5) Maintenance of trust fund deposits.--In determining
the amounts to be appropriated to the Highway Trust Fund under
section 9503 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.
``(6) Applicable period.--For purposes of this subsection,
the term `applicable period' means the period beginning after
June 25, 2000, and ending before September 5, 2000.''
(b) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 3. FLOOR STOCK REFUNDS.
(a) In General.--If--
(1) before the tax reduction date, tax has been imposed
under section 4081 of the Internal Revenue Code of 1986 on any
liquid, and
(2) on such date such liquid is held by a dealer and has
not been used and is intended for sale,
there shall be credited or refunded (without interest) to the person
who paid such tax (hereafter in this section referred to as the
``taxpayer'') 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 reduction date.
(b) Time for Filing Claims.--No credit or refund shall be allowed
or made under this section unless--
(1) claim therefor is filed with the Secretary of the
Treasury before the date which is 6 months after the tax
reduction date, and
(2) in any case where liquid is held by a dealer (other
than the taxpayer) on the tax reduction date--
(A) the dealer submits a request for refund or
credit to the taxpayer before the date which is 3
months after the tax reduction date, and
(B) the taxpayer has repaid or agreed to repay the
amount so claimed to such dealer or has obtained the
written consent of such dealer to the allowance of the
credit or the making of the refund.
(c) Exception for Fuel Held in Retail Stocks.--No credit or refund
shall be allowed under this section with respect to any liquid in
retail stocks held at the place where intended to be sold at retail.
(d) Definitions.--For purposes of this section--
(1) 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, and
(2) the term ``tax reduction date'' means June 26, 2000.
(e) 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 section.
SEC. 4. FLOOR STOCKS TAX.
(a) 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 amendments made by
this Act, 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.
(b) Liability for Tax and Method of Payment.--
(1) Liability for tax.--A person holding a liquid on the
floor stocks tax date to which the tax imposed by subsection
(a) applies shall be liable for such tax.
(2) Method of payment.--The tax imposed by subsection (a)
shall be paid in such manner as the Secretary of the Treasury
shall prescribe.
(3) Time for payment.--The tax imposed by subsection (a)
shall be paid on or before the date which is 6 months after the
floor stocks tax date.
(c) Definitions.--For purposes of this section--
(1) 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).
(2) Floor stocks tax date.--The term ``floor stocks tax
date'' means September 5, 2000.
(3) Applicable period.--The term ``applicable period''
means the period beginning after June 25, 2000, and ending
before September 5, 2000.
(d) Exception for Exempt Uses.--The tax imposed by subsection (a)
shall not apply to any liquid 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.
(e) Exception for Fuel Held in Vehicle Tank.--No tax shall be
imposed by subsection (a) on any liquid held in the tank of a motor
vehicle.
(f) Exception for Certain Amounts of Fuel.--
(1) In general.--No tax shall be imposed by subsection
(a)--
(A) on gasoline (as defined in section 4083 of such
Code) 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, and
(B) on diesel fuel or kerosene (as so defined) held
on such date by any person if the aggregate amount of
diesel fuel or kerosene 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.
(2) Exempt fuel.--For purposes of paragraph (1), there
shall not be taken into account fuel held by any person which
is exempt from the tax imposed by subsection (a) by reason of
subsection (d) or (e).
(3) Controlled groups.--For purposes of this subsection--
(A) 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.
(B) Nonincorporated persons under common control.--
Under regulations prescribed by the Secretary,
principles similar to the principles of subparagraph
(A) shall apply to a group of persons under common
control where 1 or more of such persons is not a
corporation.
(g) 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 subsection, apply with respect to the floor stock
taxes imposed by subsection (a) to the same extent as if such taxes
were imposed by such section 4081.
SEC. 5. BENEFITS OF TAX REDUCTION SHOULD BE PASSED ON TO CONSUMERS.
(a) Passthrough to Consumers.--
(1) Sense of congress.--It is the sense of Congress that--
(A) consumers immediately receive the benefit of
the reduction in taxes under this Act, and
(B) 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 this Act.
(2) Study.--
(A) In general.--The Comptroller General of the
United States shall conduct a study of the reduction of
taxes under this Act to determine whether there has
been a passthrough of such reduction.
(B) Report.--Not later than September 30, 2000, the
Comptroller General of the United States shall report
to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of
Representatives the results of the study conducted
under subparagraph (A).
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S5773-5775)
Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S5812-5813)
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