[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5240 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5240
To amend the Internal Revenue Code of 1986 to suspend the excise tax on
highway motor fuels when average United States retail gasoline prices
exceed $2.75 per gallon.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 27, 2006
Mr. McHugh introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to suspend the excise tax on
highway motor fuels when average United States retail gasoline prices
exceed $2.75 per gallon.
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 ``Gasoline Tax Relief Act of 2006''.
SEC. 2. SUSPENSION OF FUEL TAXES ON HIGHWAY MOTOR FUELS WHEN WEEKLY
UNITED STATES RETAIL GASOLINE PRICES EXCEED BENCHMARK.
(a) In General.--Section 4081 of the Internal Revenue Code of 1986
(relating to imposition of tax on motor and aviation fuels) is amended
by adding at the end the following new subsection:
``(f) Suspension of Highway Motor Fuel Taxes When Retail Gasoline
Exceeds Benchmark.--
``(1) In general.--During any suspension period, the tax
imposed by section 4041 or 4081 on highway motor fuel shall be
suspended.
``(2) Definitions.--For purposes of this subsection--
``(A) Suspension period.--The term `suspension
period' means--
``(i) the 60-day period beginning 7 days
after the date of enactment of this subsection,
and
``(ii) after such 60-day period, any
period--
``(I) beginning 7 days after the
date on which the weekly United States
retail gasoline price for regular grade
conventional areas (as published by the
Energy Information Administration,
Department of Energy), inclusive of
such tax, is greater than the benchmark
price, and
``(II) ending 7 days after the date
on which such price (as so published),
without regard to this subsection, does
not exceed the benchmark price.
``(B) Benchmark price.--For purposes of this
subsection--
``(i) In general.--The term `benchmark
price' means $2.75 per gallon.
``(ii) Adjustment for inflation.--In the
case of any calendar year beginning after 2006,
the dollar amount in clause (i) shall be
increased by an amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for such calendar year,
determined by substituting `calendar
year 2005' for `calendar year 1992' in
subparagraph (B) thereof.
Any increase determined under subclause (II)
shall be rounded to the nearest cent.
``(C) Highway motor fuel.--The term `highway motor
fuel' means any fuel subject to tax under section 4041
or 4081 other than aviation gasoline and aviation-grade
kerosene.''.
(b) Maintenance of Trust Funds Deposits; Amounts Appropriated to
Trust Funds Treated as Taxes.--
(1) In general.--There is hereby appropriated (out of any
money in the Treasury not otherwise appropriated) to each trust
fund which would (but for this subsection) receive reduced
revenues as a result of a suspension in a rate of tax by reason
of section 4081(f)(1) of the Internal Revenue Code of 1986 (as
added by this section) an amount equal to such reduction in
revenues. Amounts appropriated by the preceding sentence to any
trust fund--
(A) shall be transferred from the general fund at
such times and in such manner as to replicate to the
extent possible the transfers which would have occurred
had subsection (a) not been enacted, and
(B) shall be treated for all purposes of Federal
law as taxes received under the appropriate section
referred to in such section 4081(f)(1).
(c) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
(d) Floor Stock Refunds.--
(1) In general.--If--
(A) before the tax suspension date, tax has been
imposed under section 4081 of the Internal Revenue Code
of 1986 on any highway motor fuel, and
(B) on such date such fuel 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 subsection referred
to as the ``taxpayer'') an amount equal to the excess of the
tax paid by the taxpayer over the tax which would be imposed on
such fuel had the taxable event occurred on such date.
(2) Time for filing claims.--No credit or refund shall be
allowed or made under this subsection unless--
(A) claim therefor is filed with the Secretary of
the Treasury before the date which is 6 months after
the tax suspension date based on a request submitted to
the taxpayer before the date which is 3 months after
the tax suspension date by the dealer who held the
highway motor fuel on such 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.
(3) Exception for fuel held in retail stocks.--No credit or
refund shall be allowed under this subsection with respect to
any highway motor fuel in retail stocks held at the place where
intended to be sold at retail.
(4) Definitions.--For purposes of this subsection--
(A) Tax suspension date.--The term ``tax suspension
date'' means the first day of any suspension period in
effect under section 4081(f) of the Internal Revenue
Code of 1986 (as added by subsection (a) of this
section).
(B) Other terms.--The terms ``dealer'' and ``held
by a dealer'' have the respective meanings given to
such terms by section 6412 of such Code.
(5) 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.
(e) Floor Stocks Tax.--
(1) Imposition of tax.--In the case of any highway motor
fuel which is held on the tax restoration date by any person,
there is hereby imposed a floor stocks tax equal to the excess
of the tax which would be imposed on such fuel had the taxable
event occurred on such date over the tax (if any) previously
paid (and not credited or refunded) on such fuel.
(2) Liability for tax and method of payment.--
(A) Liability for tax.--The person holding highway
motor fuel on the tax restoration date 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 the 45th day after the
tax restoration date.
(3) Definitions.--For purposes of this subsection--
(A) Tax restoration date.--The term ``tax
restoration date'' means the first day after the end of
any suspension period (as defined in section 4081(f) of
the Internal Revenue Code of 1986).
(B) Highway motor fuel.--The term ``highway motor
fuel'' has the meaning given to such term by section
4081(f) of such Code.
(C) Held by a person.--A highway motor 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).
(D) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury or the Secretary's delegate.
(4) Exception for exempt uses.--The tax imposed by
paragraph (1) shall not apply to any highway motor fuel held by
any person exclusively for any use to the extent a credit or
refund of the tax is allowable for such use.
(5) Exception for certain amounts of fuel.--
(A) In general.--No tax shall be imposed by
paragraph (1) on any highway motor fuel held on the tax
restoration date by any person if the aggregate amount
of such highway motor 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 subparagraph.
(B) Exempt fuel.--For purposes of subparagraph (A),
there shall not be taken into account any highway motor
fuel held by any person which is exempt from the tax
imposed by paragraph (1) by reason of paragraph (4).
(C) Controlled groups.--For purposes of this
subsection--
(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 subparagraph (A) shall apply to a group of
persons under common control if 1 or more of
such persons is not a corporation.
(6) Other laws 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 paragraph (1) to the same extent as if such taxes were
imposed by such section.
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