H. R. 5302
IN THE HOUSE OF REPRESENTATIVES
May 4, 2006
Mr. Kennedy of Minnesota (for himself, Mr. Miller of Florida, Mr. Gerlach, Mr. Ramstad, Mr. Doolittle, and Mr. English of Pennsylvania) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
To amend the Internal Revenue Code of 1986 to suspend the highway fuels taxes, to provide for suspension of royalty relief, and for other purposes.
This Act may be cited as the
Summer Relief for Motorists Act of
Sense of Congress
It is the sense of Congress that the States, with an average gas tax of 20.8 cents per gallon, also possess the ability to provide significant immediate relief to motorists by temporarily suspending their own motor fuel excise taxes. While Congress believes such action is appropriate, Congress also believes that the States should find offsets for such temporary motor fuel excise tax suspensions in order to maintain their commitment to transportation infrastructure investment.
Suspension of highway fuel taxes
Suspension of highway fuel taxes on gasoline, diesel fuel, and kerosene
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:
Suspension of taxes on gasoline, diesel fuel, and kerosene
During the suspension period, each rate of tax referred to in paragraph (2) shall be reduced to zero cents per gallon.
Rates of tax
The rates of tax referred to in this paragraph are the rates of tax otherwise applicable under—
clauses (i) and (iii) of subsection (a)(2)(A) (relating to gasoline, diesel fuel, and kerosene), determined after application of subsection (a)(2)(B) and without regard to subsection (a)(2)(C), and
paragraph (1) of section 4041(a) (relating to diesel fuel and kerosene) with respect to fuel sold for use or used in a diesel-powered highway vehicle.
For purposes of this subsection, the term suspension period means the period beginning on May 29, 2006 (or, if later, the date of the enactment of this subsection) and ending on September 4, 2006.
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 section 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.
The amendment made by this subsection shall take effect on the date of the enactment of this Act.
Floor Stock Refunds
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
on such date such fuel is held by a dealer and has not been used and is intended for sale,
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.
Time for filing claims
No credit or refund shall be allowed or made under this subsection unless—
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
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.
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.
For purposes of this subsection—
Tax suspension date
tax suspension date means the first
day of the suspension period in effect under section 4081(f) of the Internal
Revenue Code of 1986 (as added by subsection (a) of this section).
Highway motor fuel
highway motor fuel has the meaning
given such term for purposes of subsection (c).
held by a
dealer have the respective meanings given to such terms by section 6412
of such Code.
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.
Floor Stocks Tax
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.
Liability for tax and method of payment
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.
Method of payment
The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe.
Time for payment
The tax imposed by paragraph (1) shall be paid on or before the 45th day after the tax restoration date.
For purposes of this subsection—
Tax restoration date
tax restoration date means the first
day after the suspension period (as defined in section 4081(f) of the Internal
Revenue Code of 1986).
Highway motor fuel
motor fuel means any liquid on which tax would have been imposed under
section 4081 of the Internal Revenue Code of 1986 during the suspension period
in effect under section 4081(f) of such Code but for the amendments made by
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).
Secretary means the Secretary of the Treasury or the
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.
Exception for certain amounts of fuel
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.
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).
For purposes of this subsection—
All persons treated as a controlled group shall be treated as 1 person.
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.
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.
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.
Suspension of royalty relief
The Secretary of the Interior (referred to in this title as the Secretary) shall suspend the application of any provision of Federal law under which a person would otherwise be provided relief from a requirement to pay a royalty for the production of oil or natural gas from Federal land (including submerged land) occurring on or after the date of enactment of this Act during a period in which—
for the production of oil, the average price of crude oil in the United States during the 4-week period immediately preceding the suspension is greater than $35.86 per barrel; and
for the production of natural gas, the average wellhead price of natural gas in the United States during the 4-week period immediately preceding the suspension is greater than $4.48 per 1,000 cubic feet.
Determination of average prices
For purposes of paragraph (1), the Secretary shall determine average prices, taking into consideration the most recent data reported by the Energy Information Administration.
Renegotiation of existing leases
The Secretary shall, to the maximum extent practicable, renegotiate each lease authorizing production of oil or natural gas on Federal land (including submerged land) issued by the Secretary before the date of the enactment of this Act as the Secretary determines to be necessary to modify the terms of the lease to ensure that a suspension of a requirement to pay royalties under the lease does not apply to production described in subsection (a)(1).
Failure to renegotiate and modify
Beginning on the date that is 1 year after the date of enactment of this Act, a lessee that does not renegotiate a lease described in paragraph (1) in accordance with that paragraph shall not be eligible to enter into a new lease authorizing production of oil or natural gas on Federal land (including submerged land).
A lessee shall not be eligible to obtain by sale or other transfer any lease described in paragraph (1) issued before the date of enactment of this Act, unless the lessee—
renegotiates the lease; and
enters into an agreement with the Secretary to modify the terms of the lease in accordance with paragraph (1).