FEDERAL-AID HIGHWAY ACT OF 1956

Public Law 627, 84th Cong., June 29, 1956, 70 Stat. 374

TITLE II-HIGHWAY REVENUE ACT OF 1956

Sec. 201. Short title for title II.

(a) Short Title

This title may be cited as the "Highway Revenue Act of 1956". (b) Amendment of Trust Fund

Whenever in this title an amendment is expressed in terms of an amendment to a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1954.

Sec. 209. Highway trust fund.

(a); (c)-(g). 1

(b) Declaration of Policy

It is hereby declared to be the policy of the Congress that if it hereafter appears

(1) that the total receipts of the Trust Fund (exclusive of advances under subsection (d)) will be less than the total expenditures from such Fund (exclusive of repayments of such advances); or

(2) that the distribution of the tax burden among the various classes of persons using the Federal-aid highways, or otherwise deriving benefits from such highways, is not equitable, the Congress shall enact legislation in order to bring about a balance of total receipts and total expenditures, or such equitable distribution, as the case may be.

Sec. 210. Investigation and report to Congress.

(a) Purpose

The Purpose of this section is to make available to the Congress information on the basis of which it may determine what taxes should be imposed by the United States, and in what amounts, in order to assure, insofar as practicable, an equitable distribution of the tax burden among the various classes of persons using the Federal-aid highways or otherwise deriving benefits from such highways.

(b) Study and investigation

In order to carry out the purpose of this section, the Secretary of Commerce is hereby authorized and directed, in cooperation with other Federal officers and agencies (particularly the Interstate Commerce

1 Repealed by sec. 531(b), Public Law 97-424, Jan. 6, 1983, (96 Stat. 2191).

Commission) and with the State highway departments, to make a study and investigation of

(1) the effects on design, construction, and maintenance of Federalaid highways of (A) the use of vehicles of different dimensions, weights, and other specifications, and (B) the frequency of occurrences of such vehicles in the traffic stream.

(2) the proportionate share of the design, construction, and maintenance costs of the Federal-aid highways attributable to each class of persons using such highways, such proportionate share to be based on the effects referred to in paragraph (1) and the benefits derived from the use of such highways, and

(3) any direct and indirect benefits accruing to any class which derives benefits from Federal-aid highways, in addition to benefits from actual use of such highways, which are attributable to public expenditures for such highways.

(c) Coordination with other studies

The Secretary of Commerce shall coordinate the study and investigation required by this section with

(1) the research and other activities authorized by section 10 of the Federal-aid Highway Act of 1954, and

(2) the tests referred to in section 108(k) of this Act.

(d) Reports on study and investigation

The Secretary of Commerce shall report to the Congress the results of the study and investigation required by this section. The final report shall be made as soon as possible, but in no event later than January 3, 1961. On or before March 1, 1957, March 1, 1958, March 1, 1959, and March 1, 1960, the Secretary of Commerce shall report to the Congress the progress that has been made in carrying out the study and investigation required by this section. Each such report shall be printed as a House document of the session of the Congress to which the report is made. 2

(e) Funds for study and investigation

There are hereby authorized to be appropriated out of the Highway Trust Fund such sums as may be necessary to enable the Secretary of Commerce to carry out the provisions of this section.

LAND AND WATER CONSERVATION FUND ACT OF 1965

Public Law 88-578, 88th Cong., Sept. 3, 1964, 78 Stat. 897

2 Amended by sec. 1 of Public Law 85-823, Aug. 28, 1959 (72 Stat. 983).

TITLE II-MOTORBOAT FUEL TAX PROVISIONS

(16 U.S.C., 4601-11)

TRANSFERS TO AND FROM LAND AND WATER CONSERVATION FUND

SEC. 201. (a). There shall be set aside in the land and water conservation fund in the Treasury of the United States provided for in title I of this Act the amounts specified in section 209(f)(5) of the Highway Revenue Act of 1956 (relating to special motor fuels and gasoline used in motorboats).

(b) There shall be paid from time to time from the land and water conservation fund into the general fund of the Treasury amounts estimated by the Secretary of the Treasury as equivalent to—

(1) the amounts paid before July 1, 1989, under section 6421 of the Internal Revenue Code of 1954 (relating to amounts paid in respect of gasoline used for certain nonhighway purposes or by local transit systems) with respect to gasoline used after December 31, 1964, in motorboats, on the basis of claims filed for periods ending before October 1, 1988; and

3

(2) 80 percent of the floor stocks refunds made before July 1, 1989, under section 6412(a)(2) of such Code with respect to gasoline to be used in motorboats.4

Title 26. United States Code, "Internal Revenue Code"

Sec. 39. Certain uses of gasoline and special fuels

(a) General rule.-There shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the sum of the amounts payable to the taxpayer—

(1) under section 6420 with respect to gasoline used during the taxable year on a farm for farming purposes (determined without regard to section 6420(g)),

(2) under section 6421 with respect to gasoline used during the taxable year (A) otherwise than as a fuel in a highway vehicle or (B) in vehicles while engaged in furnishing certain public passenger land transportation service (determined without regard to section 6421(i)), and

(3) under section 6427 with respect to fuels used for nontaxable purposes or resold during the taxable year (determined without regard to section 6427(i)).

(b) Exception.-Credit shall not be allowed under subsection (a) for any amount payable under section 6421 or 6427, if a claim for such

34 Amended by sec. 302 of Pub. L. 91-605, Dec. 31, 1970 (84 Stat. 1713); sec. 302 of Public Law 94-280, May 5, 1976 (90 Stat. 456); and sec. 503(b) of Public Law 95-599, Nov. 6, 1978 (92 Stat. 2757); sec. 531(c), Public Law 97-424, Jan. 6, 1983 (96 Stat. 2191).

amount is timely filed and, under section 6421(i) or 6427(i), is payable under such section.

As amended Pub. L. 91-258, Title II, § 207(c), May 21, 1970, 84 Stat. 248; Pub.L. 94-455, Title XIX, §§ 1901(a)(3), 1906(b)(8), (9), Oct. 4, 1976, 90 Stat. 1764, 1834; Pub. L. 94-530, § 1(c)(1), Oct. 17, 1976, 90 Stat. 2487; Pub. L. 95-599, Title V, § 505(c)(1), Nov. 6, 1978, 92 Stat. 2760; Pub. L. 95-618, Title II, § 233(b)(2)(C), Nov. 9, 1978, 92 Stat. 3191; Pub.L. 96–223, Title II, § 232(d)(4)(A), Apr. 2, 1980, 94 Stat. 278; Pub. L. 97-424, Title V, § 515(b)(6)(A)–(C), Jan. 6, 1983, 96 Stat. 2181. CHAPTER 31-RETAIL EXCISE TAXES

Subchapter A. Special fuels.

Subchapter B. Heavy trucks and trailers.

SUBCHAPTER A-SPECIAL FUELS

§ 4041. Imposition of tax

(a) Diesel fuel and special motor fuels.—

(1) Diesel fuel.-There is hereby imposed a tax of 9 cents a gallon on any liquid (other than any product taxable under section 4081)

(A) sold by any person to an owner, lessee, or other operator of a diesel-powered highway vehicle for use as a fuel in such vehicle, or

(B) used by any person as a fuel in a diesel-powered highway vehicle unless there was a taxable sale of such liquid under subparagraph (A).

(2) Special motor fuels.-There is hereby imposed a tax of 9 cents a gallon on benzol, benzene, naphtha, liquefied petroleum gas, casing head and natural gasoline, or any other liquid (other than kerosene, gas oil, or fuel oil, or any product taxable under section 4081 or paragraph (1) of this subsection)—

(A) sold by any person to an owner, lessee, or other operator of a motor vehicle or motorboat for use as a fuel in such motor vehicle or motorboat, or

(B) used by any person as a fuel in a motor vehicle or motorboat unless there was a taxable sale of such liquid under subparagraph (A).

(3) Termination.-On and after October 1, 1988, the taxes imposed by this subsection shall not apply.

(b) Exemption for off-highway business use; exemption for qualified methanol and ethanol fuel.

(1) Exemption for off-highway business use.-—

(A) In general.-No tax shall be imposed by subsection (a) on liquids sold for use or used in an off-highway business use. (B) Tax where other use.-If a liquid on which no tax was imposed by reason of subparagraph (A) is used otherwise than

in an off-highway business use, a tax shall be imposed by paragraph (1)(B) or (2)(B) of subsection (a) (whichever is appropriate).

(C) Off-highway business use defined.-For purposes of this subsection, the term "off-highway business use" has the meaning given to such term by section 6421(d)(2). (2) Qualified methanol and ethanol fuel.—

(A) In general.-No tax shall be imposed by subsection (a) on any qualified methanol or ethanol fuel.

(B) Qualified methanol or ethanol fuel.—The term “qualified methanol or ethanol fuel" means any liquid at least 85 percent of which consists of methanol, ethanol, or other alcohol produced from a substance other than petroleum or natural gas. (C) Termination.-On and after October 1, 1988, subparagraph (A) shall not apply.

(c) Noncommercial aviation.—

(1) IN GENERAL.-There is hereby imposed a tax of 14 cents a gallon upon any liquid (other than any product taxable under section 4081)—

(A) sold by any person to an owner, lessee, or other operator of an aircraft, for use as a fuel in such aircraft in noncommercial aviation; or

(B) used by any person as a fuel in an aircraft in noncommercial aviation, unless there was a taxable sale of such liquid under this section.

(2) GASOLINE.-There is hereby imposed a tax (at the rate specified in paragraph (3)) upon any product taxable under section 4081

(A) sold by any person to an owner, lessee, or other operator of an aircraft, for use as a fuel in such aircraft in noncommercial aviation; or

(B) used by any person as a fuel in an aircraft in noncommercial aviation, unless there was a taxable sale of such product under subparagraph (A).

The tax imposed by this paragraph shall be in addition to any tax imposed under section 4081.

(3) RATE OF TAX.-The rate of tax imposed by paragraph (2) on any gasoline is the excess of 12 cents a gallon over the rate at which tax was imposed on such gasoline under section 4081.

(4) DEFINITION OF NONCOMMERCIAL AVIATION.-For purposes of this chapter, the term "noncommercial aviation" means any use of an aircraft, other than use in a business of transporting persons or property for compensation or hire by air. The term also includes any use of an aircraft, in a business described in the preceding sentence, which is properly allocable to any transportation exempt