(Aug. 16, 1954, c. 736, 68A Stat. 482; June 29, 1956, c. 462, Title II, § 204(c), 70 Stat. 389; Oct. 4, 1976, Pub. L. 94-455, Title XIX, § 1906(b)(13)(A), 90 Stat. 1834.)

Sec. 4081. Imposition of tax.

(a) In general.-There is hereby imposed on gasoline sold by the producer or importer thereof, or by any producer of gasoline, a tax of 9 cents a gallon.

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

(c) Gasoline mixed with alcohol. (1) In general.-Under regulations prescribed by the Secretary, subsection (a) shall be applied by substituting "4 cents" for "9 cents" in the case of the sale of any gasoline— (A) in a mixture with alcohol, if at least 10 percent of the mixture is alcohol, or

(B) for use in producing a mixture at least 10 percent of which is alcohol.

(2) Later separation of gasoline.-If any person separates the gasoline from a mixture of gasoline and alcohol on which tax was imposed under subsection (a) at the rate of 4 cents a gallon by reason of this subsection (or with respect to which a credit or payment was allowed or made by reason of section 6427(f)(1)), such person shall be treated as the producer of such gasoline. The amount of tax imposed on any sale of such gasoline by such person shall be 5 cents a gallon.

(3) Alcohol defined.-For purposes of this subsection, the term "alcohol" includes methanol and ethanol but does not include alcohol produced from petroleum, natural gas, or coal. Such term does not include alcohol with a proof of less than 190 (determined without regard to any added denaturants).

(4) Termination.-Paragraph (1) shall not apply to any sale after December 31, 1992.

(Aug. 16, 1954, c. 736, 68A Stat. 483; Mar. 30, 1955, c. 18, § 3(a)(3), 69 Stat. 14; Mar. 29, 1956, c. 115, § 3(a)(3), 70 Stat. 66; June 29, 1956, c. 462, Title II, § 205, 70 Stat. 389; Sept. 21, 1959, Pub.L. 86-342, Title II, §201(a), 73 Stat. 613; June 29, 1961, § 201(b)-(d), 75 Stat. 123; Dec. 31, 1970, § 303(a)(6), 84 Stat. 1744; May 5,

Pub. L.

87-61, Title II,

Pub. L.

91-605, Title III,

1976,

Pub. L.

94-280, Title III,

§ 303(a)(6), 90 Stat. 456; Nov. 6,

1978,

Pub.L.

95-599, Title V,

1978,

Pub. L.

95-618, Title II,

§ 502(a)(5), 92 Stat. 2756; Nov. 9, § 221(a)(1), 92 Stat. 3185; Apr. 2, 1980, Pub. L. 96-223, Title II, § 232(a)(1), (b)(3)(A), (d)(3), 94 Stat. 273, 276, 277; Jan. 6, 1983, Pub.L. 97-424, Title V, §§ 511(a)(1), (d)(1), 516(a)(3), 96 Stat. 2169, 2171, 2182.)

Sec. 4082. Definitions.

(a) Producer

As used in this subpart, the term "producer" includes a refiner, compounder, blender, or wholesale distributor, and a dealer selling gasoline exclusively to producers of gasoline, as well as a producer. Any person to whom gasoline is sold tax-free under this subpart shall be considered the producer of such gasoline.

(b) Gasoline

As used in this subpart, the term "gasoline" means all products commonly or commercially known or sold as gasoline which are suitable for use as a motor fuel.

(c) Certain uses defined as sales

If a producer or importer uses (otherwise than in the production of gasoline or of special fuels referred to in section 4041) gasoline sold to him free of tax, or produced or imported by him, such use shall for the purposes of this chapter be considered a sale.

(d) Wholesale distributor

As used in subsection (a), the term "wholesale distributor" includes any person who

(1) sells gasoline to producers, to retailers, or to users who purchase in bulk quantities for delivery into bulk storage tanks, and

(2) elects to register with respect to the tax imposed by section 4081. Such term does not include any person who (excluding the term "wholesale distributor" from subsection (a)) is a producer or importer. (Aug. 16, 1954, c. 736, 68A Stat. 483; Sept. 21, 1959, Pub. L. 86-342, Title II, § 201(e)(1), (2), 73 Stat. 615; June 21, 1965, Pub. L. 89-44, Title VIII, § 802(a)(1), (b)(1), 79 Stat. 159; May 21, 1970, Pub. L. 91-258, title II, § 205(c)(6), 84 Stat. 242.)

Sec. 4084. Cross references.

(1) For provisions to relieve farmers from excise tax in the case of gasoline used on the farm for farming purposes, see section 6420.

(2) For provisions to relieve purchasers of gasoline from excise tax in the case of gasoline used for certain nonhighway purposes or by local transit systems, see section 6421.

(Added Apr. 2, 1956, c. 160, § 4(a)(1), 70 Stat. 90, and amended June 29, 1956, c. 462, Title II, § 208(e)(1), 70 Stat. 396.)

Sec. 4091. Imposition of tax. (Repealed by Pub. L. 97-424, Title V, § 515(a), Jan. 6, 1983, 96 Stat. 2181.)

Sec. 4216. Definition of price.

(Certain trucks incorporating used components

For purposes of the tax imposed by section 4061(a)(1) (relating to trucks, buses, tractors, etc.), in determining the price for which an article is sold, the value of any component of such article shall be excluded from the price, if

(1) such component is furnished by the first user of such article, and

(2) such component has been used prior to such furnishing. ** June 21, 1965, Pub. L. 89-44, sec. 801(b), 79 Stat. 158; Oct. 4, 1976, Pub. L. 94-455, Title XIX, §§ 1904(a)(2), 1906(b)(13)(A), 90 Stat. 1811, 1834; Oct. 14, 1978, Pub. L. 95-458, § 1(a), (b), 92 Stat. 1255.)

Sec. 4221. Certain tax-free sales.

(d) Definitions

For purposes of this section—

(6) USE IN FURTHER MANUFACTURE.-An article shall be treated as sold for use in further manufacture if—

(A) such article (other than an article referred to in subparagraph (B)) is sold for use by the purchaser as material in the manufacture or production of, or as a component part of, another article taxable under this chapter to be manufactured or produced by him;

(B) in the case of a part or accessory taxable under section 4061(b), such article is sold for use by the purchaser as material in the manufacture or production of, or as a component part of, another article to be manufactured or produced by him; or

(C) in the case of gasoline taxable under section 4081, such gasoline is sold for use by the purchaser, for nonfuel purposes, as a material in the manufacture or production of another article to be manufactured or produced by him.

For purposes of subparagraph (B), the rebuilding of a part or accessory which is exempt from tax under section 4063(c) shall not constitute the manufacture or production of such part or accessory.

(7) QUALIFIED BUS.

(A) In general.-The term "qualified bus" means

(i) an intercity or local bus, and

(ii) a school bus.

(B) Intercity or local bus.-The term "intercity or local bus" means any automobile bus which is used predominantly in

furnishing (for compensation) passenger land transportation available to the general public if—

(i) such transportation is scheduled and along regular routes, or

(ii) the seating capacity of such bus is at least 20 adults (not including the driver).

(C) School bus.-The term "school bus" means any automobile bus substantially all the use of which is in transporting students and employees of schools. For purpose of the preceding sentence, the term "school" means an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are carried on.

(e) Special rules

(2) TIRES AND TUBES.—

(A) Tax-free sales.-Under regulations prescribed by the Secretary, no tax shall be imposed under section 4071 on the sale by the manufacturer of a tire or inner tube if—

(i) such tire or tube is sold for use by the purchaser for sale on or in connection with the sale of another article manufactured or produced by such purchaser; and

(ii) such other article is to be sold by such purchaser in a sale which either will satisfy the requirements of paragraph (2), (3), (4), or (5) of subsection (a) for a tax-free sale, or would satisfy such requirements but for the fact that such other article is not subject to tax under this chapter.

(B) Proof. Where a tire or tube has been sold free of tax under this paragraph, this paragraph shall cease to apply unless, within the 6-month period which begins on the date of the sale by him (or, if earlier, on the date of the shipment by him), the manufacturer of such tire or tube receives proof that the other article referred to in clause (ii) of subparagraph (A) has been sold in a manner which satisfies the requirements of such clause (ii) (including in the case of a sale for export, proof of export of such other article).

(C) Subsection (a) (1) does not apply.-Paragraph (1) of subsection (a) shall not apply with respect to the tax imposed under section 4071 on the sale of a tire, or inner tube.

(3) Repealed. Pub. L. 89-44, Title II, § 208(d), June 21, 1965, 79 Stat. 141.

(4) BICYCLE TIRES OR TUBES SOLD TO BICYCLE MANUFACTUR

(A) In general.-Under regulations prescribed by the Secretary, no tax shall be imposed under section 4071 on the sale of a bicycle tire (or an inner tube for such a tire) by the manufacturer thereof if such tire or tube is sold for use by the purchaser as material in the manufacture or production of, or as a component part of, a bicycle (other than a rebuilt or reconditioned bicycle).

(B) Bicycle tire defined.—As used in this paragraph the term "bicycle tire" means a tire, composed of rubber in combination with fabric or other reinforcing element, which is not more than 28 inches in outer diameter and not more than 24 inches in cross section and which is primarily designed or adapted for use on bicycles.

(C) Proof. Where a bicycle tire or tube has been sold free of tax under this paragraph, this paragraph shall cease to apply unless, within the 6-month period which begins on the date of the sale by him (or, if earlier, on the date of shipment by him), the manufacturer of such bicycle tire or tube receives proof that the tire or tube has been used in the manner described in subparagraph (A).

(5) TIRES, TUBES, AND TREAD RUBBER USED ON INTERCITY, LOCAL, AND SCHOOL BUSES.-Under regulations prescribed by the Secretary

(A) the taxes imposed by paragraphs (1) and (3) of section 4071(a) shall not apply in the case of tires or inner tubes for tires sold for use by the purchaser on or in connection with a qualified bus, and

(B) the tax imposed by paragraph (4) of section 4071(a) shall not apply in the case of tread rubber sold for use by the purchaser in the recapping or retreading of any tire to be used by the purchaser on or in connection with a qualified bus. (6) BUS PARTS AND ACCESSORIES.-Under regulations prescribed by the Secretary, the tax imposed by section 4061(b) shall not apply to any part or accessory which is sold for use by the purchaser on or in connection with an automobile bus, or is to be resold by the purchaser or a second purchaser for such use. (Added by Pub. L. 85-859, Title I, § 119(a), Sept. 2, 1958, 72 Stat. 1282, and amended by Pub. L. 86-70, § 22(a), June 25, 1959, 73 Stat. 146; Pub. L. 86-344, § 2(b), Sept. 21, 1959, 73 Stat. 617; Pub. L. 86-418, § 1, Apr. 8, 1960, 74 Stat. 38; Pub. L. 86–624, § 18(e), July 12, 1960, 74 Stat. 416; Pub. L. 87-61, Title II, § 205(a), June 29, 1961, 75 Stat. 126; Pub. L. 89-44, Title II, § 208(d), Title VIII § 801(c), (d)(1), June 21, 1965, 79 Stat. 141, 158; Pub. L. 94-455, Title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-222, Title I, § 108(c)(5), Apr. 1, 1980, 94 Stat. 227.)