S.Amdt. 2436

1. Adds SEC. 5004. INCREASE IN HIGHWAY FUELS TAX RATE on page 1030, line 21

   Adds a sectionPrinted page

   Inserted: SEC. 5004. INCREASE IN HIGHWAY FUELS TAX RATE.

   Inserted: (a) In General.--Section 4081(a)(2)(A) (relating to rates of tax) is amended--

   Inserted: (1) by striking "18.3 cents" in clause (i) and inserting "22 cents", and

   Inserted: (2) by striking "24.3 cents" in clause (ii) and inserting "29.2 cents".

   Inserted: (b) Inflation Adjustment.--Section 4081(a) is amended by adding at the end the following new paragraph:

   Inserted: "(3) Inflation adjustment of highway motor fuels excise tax rates.--In the case of any calendar year beginning after 2004, each of the rates of tax specified in clauses (i) and (ii) of paragraph (2)(A) shall be increased by an amount equal to--

   Inserted: "(1) such rate of tax, multiplied by

   Inserted: "(2) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, by substituting 'calendar year 2003' for 'calendar year 1992' in subparagraph (B) thereof.".

   Inserted: (c) Secretarial Adjustment.--Notwithstanding any provision of the Internal Revenue Code of 1986 to the contrary, not later than 30 days before any tax increase date (as defined in subsection (d)(3)(F)), the Secretary of the Treasury shall determine and provide for the proper rate, exemption, and credit adjustments necessary to maintain a comparable rate reduction to the rate imposed such date on gasoline, diesel fuel, or kerosene under section 4081 of the Internal Revenue Code of 1986 for any fuel, fuel mixture, or fuel use with respect to which such a reduction is in effect on such date.

   Inserted: (d) Floor Stocks Tax.--

   Inserted: (1) In general.--There is hereby imposed on highway fuel held on a tax increase date, by any person a tax equal to--

   Inserted: (A) the tax which would have been imposed on the day before such date on such fuel had the amendments made by this section been in effect at all times before such date, reduced by

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   Inserted: (B) the tax imposed before such date under section 4081 of the Internal Revenue Code of 1986, as in effect on the day before such tax increase date.

   Inserted: (2) Liability for tax and method of payment.--

   Inserted: (A) Liability for tax.--A person holding gasoline, diesel fuel, or kerosene on a tax increase date, to which the tax imposed by paragraph (1) applies shall be liable for such tax.

   Inserted: (B) Method of payment.--The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe.

   Inserted: (C) Time for payment.--The tax imposed by paragraph (1) shall be paid on or before the date which is 3 months after the tax increase date.

   Inserted: (3) Definitions.--For purposes of this subsection--

   Inserted: (A) Held by a person.--Highway 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).

   Inserted: (B) Highway fuel.--The term "highway fuel" means gasoline, diesel fuel, and kerosene.

   Inserted: (C) Gasoline.--The term "gasoline" has the meaning given such term by section 4083(a)(2) of such Code.

   Inserted: (D) Diesel fuel.--The term "diesel fuel" has the meaning given such term by section 4083(a)(3) of such Code.

   Inserted: (E) Secretary.--The term "Secretary" means the Secretary of the Treasury or the Secretary's delegate.

   Inserted: (F) Tax increase date.--The term "tax increase date" means July 1, 2004, and January 1 of each calendar year beginning after 2004.

   Inserted: (4) Exception for exempt uses.--The tax imposed by paragraph (1) shall not apply to highway fuel 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, as the case may be, is allowable for such use.

   Inserted: (5) Exception for fuel held in vehicle tank.--No tax shall be imposed by paragraph (1) on highway fuel held in the tank of a motor vehicle, motorboat, train, or aircraft.

   Inserted: (6) 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 paragraph (1) to the same extent as if such taxes were imposed by such section 4081.

   Inserted: (e) Effective Date.--The amendments made by this section shall take effect on July 1, 2004.

   Original wording

   On page 1030, after line 21, add the following:

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