H.R. 2448 – Reading Mode

110th CONGRESS

1st Session

H. R. 2448

IN THE HOUSE OF REPRESENTATIVES

May 23, 2007

Mr. Kuhl of New York (for himself and Mr. Sali) 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 reduce the Federal excise tax on highway motor fuels when the weekly United States retail gasoline price, regular grade, is greater than $3.00 per gallon.

Short title

This Act may be cited as the Emergency Gas Price Relief Act of 2007.

Reduction 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)

Reduction of highway motor fuel taxes when retail gasoline exceeds benchmark

(1)

In general

During any reduction period, the rate of tax imposed by section 4041 or 4081 on highway motor fuel shall be reduced by 10 cents per gallon.

(2)

Definitions and special rule

For purposes of this subsection—

(A)

Reduction period

The term reduction period means the period—

(i)

beginning on the date on which the weekly United States retail gasoline price, regular grade (as published by the Energy Information Administration, Department of Energy), is greater than $3.00 per gallon, and

(ii)

ending on the date on which such price (as so published) is less than $2.50 per gallon.

(B)

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)

Effective date

The amendment made by this section shall take effect on the date of the enactment of this Act.

Floor stock refunds

(a)

In general

If—

(1)

before the tax rate reduction date, tax has been imposed under section 4081 of the Internal Revenue Code of 1986 on any highway motor fuel, and

(2)

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 section 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.

(b)

Time for filing claims

No credit or refund shall be allowed or made under this section unless—

(1)

claim therefor is filed with the Secretary of the Treasury before the date which is 6 months after the tax rate reduction date based on a request submitted to the taxpayer before the date which is 3 months after the tax rate reduction date by the dealer who held the highway motor fuel on such date, and

(2)

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.

(c)

Exception for fuel held in retail stocks

No credit or refund shall be allowed under this section with respect to any highway motor fuel in retail stocks held at the place where intended to be sold at retail.

(d)

Definitions

For purposes of this section—

(1)

Tax rate reduction date

The term tax rate reduction date means the first day of any reduction period in effect under section 4081(f) of the Internal Revenue Code of 1986 (as added by section 2 of this Act).

(2)

Other terms

The terms dealer and held by a dealer have the respective meanings given to such terms by section 6412 of such Code.

(e)

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 section.