US (United States) Code. Title 26. Subtitle D: Miscellaneous Excise Taxes. Chapter 31: Retail Excise Taxes

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-CITE-

26 USC CHAPTER 31 - RETAIL EXCISE TAXES 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle D - Miscellaneous Excise Taxes

CHAPTER 31 - RETAIL EXCISE TAXES

-HEAD-

CHAPTER 31 - RETAIL EXCISE TAXES

-MISC1-

Subchapter Sec.(!1)

A. Luxury passenger vehicles (!2) 4001

B. Special fuels 4041

C. Heavy trucks and trailers 4051

PRIOR PROVISIONS

The provisions of a prior chapter 31, Miscellaneous Excise Taxes,

were set out as:

Subchapter (A), Jewelry and related items, comprising sections

4001 to 4003;

Subchapter (B), Furs, comprising sections 4011 to 4013;

Subchapter (C), Toilet preparations, comprising sections 4021

and 4022;

Subchapter (D), Luggage, handbags, etc., comprising section

4031;

Subchapter (E), Special fuels, comprising sections 4041 and

4042; and

Subchapter (F), Special provisions applicable to retailers tax,

comprising sections 4051 to 4058.

The headings for subchs. (A) to (D) were struck out by section

101(b)(1) and the listed sections were repealed by section 101(a)

of Pub. L. 89-44, title I, June 21, 1965, 79 Stat. 136, the Excise

Tax Reduction Act of 1965, applicable with respect to articles sold

on or after June 22, 1965, as provided in section 701(a) of Pub. L.

89-44, set out as an Effective Date of 1965 Amendment note under

section 4161 of this title.

The headings for subchs. (E) and (F) were stricken by section

1904(a)(1)(A) of Pub. L. 94-455, title XIX, Oct. 4, 1976, 90 Stat.

1810, the Tax Reform Act of 1976. Sections 4051 to 4053 were

repealed by section 101(b)(2) of Pub. L. 89-44, title I, June 21,

1965, 79 Stat. 136, applicable with respect to articles sold on or

after June 22, 1965, as provided in section 701(a) of Pub. L.

89-44, set out as an Effective Date of 1965 Amendment note under

section 4061 of this title; and sections 4042 and 4054 to 4058 were

repealed by section 1904(a)(1)(D) of Pub. L. 94-455, title XIX,

Oct. 4, 1976, 90 Stat. 1811, effective Feb. 1, 1977, as provided in

section 1904(d) of Pub. L. 94-455, set out as an Effective Date of

1976 Amendment note under section 4041 of this title.

The subject matter of the prior sections was as follows:

A prior section 4001, acts Aug. 16, 1954, ch. 736, 68A Stat. 473;

Sept. 2, 1958, Pub. L. 85-859, title I, Sec. 101, 72 Stat. 1275;

Sept. 21, 1959, Pub. L. 86-344, Sec. 1(a), 73 Stat. 617, imposed an

excise tax equivalent to 10 percent of selling price upon jewelry,

stones, watches, clocks, case and movements for watches and clocks,

flatware and hollow ware, opera glasses, lorgnettes, marine

glasses, field glasses, and binoculars.

A prior section 4002, act Aug. 16, 1954, ch. 736, 68A Stat. 473,

defined "articles sold at retail" to include articles sold at

auction.

A prior section 4003, acts Aug. 16, 1954, ch. 736, 68A Stat. 474;

Sept. 2, 1958, Pub. L. 85-859, title I, Sec. 102, 72 Stat. 1276,

specified exemptions to tax imposed by section 4001.

A prior section 4011, act Aug. 16, 1954, ch. 736, 68A Stat. 475,

imposed an excise tax equivalent to 10 percent of selling price

upon fur articles.

A prior section 4012, act Aug. 16, 1954, ch. 736, 68A Stat. 475,

defined "article sold at retail" to include articles manufactured

from material supplied by customer and articles sold at auction.

A prior section 4013, act Aug. 16, 1954, ch. 736, 68A Stat. 475,

specified exemptions to tax imposed by section 4011.

A prior section 4021, acts Aug. 16, 1954, ch. 736, 68A Stat. 476;

Apr. 8, 1960, Pub. L. 86-413, Sec. 1, 74 Stat. 31, imposed an

excise tax equivalent to 10 percent of selling price upon toilet

preparations.

A prior section 4022, act Aug. 16, 1954, ch. 736, 68A Stat. 476,

specified certain exemptions from tax imposed by section 4021,

including items for babies, items used in barber shops and beauty

parlors, and miniature samples.

A prior section 4031, acts Aug. 16, 1954, ch. 736, 68A Stat. 477;

Sept. 2, 1958, Pub. L. 85-859, title I, Sec. 103, 72 Stat. 1276,

imposed an excise tax equivalent to 10 percent of selling price

upon luggage and handbags, including billfolds and wallets,

traveler's garment bags, and briefcases.

A prior section 4042, act Aug. 16, 1954, ch. 736, 68A Stat. 478,

provided a cross reference to section 4222 for exemption from tax

where special motor fuels are sold for use for certain vessels.

A prior section 4051, act Aug. 16, 1954, ch. 736, 68A Stat. 479,

defined price for which articles were sold for purposes of

determining retailers excise taxes.

A prior section 4052, act Aug. 16, 1954, ch. 736, 68A Stat. 479,

provided that lease of an article would be considered sale of

article for excise tax purposes.

A prior section 4053, acts Aug. 16, 1954, ch. 736, 68A Stat. 479;

Sept. 2, 1958, Pub. L. 85-859, title I, Sec. 104, 72 Stat. 1276,

made provision for imposition of retailers tax on installment

sales.

A prior section 4054, act Aug. 16, 1954, ch. 736, 68A Stat. 479,

related to application of taxes to retail sales by United States or

by any agency or instrumentality of United States unless

specifically exempted from such tax.

A prior section 4055, act Aug. 16, 1954, ch. 736, 68A Stat. 480;

June 21, 1965, Pub. L. 89-44, title I, Sec. 101(b)(3), 79 Stat.

136, exempted from taxes articles sold for exclusive use of any

State, Territory of United States, or any political subdivision

thereof, or District of Columbia, including use by such entities of

any liquid as a fuel.

A prior section 4056, act Aug. 16, 1954, ch. 736, 68A Stat. 480,

provided that no tax shall be imposed upon sale of any article for

export, or for shipment to a possession of United States and in due

course so shipped and exported.

A prior section 4057, added Pub. L. 85-859, title I, Sec. 105(a),

Sept. 2, 1958, 72 Stat. 1277; amended Pub. L. 86-344, Sec. 2(a),

Sept. 21, 1959, 73 Stat. 617; Pub. L. 89-44, title I, Sec.

101(b)(4), June 21, 1965, 79 Stat. 136; Pub. L. 91-172, title I,

Sec. 101(j)(25), Dec. 30, 1969, 83 Stat. 528, provided an exception

with respect to sale of any article to a non-profit educational

organization for its exclusive use including use of any liquid as a

fuel and defined "non-profit educational organization".

A prior section 4058, act Aug. 16, 1954, ch. 736, 68A Stat. 480,

Sec. 4058, formerly 4057; renumbered Sept. 2, 1958, Pub. L. 85-859,

title I, Sec. 105(a), 72 Stat. 1277, related to cross references

for exemption of sales to United States in certain cases and

administrative provisions of general application.

AMENDMENTS

1993 - Pub. L. 103-66, title XIII, Sec. 13161(b)(3), Aug. 10,

1993, 107 Stat. 453, substituted "Luxury passenger vehicles" for

"Certain luxury items" in item for subchapter A.

1990 - Pub. L. 101-508, title XI, Sec. 11221(e), Nov. 5, 1990,

104 Stat. 1388-444, added item for subchapter A and redesignated

former items for subchapters A and B as B and C, respectively.

1983 - Pub. L. 97-424, title V, Sec. 512(b)(2)(A), Jan. 6, 1983,

96 Stat. 2177, substituted "Retail Excise Taxes" for "Special

Fuels" in chapter heading, and added an analysis for subchapters A

and B.

1976 - Pub. L. 94-455, title XIX, Sec. 1904(a)(1)(A), Oct. 4,

1976, 90 Stat. 1810, substituted "Special Fuels" for "Retailers

Excise Taxes" in chapter heading.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 6103, 6416, 7261, 7871 of

this title.

-FOOTNOTE-

(!1) Section numbers editorially supplied.(!2) So in original. Does

not conform to subchapter heading.

-End-

-CITE-

26 USC Subchapter A - Luxury Passenger Automobiles 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle D - Miscellaneous Excise Taxes

CHAPTER 31 - RETAIL EXCISE TAXES

Subchapter A - Luxury Passenger Automobiles

-HEAD-

SUBCHAPTER A - LUXURY PASSENGER AUTOMOBILES

-MISC1-

Sec.

4001. Imposition of tax.

4002. 1st retail sale; uses, etc. treated as sales;

determination of price.

4003. Special rules.

PRIOR PROVISIONS

This subchapter consisted of part I with subparts A (Secs.

4001-4004) and B (Secs. 4006, 4007) and part II (Secs. 4011, 4012),

prior to being amended generally by Pub. L. 103-66, title XIII,

Sec. 13161(a), Aug. 10, 1993, 107 Stat. 449.

Another prior subchapter A of chapter 31 was redesignated

subchapter B by Pub. L. 101-508, title XI, Sec. 11221(a), Nov. 5,

1990, 104 Stat. 1388-438.

AMENDMENTS

1993 - Pub. L. 103-66, title XIII, Sec. 13161(a), Aug. 10, 1993,

107 Stat. 449, amended subchapter heading and analysis generally,

substituting "Luxury Passenger Automobiles" for "Certain Luxury

Items" in subchapter heading, striking out part analysis consisting

of parts I "Imposition of taxes" and II "Rules of general

applicability", part I heading "IMPOSITION OF TAXES", subpart

analysis consisting of subparts A "Passenger vehicles, boats, and

aircraft" and B "Jewelry and furs", and subpart A heading

"Passenger Vehicles, Boats, and Aircraft", substituting "Imposition

of tax" for "Passenger vehicles" in item 4001, "1st retail sale;

uses, etc. treated as sales; determination of price" for "Boats" in

item 4002, and "Special rules" for "Aircraft" in item 4003, and

striking out item 4004 "Rules applicable to subpart A".

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 4221, 4293 of this

title.

-End-

-CITE-

26 USC Sec. 4001 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle D - Miscellaneous Excise Taxes

CHAPTER 31 - RETAIL EXCISE TAXES

Subchapter A - Luxury Passenger Automobiles

-HEAD-

Sec. 4001. Imposition of tax

-STATUTE-

(a) Imposition of tax

(1) In general

There is hereby imposed on the 1st retail sale of any passenger

vehicle a tax equal to 10 percent of the price for which so sold

to the extent such price exceeds the applicable amount.

(2) Applicable amount

(A) In general

Except as provided in subparagraphs (B) and (C), the

applicable amount is $30,000.

(B) Qualified clean-fuel vehicle property

In the case of a passenger vehicle which is propelled by a

fuel which is not a clean-burning fuel and to which is

installed qualified clean-fuel vehicle property (as defined in

section 179A(c)(1)(A)) for purposes of permitting such vehicle

to be propelled by a clean-burning fuel, the applicable amount

is equal to the sum of -

(i) the dollar amount in effect under subparagraph (A),

plus

(ii) the increase in the price for which the passenger

vehicle was sold (within the meaning of section 4002) due to

the installation of such property.

(C) Purpose built passenger vehicle

(i) In general

In the case of a purpose built passenger vehicle, the

applicable amount is equal to 150 percent of the dollar

amount in effect under subparagraph (A).

(ii) Purpose built passenger vehicle

For purposes of clause (i), the term "purpose built

passenger vehicle" means a passenger vehicle produced by an

original equipment manufacturer and designed so that the

vehicle may be propelled primarily by electricity.

(b) Passenger vehicle

(1) In general

For purposes of this subchapter, the term "passenger vehicle"

means any 4-wheeled vehicle -

(A) which is manufactured primarily for use on public

streets, roads, and highways, and

(B) which is rated at 6,000 pounds unloaded gross vehicle

weight or less.

(2) Special rules

(A) Trucks and vans

In the case of a truck or van, paragraph (1)(B) shall be

applied by substituting "gross vehicle weight" for "unloaded

gross vehicle weight".

(B) Limousines

In the case of a limousine, paragraph (1) shall be applied

without regard to subparagraph (B) thereof.

(c) Exceptions for taxicabs, etc.

The tax imposed by this section shall not apply to the sale of

any passenger vehicle for use by the purchaser exclusively in the

active conduct of a trade or business of transporting persons or

property for compensation or hire.

(d) Exemption for law enforcement uses, etc.

No tax shall be imposed by this section on the sale of any

passenger vehicle -

(1) to the Federal Government, or a State or local government,

for use exclusively in police, firefighting, search and rescue,

or other law enforcement or public safety activities, or in

public works activities, or

(2) to any person for use exclusively in providing emergency

medical services.

(e) Inflation adjustment

(1) In general

The $30,000 amount in subsection (a) shall be increased by an

amount equal to -

(A) $30,000, multiplied by

(B) the cost-of-living adjustment under section 1(f)(3) for

the calendar year in which the vehicle is sold, determined by

substituting "calendar year 1990" for "calendar year 1992" in

subparagraph (B) thereof.

(2) Rounding

If any amount as adjusted under paragraph (1) is not a multiple

of $2,000, such amount shall be rounded to the next lowest

multiple of $2,000.

(f) Phasedown

For sales occurring in calendar years after 1995 and before 2003,

subsection (a)(1) and section 4003(a) shall be applied by

substituting for "10 percent", each place it appears, the

percentage determined in accordance with the following table:

If the calendar year is: The percentage

is:

1996 9 percent

1997 8 percent

1998 7 percent

1999 6 percent

2000 5 percent

2001 4 percent

2002 3 percent .

(g) Termination

The taxes imposed by this section and section 4003 shall not

apply to any sale, use, or installation after December 31, 2002.

-SOURCE-

(Added Pub. L. 101-508, title XI, Sec. 11221(a), Nov. 5, 1990, 104

Stat. 1388-439; amended Pub. L. 103-66, title XIII, Sec. 13161(a),

Aug. 10, 1993, 107 Stat. 449; Pub. L. 104-188, title I, Secs.

1607(a), (b), 1703(c)(1), Aug. 20, 1996, 110 Stat. 1839, 1875; Pub.

L. 105-34, title IX, Sec. 906(a)-(b)(2), title XVI, Sec.

1601(f)(3)(A), (B), Aug. 5, 1997, 111 Stat. 874, 875, 1090.)

-MISC1-

AMENDMENTS

1997 - Subsec. (a). Pub. L. 105-34, Sec. 906(a), amended heading

and text of subsec. (a) generally. Prior to amendment, text read as

follows: "There is hereby imposed on the 1st retail sale of any

passenger vehicle a tax equal to 10 percent of the price for which

so sold to the extent such price exceeds $30,000."

Subsec. (e)(1). Pub. L. 105-34, Sec. 906(b)(1), struck out "and

section 4003(a)" after "in subsection (a)" in introductory

provisions.

Subsec. (f). Pub. L. 105-34, Sec. 1601(f)(3)(A)(i), inserted "and

section 4003(a)" after "subsection (a)".

Pub. L. 105-34, Sec. 1601(f)(3)(A)(ii), inserted ", each place it

appears," before "the percentage".

Pub. L. 105-34, Sec. 906(b)(2), substituted "subsection (a)(1)"

for "subsection (a)".

Subsec. (g). Pub. L. 105-34, Sec. 1601(f)(3)(B), substituted

"taxes imposed by this section and section 4003" for "tax imposed

by this section" and ", use, or installation" for "or use".

1996 - Subsec. (e). Pub. L. 104-188, Sec. 1703(c)(1), reenacted

heading without change and amended text generally. Prior to

amendment, text read as follows:

"(1) In general. - If, for any calendar year, the excess (if any)

of -

"(A) $30,000, increased by the cost-of-living adjustment for

the calendar year, over

"(B) the dollar amount in effect under subsection (a) for the

calendar year,

is equal to or greater than $2,000, then the $30,000 amount in

subsection (a) and section 4003(a) (as previously adjusted under

this subsection) for any subsequent calendar year shall be

increased by the amount of such excess rounded to the next lowest

multiple of $2,000.

"(2) Cost-of-living adjustment. - For purposes of paragraph (1),

the cost-of-living adjustment for any calendar year shall be the

cost-of-living adjustment under section 1(f)(3) for such calendar

year, determined by substituting 'calendar year 1990' for 'calendar

year 1992' in subparagraph (B) thereof."

Subsec. (f). Pub. L. 104-188, Sec. 1607(b), added subsec. (f).

Former subsec. (f) redesignated (g).

Pub. L. 104-188, Sec. 1607(a), substituted "December 31, 2002"

for "December 31, 1999".

Subsec. (g). Pub. L. 104-188, Sec. 1607(b), redesignated subsec.

(f) as (g).

1993 - Pub. L. 103-66 amended section generally, substituting

"Imposition of tax" for "Passenger vehicles" in section catchline

and "this subchapter" for "subsection (a)" in subsec. (b)(1) and

adding subsecs. (d) to (f).

EFFECTIVE DATE OF 1997 AMENDMENT

Section 906(c) of Pub. L. 105-34 provided that: "The amendments

made by this section [amending this section and section 4003 of

this title] shall apply to sales and installations occurring after

the date of the enactment of this Act [Aug. 5, 1997]."

Section 1601(f)(3)(C) of Pub. L. 105-34 provided that: "The

amendments made by this paragraph [amending this section] shall

apply to sales after the date of the enactment of this Act [Aug. 5,

1997]."

Amendment by section 1601(f)(3)(A), (B) of Pub. L. 105-34

effective as if included in the provisions of the Small Business

Job Protection Act of 1996, Pub. L. 104-188, to which it relates,

see section 1601(j) of Pub. L. 105-34, set out as a note under

section 23 of this title.

EFFECTIVE DATE OF 1996 AMENDMENT

Section 1607(c) of Pub. L. 104-188 provided that: "The amendments

made by this section [amending this section] shall apply with

respect to sales occurring after the date which is 7 days after the

date of the enactment of this Act [Aug. 20, 1996]."

Section 1703(c)(2) of Pub. L. 104-188 provided that: "The

amendment made by paragraph (1) [amending this section] shall take

effect on the date of the enactment of this Act [Aug. 20, 1996]."

EFFECTIVE DATE OF 1993 AMENDMENT

Section 13161(c) of Pub. L. 103-66 provided that: "The amendments

made by this section [amending this section and sections 4002,

4003, 4221, and 4222 of this title and omitting sections 4004,

4006, 4007, 4011, and 4012 of this title] shall take effect on

January 1, 1993, except that the provisions of section 4001(e) of

the Internal Revenue Code of 1986 (as amended by subsection (a))

shall take effect on the date of the enactment of this Act [Aug.

10, 1993]."

EFFECTIVE DATE

Section 11221(f) of Pub. L. 101-508 provided that:

"(1) In general. - The amendments made by this section [enacting

this subchapter, redesignating former subchapters A and B of this

chapter as subchapters B and C, respectively, and amending sections

4221, 4222, and 4293 of this title] shall take effect on January 1,

1991.

"(2) Exception for binding contracts. - In determining whether

any tax imposed by subchapter A of chapter 31 of the Internal

Revenue Code of 1986, as added by this section, applies to any sale

after December 31, 1990, there shall not be taken into account the

amount paid for any article (or any part or accessory therefor) if

the purchaser held on September 30, 1990, a contract (which was

binding on such date and at all times thereafter before the

purchase) for the purchase of such article (or such part or

accessory)."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 280F, 4003, 4221, 4222 of

this title.

-End-

-CITE-

26 USC Sec. 4002 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle D - Miscellaneous Excise Taxes

CHAPTER 31 - RETAIL EXCISE TAXES

Subchapter A - Luxury Passenger Automobiles

-HEAD-

Sec. 4002. 1st retail sale; uses, etc. treated as sales;

determination of price

-STATUTE-

(a) 1st retail sale

For purposes of this subchapter, the term "1st retail sale" means

the 1st sale, for a purpose other than resale, after manufacture,

production, or importation.

(b) Use treated as sale

(1) In general

If any person uses a passenger vehicle (including any use after

importation) before the 1st retail sale of such vehicle, then

such person shall be liable for tax under this subchapter in the

same manner as if such vehicle were sold at retail by him.

(2) Exemption for further manufacture

Paragraph (1) shall not apply to use of a vehicle as material

in the manufacture or production of, or as a component part of,

another vehicle taxable under this subchapter to be manufactured

or produced by him.

(3) Exemption for demonstration use

Paragraph (1) shall not apply to any use of a passenger vehicle

as a demonstrator.

(4) Exception for use after importation of certain vehicles

Paragraph (1) shall not apply to the use of a vehicle after

importation if the user or importer establishes to the

satisfaction of the Secretary that the 1st use of the vehicle

occurred before January 1, 1991, outside the United States.

(5) Computation of tax

In the case of any person made liable for tax by paragraph (1),

the tax shall be computed on the price at which similar vehicles

are sold at retail in the ordinary course of trade, as determined

by the Secretary.

(c) Leases considered as sales

For purposes of this subchapter -

(1) In general

Except as otherwise provided in this subsection, the lease of a

vehicle (including any renewal or any extension of a lease or any

subsequent lease of such vehicle) by any person shall be

considered a sale of such vehicle at retail.

(2) Special rules for long-term leases

(A) Tax not imposed on sale for leasing in a qualified lease

The sale of a passenger vehicle to a person engaged in a

passenger vehicle leasing or rental trade or business for

leasing by such person in a long-term lease shall not be

treated as the 1st retail sale of such vehicle.

(B) Long-term lease

For purposes of subparagraph (A), the term "long-term lease"

means any long-term lease (as defined in section 4052).

(C) Special rules

In the case of a long-term lease of a vehicle which is

treated as the 1st retail sale of such vehicle -

(i) Determination of price

The tax under this subchapter shall be computed on the

lowest price for which the vehicle is sold by retailers in

the ordinary course of trade.

(ii) Payment of tax

Rules similar to the rules of section 4217(e)(2) shall

apply.

(iii) No tax where exempt use by lessee

No tax shall be imposed on any lease payment under a

long-term lease if the lessee's use of the vehicle under such

lease is an exempt use (as defined in section 4003(b)) of

such vehicle.

(d) Determination of price

(1) In general

In determining price for purposes of this subchapter -

(A) there shall be included any charge incident to placing

the passenger vehicle in condition ready for use,

(B) there shall be excluded -

(i) the amount of the tax imposed by this subchapter,

(ii) if stated as a separate charge, the amount of any

retail sales tax imposed by any State or political

subdivision thereof or the District of Columbia, whether the

liability for such tax is imposed on the vendor or vendee,

and

(iii) the value of any component of such passenger vehicle

if -

(I) such component is furnished by the 1st user of such

passenger vehicle, and

(II) such component has been used before such furnishing,

and

(C) the price shall be determined without regard to any

trade-in.

(2) Other rules

Rules similar to the rules of paragraphs (2) and (4) of section

4052(b) shall apply for purposes of this subchapter.

-SOURCE-

(Added Pub. L. 101-508, title XI, Sec. 11221(a), Nov. 5, 1990, 104

Stat. 1388-439; amended Pub. L. 103-66, title XIII, Sec. 13161(a),

Aug. 10, 1993, 107 Stat. 450.)

-MISC1-

AMENDMENTS

1993 - Pub. L. 103-66 amended section generally, substituting

provisions relating to imposition of luxury tax upon first retail

sale or use of luxury automobile for provisions relating to

imposition of similar tax upon boats.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-66 effective Jan. 1, 1993, see section

13161(c) of Pub. L. 103-66, set out as a note under section 4001 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4001 of this title.

-End-

-CITE-

26 USC Sec. 4003 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle D - Miscellaneous Excise Taxes

CHAPTER 31 - RETAIL EXCISE TAXES

Subchapter A - Luxury Passenger Automobiles

-HEAD-

Sec. 4003. Special rules

-STATUTE-

(a) Separate purchase of vehicle and parts and accessories therefor

Under regulations prescribed by the Secretary -

(1) In general

Except as provided in paragraph (2), if -

(A) the owner, lessee, or operator of any passenger vehicle

installs (or causes to be installed) any part or accessory

(other than property described in section 4001(a)(2)(B)) on

such vehicle, and

(B) such installation is not later than the date 6 months

after the date the vehicle was 1st placed in service,

then there is hereby imposed on such installation a tax equal to

10 percent of the price of such part or accessory and its

installation.

(2) Limitation

The tax imposed by paragraph (1) on the installation of any

part or accessory shall not exceed 10 percent of the excess (if

any) of -

(A) the sum of -

(i) the price of such part or accessory and its

installation,

(ii) the aggregate price of the parts and accessories (and

their installation) installed before such part or accessory,

plus

(iii) the price for which the passenger vehicle was sold,

over

(B) the appropriate applicable amount as determined under

section 4001(a)(2).

(3) Exceptions

Paragraph (1) shall not apply if -

(A) the part or accessory installed is a replacement part or

accessory,

(B) the part or accessory is installed to enable or assist an

individual with a disability to operate the vehicle, or to

enter or exit the vehicle, by compensating for the effect of

such disability, or

(C) the aggregate price of the parts and accessories (and

their installation) described in paragraph (1) with respect to

the vehicle does not exceed $1,000 (or such other amount or

amounts as the Secretary may by regulation prescribe).

The price of any part or accessory (and its installation) to

which paragraph (1) does not apply by reason of this paragraph

shall not be taken into account under paragraph (2)(A).

(4) Installers secondarily liable for tax

The owners of the trade or business installing the parts or

accessories shall be secondarily liable for the tax imposed by

this subsection.

(b) Imposition of tax on sales, etc., within 2 years of vehicles

purchased tax-free

(1) In general

If -

(A) no tax was imposed under this subchapter on the 1st

retail sale of any passenger vehicle by reason of its exempt

use, and

(B) within 2 years after the date of such 1st retail sale,

such vehicle is resold by the purchaser or such purchaser makes

a substantial nonexempt use of such vehicle,

then such sale or use of such vehicle by such purchaser shall be

treated as the 1st retail sale of such vehicle for a price equal

to its fair market value at the time of such sale or use.

(2) Exempt use

For purposes of this subsection, the term "exempt use" means

any use of a vehicle if the 1st retail sale of such vehicle is

not taxable under this subchapter by reason of such use.

(c) Parts and accessories sold with taxable passenger vehicle

Parts and accessories sold on, in connection with, or with the

sale of any passenger vehicle shall be treated as part of the

vehicle.

(d) Partial payments, etc.

In the case of a contract, sale, or arrangement described in

paragraph (2), (3), or (4) of section 4216(c), rules similar to the

rules of section 4217(e)(2) shall apply for purposes of this

subchapter.

-SOURCE-

(Added Pub. L. 101-508, title XI, Sec. 11221(a), Nov. 5, 1990, 104

Stat. 1388-439; amended Pub. L. 103-66, title XIII, Sec. 13161(a),

Aug. 10, 1993, 107 Stat. 451; Pub. L. 105-34, title IX, Sec.

906(b)(3), (4), title XIV, Sec. 1401(a), Aug. 5, 1997, 111 Stat.

875, 1045.)

-MISC1-

PRIOR PROVISIONS

Prior sections 4004, 4006, 4007, 4011, and 4012 of this title

were omitted in the general revision of this subchapter by Pub. L.

103-66, title XIII, Sec. 13161(a), Aug. 10, 1993, 107 Stat. 449.

Section 4004, added Pub. L. 101-508, title XI, Sec. 11221(a),

Nov. 5, 1990, 104 Stat. 1388-440; amended Pub. L. 103-66, title

XIII, Sec. 13162(a), Aug. 10, 1993, 107 Stat. 453, related to

certain rules applicable to former subpart A of part I of this

subchapter.

Section 4006, added Pub. L. 101-508, title XI, Sec. 11221(a),

Nov. 5, 1990, 104 Stat. 1388-441, related to imposition of tax on

1st retail sale of jewelry.

Section 4007, added Pub. L. 101-508, title XI, Sec. 11221(a),

Nov. 5, 1990, 104 Stat. 1388-442, related to imposition of tax on

1st retail sale of furs.

Section 4011, added Pub. L. 101-508, title XI, Sec. 11221(a),

Nov. 5, 1990, 104 Stat. 1388-442, provided definitions and special

rules for purposes of this subchapter.

Section 4012, added Pub. L. 101-508, title XI, Sec. 11221(a),

Nov. 5, 1990, 104 Stat. 1388-444, provided that taxes imposed by

this subchapter did not apply to any sale or use after Dec. 31,

1999.

AMENDMENTS

1997 - Subsec. (a)(1). Pub. L. 105-34, Sec. 906(b)(3), inserted

"(other than property described in section 4001(a)(2)(B))" after

"part or accessory".

Subsec. (a)(2)(B). Pub. L. 105-34, Sec. 906(b)(4), amended

subpar. (B) generally, substituting "the appropriate applicable

amount as determined under section 4001(a)(2)" for "$30,000".

Subsec. (a)(3)(C). Pub. L. 105-34, Sec. 1401(a), substituted

"$1,000" for "$200".

1993 - Pub. L. 103-66 amended section generally, substituting

provisions prescribing special rules applicable to imposition of

luxury passenger automobile tax for provisions relating to

imposition of similar tax on aircraft.

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by section 906(b)(3), (4) of Pub. L. 105-34 applicable

to sales and installations occurring after Aug. 5, 1997, see

section 906(c) of Pub. L. 105-34, set out as a note under section

4001 of this title.

Section 1401(b) of Pub. L. 105-34 provided that: "The amendments

made by subsection (a) [amending this section and section 4051 of

this title] shall apply to installations on vehicles sold after the

date of the enactment of this Act [Aug. 5, 1997]."

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-66 effective Jan. 1, 1993, see section

13161(c) of Pub. L. 103-66, set out as a note under section 4001 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4001, 4002 of this title.

-End-

-CITE-

26 USC Subchapter B - Special Fuels 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle D - Miscellaneous Excise Taxes

CHAPTER 31 - RETAIL EXCISE TAXES

Subchapter B - Special Fuels

-HEAD-

SUBCHAPTER B - SPECIAL FUELS

-MISC1-

Sec.

4041. Imposition of tax.

4042. Tax on fuel used in commercial transportation on

inland waterways.

PRIOR PROVISIONS

A prior subchapter B of chapter 31 was redesignated subchapter C

by Pub. L. 101-508, title XI, Sec. 11221(a), Nov. 5, 1990, 104

Stat. 1388-438.

AMENDMENTS

1990 - Pub. L. 101-508, title XI, Sec. 11221(a), Nov. 5, 1990,

104 Stat. 1388-438, redesignated this subchapter, formerly

subchapter A, as subchapter B. Former subchapter B redesignated C.

1978 - Pub. L. 95-502, title II, Sec. 202(c), Oct. 21, 1978, 92

Stat. 1697, added item 4042.

1976 - Pub. L. 94-455, title XIX, Sec. 1904(a)(1)(A), Oct. 4,

1976, 90 Stat. 1810, added item 4041.

-End-

-CITE-

26 USC Sec. 4041 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle D - Miscellaneous Excise Taxes

CHAPTER 31 - RETAIL EXCISE TAXES

Subchapter B - Special Fuels

-HEAD-

Sec. 4041. Imposition of tax

-STATUTE-

(a) Diesel fuel and special motor fuels

(1) Tax on diesel fuel in certain cases

(A) In general

There is hereby imposed a tax on any liquid other than

gasoline (as defined in section 4083) -

(i) sold by any person to an owner, lessee, or other

operator of a diesel-powered highway vehicle or a

diesel-powered train for use as a fuel in such vehicle or

train, or

(ii) used by any person as a fuel in a diesel-powered

highway vehicle or a diesel-powered train unless there was a

taxable sale of such fuel under clause (i).

(B) Exemption for previously taxed fuel

No tax shall be imposed by this paragraph on the sale or use

of any liquid if tax was imposed on such liquid under section

4081 and the tax thereon was not credited or refunded.

(C) Rate of tax

(i) In general

Except as otherwise provided in this subparagraph, the rate

of the tax imposed by this paragraph shall be the rate of tax

specified in section 4081(a)(2)(A) on diesel fuel which is in

effect at the time of such sale or use.

(ii) Rate of tax on trains

In the case of any sale for use, or use, of diesel fuel in

a train, the rate of tax imposed by this paragraph shall be -

(I) 6.8 cents per gallon after September 30, 1993, and

before October 1, 1995,

(II) 5.55 cents per gallon after September 30, 1995, and

before November 1, 1998, and

(III) 4.3 cents per gallon after October 31, 1998.

(iii) Rate of tax on certain buses

(I) In general

Except as provided in subclause (II), in the case of fuel

sold for use or used in a use described in section

6427(b)(1) (after the application of section 6427(b)(3)),

the rate of tax imposed by this paragraph shall be 7.3

cents per gallon (4.3 cents per gallon after September 30,

2005).

(II) School bus and intracity transportation

No tax shall be imposed by this paragraph on any sale for

use, or use, described in subparagraph (B) or (C) of

section 6427(b)(2).

(2) Special motor fuels

(A) In general

There is hereby imposed a tax on any liquid (other than gas

oil, fuel oil, or any product taxable under section 4081) -

(i) 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

(ii) used by any person as a fuel in a motor vehicle or

motorboat unless there was a taxable sale of such liquid

under clause (i).

(B) Rate of tax

The rate of the tax imposed by this paragraph shall be -

(i) except as otherwise provided in this subparagraph, the

rate of tax specified in section 4081(a)(2)(A)(i) which is in

effect at the time of such sale or use,

(ii) 13.6 cents per gallon in the case of liquefied

petroleum gas, and

(iii) 11.9 cents per gallon in the case of liquefied

natural gas.

In the case of any sale or use after September 30, 2005, clause

(ii) shall be applied by substituting "3.2 cents" for "13.6

cents", and clause (iii) shall be applied by substituting "2.8

cents" for "11.9 cents".

(3) Compressed natural gas

(A) In general

There is hereby imposed a tax on compressed natural gas -

(i) 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

(ii) used by any person as a fuel in a motor vehicle or

motorboat unless there was a taxable sale of such gas under

clause (i).

The rate of the tax imposed by this paragraph shall be 48.54

cents per MCF (determined at standard temperature and

pressure).

(B) Bus uses

No tax shall be imposed by this paragraph on any sale for

use, or use, described in subparagraph (B) or (C) of section

6427(b)(2) (relating to school bus and intracity

transportation).

(C) Administrative provisions

For purposes of applying this title with respect to the taxes

imposed by this subsection, references to any liquid subject to

tax under this subsection shall be treated as including

references to compressed natural gas subject to tax under this

paragraph, and references to gallons shall be treated as

including references to MCF with respect to such gas.

(b) Exemption for off-highway business use; reduction in tax for

qualified methanol and ethanol fuel

(1) Exemption for off-highway business use

(A) In general

No tax shall be imposed by subsection (a) or (d)(1) 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),

(2)(B), or (3)(A)(ii) of subsection (a) (whichever is

appropriate) and by the corresponding provision of subsection

(d)(1) (if any).

(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(e)(2); except that such term shall not, for purposes of

subsection (a)(1), include use in a diesel-powered train.

(2) Qualified methanol and ethanol fuel

(A) In general

In the case of any qualified methanol or ethanol fuel -

(i) the rate applicable under subsection (a)(2) shall be

the applicable blender rate per gallon less than the

otherwise applicable rate (6 cents per gallon in the case of

a mixture none of the alcohol in which consists of ethanol),

and

(ii) subsection (d)(1) shall be applied by substituting

"0.05 cent" for "0.1 cent" with respect to the sales and uses

to which clause (i) applies.

(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) Applicable blender rate

For purposes of subparagraph (A)(i), the applicable blender

rate is -

(i) except as provided in clause (ii), 5.4 cents, and

(ii) for sales or uses during calendar years 2001 through

2007, 1/10 of the blender amount applicable under section

40(h)(2) for the calendar year in which the sale or use

occurs.

(D) Termination

On and after October 1, 2007, subparagraph (A) shall not

apply.

(c) Noncommercial aviation

(1) Tax on nongasoline fuels where no tax imposed on fuel under

section 4091

There is hereby imposed a tax upon kerosene and any other

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.

The rate of the tax imposed by this paragraph shall be the rate

of tax specified in section 4091(b)(1) which is in effect at the

time of such sale or use. No tax shall be imposed by this

paragraph on the sale or use of any liquid if there was a taxable

sale of such liquid under section 4091.

(2) 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 from the taxes imposed by sections

4261 and 4271 by reason of section 4281 or 4282 or by reason of

section 4261(h).

(3) Termination

The rate of the taxes imposed by paragraph (1) shall be 4.3

cents per gallon -

(A) after December 31, 1996, and before the date which is 7

days after the date of the enactment of the Airport and Airway

Trust Fund Tax Reinstatement Act of 1997, and

(B) after September 30, 2007.

(d) Additional taxes to fund Leaking Underground Storage Tank Trust

Fund

(1) Tax on sales and uses subject to tax under subsection (a)

In addition to the taxes imposed by subsection (a), there is

hereby imposed a tax of 0.1 cent a gallon on the sale or use of

any liquid (other than liquefied petroleum gas and other than

liquefied natural gas) if tax is imposed by subsection (a)(1) or

(2) on such sale or use.

(2) Liquids used in aviation

In addition to the taxes imposed by subsection (c), there is

hereby imposed a tax of 0.1 cent a gallon on any liquid (other

than gasoline (as defined in section 4083)) -

(A) sold by any person to an owner, lessee, or other operator

of an aircraft for use as a fuel in such aircraft, or

(B) used by any person as a fuel in an aircraft unless there

was a taxable sale of such liquid under subparagraph (A).

No tax shall be imposed by this paragraph on the sale or use of

any liquid if there was a taxable sale of such liquid under

section 4091.

(3) Termination

The taxes imposed by this subsection shall not apply during any

period during which the Leaking Underground Storage Tank Trust

Fund financing rate under section 4081 does not apply.

(e) Additional tax

If a liquid on which tax was imposed on the sale thereof is

taxable at a higher rate under subsection (c)(1) of this section on

the use thereof, there is hereby imposed a tax equal to the

difference between the tax so imposed and the tax payable at such

higher rate.

(f) Exemption for farm use

(1) Exemption

Under regulations prescribed by the Secretary, no tax shall be

imposed under this section on any liquid sold for use or used on

a farm for farming purposes.

(2) Use on a farm for farming purposes

For purposes of paragraph (1) of this subsection, use on a farm

for farming purposes shall be determined in accordance with

paragraphs (1), (2), and (3) of section 6420(c).

(g) Other exemptions

Under regulations prescribed by the Secretary, no tax shall be

imposed under this section -

(1) on any liquid sold for use or used as supplies for vessels

or aircraft (within the meaning of section 4221(d)(3));

(2) with respect to the sale of any liquid for the exclusive

use of any State, any political subdivision of a State, or the

District of Columbia, or with respect to the use by any of the

foregoing of any liquid as a fuel;

(3) upon the sale of any liquid for export, or for shipment to

a possession of the United States, and in due course so exported

or shipped; and

(4) with respect to the sale of any liquid to a nonprofit

educational organization for its exclusive use, or with respect

to the use by a nonprofit educational organization of any liquid

as a fuel.

For purposes of paragraph (4), the term "nonprofit educational

organization" means an educational organization described in

section 170(b)(1)(A)(ii) which is exempt from income tax under

section 501(a). The term also includes a school operated as an

activity of an organization described in section 501(c)(3) which is

exempt from income tax under section 501(a), if such school

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 regularly carried

on.

(h) Exemption for use by certain aircraft museums

(1) Exemption

Under regulations prescribed by the Secretary, no tax shall be

imposed under this section on any liquid sold for use or used by

an aircraft museum in an aircraft or vehicle owned by such museum

and used exclusively for purposes set forth in paragraph (2)(C).

(2) Definition of aircraft museum

For purposes of this subsection, the term "aircraft museum"

means an organization -

(A) described in section 501(c)(3) which is exempt from

income tax under section 501(a),

(B) operated as a museum under charter by a State or the

District of Columbia, and

(C) operated exclusively for the procurement, care, and

exhibition of aircraft of the type used for combat or transport

in World War II.

(i) Registration

If any liquid is sold by any person for use as a fuel in an

aircraft, it shall be presumed for purposes of this section that a

tax imposed by this section applies to the sale of such liquid

unless the purchaser is registered in such manner (and furnished

such information in respect of the use of the liquid) as the

Secretary shall by regulations provide.

(j) Sales by United States, etc.

The taxes imposed by this section shall apply with respect to

liquids sold at retail by the United States, or by any agency or

instrumentality of the United States, unless sales by such agency

or instrumentality are by statute specifically exempted from such

taxes.

(k) Fuels containing alcohol

(1) In general

Under regulations prescribed by the Secretary, in the case of

the sale or use of any liquid at least 10 percent of which

consists of alcohol (as defined in section 4081(c)(3)) -

(A) the rates under paragraphs (1) and (2) of subsection (a)

shall be the comparable rates under section 4081(c), and

(B) the rate of the tax imposed by subsection (c)(1) shall be

the comparable rate under section 4091(c).

(2) Later separation

If any person separates the liquid fuel from a mixture of the

liquid fuel and alcohol to which paragraph (1) applied, such

separation shall be treated as a sale of the liquid fuel. Any tax

imposed on such sale shall be reduced by the amount (if any) of

the tax imposed on the sale of such mixture.

(3) Termination

Paragraph (1) shall not apply to any sale or use after

September 30, 2007.

(g742l) Exemption for certain uses

No tax shall be imposed under this section on any liquid sold for

use in, or used in, a helicopter or a fixed-wing aircraft for

purposes of providing transportation with respect to which the

requirements of subsection (f) or (g) of section 4261 are met.

(m) Certain alcohol fuels

(1) In general

In the case of the sale or use of any partially exempt methanol

or ethanol fuel -

(A) the rate of the tax imposed by subsection (a)(2) shall be

-

(i) after September 30, 1997, and before October 1, 2005 -

(I) in the case of fuel none of the alcohol in which

consists of ethanol, 9.15 cents per gallon, and

(II) in any other case, 11.3 cents per gallon, and

(ii) after September 30, 2005 -

(I) in the case of fuel none of the alcohol in which

consists of ethanol, 2.15 cents per gallon, and

(II) in any other case, 4.3 cents per gallon, and

(B) the rate of the tax imposed by subsection (c)(1) shall be

the comparable rate under section 4091(c)(1).

(2) Partially exempt methanol or ethanol fuel

The term "partially exempt methanol or ethanol fuel" means any

liquid at least 85 percent of which consists of methanol,

ethanol, or other alcohol produced from natural gas.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 478; Mar. 30, 1955, ch. 18, Sec.

3(a)(1), 69 Stat. 14; Mar. 29, 1956, ch. 115, Sec. 3(a)(1), 70

Stat. 66; Apr. 2, 1956, ch. 160, Sec. 2(a)(1), 70 Stat. 89; June

29, 1956, ch. 462, title II, Sec. 202, 70 Stat. 387; Pub. L.

85-859, title I, Sec. 119(b)(1), Sept. 2, 1958, 72 Stat. 1286; Pub.

L. 86-342, title II, Sec. 201(b), Sept. 21, 1959, 73 Stat. 613;

Pub. L. 87-61, title II, Sec. 201(a), (c), (d), June 29, 1961, 75

Stat. 123, 124; Pub. L. 89-44, title VIII, Sec. 802(a)(2), June 21,

1965, 79 Stat. 159; Pub. L. 91-258, title II, Sec. 202, May 21,

1970, 84 Stat. 237; Pub. L. 91-605, title III, Sec. 303(a)(1), (2),

Dec. 31, 1970, 84 Stat. 1743; Pub. L. 94-280, title III, Sec.

303(a)(1), (2), May 5, 1976, 90 Stat. 456; Pub. L. 94-455, title

XIX, Secs. 1904(a)(1)(B), (C), 1906(b)(13)(A), Oct. 4, 1976, 90

Stat. 1810, 1811, 1834; Pub. L. 94-530, Sec. 1(a), Oct. 17, 1976,

90 Stat. 2487; Pub. L. 95-599, title V, Sec. 502(a)(1), (b), Nov.

6, 1978, 92 Stat. 2756, 2757; Pub. L. 95-600, title VII, Sec.

703(l)(1), (2), Nov. 6, 1978, 92 Stat. 2942; Pub. L. 95-618, title

II, Secs. 221(b)(1), 222(a)(2), 233(a)(3)(B), Nov. 9, 1978, 92

Stat. 3185, 3187, 3191; Pub. L. 96-223, title II, Sec. 232(a)(2),

Apr. 2, 1980, 94 Stat. 273; Pub. L. 96-298, Sec. 1(a), July 1,

1980, 94 Stat. 829; Pub. L. 97-248, title II, Sec. 279(a), (b)(1),

Sept. 3, 1982, 96 Stat. 563; Pub. L. 97-424, title V, Secs.

511(a)(2), (b)(1), (c)(2), (d)(2), (g)(1), 516(a)(1), (b)(1), Jan.

6, 1983, 96 Stat. 2169-2171, 2173, 2182, 2183; Pub. L. 98-369, div.

A, title IX, Secs. 911(a), 912(a), 913(a), title X, Sec. 1018(a),

July 18, 1984, 98 Stat. 1005, 1007, 1008, 1021; Pub. L. 99-499,

title V, Sec. 521(a)(2), (d)(1)-(3), Oct. 17, 1986, 100 Stat. 1776,

1779; Pub. L. 99-514, title IV, Sec. 422(a)(1), (2), title XVII,

Sec. 1702(a), title XVIII, Sec. 1878(c)(1), Oct. 22, 1986, 100

Stat. 2229, 2773, 2903; Pub. L. 100-17, title V, Sec. 502(a)(1),

(b)(1)-(3), (c)(1), Apr. 2, 1987, 101 Stat. 256, 257; Pub. L.

100-203, title X, Sec. 10502(b), Dec. 22, 1987, 101 Stat. 1330-441;

Pub. L. 100-223, title IV, Secs. 402(b), 404(b), 405(b)(3), Dec.

30, 1987, 101 Stat. 1532, 1533, 1535; Pub. L. 100-647, title I,

Sec. 1017(c)(3), (4), title II, Sec. 2001(d)(2), (3)(A)-(D), Nov.

10, 1988, 102 Stat. 3576, 3595; Pub. L. 101-508, title XI, Secs.

11211(a)(4), (b)(3), (6)(C)-(E)(i), (F), (d)(1), (2), (e)(1), (2),

11213(b)(2)(A), (B), (d)(2)(B), (e)(3), Nov. 5, 1990, 104 Stat.

1388-423, 1388-425 to 1388-427, 1388-433, 1388-436; Pub. L.

102-240, title VIII, Sec. 8002(b)(1), (2), Dec. 18, 1991, 105 Stat.

2203; Pub. L. 103-66, title XIII, Secs. 13163(a)(2),

13241(b)(2)(A), (B)(iii), (c), (e), (f)(1), (2), 13242(d)(3)-(13),

Aug. 10, 1993, 107 Stat. 453, 510, 511, 522-524; Pub. L. 104-188,

title I, Secs. 1208, 1609(a)(3), (g)(3), (4)(A), Aug. 20, 1996, 110

Stat. 1776, 1841-1843; Pub. L. 105-2, Sec. 2(a)(3), Feb. 28, 1997,

111 Stat. 4; Pub. L. 105-34, title IX, Secs. 902(b)(1), (2),

907(a), (b), title X, Secs. 1031(a)(3), 1032(e)(1), (2), title XIV,

Sec. 1435(b), title XVI, Sec. 1601(f)(4)(A), (B), Aug. 5, 1997, 111

Stat. 873, 875, 929, 935, 1053, 1090; Pub. L. 105-178, title IX,

Secs. 9002(a)(1)(A)-(C), 9003(a)(1)(A), (B), (b)(2)(A), 9006(a),

June 9, 1998, 112 Stat. 499, 501, 502, 506; Pub. L. 105-206, title

VI, Sec. 6010(g)(1), July 22, 1998, 112 Stat. 814.)

-REFTEXT-

REFERENCES IN TEXT

The date of the enactment of the Airport and Airway Trust Fund

Tax Reinstatement Act of 1997, referred to in subsec. (c)(3)(A), is

the date of enactment of Pub. L. 105-2, which was approved Feb. 28,

1997.

-MISC1-

AMENDMENTS

1998 - Subsec. (a)(1)(C)(ii)(II). Pub. L. 105-178, Sec.

9006(a)(1), substituted "November 1, 1998" for "October 1, 1999".

Subsec. (a)(1)(C)(ii)(III). Pub. L. 105-178, Sec. 9006(a)(2),

substituted "October 31, 1998" for "September 30, 1999".

Subsec. (a)(1)(C)(iii)(I). Pub. L. 105-178, Sec. 9002(a)(1)(A),

substituted "2005" for "1999".

Subsec. (a)(2)(B). Pub. L. 105-178, Sec. 9002(a)(1)(B),

substituted "2005" for "1999" in concluding provisions.

Subsec. (b)(2)(A)(i). Pub. L. 105-178, Sec. 9003(b)(2)(A)(i),

substituted "the applicable blender rate" for "5.4 cents".

Subsec. (b)(2)(C). Pub. L. 105-178, Sec. 9003(b)(2)(A)(ii), added

subpar. (C). Former subpar. (C) redesignated (D).

Pub. L. 105-178, Sec. 9003(a)(1)(A), substituted "2007" for

"2000".

Subsec. (b)(2)(D). Pub. L. 105-178, Sec. 9003(b)(2)(A)(ii),

redesignated subpar. (C) as (D).

Subsec. (k)(3). Pub. L. 105-178, Sec. 9003(a)(1)(B), substituted

"2007" for "2000".

Subsec. (l). Pub. L. 105-206 substituted "subsection (f) or (g)"

for "subsection (e) or (f)".

Subsec. (m)(1)(A). Pub. L. 105-178, Sec. 9002(a)(1)(C),

substituted "2005" for "1999" in two places.

1997 - Subsec. (a)(1)(A). Pub. L. 105-34, Sec. 902(b)(1),

substituted "or a diesel-powered train" for ", a diesel-powered

train, or a diesel-powered boat" in cls. (i) and (ii) and "vehicle

or train" for "vehicle, train, or boat" in cl. (i).

Subsec. (a)(1)(D). Pub. L. 105-34, Sec. 902(b)(2), struck out

heading and text of subpar. (D). Text read as follows: "In the case

of any sale for use, or use, of fuel in a diesel-powered motorboat

-

"(i) no tax shall be imposed by subsection (a) or (d)(1) during

the period beginning on the date which is 7 days after the date

of the enactment of the Small Business Job Protection Act of 1996

and ending on December 31, 1997,

"(ii) effective during the period after September 30, 1999, and

before January 1, 2000, the rate of tax imposed by this paragraph

is 24.3 cents per gallon, and

"(iii) the termination of the tax under subsection (d) shall

not occur before January 1, 2000."

Subsec. (a)(2). Pub. L. 105-34, Sec. 907(a)(1), amended heading

and text of par. (2) generally. Prior to amendment, text read as

follows: "There is hereby imposed a tax 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) -

"(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).

The rate of the tax imposed by this paragraph shall be the rate of

tax specified in section 4081(a)(2)(A)(i) on gasoline which is in

effect at the time of such sale or use."

Pub. L. 105-34, Sec. 1601(f)(4)(B), substituted "section

4081(a)(2)(A)(i)" for "section 4081(a)(2)(A)" in concluding

provisions.

Subsec. (a)(2)(A). Pub. L. 105-34, Sec. 1032(e)(1), struck out

"kerosene," after "(other than" in introductory provisions.

Subsec. (c)(1). Pub. L. 105-34, Sec. 1032(e)(2), substituted

"kerosene and any other liquid" for "any liquid" in introductory

provisions.

Subsec. (c)(2). Pub. L. 105-34, Sec. 1435(b), inserted "or by

reason of section 4261(h)" before period at end.

Subsec. (c)(3). Pub. L. 105-2 amended heading and text of par.

(3) generally. Prior to amendment, text read as follows: "The taxes

imposed by paragraph (1) shall apply during the period beginning on

September 1, 1982, and ending on December 31, 1995, and during the

period beginning on the date which is 7 calendar days after the

date of the enactment of the Small Business Job Protection Act of

1996 and ending on December 31, 1996. The termination under the

preceding sentence shall not apply to so much of the tax imposed by

paragraph (1) as does not exceed 4.3 cents per gallon."

Subsec. (c)(3)(B). Pub. L. 105-34, Sec. 1031(a)(3), substituted

"September 30, 2007" for "September 30, 1997".

Subsec. (d)(1). Pub. L. 105-34, Sec. 907(a)(2), inserted "and

other than liquefied natural gas" after "liquefied petroleum gas".

Subsec. (l). Pub. L. 105-34, Sec. 1601(f)(4)(A), struck out

"helicopter" after "certain" in heading and inserted "or a

fixed-wing aircraft" after "helicopter" in text.

Subsec. (m)(1)(A). Pub. L. 105-34, Sec. 907(b), amended subpar.

(A) generally. Prior to amendment, subpar. (A) read as follows:

"the rate of the tax imposed by subsection (a)(2) shall be -

"(i) 11.3 cents per gallon after September 30, 1993, and before

October 1, 1999, and

"(ii) 4.3 cents per gallon after September 30, 1999, and".

1996 - Subsec. (a)(1)(D). Pub. L. 104-188, Sec. 1208, added cl.

(i) and redesignated former cls. (i) and (ii) as (ii) and (iii),

respectively.

Subsec. (c)(2). Pub. L. 104-188, Sec. 1609(g)(3)(A), redesignated

par. (4) as (2) and struck out former par. (2) which read as

follows:

"(2) Gasoline. - There is hereby imposed a tax (at the rate

specified in paragraph (3)) upon gasoline (as defined in section

4083) -

"(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."

Subsec. (c)(3). Pub. L. 104-188, Sec. 1609(g)(3), redesignated

par. (5) as (3) and substituted "paragraph (1)" for "paragraphs (1)

and (2)", and struck out former par. (3) which read as follows:

"(3) Rate of tax. - The rate of tax imposed by paragraph (2) on

any gasoline is 1 cent per gallon."

Subsec. (c)(4). Pub. L. 104-188, Sec. 1609(g)(3)(A), redesignated

par. (4) as (2).

Subsec. (c)(5). Pub. L. 104-188, Sec. 1609(g)(3)(A), redesignated

par. (5) as (3).

Pub. L. 104-188, Sec. 1609(a)(3), inserted ", and during the

period beginning on the date which is 7 calendar days after the

date of the enactment of the Small Business Job Protection Act of

1996 and ending on December 31, 1996" after "December 31, 1995".

Subsec. (k)(1)(A) to (C). Pub. L. 104-188, Sec. 1609(g)(4)(A),

inserted "and" at end of subpar. (A), substituted period for ",

and" at end of subpar. (B), and struck out subpar. (C) which read

as follows: "no tax shall be imposed by subsection (c)(2)."

1993 - Subsec. (a)(1). Pub. L. 103-66, Sec. 13242(d)(3), amended

heading and text of par. (1) generally. Prior to amendment, text

read as follows: "There is hereby imposed a tax 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 or diesel-powered boat for

use as a fuel in such vehicle or boat, or

"(B) used by any person as a fuel in a diesel-powered highway

vehicle or diesel-powered boat unless there was a taxable sale of

such liquid under subparagraph (A).

The rate of the tax imposed by this paragraph shall be the sum of

the Highway Trust Fund financing rate and the diesel fuel deficit

reduction rate in effect under section 4091 at the time of such

sale or use. No tax shall be imposed by this paragraph on the sale

or use of any liquid if there was a taxable sale of such liquid

under section 4091."

Pub. L. 103-66, Sec. 13163(a)(2), substituted "diesel-powered

highway vehicle or diesel-powered boat" for "diesel-powered highway

vehicle" in subpars. (A) and (B) and "such vehicle or boat" for

"such vehicle" in subpar. (A).

Subsec. (a)(2). Pub. L. 103-66, Sec. 13242(d)(4), in introductory

provisions, struck out "or paragraph (1) of this subsection" after

"section 4081" and, in closing provisions, substituted "The rate of

the tax imposed by this paragraph shall be the rate of tax

specified in section 4081(a)(2)(A) on gasoline which is in effect

at the time of such sale or use." for "The rate of the tax imposed

by this paragraph shall be the sum of the Highway Trust Fund

financing rate and the deficit reduction rate in effect under

section 4081 at the time of such sale or use."

Subsec. (a)(3). Pub. L. 103-66, Sec. 13241(e)(1), added par. (3).

Subsec. (b)(1)(B). Pub. L. 103-66, Sec. 13242(d)(5)(A),

substituted "paragraph (1)(B), (2)(B), or (3)(A)(ii)" for

"paragraph (1)(B) or (2)(B)" and inserted before period at end "(if

any)".

Subsec. (b)(1)(C). Pub. L. 103-66, Sec. 13242(d)(5)(B), inserted

before period at end "; except that such term shall not, for

purposes of subsection (a)(1), include use in a diesel-powered

train".

Subsec. (b)(2)(A)(i). Pub. L. 103-66, Sec. 13242(d)(5)(C), struck

out "Highway Trust Fund financing" before "rate applicable".

Subsec. (c)(1). Pub. L. 103-66, Sec. 13242(d)(6), substituted

"The rate of the tax imposed by this paragraph shall be the rate of

tax specified in section 4091(b)(1) which is in effect at the time

of such sale or use." for "The rate of the tax imposed by this

paragraph shall be the sum of the Airport and Airway Trust Fund

financing rate and the aviation fuel deficit reduction rate in

effect under section 4091 at the time of such sale or use." in

concluding provisions.

Pub. L. 103-66, Sec. 13241(b)(2)(B)(iii), struck out "of 17.5

cents per gallon" before "upon any liquid" in introductory

provisions and inserted "The rate of the tax imposed by this

paragraph shall be the sum of the Airport and Airway Trust Fund

financing rate and the aviation fuel deficit reduction rate in

effect under section 4091 at the time of such sale or use." before

last sentence in concluding provisions.

Subsec. (c)(2). Pub. L. 103-66, Sec. 13242(d)(7), substituted

"gasoline (as defined in section 4083)" for "any product taxable

under section 4081".

Subsec. (c)(3). Pub. L. 103-66, Sec. 13241(b)(2)(A), amended

heading and text of par. (3) generally. Prior to amendment, text

read as follows: "The rate of tax imposed by paragraph (2) on any

gasoline is the excess of 15 cents a gallon over the sum of the

Highway Trust Fund financing rate plus the deficit reduction rate

at which tax was imposed on such gasoline under section 4081."

Subsec. (c)(5). Pub. L. 103-66, Sec. 13242(d)(8), inserted at end

"The termination under the preceding sentence shall not apply to so

much of the tax imposed by paragraph (1) as does not exceed 4.3

cents per gallon."

Subsec. (d)(1). Pub. L. 103-66, Sec. 13241(e)(2), substituted

"subsection (a)(1) or (2)" for "subsection (a)" before "on such

sale or use".

Subsec. (d)(2). Pub. L. 103-66, Sec. 13242(d)(9), (10),

redesignated par. (3) as (2), substituted "(other than gasoline (as

defined in section 4083))" for "(other than any product taxable

under section 4081)", and struck out heading and text of former

par. (2). Text read as follows: "There is hereby imposed a tax of

0.1 cent a gallon on any liquid (other than a product taxable under

section 4081) -

"(A) sold by any person to an owner, lessee, or other operator

of a diesel-powered train for use as a fuel in such train, or

"(B) used by any person as a fuel in a diesel-powered train

unless there was a taxable sale of such liquid under subparagraph

(A).

No tax shall be imposed by this paragraph on the sale or use of any

liquid if there was a taxable sale of such liquid under section

4091."

Subsec. (d)(3), (4). Pub. L. 103-66, Sec. 13242(d)(9),

redesignated pars. (3) and (4) as (2) and (3), respectively.

Subsec. (f)(3). Pub. L. 103-66, Sec. 13241(f)(1), struck out

heading and text of par. (3). Text read as follows: "Except with

respect to the taxes imposed by subsection (d), paragraph (1) shall

not apply on and after October 1, 1999."

Subsec. (g). Pub. L. 103-66, Sec. 13241(f)(2), struck out at end

"Except with respect to the taxes imposed by subsection (d),

paragraphs (2) and (4) shall not apply on and after October 1,

1999."

Subsec. (k)(1)(A). Pub. L. 103-66, Sec. 13242(d)(11), struck out

"Highway Trust Fund financing" before "rates under paragraphs" and

substituted "section 4081(c)" for "sections 4081(c) and 4091(c), as

the case may be".

Subsec. (k)(1)(B). Pub. L. 103-66, Sec. 13242(d)(12), substituted

"4091(c)" for "4091(d)".

Subsec. (m)(1)(A). Pub. L. 103-66, Sec. 13242(d)(13), amended

subpar. (A) generally. Prior to amendment, subpar. (A) read as

follows: "under subsection (a)(2) -

"(i) the Highway Trust Fund financing rate shall be 5.75 cents

per gallon, and

"(ii) the deficit reduction rate shall be 5.55 cents per

gallon."

Pub. L. 103-66, Sec. 13241(c), amended subpar. (A) generally.

Prior to amendment, subpar. (A) read as follows: "under subsection

(a)(2) the Highway Trust Fund financing rate shall be 5.75 cents

per gallon and the deficit reduction rate shall be 1.25 cents per

gallon, and".

Subsec. (m)(1)(B). Pub. L. 103-66, Sec. 13242(d)(13), amended

subpar. (B) generally. Prior to amendment, subpar. (B) read as

follows: "the rate of the tax imposed by subsection (c)(1) shall be

the comparable rate under section 4091(d)(1)."

1991 - Subsecs. (f)(3), (g). Pub. L. 102-240 substituted "1999"

for "1995".

1990 - Subsec. (a)(1). Pub. L. 101-508, Sec. 11211(b)(6)(C)(i),

struck out "of 15 cents a gallon" after "imposed a tax" in

introductory provisions and inserted before last sentence "The rate

of the tax imposed by this paragraph shall be the sum of the

Highway Trust Fund financing rate and the diesel fuel deficit

reduction rate in effect under section 4091 at the time of such

sale or use."

Subsec. (a)(2). Pub. L. 101-508, Sec. 11211(b)(3), substituted

"imposed a tax" for "imposed a tax of 9 cents a gallon" in

introductory provisions and inserted at end "The rate of the tax

imposed by this paragraph shall be the sum of the Highway Trust

Fund financing rate and the deficit reduction rate in effect under

section 4081 at the time of such sale or use."

Subsec. (a)(3). Pub. L. 101-508, Sec. 11211(b)(6)(C)(ii), struck

out par. (3) which provided that on and after Oct. 1, 1993, the

taxes imposed by subsec. (a) shall not apply.

Subsec. (b)(2)(A)(i). Pub. L. 101-508, Sec. 11211(b)(6)(D),

amended cl. (i) generally. Prior to amendment, cl. (i) read as

follows: "subsection (a)(2) shall be applied by substituting '3

cents' for '9 cents', and".

Subsec. (b)(2)(C). Pub. L. 101-508, Sec. 11211(e)(1), substituted

"2000" for "1993".

Subsec. (c)(1). Pub. L. 101-508, Sec. 11213(b)(2)(A), substituted

"17.5 cents" for "14 cents".

Subsec. (c)(3). Pub. L. 101-508, Sec. 11211(a)(4), substituted

"15 cents" for "12 cents" and "the sum of the Highway Trust Fund

financing rate plus the deficit reduction rate" for "the Highway

Trust Fund financing rate".

Subsec. (c)(5). Pub. L. 101-508, Sec. 11213(d)(2)(B), substituted

"1995" for "1990".

Subsec. (c)(6). Pub. L. 101-508, Sec. 11213(e)(3), struck out

par. (6) which provided cross reference to section 4283 for

reduction of rates of taxes imposed by subsec. (c)(1) and (2) in

certain circumstances.

Subsecs. (f)(3), (g). Pub. L. 101-508, Sec. 11211(d)(1), (2),

substituted "1995" for "1993".

Subsec. (k)(1)(A). Pub. L. 101-508, Sec. 11211(b)(6)(E)(i),

amended subpar. (A) generally. Prior to amendment, subpar. (A) read

as follows: "subsection (a)(1) shall be applied by substituting '9

cents' for '15 cents', and".

Subsec. (k)(1)(B). Pub. L. 101-508, Sec. 11213(b)(2)(B)(i),

amended subpar. (B) generally. Prior to amendment, subpar. (B) read

as follows: "no tax shall be imposed by subsection (c)(1), and".

Pub. L. 101-508, Sec. 11211(b)(6)(E)(i), amended subpar. (B)

generally. Prior to amendment, subpar. (B) read as follows:

"subsection (a)(2) shall be applied by substituting '3 cents' for

'9 cents', and".

Subsec. (k)(1)(C). Pub. L. 101-508, Sec. 11211(b)(6)(E)(i),

amended subpar. (C) generally. Prior to amendment, subpar. (C) read

as follows: "no tax shall be imposed by subsection (c)."

Subsec. (k)(3). Pub. L. 101-508, Sec. 11211(e)(2), substituted

"2000" for "1993".

Subsec. (m)(1)(A). Pub. L. 101-508, Sec. 11211(b)(6)(F), amended

subpar. (A) generally. Prior to amendment, subpar. (A) read as

follows: "subsection (a)(2) shall be applied by substituting '4 1/2

cents' for '9 cents', and".

Subsec. (m)(1)(B). Pub. L. 101-508, Sec. 11213(b)(2)(B)(ii),

amended subpar. (B) generally. Prior to amendment, subpar. (B) read

as follows: "no tax shall be imposed by subsection (c)."

1988 - Subsec. (b)(1)(A). Pub. L. 100-647, Sec. 2001(d)(3)(A),

inserted reference to subsection (d)(1).

Subsec. (b)(1)(B). Pub. L. 100-647, Sec. 2001(d)(3)(B), inserted

"and by the corresponding provision of subsection (d)(1)" before

the period.

Subsec. (b)(1)(C). Pub. L. 100-647, Sec. 1017(c)(3), substituted

"section 6421(e)(2)" for "section 6421(d)(2)".

Subsec. (b)(2)(A). Pub. L. 100-647, Sec. 2001(d)(3)(D), amended

subpar. (A) generally, inserting "(i)" before "subsection (a)(2)"

and adding cl. (ii).

Subsec. (b)(3). Pub. L. 100-647, Sec. 2001(d)(3)(C), struck out

par. (3) which coordinated subsec. (b) with taxes imposed by

subsec. (d).

Subsec. (c)(3). Pub. L. 100-647, Sec. 2001(d)(2), substituted

"the Highway Trust Fund financing rate at which" for "the rate at

which".

Subsec. (f)(3). Pub. L. 100-647, Sec. 1017(c)(4), amended par.

(3) generally, substituting "paragraph (1) shall not apply on and

after October 1, 1993" for "on and after October 1, 1993, paragraph

(1) shall not apply".

1987 - Subsec. (a)(1). Pub. L. 100-203, Sec. 10502(b)(1), in

heading substituted "Tax on diesel fuel where no tax imposed on

fuel under section 4091" for "Diesel fuel" and in text inserted

sentence at end that no tax be imposed by this paragraph on the

sale or use of any liquid if there was a taxable sale of such

liquid under section 4091.

Subsec. (a)(3). Pub. L. 100-17, Sec. 502(a)(1), substituted

"1993" for "1988".

Subsec. (b)(2)(C). Pub. L. 100-17, Sec. 502(b)(1), substituted

"1993" for "1988".

Subsec. (c)(1). Pub. L. 100-203, Sec. 10502(b)(2), in heading

substituted "Tax on nongasoline fuels where no tax imposed on fuel

under section 4091" for "In general" and in text inserted sentence

at end that no tax be imposed by this paragraph on the sale or use

of any liquid if there was a taxable sale of such liquid under

section 4091.

Subsec. (c)(5). Pub. L. 100-223, Sec. 402(b), substituted "1990"

for "1987".

Subsec. (c)(6). Pub. L. 100-223, Sec. 405(b)(3), added par. (6).

Subsec. (d)(1). Pub. L. 100-203, Sec. 10502(b)(3), added par.

(1), substituting new heading for "Liquids other than gasoline,

etc., used in motor vehicles, motorboats, or trains", and struck

out text of former par. (1) which read as follows: "In addition to

the taxes imposed by subsection (a), there is hereby imposed a tax

of 0.1 cents a gallon on benzol, benzene, naphtha, casing head and

natural gasoline, or any other liquid (other than kerosene, gas

oil, liquefied petroleum gas, or fuel oil, or any product taxable

under section 4081) -

"(A) sold by any person to an owner, lessee, or other operator

of a motor vehicle, motorboat, or train for use as a fuel in such

motor vehicle, motorboat, or train, or

"(B) used by any person as a fuel in a motor vehicle,

motorboat, or train unless there was a taxable sale of such

liquid under subparagraph (A)."

Subsec. (d)(2). Pub. L. 100-203, Sec. 10502(b)(3), added par.

(2), substituting new heading for "Liquids used in aviation", and

struck out text of former par. (2) which read as follows: "In

addition to the taxes imposed by subsection (c) and section 4081,

there is hereby imposed a tax of 0.1 cents a gallon on any liquid -

"(A) sold by any person to an owner, lessee, or other operator

of an aircraft for use as a fuel in such aircraft, or

"(B) used by any person as a fuel in an aircraft unless there

was a taxable sale of such liquid under subparagraph (A).

The tax imposed by this paragraph shall not apply to any product

taxable under section 4081 which is used as a fuel in an aircraft

other than in noncommercial aviation."

Subsec. (d)(3), (4). Pub. L. 100-203, Sec. 10502(b)(3), added

par. (3) and redesignated former par. (3) as (4).

Subsecs. (f)(3), (g). Pub. L. 100-17, Sec. 502(b)(2), (3),

substituted "1993" for "1988".

Subsec. (k)(3). Pub. L. 100-17, Sec. 502(c)(1), substituted

"September 30, 1993" for "December 31, 1992".

Subsec. (l). Pub. L. 100-223, Sec. 404(b), amended subsec. (l)

generally. Prior to amendment, subsec. (l) read as follows: "No tax

shall be imposed under this section on any liquid sold for use in,

or used in, a helicopter for the purpose of -

"(1) transporting individuals, equipment, or supplies in the

exploration for, or the development or removal of, hard minerals,

oil, or gas, or

"(2) the planting, cultivation, cutting or transportation of,

or caring for, trees (including logging operation),

but only if the helicopter does not take off from, or land at, a

facility eligible for assistance under the Airport and Airway

Development Act of 1970, or otherwise use services provided

pursuant to the Airport and Airway Improvement Act of 1982 during

such use."

Subsec. (n). Pub. L. 100-203, Sec. 10502(b)(4), struck out

subsec. (n) which related to tax on diesel fuel for highway vehicle

use being imposed on sale to retailer.

1986 - Subsec. (b). Pub. L. 99-514, Sec. 422(a)(2), substituted

"reduction in tax" for "exemption" in heading.

Subsec. (b)(2)(A). Pub. L. 99-514, Sec. 422(a)(1), amended

subpar. (A) generally. Prior to amendment, subpar. (A) read as

follows: "No tax shall be imposed by subsection (a) on any

qualified methanol or ethanol fuel."

Subsec. (b)(3). Pub. L. 99-499, Sec. 521(d)(1), added par. (3).

Subsecs. (d), (e). Pub. L. 99-499, Sec. 521(a)(2), added subsec.

(d) and redesignated former subsec. (d) as (e).

Subsec. (f)(3). Pub. L. 99-499, Sec. 521(d)(2), substituted

"Except with respect to the taxes imposed by subsection (d), on and

after" for "On and after".

Subsec. (g). Pub. L. 99-499, Sec. 521(d)(3), substituted "Except

with respect to the taxes imposed by subsection (d), paragraphs"

for "Paragraphs" in last sentence.

Subsec. (l)(1). Pub. L. 99-514, Sec. 1879(c)(1), amended par. (1)

generally. Prior to amendment, par. (1) read as follows:

"transporting individuals, equipment, or supplies in -

"(A) the exploration for, or the development or removal of,

hard minerals, or

"(B) the exploration for oil or gas, or".

Subsec. (n). Pub. L. 99-514, Sec. 1702(a), added subsec. (n).

1984 - Subsec. (a)(1). Pub. L. 98-369, Sec. 911(a), substituted

"15 cents" for "9 cents".

Subsec. (k)(1). Pub. L. 98-369, Sec. 912(a), in amending par. (1)

generally, substituted "liquid" for "liquid fuel" in provisions

preceding subpar. (A), in subpar. (A), substituted "subsection

(a)(1) shall be applied by substituting '9 cents' for '15 cents',

and" for "subsection (a) shall be applied by substituting '4 cents'

for '9 cents' each place it appears, and", added subpar. (B), and

redesignated former subpar. (B) as (C).

Subsec. (l)(1). Pub. L. 98-369, Sec. 1018(a), designated existing

provisions as subpar. (A) and added subpar. (B).

Subsec. (m). Pub. L. 98-369, Sec. 913(a), added subsec. (m).

1983 - Subsec. (a). Pub. L. 97-424, Secs. 511(a)(2),

516(a)(1)(A), added subsec. (a), and struck out former subsec. (a)

which provided for a tax of 4 cents a gallon on diesel fuel.

Subsec. (b). Pub. L. 97-424, Sec. 511(b)(1), (c)(2), added

subsec. (b), and struck out former subsec. (b) which provided for a

tax of 4 cents a gallon on special motor fuels.

Subsec. (c)(3). Pub. L. 97-424, Sec. 511(g)(1), substituted

provision that the rate of tax imposed by par. (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 for provision that the

rate of tax imposed by par. (2) was 8 cents a gallon (10 1/2 cents

a gallon in the case of any gasoline with respect to which a tax

was imposed under section 4081 at the rate set forth in subsec. (b)

thereof).

Subsec. (e). Pub. L. 97-424, Sec. 516(a)(1)(B), struck out

subsec. (e) which provided that the taxes imposed by subsecs. (a)

and (b) would be 1 1/2 cents a gallon and that second and third

sentences of subsecs. (a) and (b) would not apply on and after Oct.

1, 1984.

Subsec. (f)(3). Pub. L. 97-424, Sec. 516(b)(1)(A), added par.

(3).

Subsec. (g). Pub. L. 97-424, Sec. 516(b)(1)(B), inserted

provision that pars. (2) and (4) shall not apply on and after Oct.

1, 1988.

Subsec. (k). Pub. L. 97-424, Sec. 511(d)(2), in par. (1)

substituted provisions for a 4-cent tax on the sale or use of any

liquid fuel at least 10 percent of which consists of alcohol for

provisions that no tax be imposed by this section on the sale or

use of such fuel, and in par. (2) substituted "to which paragraph

(1) applied" for "on which tax was not imposed by reason of this

subsection" after "alcohol" and inserted provision that any tax

imposed on such sale shall be reduced by the amount (if any) of the

tax imposed on the sale of such mixture.

1982 - Subsec. (c). Pub. L. 97-248, Sec. 279(a), in par. (1)

substituted "14 cents" for "7 cents", in par. (3) substituted "8

cents a gallon (10 1/2 cents a gallon in the case of any gasoline

with respect to which a tax is imposed under section 4081 at the

rate set forth in subsection (b) thereof)" for "3 cents a gallon",

and in par. (5) substituted provisions that the taxes imposed by

pars. (1) and (2) shall apply during the period beginning on Sept.

1, 1982, and ending on Dec. 31, 1987, for provisions that on and

after Oct. 1, 1980, the taxes imposed by pars. (1) and (2) would

not apply.

Subsec. (l). Pub. L. 97-248, Sec. 279(b)(1), added subsec. (l).

1980 - Subsec. (c)(5). Pub. L. 96-298 extended termination date

to "October 1, 1980" from "July 1, 1980".

Subsec. (k)(3). Pub. L. 96-223 added par. (3).

1978 - Subsec. (b). Pub. L. 95-618, Secs. 222(a)(2),

233(a)(3)(B), substituted ", in a qualified business use" for

"otherwise than as a fuel in a highway vehicle (A) which (at the

time of such sale or use) is registered, or is required to be

registered, for highway use under the laws of any State or foreign

country, or (B) which, in the case of a highway vehicle owned by

the United States, is used on the highway" and "is used otherwise

than in a qualified business use" for "is used as a fuel in a

highway vehicle (A) which (at the time of such use) is registered,

or is required to be registered, for highway use under the laws of

any State or foreign country, or (B) which, in the case of a

highway vehicle owned by the United States, is used on the highway"

and inserted provision that for purposes of this subsection

"qualified business use" has the meaning given to such term by

section 6421(d)(2).

Subsec. (c)(3). Pub. L. 95-599, Sec. 502(b), struck out

termination date of Sept. 30, 1979 for 3 cents per gallon rate of

tax and struck out provision for a 5 1/2 cents per gallon rate of

tax after such date.

Subsec. (e). Pub. L. 95-599, Sec. 502(a)(1), substituted "1984"

for "1979".

Subsec. (h)(2). Pub. L. 95-600, Sec. 703(l)(1), substituted "term

'aircraft museum' means" for "term 'aircraft' means".

Subsecs. (i), (j). Pub. L. 95-600, Sec. 703(l)(2), redesignated

subsec. (i), relating to sales by United States, or by any agency

or instrumentality of United States, as (j).

Subsec. (k). Pub. L. 95-618, Sec. 221(b)(1), added subsec. (k).

1976 - Subsec. (c)(3). Pub. L. 94-280, Sec. 303(a)(1),

substituted "1979" for "1977" in two places.

Subsec. (e). Pub. L. 94-280, Sec. 303(a)(2), substituted "1979"

for "1977".

Subsec. (f)(1). Pub. L. 94-455, Sec. 1906(b)(13(A), struck out

"or his delegate" after "Secretary".

Subsec. (g). Pub. L. 94-455, Secs. 1904(a)(1)(B), 1906(b)(13)(A),

designated existing provisions as par. (1), substituted "Other

exemptions" for "Exemptions for use as supplies for vessels" after

"(g)", struck out "or his delegate" after "Secretary", and added

pars. (2) to (4) and definition of "nonprofit educational

organization".

Subsec. (h). Pub. L. 94-530 added subsec. (h). Former subsec. (h)

redesignated "(i) Registration".

Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or his delegate"

after "Secretary".

Subsec. (i). Pub. L. 94-455, Sec. 1904(a)(1)(C), added subsec.

(i) relating to sales by United States.

Pub. L. 94-530 redesignated former subsec. (h) as "(i)

Registration".

1970 - Subsec. (b). Pub. L. 91-258, Sec. 202(b)(1) and (2),

substituted "motor vehicle or motorboat" for "motor vehicle,

motorboat, or airplane", twice in par. (1) and once in par. (2),

and "in" for "for the propulsion of" in par. (1) preceding "such

motor vehicle", in par. (2) preceding "a motor vehicle" and in text

following par. (2) before "a highway vehicle (A)" in two places,

respectively.

Subsec. (c). Pub. L. 91-258, Sec. 202(a), added subsec. (c).

Former subsec. (c) redesignated (e).

Subsec. (c)(3). Pub. L. 91-605, Sec. 303(a)(1), substituted

"1977" for "1972" in two places.

Subsec. (d). Pub. L. 91-258, Sec. 202(a), added subsec. (d).

Former subsec. (d) redesignated (f).

Subsec. (e). Pub. L. 91-605, Sec. 303(a)(2), substituted "1977"

for "1972".

Pub. L. 91-258, Sec. 202(a), redesignated former subsec. (c) as

(e), substituting in par. (1) "subsections (a) and (b)" and "," for

"this section" and ";". Former subsec. (e) redesignated (g).

Subsec. (f). Pub. L. 91-258, Sec. 202(a), redesignated former

subsec. (d) as (f), substituting in par. (1) prohibition against

imposition of tax "under this section on any liquid sold for use or

used on a farm for farming purposes" for prior provisions that "(A)

no tax shall be imposed under subsection (a)(1) or (b)(1) on the

sale of any liquid sold for use on a farm for farming purposes, and

(B) no tax shall be imposed under subsection (a)(2) or (b)(2) on

the use of any liquid used on a farm for farming purposes".

Subsec. (g). Pub. L. 91-258, Sec. 202(a), redesignated former

subsec. (e) as (g), substituting "this section on any liquid sold"

for "subsection (b) in the case of any fuel sold".

Subsec. (h). Pub. L. 91-258, Sec. 202(a), added subsec. (h).

1965 - Subsec. (b). Pub. L. 89-44 inserted "casinghead and

natural gasoline," after "liquefied petroleum gas," in text

preceding par. (1).

1961 - Subsec. (a). Pub. L. 87-61, Sec. 201(a), increased tax on

diesel fuel from 3 to 4 cents a gallon, and substituted "a tax of 2

cents a gallon shall be imposed under paragraph (2)" for "a tax of

1 cent a gallon shall be imposed under paragraph (2)".

Subsec. (b). Pub. L. 87-61, Sec. 201(a), increased tax on special

motor fuels from 3 to 4 cents a gallon, and substituted "a tax of 2

cents a gallon shall be imposed under paragraph (2)" for "a tax of

1 cent a gallon shall be imposed under paragraph (2)".

Subsec. (c). Pub. L. 87-61, Sec. 201(c), substituted "October 1,

1972" for "July 1, 1972".

Subsec. (f). Pub. L. 87-61, Sec. 201(d), repealed subsec. (f)

which authorized a temporary increase in taxes under subsecs. (a)

and (b).

1959 - Subsecs. (a), (b). Pub. L. 86-342, Sec. 201(b)(2), struck

out "in lieu of 3 cents a gallon" after "shall be 2 cents a

gallon".

Subsec. (f). Pub. L. 86-342, Sec. 201(b)(1), added subsec. (f).

1958 - Subsec. (e). Pub. L. 85-859 added subsec. (e).

1956 - Subsec. (a). Act June 29, 1956, Sec. 202(a), increased tax

on diesel fuel from 2 cents a gallon to 3 cents a gallon, and

inserted provisions which retained tax at 2 cents a gallon for

diesel fuel used in vehicles not registered, and not required to be

registered, for highway use, or vehicles owned by the United States

and not used on the highway.

Subsec. (b). Act June 29, 1956, Sec. 202(b), increased tax on

special motor fuels from 2 cents a gallon to 3 cents a gallon, and

inserted provisions which retained tax at 2 cents a gallon for

special motor fuels sold for use or used otherwise than as a fuel

for the propulsion of a highway vehicle which is registered, or is

required to be registered, for highway use, or vehicles owned by

the United States used on the highway.

Subsec. (c). Act June 29, 1956, Sec. 202(c), substituted "July 1,

1972" for "April 1, 1956" and provided for nonapplication of second

and third sentences of subsec. (a) and (b).

Act Mar. 29, 1956, substituted "April 1, 1957" for "April 1,

1956".

Subsec. (d). Act Apr. 2, 1956, added subsec. (d).

1955 - Subsec. (c). Act Mar. 30, 1955, substituted "April 1,

1956" for "April 1, 1955".

EFFECTIVE DATE OF 1998 AMENDMENTS

Amendment by Pub. L. 105-206 effective, except as otherwise

provided, as if included in the provisions of the Taxpayer Relief

Act of 1997, Pub. L. 105-34, to which such amendment relates, see

section 6024 of Pub. L. 105-206, set out as a note under section 1

of this title.

Amendment by section 9003(b)(2)(A) of Pub. L. 105-178 effective

Jan. 1, 2001, see section 9003(b)(3) of Pub. L. 105-178, set out as

a note under section 40 of this title.

EFFECTIVE DATE OF 1997 AMENDMENTS

Section 902(c) of Pub. L. 105-34 provided that: "The amendments

made by this section [amending this section and sections 4083 and

6421 of this title] shall take effect on January 1, 1998."

Section 907(c) of Pub. L. 105-34 provided that: "The amendments

made by this section [amending this section] shall take effect on

October 1, 1997."

Section 1031(e)(1) of Pub. L. 105-34 provided that: "The

amendments made by subsection (a) [amending this section and

sections 4081 and 4091 of this title] shall apply take effect [sic]

on October 1, 1997."

Pub. L. 105-34, title X, Sec. 1032(f), Aug. 5, 1997, 111 Stat.

935, as amended by Pub. L. 105-178, title IX, Sec. 9008, June 9,

1998, 112 Stat. 506; Pub. L. 106-170, title V, Sec. 524, Dec. 17,

1999, 113 Stat. 1928, provided that:

"(1) Except as provided in paragraph (2), the amendments made by

this section [amending this section and sections 4081 to 4083,

4093, 4101, 6416, 6427, 6715, 7232, 9503, and 9508 of this title]

shall take effect on July 1, 1998.

"(2) The amendment made by subsection (d) [amending section 4101

of this title] shall take effect on January 1, 2002."

Section 1435(c)(2) of Pub. L. 105-34 provided that: "The

amendment made by subsection (b) [amending this section] shall take

effect on October 1, 1997."

Amendment by section 1601(f)(4)(A), (B) of Pub. L. 105-34

effective as if included in the provisions of the Small Business

Job Protection Act of 1996, Pub. L. 104-188, to which it relates,

see section 1601(j) of Pub. L. 105-34, set out as a note under

section 23 of this title.

Section 2(e)(1) of Pub. L. 105-2 provided that: "The amendments

made by subsection (a) [amending this section and sections 4081 and

4091 of this title] shall apply to periods beginning on or after

the 7th day after the date of the enactment of this Act [Feb. 28,

1997]."

EFFECTIVE DATE OF 1996 AMENDMENT

Section 1609(i) of Pub. L. 104-188 provided that: "The amendments

made by this section [amending this section and sections 4081,

4091, 4261, 4271, 4282, 6421, and 9502 of this title] shall take

effect on the 7th calendar day after the date of the enactment of

this Act [Aug. 20, 1996], except that the amendments made by

subsection (b) [amending sections 4261 and 4271 of this title]

shall not apply to any amount paid before such date."

EFFECTIVE DATE OF 1993 AMENDMENT

Section 13163(d) of Pub. L. 103-66 provided that: "The amendments

made by this section [amending this section and sections 4092,

6421, and 9508 of this title] shall take effect on January 1,

1994."

Section 13241(g) of Pub. L. 103-66 provided that: "The amendments

made by this section [amending this section and sections 4042,

4081, 4091, 4093, 6420, 6421, and 6427 of this title] shall take

effect on October 1, 1993."

Section 13242(e) of Pub. L. 103-66 provided that: "The amendments

made by this section [enacting sections 4084 and 6714 of this title

and amending this section and sections 4081 to 4083, 4091 to 4093,

4101 to 4103, 6206, 6302, 6412, 6416, 6420, 6421, 6427, 9502, 9503,

and 9508 of this title] shall take effect on January 1, 1994."

EFFECTIVE DATE OF 1990 AMENDMENT

Section 11211(a)(6) of Pub. L. 101-508 provided that: "Except as

otherwise provided in this subsection, the amendments made by this

subsection [amending this section and sections 4081 and 9503 of

this title] shall apply to gasoline removed (as defined in [former]

section 4082 of the Internal Revenue Code of 1986) after November

30, 1990."

Section 11211(b)(7) of Pub. L. 101-508 provided that: "The

amendments made by this subsection [amending this section and

sections 4091, 4093, 6427, 9502, and 9503 of this title] shall take

effect on December 1, 1990."

Section 11213(b)(4) of Pub. L. 101-508 provided that: "The

amendments made by this subsection [amending this section and

sections 4091 and 6427 of this title] shall take effect on December

1, 1990."

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by section 1017(c)(3), (4) of Pub. L. 100-647

effective, except as otherwise provided, as if included in the

provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which

such amendment relates, see section 1019(a) of Pub. L. 100-647, set

out as a note under section 1 of this title.

Amendment by section 2001(d)(2), (3)(A)-(D) of Pub. L. 100-647

effective, except as otherwise provided, as if included in the

provision of the Superfund Revenue Act of 1986, Pub. L. 99-499,

title V, to which it relates, see section 2001(e) of Pub. L.

100-647, set out as a note under section 56 of this title.

EFFECTIVE DATE OF 1987 AMENDMENTS

Section 2001(d)(1)(A) of Pub. L. 100-647 provided that: "The

amendments made by subsections (b)(3) and (d)(17) of section 10502

of the Revenue Act of 1987 [Pub. L. 100-203, amending this section

and section 9508 of this title] shall be treated as if included in

the amendments made by section 521 of the Superfund Revenue Act of

1986 [Pub. L. 99-499] except that the last sentence of [former]

paragraphs (2) and (3) of section 4041(d) of the Internal Revenue

Code of 1986 (as amended by such subsection (b)(3)) and the

reference to section 4091 of such Code in section 9508(c)(2)(A) of

such Code (as amended by such subsection (d)(1) [(d)(17)]) shall

not apply to sales before April 1, 1988."

Section 404(d)(2) of Pub. L. 100-223 provided that: "The

amendment made by subsection (b) [amending this section] shall take

effect on October 1, 1988."

Amendment by Pub. L. 100-203 applicable to sales after Mar. 31,

1988, see section 10502(e) of Pub. L. 100-203, set out as a note

under section 40 of this title.

EFFECTIVE DATE OF 1986 AMENDMENTS

Section 422(a)(3) of Pub. L. 99-514 provided that: "The

amendments made by this subsection [amending this section] shall

take effect on January 1, 1987."

Section 1702(c) of Pub. L. 99-514 provided that: "The amendments

made by this section [amending this section and section 6652 of

this title] shall apply to sales after the first calendar quarter

beginning more than 60 days after the date of the enactment of this

Act [Oct. 22, 1986]."

Amendment by section 1878(c)(1) of Pub. L. 99-514 effective,

except as otherwise provided, as if included in the provisions of

the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such

amendment relates, see section 1881 of Pub. L. 99-514, set out as a

note under section 48 of this title.

Section 521(e) of Pub. L. 99-499 provided that: "The amendments

made by this section [amending this section and sections 4042,

4081, 4221, 6416, 6420, 6421, 6427, 9502, 9503, and 9506 of this

title] shall take effect on January 1, 1987."

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by section 911(a) of Pub. L. 98-369 effective Aug. 1,

1984, see section 911(e) of Pub. L. 98-369, set out as a note under

section 6427 of this title.

Amendment by section 912(a) of Pub. L. 98-369 effective Jan. 1,

1985, see section 912(g) of Pub. L. 98-369, set out as a note under

section 40 of this title.

Section 913(c) of Pub. L. 98-369 provided that: "The amendments

made by this section [amending this section and section 40 of this

title] shall take effect on August 1, 1984."

Section 1018(c)(1) of Pub. L. 98-369 provided that: "The

amendment made by subsection (a) [amending this section] shall take

effect on April 1, 1984."

EFFECTIVE DATE OF 1983 AMENDMENT

Section 511(h) of Pub. L. 97-424 provided that:

"(1) In general. - Except as otherwise provided in this

subsection, the amendments made by this section [amending this

section and sections 44E, 4081, 6416, 6420, 6421, and 6427 of this

title] shall take effect on April 1, 1983.

"(2) Tariff on imported alcohol. - The amendment made by

subsection (d)(5) [amending item 901.50 of the Tariff Schedules,

which are not set out in the Code] shall apply with respect to

articles entered, or withdrawn from warehouse for consumption,

after March 31, 1983.

"(3) For subsection (e)(2). - The amendment made by subsection

(e)(2) [amending section 6427 of this title] shall take effect on

January 1, 1983.

"(4) Shared transportation requirement. - The amendment made by

subsection (e)(3) [amending section 6427 of this title] shall apply

with respect to fuel purchased after December 31, 1982, and before

January 1, 1984."

EFFECTIVE DATE OF 1982 AMENDMENT

Section 279(c) of Pub. L. 97-248 provided that: "The amendments

made by this section [amending this section and section 6427 of

this title] shall take effect on September 1, 1982."

EFFECTIVE DATE OF 1978 AMENDMENTS

Section 221(b)(2) of Pub. L. 95-618, as amended by Pub. L.

96-223, title II, Sec. 232(a)(3), Apr. 2, 1980, 94 Stat. 273,

provided that: "The amendment made by paragraph (1) [amending this

section] shall apply to sales or use after December 31, 1978."

Section 222(b) of Pub. L. 95-618 provided that: "The amendments

made by subsection (a) [amending this section and sections 6421 and

6424 of this title] shall apply with respect to uses after December

31, 1978."

Amendment by section 233(a)(3)(B) of Pub. L. 95-618 effective on

first day of first calendar month which begins more than 10 days

after Nov. 9, 1978, see section 233(d) of Pub. L. 95-618, set out

as a note under section 34 of this title.

Amendment by Pub. L. 95-600 effective Oct. 4, 1976, see section

703(r) of Pub. L. 95-600, set out as a note under section 46 of

this title.

EFFECTIVE DATE OF 1976 AMENDMENTS

Section 1(d) of Pub. L. 94-530 provided that: "The amendments

made by this section [amending this section and sections 39, 6427,

7210, 7603, 7604, and 7605 of this title] shall take effect on

October 1, 1976."

Section 1904(d) of Pub. L. 94-455 provided that: "Except as

otherwise provided in this section, the amendments made by this

section [amending this section and sections 263, 861, 1232, 4042,

4216, 4217, 4227, 4253, 4261, 4271, 4371 to 4374, 4482, 4493, 4901,

4905, 4973, 6011, 6416, 6611, 6651, 6808, 7012, 7234, 7240, 7265,

7270, 7272, 7303, 7611, and 7655 of this title and repealing

sections 4042, 4054 to 4058, 4226, 4292, 4294, 4295, 4591 to 4597,

4801 to 4806, 4811 to 4826, 4881 to 4886, 4911 to 4931, 6076, 6680,

6681, 6689, 7235, 7239, 7241, 7264, 7267, 7274, and 7328 of this

title] shall take effect on the first day of the first month which

begins more than 90 days after the date of the enactment of this

Act [Oct. 4, 1976]."

EFFECTIVE DATE OF 1970 AMENDMENT

Section 211 of title II of Pub. L. 91-258 provided that:

"(a) General Rule. - Except as provided in subsection (b), the

amendments made by this title [see Short Title of 1970 Amendment

note below] shall take effect on July 1, 1970.

"(b) Exceptions. - The amendments made by sections 203 [enacting

section 7275 and amending sections 4261 and 4262 of this title] and

204 [enacting sections 4271 and 4272 of this title] shall apply to

transportation beginning after June 30, 1970. The amendments made

by subsections (a), (b), and (c) of section 207 [enacting section

6427 and amending sections 39, 6420, 6421, and 6424] shall apply

with respect to taxable years ending after June 30, 1970."

EFFECTIVE DATE OF 1965 AMENDMENT

Section 802(d)(2) of Pub. L. 89-44 provided that: "The amendment

made by subsection (a)(2) [amending this section] shall apply with

respect to casinghead and natural gasoline sold or used on or after

July 1, 1965, except that such amendment shall not apply to a sale

or use of casinghead or natural gasoline which was sold by a

producer or importer before such date if tax under section 4081 of

the Code (as in effect prior to the amendment made by subsection

(a)(1) [amending section 4082 of this title]) was imposed with

respect to such sale."

EFFECTIVE DATE OF 1961 AMENDMENT

Section 208 of title II of Pub. L. 87-61 provided that:

"(a) Except as provided in subsection (b), the amendments made by

this title [enacting section 6156 of this title, amending this

section and sections 4061, 4071, 4081, 4218, 4221, 4226, 4481,

4482, 6412, 6416, 6421, and 6601 of this title, and amending

section 209 of The Highway Revenue Act of 1956, set out as a note

under section 120 of Title 23, Highways] shall take effect on the

date of the enactment of this Act [June 29, 1961].

"(b)(1) The amendments made by sections 201, 202, and 203

[enacting section 6156 of this title and amending this section and

sections 4071, 4081, 4481, 4482, 6421, and 6601 of this title]

shall take effect on July 1, 1961.

"(2) The amendments made by section 205(a), (c), and (d)

[amending sections 4221 and 6416 of this title] shall apply only in

the case of gasoline sold on or after October 1, 1961.

"(3) The amendment made by section 205(b) [amending section 4218

of this title] shall apply only in the case of gasoline used on or

after October 1, 1961."

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-859 effective on first day of first

calendar quarter which begins more than 60 days after Sept. 2,

1958, see section 1(c) of Pub. L. 85-859.

EFFECTIVE DATE OF 1956 AMENDMENTS

Section 211 of title II of act June 29, 1956, provided that:

"This title [enacting sections 173 and 174 of Title 23, Highways,

and sections 4426, 4481 to 4484 of this title, amending this

section and sections 4061, 4071, 4072, 4073, 4081, 4084, 6206,

6412, 6416, 6504, 6511, 6612, 6675, 7210, 7603, 7604, and 7605 of

this title, and renumbering sections 4227 and 6422 of this title]

shall take effect on the date of its enactment [June 29, 1956],

except that the amendments made by sections 202, 203, 204, and 205

[amending this section and sections 4061, 4071, 4072, 4073, and

4081 of this title] shall take effect on July 1, 1956."

Section 2(a)(2) of act Apr. 2, 1956, provided that: "The

amendment made by paragraph (1) [amending this section] shall take

effect on the day after the date of the enactment of this Act [Apr.

2, 1956]."

SHORT TITLE OF 1970 AMENDMENT

Section 201(a) of title II of Pub. L. 91-258 provided that: "This

title [enacting sections 4271, 4272, 4281, 4282, 4491 to 4494,

6426, 6427, and 7275 of this title and section 1742 of former Title

49, Transportation, amending this section and sections 39, 874,

4082, 4261, 4262, 4291 to 4294, 6156, 6201, 6206, 6401, 6415, 6416,

6420, 6421, 6424, 6675, 7210, and 7603 to 7605 of this title,

repealing former section 4263 of this title, enacting provisions

set out as notes under section 104 of Title 4, Flag and Seal, Seat

of Government, and the States, and section 1742 of former Title 49,

and amending provision set out as a note under section 120 of Title

23, Highways] may be cited as the 'Airport and Airway Revenue Act

of 1970'."

SHORT TITLE OF 1956 AMENDMENTS

Section 201(a) of title II of act June 29, 1956, provided that:

"This title [enacting sections 173 and 174 of Title 23, Highways,

and sections 4426, 4481 to 4484 of this title, amending this

section and sections 4061, 4071, 4072, 4073, 4081, 4084, 6206,

6412, 6416, 6504, 6511, 6612, 6675, 7210, 7603, 7604, and 7605 of

this title, and renumbering sections 4227 and 6422 of this title]

may be cited as the 'Highway Revenue Act of 1956'."

Section 1 of act Mar. 29, 1956, provided: "That this Act

[amending this section and sections 11, 821, 4061, 4081, 5001,

5022, 5041, 5051, 5063, 5134, 5701, 5701 note, 5707, and 6412 of

this title] may be cited as the 'Tax Rate Extension Act of 1956'."

SHORT TITLE OF 1955 AMENDMENT

Section 1 of act Mar. 30, 1955, provided: "That this Act

[amending this section and sections 11, 821, 4061, 4081, 5001,

5022, 5041, 5051, 5063, 5134, 5701, 5701 note, 5707, and 6412 of

this title] may be cited as the 'Tax Rate Extension Act of 1955'."

DELAYED DEPOSITS OF HIGHWAY MOTOR FUEL TAX REVENUES

Due date for deposit of taxes imposed by this section which would

be required to be made after July 31, 1998, and before Oct. 1,

1998, to be Oct. 5, 1998, see section 901(e) of Pub. L. 105-34, set

out as a note under section 6302 of this title.

FLOOR STOCKS TAXES

Section 11213(b)(5) of Pub. L. 101-508 imposed a floor stocks tax

on aviation fuel on which tax was imposed under section 4041(c)(1)

or 4091 of this title before Dec. 1, 1990, and which was held on

such date by any person.

PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989

For provisions directing that if any amendments made by subtitle

A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or

title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an

amendment to any plan, such plan amendment shall not be required to

be made before the first plan year beginning on or after Jan. 1,

1989, see section 1140 of Pub. L. 99-514, as amended, set out as a

note under section 401 of this title.

STUDY BY SECRETARY OF THE TREASURY; REPORT TO CONGRESS

Pub. L. 96-451, title II, Sec. 204, Oct. 14, 1980, 94 Stat. 1988,

directed Secretary of the Treasury, after consultation with

Secretary of department in which Coast Guard was operating, to

conduct a study to determine portion of taxes imposed by sections

4041(b) and 4081 of the Internal Revenue Code of 1954 which were

attributable to fuel used in recreational motorboats, and to report

to Congress on his findings under such study, not later than 2

years after Oct. 14, 1980.

STUDY OF IMPORTED ALCOHOL BY SECRETARY OF THE TREASURY

Section 232(f) of Pub. L. 96-223 required, within 180 days after

Apr. 2, 1980, Secretary of the Treasury to furnish specific

Congressional committees recommendations for limiting import of

alcohol into United States for fuel purposes.

REPORTS ON USE OF ALCOHOL IN FUEL

Section 221(c) of Pub. L. 95-618, as amended by Pub. L. 96-223,

Sec. 232(g), Apr. 2, 1980, 94 Stat. 280; Pub. L. 99-514, Sec. 2,

Oct. 22, 1986, 100 Stat. 2095, provided that: "On April 1 of each

year, beginning with April 1, 1981, and ending with April 1, 1992,

the Secretary of Energy, in consultation with the Secretary of the

Treasury and the Secretary of Transportation, shall submit to the

Congress a report on the use of alcohol in fuel. The report shall

include -

"(1) a description of the firms engaged in the alcohol fuel

industry,

"(2) the amount of alcohol fuel sold in each State, and the

amount of gasoline saved in each State by reason of the use of

alcohol fuels,

"(3) the revenue loss resulting from the exemptions from tax

for alcohol fuels under sections 4041(k) and 4081(c) of the

Internal Revenue Code of 1986 [formerly I.R.C. 1954] and the

credit allowable under section 44E [now 40] of such Code and the

impact of such revenue loss on the Highway Trust Fund, and

"(4) the cost of production and the retail cost of alcohol

fuels as compared to gasoline and special fuels not mixed with

alcohol."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 40, 404, 4042, 4081,

4082, 4083, 4092, 4101, 4103, 4293, 4972, 6206, 6416, 6420, 6421,

6427, 9502, 9503, 9508 of this title.

-End-

-CITE-

26 USC Sec. 4042 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle D - Miscellaneous Excise Taxes

CHAPTER 31 - RETAIL EXCISE TAXES

Subchapter B - Special Fuels

-HEAD-

Sec. 4042. Tax on fuel used in commercial transportation on inland

waterways

-STATUTE-

(a) In general

There is hereby imposed a tax on any liquid used during any

calendar quarter by any person as a fuel in a vessel in commercial

waterway transportation.

(b) Amount of tax

(1) In general

The rate of the tax imposed by subsection (a) is the sum of -

(A) the Inland Waterways Trust Fund financing rate,

(B) the Leaking Underground Storage Tank Trust Fund financing

rate, and

(C) the deficit reduction rate.

(2) Rates

For purposes of paragraph (1) -

(A) The Inland Waterways Trust Fund financing rate is the

rate determined in accordance with the following table:

T2 If the use occurs: 2The tax per

gallon is:

--------------------------------------------------------------------

Before 1990 10 cents

During 1990 11 cents

During 1991 13 cents

During 1992 15 cents

During 1993 17 cents

During 1994 19 cents

After 1994 20 cents.

--------------------------------------------------------------------

(B) The Leaking Underground Storage Tank Trust Fund financing

rate is 0.1 cent per gallon.

(C) The deficit reduction rate is 4.3 cents per gallon.

(3) Exception for fuel taxed under section 4041(d)

The Leaking Underground Storage Tank Trust Fund financing rate

under paragraph (2)(B) shall not apply to the use of any fuel if

tax under section 4041(d) was imposed on the sale of such fuel or

is imposed on such use.

(4) Termination of Leaking Underground Storage Tank Trust Fund

financing rate

The Leaking Underground Storage Tank Trust Fund financing rate

under paragraph (2)(B) shall not apply during any period during

which the Leaking Underground Storage Tank Trust Fund financing

rate under section 4081 does not apply.

(c) Exemptions

(1) Deep-draft ocean-going vessels

The tax imposed by subsection (a) shall not apply with respect

to any vessel designed primarily for use on the high seas which

has a draft of more than 12 feet.

(2) Passenger vessels

The tax imposed by subsection (a) shall not apply with respect

to any vessel used primarily for the transportation of persons.

(3) Use by State or local government in transporting property in

a state or local business

Subparagraph (B) of subsection (d)(1) shall not apply with

respect to use by a State or political subdivision thereof.

(4) Use in moving lash and seabee ocean-going barges

The tax imposed by subsection (a) shall not apply with respect

to use for movement by tug of exclusively LASH

(Lighter-aboard-ship) and SEABEE ocean-going barges released by

their ocean-going carriers solely to pick up or deliver

international cargoes.

(d) Definitions

For purposes of this section -

(1) Commercial waterway transportation

The term "commercial waterway transportation" means any use of

a vessel on any inland or intracoastal waterway of the United

States -

(A) in the business of transporting property for compensation

or hire, or

(B) in transporting property in the business of the owner,

lessee, or operator of the vessel (other than fish or other

aquatic animal life caught on the voyage).

(2) Inland or intracoastal waterway of the United States

The term "inland or intracoastal waterway of the United States"

means any inland or intracoastal waterway of the United States

which is described in section 206 of the Inland Waterways Revenue

Act of 1978.

(3) Person

The term "person" includes the United States, a State, a

political subdivision of a State, or any agency or

instrumentality of any of the foregoing.

(e) Date for filing return

The date for filing the return of the tax imposed by this section

for any calendar quarter shall be the last day of the first month

following such quarter.

-SOURCE-

(Added Pub. L. 95-502, title II, Sec. 202(a), Oct. 21, 1978, 92

Stat. 1696; amended Pub. L. 99-499, title V, Sec. 521(a)(3), Oct.

17, 1986, 100 Stat. 1777; Pub. L. 99-662, title XIV, Sec. 1404(a),

Nov. 17, 1986, 100 Stat. 4270; Pub. L. 100-647, title II, Sec.

2002(a)(2), Nov. 10, 1988, 102 Stat. 3597; Pub. L. 103-66, title

XIII, Sec. 13241(d), Aug. 10, 1993, 107 Stat. 510.)

-REFTEXT-

REFERENCES IN TEXT

Section 206 of the Inland Waterways Revenue Act of 1978, referred

to in subsec. (d)(2), is section 206 of Pub. L. 95-502, title II,

Oct. 21, 1978, 92 Stat. 1700, which is classified to section 1804

of Title 33, Navigation and Navigable Waters.

-MISC1-

PRIOR PROVISIONS

A prior section 4042, act Aug. 16, 1954, ch. 736, 68A Stat. 478,

provided a cross reference to section 4222 of this title for

exemption from tax where special motor fuels are sold for use for

certain vessels, prior to repeal by Pub. L. 94-455, title XIX, Sec.

1904(a)(1)(D), Oct. 4, 1976, 90 Stat. 1811.

AMENDMENTS

1993 - Subsec. (b)(1)(C). Pub. L. 103-66, Sec. 13241(d)(1), added

subpar. (C).

Subsec. (b)(2)(C). Pub. L. 103-66, Sec. 13241(d)(2), added

subpar. (C).

1988 - Subsec. (b)(2). Pub. L. 100-647 amended par. (2)

generally. Prior to amendment, par. (2) read as follows: "For

purposes of paragraph (1) -

"(A) the Inland Waterways Trust Fund financing rate is 10 cents

a gallon, and

"(B) the Leaking Underground Storage Tank Trust Fund financing

rate is 0.1 cents a gallon."

1986 - Subsec. (b). Pub. L. 99-499 and Pub. L. 99-662 both

amended subsec. (b) generally, effective Jan. 1, 1987. Pub. L.

100-647, Sec. 2002(a)(1) (see Construction of 1986 Amendments note

below), provided that for purposes of this section, the amendment

made by Pub. L. 99-499 be treated as enacted after the amendment

made by Pub. L. 99-662. Prior to amendment by Pub. L. 99-499 and

Pub. L. 99-662, subsec. (b) read as follows:

"If the use occurs - 2The tax is -

--------------------------------------------------------------------

After September 30, 1980 and before 4 cents a gallon

October 1, 1981

After September 30, 1981 and before 6 cents a gallon

October 1, 1983

After September 30, 1983 and before 8 cents a gallon

October 1, 1985

After September 30, 1985 10 cents a gallon".

--------------------------------------------------------------------

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-66 effective Oct. 1, 1993, see section

13241(g) of Pub. L. 103-66, set out as a note under section 4041 of

this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Section 2002(d) of Pub. L. 100-647, as amended by Pub. L.

101-239, title VII, Sec. 7812(b), Dec. 19, 1989, 103 Stat. 2412,

provided that: "The amendments made by subsections (b) and (c)

[amending section 4462 of this title and provisions set out as a

note under section 4461 of this title] shall take effect as if

included in the provision of the Harbor Maintenance Revenue Act of

1986 [Pub. L. 99-662, title XIV] to which it relates, and the

amendment made by subsection (a)(2) [amending this section] shall

take effect as if included in the amendment made by section

521(a)(3) of the Superfund Revenue Act of 1986 [Pub. L. 99-499,

title V]."

EFFECTIVE DATE OF 1986 AMENDMENTS

Section 1404(c) of Pub. L. 99-662 provided that: "The amendments

made by this section [amending this section and section 1804 of

Title 33, Navigation and Navigable Waters] shall take effect on

January 1, 1987."

Amendment by Pub. L. 99-499 effective Jan. 1, 1987, see section

521(e) of Pub. L. 99-499, set out as a note under section 4041 of

this title.

EFFECTIVE DATE

Section 202(d) of Pub. L. 95-502 provided that: "The amendments

made by this section [enacting this section and amending section

4293 of this title] shall take effect on October 1, 1980."

CONSTRUCTION OF 1986 AMENDMENTS

Section 2002(a)(1) of Pub. L. 100-647 provided that: "For

purposes of section 4042 of the 1986 Code, the amendment made by

section 521(a)(3) of the Superfund Revenue Act of 1986 [Pub. L.

99-499, amending this section] shall be treated as enacted after

the amendment made by section 1404(a) of the Harbor Maintenance

Revenue Act of 1986 [Pub. L. 99-662, amending this section]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4462, 9506, 9508 of this

title; title 33 section 1804.

-End-

-CITE-

26 USC Subchapter C - Heavy Trucks and Trailers 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle D - Miscellaneous Excise Taxes

CHAPTER 31 - RETAIL EXCISE TAXES

Subchapter C - Heavy Trucks and Trailers

-HEAD-

SUBCHAPTER C - HEAVY TRUCKS AND TRAILERS

-MISC1-

Sec.

4051. Imposition of tax on heavy trucks and trailers sold at

retail.

4052. Definitions and special rules.

4053. Exemptions.

AMENDMENTS

1990 - Pub. L. 101-508, title XI, Sec. 11221(a), Nov. 5, 1990,

104 Stat. 1388-438, redesignated this subchapter, formerly

subchapter B, as subchapter C.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 4221 of this title.

-End-

-CITE-

26 USC Sec. 4051 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle D - Miscellaneous Excise Taxes

CHAPTER 31 - RETAIL EXCISE TAXES

Subchapter C - Heavy Trucks and Trailers

-HEAD-

Sec. 4051. Imposition of tax on heavy trucks and trailers sold at

retail

-STATUTE-

(a) Imposition of tax

(1) In general

There is hereby imposed on the first retail sale of the

following articles (including in each case parts or accessories

sold on or in connection therewith or with the sale thereof) a

tax of 12 percent of the amount for which the article is so sold:

(A) Automobile truck chassis.

(B) Automobile truck bodies.

(C) Truck trailer and semitrailer chassis.

(D) Truck trailer and semitrailer bodies.

(E) Tractors of the kind chiefly used for highway

transportation in combination with a trailer or semitrailer.

(2) Exclusion for trucks weighing 33,000 pounds or less

The tax imposed by paragraph (1) shall not apply to automobile

truck chassis and automobile truck bodies, suitable for use with

a vehicle which has a gross vehicle weight of 33,000 pounds or

less (as determined under regulations prescribed by the

Secretary).

(3) Exclusion for trailers weighing 26,000 pounds or less

The tax imposed by paragraph (1) shall not apply to truck

trailer and semitrailer chassis and bodies, suitable for use with

a trailer or semitrailer which has a gross vehicle weight of

26,000 pounds or less (as determined under regulations prescribed

by the Secretary.(!1)

(4) Sale of trucks, etc., treated as sale of chassis and body

For purposes of this subsection, a sale of an automobile truck

or truck trailer or semitrailer shall be considered to be a sale

of a chassis and of a body described in paragraph (1).

(b) Separate purchase of truck or trailer and parts and accessories

therefor

Under regulations prescribed by the Secretary -

(1) In general

If -

(A) the owner, lessee, or operator of any vehicle which

contains an article taxable under subsection (a) installs (or

causes to be installed) any part or accessory on such vehicle,

and

(B) such installation is not later than the date 6 months

after the date such vehicle (as it contains such article) was

first placed in service,

then there is hereby imposed on such installation a tax equal to

12 percent of the price of such part or accessory and its

installation.

(2) Exceptions

Paragraph (1) shall not apply if -

(A) the part or accessory installed is a replacement part or

accessory, or

(B) the aggregate price of the parts and accessories (and

their installation) described in paragraph (1) with respect to

any vehicle does not exceed $1,000 (or such other amount or

amounts as the Secretary may by regulations prescribe).

(3) Installers secondarily liable for tax

The owners of the trade or business installing the parts or

accessories shall be secondarily liable for the tax imposed by

paragraph (1).

(c) Termination

On and after October 1, 2005, the taxes imposed by this section

shall not apply.

(d) Credit against tax for tire tax

If -

(1) tires are sold on or in connection with the sale of any

article, and

(2) tax is imposed by this subchapter on the sale of such

tires,

there shall be allowed as a credit against the tax imposed by this

subchapter an amount equal to the tax (if any) imposed by section

4071 on such tires.

-SOURCE-

(Added Pub. L. 97-424, title V, Sec. 512(b)(1), Jan. 6, 1983, 96

Stat. 2174; amended Pub. L. 98-369, div. A, title VII, Sec. 734(g),

title IX, Sec. 921, July 18, 1984, 98 Stat. 980, 1009; Pub. L.

99-514, title XVIII, Secs. 1877(c), 1899A(47), Oct. 22, 1986, 100

Stat. 2902, 2961; Pub. L. 100-17, title V, Sec. 502(a)(2), Apr. 2,

1987, 101 Stat. 256; Pub. L. 101-508, title XI, Sec. 11211(c)(1),

Nov. 5, 1990, 104 Stat. 1388-426; Pub. L. 102-240, title VIII, Sec.

8002(a)(1), Dec. 18, 1991, 105 Stat. 2203; Pub. L. 105-34, title

XIV, Secs. 1401(a), 1402(a), 1432(a), Aug. 5, 1997, 111 Stat. 1045,

1046, 1050; Pub. L. 105-178, title IX, Sec. 9002(a)(1)(D), June 9,

1998, 112 Stat. 499.)

-MISC1-

PRIOR PROVISIONS

A prior section 4051, act Aug. 16, 1954, ch. 736, 68A Stat. 479,

defined the price for which articles were sold for purposes of

determining retailers excise taxes, prior to repeal by Pub. L.

94-455, title XIX, Sec. 1904(a)(1)(D), Oct. 4, 1976, 90 Stat. 1811.

AMENDMENTS

1998 - Subsec. (c). Pub. L. 105-178 substituted "2005" for

"1999".

1997 - Subsec. (b)(2)(B). Pub. L. 105-34, Sec. 1401(a),

substituted "$1,000" for "$200".

Subsec. (d). Pub. L. 105-34, Sec. 1432(a), redesignated subsec.

(e) as (d) and struck out former subsec. (d) which provided for a

temporary reduction in tax on certain piggyback trailers.

Subsec. (e). Pub. L. 105-34, Sec. 1432(a), redesignated subsec.

(e) as (d).

Pub. L. 105-34, Sec. 1401(a), amended heading and text of subsec.

(e) generally. Prior to amendment, text read as follows: "In the

case of any article taxable under subsection (a) on which tax was

imposed under section 4061(a), subsection (a) shall be applied by

substituting '2 percent' for '12 percent'."

1991 - Subsec. (c). Pub. L. 102-240 substituted "1999" for

"1995".

1990 - Subsec. (c). Pub. L. 101-508 substituted "1995" for

"1993".

1987 - Subsec. (c). Pub. L. 100-17 substituted "1993" for "1988".

1986 - Subsec. (d)(1). Pub. L. 99-514, Sec. 1899A(47),

substituted "July 18, 1984" for "the date of the enactment of the

Tax Reform Act of 1984".

Subsec. (d)(3). Pub. L. 99-514, Sec. 1877(c), inserted at end "No

tax shall be imposed by reason of this paragraph on any use or

resale which occurs more than 6 years after the date of the first

retail sale."

1984 - Subsec. (b)(3). Pub. L. 98-369, Sec. 734(g), substituted

"The owners of the trade or business installing the parts or

accessories shall be secondarily liable for the tax imposed by

paragraph (1)" for "In addition to the owner, lessee, or operator

of the vehicle, the owner of the trade or business installing the

part or accessory shall be liable for the tax imposed by paragraph

(1)".

Subsecs. (d), (e). Pub. L. 98-369, Sec. 921, added subsec. (d)

and redesignated former subsec. (d) as (e).

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by section 1401(a) of Pub. L. 105-34 applicable to

installations on vehicles sold after Aug. 5, 1997, see section

1401(b) of Pub. L. 105-34, set out as a note under section 4003 of

this title.

Section 1402(c) of Pub. L. 105-34 provided that: "The amendments

made by this section [amending this section and section 4052 of

this title] shall take effect on January 1, 1998."

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by section 1877(c) of Pub. L. 99-514 effective, except

as otherwise provided, as if included in the provisions of the Tax

Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment

relates, see section 1881 of Pub. L. 99-514, set out as a note

under section 48 of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Section 736 of subtitle C (Secs. 731-736) of title VII of div. A

of Pub. L. 98-369 provided that: "Except as otherwise provided in

this subtitle, any amendment made by this subtitle [amending this

section and sections 48, 1366, 4052, 4053, 4071 to 4073, 4081,

4082, 4216, 4218, 4221 to 4223, 4227, 4481, 6401, 6412, 6416, 6427,

6511, and 9502 of this title, repealing sections 4061 to 4063 of

this title, and amending provisions set out as notes under sections

4061 and 4081 of this title] shall take effect as if included in

the provisions of the Highway Revenue Act of 1982 [Pub. L. 97-424]

to which such amendment relates."

EFFECTIVE DATE

Section 512(b)(3) of Pub. L. 97-424 provided that: "The

amendments made by this subsection [enacting this subchapter and

amending section 6416 of this title] shall take effect on April 1,

1983."

PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989

For provisions directing that if any amendments made by subtitle

A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or

title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an

amendment to any plan, such plan amendment shall not be required to

be made before the first plan year beginning on or after Jan. 1,

1989, see section 1140 of Pub. L. 99-514, as amended, set out as a

note under section 401 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4052, 4053, 4221, 4293,

6416, 9503 of this title.

-FOOTNOTE-

(!1) So in original. Probably should be preceded by a closing

parenthesis.

-End-

-CITE-

26 USC Sec. 4052 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle D - Miscellaneous Excise Taxes

CHAPTER 31 - RETAIL EXCISE TAXES

Subchapter C - Heavy Trucks and Trailers

-HEAD-

Sec. 4052. Definitions and special rules

-STATUTE-

(a) First retail sale

For purposes of this subchapter -

(1) In general

The term "first retail sale" means the first sale, for a

purpose other than for resale or leasing in a long-term lease,

after production, manufacture, or importation.

(2) Leases considered as sales

Rules similar to the rules of section 4217 shall apply.

(3) Use treated as sale

(A) In general

If any person uses an article taxable under section 4051

before the first retail sale of such article, then such person

shall be liable for tax under section 4051 in the same manner

as if such article were sold at retail by him.

(B) Exemption for use in further manufacture

Subparagraph (A) shall not apply to use of an article as

material in the manufacture or production of, or as a component

part of, another article to be manufactured or produced by him.

(C) Computation of tax

In the case of any person made liable for tax by subparagraph

(A), the tax shall be computed on the price at which similar

articles are sold at retail in the ordinary course of trade, as

determined by the Secretary.

(b) Determination of price

(1) In general

In determining price for purposes of this subchapter -

(A) there shall be included any charge incident to placing

the article in condition ready for use,

(B) there shall be excluded -

(i) the amount of the tax imposed by this subchapter,

(ii) if stated as a separate charge, the amount of any

retail sales tax imposed by any State or political

subdivision thereof or the District of Columbia, whether the

liability for such tax is imposed on the vendor or vendee,

and

(iii) the value of any component of such article if -

(I) such component is furnished by the first user of such

article, and

(II) such component has been used before such furnishing,

and

(C) the price shall be determined without regard to any

trade-in.

(2) Sales not at arm's length

In the case of any article sold (otherwise than through an

arm's-length transaction) at less than the fair market price, the

tax under this subchapter shall be computed on the price for

which similar articles are sold at retail in the ordinary course

of trade, as determined by the Secretary.

(3) Long-term lease

(A) In general

In the case of any long-term lease of an article which is

treated as the first retail sale of such article, the tax under

this subchapter shall be computed on a price equal to -

(i) the sum of -

(I) the price (determined under this subchapter but

without regard to paragraph (4)) at which such article was

sold to the lessor, and

(II) the cost of any parts and accessories installed by

the lessor on such article before the first use by the

lessee or leased in connection with such long-term lease,

plus

(ii) an amount equal to the presumed markup percentage of

the sum described in clause (i).

(B) Presumed markup percentage

For purposes of subparagraph (A), the term "presumed markup

percentage" means the average markup percentage of retailers of

articles of the type involved, as determined by the Secretary.

(C) Exceptions under regulations

To the extent provided in regulations prescribed by the

Secretary, subparagraph (A) shall not apply to specified types

of leases where its application is not necessary to carry out

the purposes of this subsection.

(4) Special rule where tax paid by manufacturer, producer, or

importer

(A) In general

In any case where the manufacturer, producer, or importer of

any article (or a related person) is liable for tax imposed by

this subchapter with respect to such article, the tax under

this subchapter shall be computed on a price equal to the sum

of -

(i) the price which would (but for this paragraph) be

determined under this subchapter, plus

(ii) the product of the price referred to in clause (i) and

the presumed markup percentage determined under paragraph

(3)(B).

(B) Related person

For purposes of this paragraph -

(i) In general

Except as provided in clause (ii), the term "related

person" means any person who is a member of the same

controlled group (within the meaning of section 5061(e)(3))

as the manufacturer, producer, or importer.

(ii) Exception for retail establishment

To the extent provided in regulations prescribed by the

Secretary, a person shall not be treated as a related person

with respect to the sale of any article if such article is

sold through a permanent retail establishment in the normal

course of the trade or business of being a retailer.

(c) Certain combinations not treated as manufacture

(1) In general

For purposes of this subchapter (other than subsection

(a)(3)(B)), a person shall not be treated as engaged in the

manufacture of any article by reason of merely combining such

article with any item listed in paragraph (2).

(2) Items

The items listed in this paragraph are any coupling device

(including any fifth wheel), wrecker crane, loading and unloading

equipment (including any crane, hoist, winch, or power liftgate),

aerial ladder or tower, snow and ice control equipment,

earthmoving, excavation and construction equipment, spreader,

sleeper cab, cab shield, or wood or metal floor.

(d) Certain other rules made applicable

Under regulations prescribed by the Secretary, rules similar to

the rules of subsections (c) and (d) of section 4216 (relating to

partial payments) shall apply for purposes of this subchapter.

(e) Long-term lease

For purposes of this section, the term "long-term lease" means

any lease with a term of 1 year or more. In determining a lease

term for purposes of the preceding sentence, the rules of section

168(i)(3)(A) shall apply.

(f) Certain repairs and modifications not treated as manufacture

(1) In general

An article described in section 4051(a)(1) shall not be treated

as manufactured or produced solely by reason of repairs or

modifications to the article (including any modification which

changes the transportation function of the article or restores a

wrecked article to a functional condition) if the cost of such

repairs and modifications does not exceed 75 percent of the

retail price of a comparable new article.

(2) Exception

Paragraph (1) shall not apply if the article (as repaired or

modified) would, if new, be taxable under section 4051 and the

article when new was not taxable under such section or the

corresponding provision of prior law.

(g) Regulations

The Secretary shall prescribe regulations which permit, in lieu

of any other certification, persons who are purchasing articles

taxable under this subchapter for resale or leasing in a long-term

lease to execute a statement (made under penalties of perjury) on

the sale invoice that such sale is for resale. The Secretary shall

not impose any registration requirement as a condition of using

such procedure.

-SOURCE-

(Added Pub. L. 97-424, title V, Sec. 512(b)(1), Jan. 6, 1983, 96

Stat. 2175; amended Pub. L. 98-369, div. A, title VII, Secs. 731,

735(b)(2), July 18, 1984, 98 Stat. 976, 981; Pub. L. 100-17, title

V, Secs. 505(a)-(c), 506(a), Apr. 2, 1987, 101 Stat. 258, 259; Pub.

L. 100-647, title VI, Sec. 6111(a), Nov. 10, 1988, 102 Stat. 3713;

Pub. L. 105-34, title XIV, Secs. 1402(b), 1434(a), (b), Aug. 5,

1997, 111 Stat. 1046, 1052; Pub. L. 105-206, title VI, Sec.

6014(c), July 22, 1998, 112 Stat. 820.)

-MISC1-

PRIOR PROVISIONS

A prior section 4052, act Aug. 16, 1954, ch. 736, 68A Stat. 479,

provided that lease of an article would be considered the sale of

article for excise tax purposes, prior to repeal by Pub. L. 94-455,

title XIX, Sec. 1904(a)(1)(D), Oct. 4, 1976, 90 Stat. 1811.

AMENDMENTS

1998 - Subsec. (f)(2). Pub. L. 105-206 substituted "such section"

for "this section".

1997 - Subsec. (b)(1)(B)(ii) to (iv). Pub. L. 105-34, Sec.

1402(b), inserted "and" at end of cl. (ii), redesignated cl. (iv)

as (iii), and struck out former cl. (iii) which read as follows:

"the fair market value (including any tax imposed by section 4071)

at retail of any tires (not including any metal rim or rim base),

and".

Subsec. (d). Pub. L. 105-34, Sec. 1434(b)(1), substituted "rules

of subsections (c) and (d) of section 4216 (relating to partial

payments) shall apply" for "rules of -

"(1) subsections (c) and (d) of section 4216 (relating to

partial payments), and

"(2) section 4222 (relating to registration),

shall apply".

Subsec. (e). Pub. L. 105-34, Sec. 1434(a), redesignated subsec.

(f) as (e).

Subsec. (f). Pub. L. 105-34, Sec. 1434(a), added subsec. (f).

Former subsec. (f) redesignated (e).

Subsec. (g). Pub. L. 105-34, Sec. 1434(b)(2), added subsec. (g).

1988 - Subsec. (a)(1). Pub. L. 100-647 substituted "production,

manufacture" for "manufacture, production".

1987 - Subsec. (a)(1). Pub. L. 100-17, Sec. 505(a), inserted "or

leasing in a long-term lease" after "resale".

Subsec. (b)(3). Pub. L. 100-17, Sec. 505(b), added par. (3).

Subsec. (b)(4). Pub. L. 100-17, Sec. 506(a), added par. (4).

Subsec. (f). Pub. L. 100-17, Sec. 505(c), added subsec. (f).

1984 - Subsec. (b)(1)(B)(iv). Pub. L. 98-369, Sec. 731, added cl.

(iv).

Subsec. (c). Pub. L. 98-369, Sec. 735(b)(2), in amending subsec.

(c) generally, designated existing provisions as par. (1), in par.

(1) as so designated substituted "by reason of merely combining

such article with any article listed in paragraph (2)" for "with

any equipment or other item listed in section 4063(d)", and added

par. (2).

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-206 effective, except as otherwise

provided, as if included in the provisions of the Taxpayer Relief

Act of 1997, Pub. L. 105-34, to which such amendment relates, see

section 6024 of Pub. L. 105-206, set out as a note under section 1

of this title.

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by section 1402(b) of Pub. L. 105-34 effective Jan. 1,

1998, see section 1402(c) of Pub. L. 105-34, set out as a note

under section 4051 of this title.

Section 1434(c) of Pub. L. 105-34 provided that: "The amendments

made by this section [amending this section] shall take effect on

January 1, 1998."

EFFECTIVE DATE OF 1988 AMENDMENT

Section 6111(b) of Pub. L. 100-647 provided that: "The amendment

made by subsection (a) [amending this section] shall take effect on

January 1, 1988."

EFFECTIVE DATE OF 1987 AMENDMENT

Section 505(d) of Pub. L. 100-17 provided that: "The amendments

made by this section [amending this section] shall apply with

respect to articles sold by the manufacturer, producer, or importer

on or after the first day of the first calendar quarter which

begins more than 90 days after the date of the enactment of this

Act [Apr. 2, 1987]."

Section 506(b) of Pub. L. 100-17 provided that: "The amendment

made by this section [amending this section] shall apply with

respect to articles sold by the manufacturer, producer, or importer

on or after the 1st day of the 1st calendar quarter which begins

more than 90 days after the date of the enactment of this Act [Apr.

2, 1987]."

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 effective, except as otherwise

provided, as if included in the provisions of the Highway Revenue

Act of 1982, title V of Pub. L. 97-424, to which such amendment

relates, see section 736 of Pub. L. 98-369, set out as a note under

section 4051 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4002 of this title.

-End-

-CITE-

26 USC Sec. 4053 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle D - Miscellaneous Excise Taxes

CHAPTER 31 - RETAIL EXCISE TAXES

Subchapter C - Heavy Trucks and Trailers

-HEAD-

Sec. 4053. Exemptions

-STATUTE-

No tax shall be imposed by section 4051 on any of the following

articles:

(1) Camper coaches bodies for self-propelled mobile homes

Any article designed -

(A) to be mounted or placed on automobile trucks, automobile

truck chassis, or automobile chassis, and

(B) to be used primarily as living quarters or camping

accommodations.

(2) Feed, seed, and fertilizer equipment

Any body primarily designed -

(A) to process or prepare seed, feed, or fertilizer for use

on farms,

(B) to haul feed, seed, or fertilizer to and on farms,

(C) to spread feed, seed, or fertilizer on farms,

(D) to load or unload feed, seed, or fertilizer on farms, or

(E) for any combination of the foregoing.

(3) House trailers

Any house trailer.

(4) Ambulances, hearses, etc.

Any ambulance, hearse, or combination ambulance-hearse.

(5) Concrete mixers

Any article designed -

(A) to be placed or mounted on an automobile truck chassis or

truck trailer or semitrailer chassis, and

(B) to be used to process or prepare concrete.

(6) Trash containers, etc.

Any box, container, receptacle, bin or other similar article -

(A) which is designed to be used as a trash container and is

not designed for the transportation of freight other than

trash, and

(B) which is not designed to be permanently mounted on or

permanently affixed to an automobile truck chassis or body.

(7) Rail trailers and rail vans

Any chassis or body of a trailer or semitrailer which is

designed for use both as a highway vehicle and a railroad car.

For purposes of the preceding sentence, piggy-back trailer or

semitrailer shall not be treated as designed for use as a

railroad car.

-SOURCE-

(Added Pub. L. 97-424, title V, Sec. 512(b)(1), Jan. 6, 1983, 96

Stat. 2176; amended Pub. L. 98-369, div. A, title VII, Sec.

735(b)(1), July 18, 1984, 98 Stat. 981.)

-MISC1-

PRIOR PROVISIONS

A prior section 4053, acts Aug. 16, 1954, ch. 736, 68A Stat. 479;

Sept. 2, 1958, Pub. L. 85-859, title I, Sec. 104, 72 Stat. 1276,

made provision for the imposition of the retailers tax on

installment sales, prior to repeal by Pub. L. 94-455, title XIX,

Sec. 1904(a)(1)(D), Oct. 4, 1976, 90 Stat. 1811.

For provisions of prior sections 4054 to 4058 of this title, see

Prior Provisions note set out preceding section 4041 of this title.

AMENDMENTS

1984 - Pub. L. 98-369 amended section generally, substituting

provisions listing articles on which no tax under section 4051

shall be imposed for former provisions which stated that no tax be

imposed under section 4051 on any article specified in subsection

(a) of section 4063 and that the exemptions provided by section

4221(a) extended to the tax imposed by section 4051.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 effective, except as otherwise

provided, as if included in the provisions of the Highway Revenue

Act of 1982, title V of Pub. L. 97-424, to which such amendment

relates, see section 736 of Pub. L. 98-369, set out as a note under

section 4051 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 4221, 4222 of this title.

-End-