26 U.S.C. § 4081: Imposition of tax

the removal of a taxable fuel from any refinery, the removal of a taxable fuel from any terminal, the entry into the United States of any taxable fuel for consumption, use, or warehousing, and the sale of a taxable fuel to any person who is not registered under section 4101 unless there was a prior taxable removal or entry of such fuel under clause (i), (ii), or (iii). The tax imposed by this paragraph shall not apply to any removal or entry of a taxable fuel transferred in bulk by pipeline or vessel to a terminal or refinery if the person removing or entering the taxable fuel, the operator of such pipeline or vessel (except as provided in clause (ii)), and the operator of such terminal or refinery are registered under section 4101. For purposes of clause (i), a vessel operator is not required to be registered with respect to the entry of a taxable fuel transferred in bulk by a vessel described in section 4042(c)(1). in the case of gasoline other than aviation gasoline, 18.3 cents per gallon, in the case of aviation gasoline, 19.3 cents per gallon, and in the case of diesel fuel or kerosene, 24.3 cents per gallon. The rates of tax specified in subparagraph (A) shall each be increased by 0.1 cent per gallon. The increase in tax under this subparagraph shall in this title be referred to as the Leaking Underground Storage Tank Trust Fund financing rate. in the case of use for commercial aviation by a person registered for such use under section 4101, 4.3 cents per gallon, and in the case of use for aviation not described in clause (i), 21.8 cents per gallon. In the case of diesel-water fuel emulsion at least 14 percent of which is water and with respect to which the emulsion additive is registered by a United States manufacturer with the Environmental Protection Agency pursuant to section 211 of the Clean Air Act (as in effect on March 31, 2003 ), subparagraph (A)(iii) shall be applied by substituting “19.7 cents” for “24.3 cents”. The preceding sentence shall not apply to the removal, sale, or use of diesel-water fuel emulsion unless the person so removing, selling, or using such fuel is registered under section 4101. such terminal is located within an airport, any kerosene which is loaded in such truck, tanker, or wagon at such terminal is for delivery only into aircraft at the airport in which such terminal is located, such truck, tanker, or wagon meets the requirements of subparagraph (B) with respect to such terminal, and except in the case of exigent circumstances identified by the Secretary in regulations, no vehicle registered for highway use is loaded with kerosene at such terminal. has storage tanks, hose, and coupling equipment designed and used for the purposes of fueling aircraft, is not registered for highway use, and the terminal operator of such terminal, or a person that makes a daily accounting to such terminal operator of each delivery of fuel from such truck, tanker, or wagon. any information obtained under subparagraph (B)(iii)(II), and any similar information maintained by such terminal operator with respect to deliveries of fuel made by trucks, tankers, or wagons operated by such terminal operator. the rate of tax specified in paragraph (2)(C)(i) in the case of use described in such paragraph shall apply if such terminal is located within a secured area of an airport, and the rate of tax specified in paragraph (2)(C)(ii) shall apply in all other cases. For purposes of paragraph (2)(C)(i), the person who uses the fuel for commercial aviation shall pay the tax imposed under such paragraph. For purposes of the preceding sentence, fuel shall be treated as used when such fuel is removed into the fuel tank. There is hereby imposed a tax at the rate determined under subsection (a) on taxable fuel removed or sold by the blender thereof. tax is imposed on the removal or sale of a taxable fuel by reason of paragraph (1), and the blender establishes the amount of the tax paid with respect to such fuel by reason of subsection (a), If any person separates the taxable fuel from a diesel-water fuel emulsion on which tax was imposed under subsection (a) at a rate determined under subsection (a)(2)(D) (or with respect to which a credit or payment was allowed or made by reason of section 6427), such person shall be treated as the refiner of such taxable fuel. The amount of tax imposed on any removal of such fuel by such person shall be reduced by the amount of tax imposed (and not credited or refunded) on any prior removal or entry of such fuel. The rates of tax specified in clauses (i) and (iii) of subsection (a)(2)(A) shall be 4.3 cents per gallon after September 30, 2028 . 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 after September 30, 2028 . The Leaking Underground Storage Tank Trust Fund financing rate under subsection (a)(2) shall apply after September 30, 1997 , and before October 1, 2028 . Under regulations prescribed by the Secretary, if any person who paid the tax imposed by this section with respect to any taxable fuel establishes to the satisfaction of the Secretary that a prior tax was paid (and not credited or refunded) with respect to such taxable fuel, then an amount equal to the tax paid by such person shall be allowed as a refund (without interest) to such person in the same manner as if it were an overpayment of tax imposed by this section. Except as provided in paragraph (2), the amendments made by this section [enacting section 4103 of this title and amending this section and sections 4093, 4101, 4222, 6103, 6416, and 6724 of this title] shall take effect on July 1, 1991 . The amendments made by subsections (b), (c), and (e) (other than paragraph (2) thereof) [enacting section 4103 of this title and amending sections 4093, 4101, 4222, 6103, and 6724 of this title] shall take effect on December 1, 1990 .” There is established a Motor Fuel Tax Enforcement Advisory Commission (in this section referred to as the ‘Commission’). review motor fuel revenue collections, historical and current; review the progress of investigations with respect to motor fuel taxes; develop and review legislative proposals with respect to motor fuel taxes; monitor the progress of administrative regulation projects relating to motor fuel taxes; review the results of Federal and State agency cooperative efforts regarding motor fuel taxes; review the results of Federal interagency cooperative efforts regarding motor fuel taxes; and the effectiveness of existing Federal enforcement programs regarding motor fuel taxes, enforcement personnel allocation, and proposals for regulatory projects, legislation, and funding. At least one representative from each of the following Federal entities: the Department of Homeland Security, the Department of Transportation—Office of Inspector General, the Federal Highway Administration, the Department of Defense, and the Department of Justice. At least one representative from the Federation of State Tax Administrators. At least one representative from any State department of transportation. Two representatives from the highway construction industry. Six representatives from industries relating to fuel distribution—refiners (two representatives), distributors (one representative), pipelines (one representative), and terminal operators (two representatives). One representative from the retail fuel industry. Two representatives from the staff of the Committee on Finance of the Senate and two representatives from the staff of the Committee on Ways and Means of the House of Representatives. Members shall be appointed for the life of the Commission. A vacancy in the Commission shall be filled in the manner in which the original appointment was made. Members shall serve without pay but shall receive travel expenses, including per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States Code. The Chairman of the Commission shall be elected by the members. Such sums as are necessary shall be available from the Highway Trust fund for the expenses of the Commission. Upon request of the Commission, representatives of the Department of the Treasury and the Internal Revenue Service shall be available for consultation to assist the Commission in carrying out its duties under this section. The Commission may secure directly from any department or agency of the United States, information (other than information required by any law to be kept confidential by such department or agency) necessary for the Commission to carry out its duties under this section. Upon request of the Commission, the head of that department or agency shall furnish such nonconfidential information to the Commission. The Commission shall also gather evidence through such means as it may deem appropriate, including through holding hearings and soliciting comments by means of Federal Register notices. The Commission shall terminate as of the close of September 30, 2009 .” the tax which would have been imposed before such date on such kerosene had the amendments made by this section [amending this section and sections 4041, 4082, 4083, 4101, 4103, 4221, 6206, 6416, 6427, 6724, 9502, and 9508 of this title, redesignating subpart C of part III of subchapter A of chapter 32 of this title as subpart B of part III of subchapter A of chapter 32 of this title, and repealing former subpart B of part III of subchapter A of chapter 32 of this title] been in effect at all times before such date, reduced by the tax imposed before such date on such kerosene under section 4091 of the Internal Revenue Code of 1986, as in effect on such date, and in the case of kerosene held exclusively for such person’s own use, the amount which such person would (but for this clause) reasonably expect (as of such date) to be paid as a refund under section 6427( l ) of such Code with respect to such kerosene. Paragraph (1) shall not apply to kerosene held in the fuel tank of an aircraft on January 1, 2005 . The person holding the kerosene on January 1, 2005 , to which the tax imposed by paragraph (1) applies shall be liable for such tax. The tax imposed by paragraph (1) shall be paid at such time and in such manner as the Secretary of the Treasury (or the Secretary’s delegate) shall prescribe, including the nonapplication of such tax on de minimis amounts of kerosene. in any case in which tax was not imposed by section 4091 of such Code, at the Leaking Underground Storage Tank Trust Fund financing rate under such section to the extent of 0.1 cents per gallon, and at the rate under section 4081(a)(2)(A)(iv) of such Code to the extent of the remainder. For purposes of this subsection, kerosene shall be considered as held by a person if title thereto has passed to such person (whether or not delivery to the person has been made). All provisions of law, including penalties, applicable with respect to the tax imposed by section 4081 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply with respect to the floor stock tax imposed by paragraph (1) to the same extent as if such tax were imposed by such section.” In the case of kerosene which is held on July 1, 1998 , by any person, there is hereby imposed a floor stocks tax of 24.4 cents per gallon. A person holding kerosene on July 1, 1998 , to which the tax imposed by paragraph (1) applies shall be liable for such tax. The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe. The tax imposed by paragraph (1) shall be paid on or before August 31, 1998 . Kerosene shall be considered as ‘held by a person’ if title thereto has passed to such person (whether or not delivery to the person has been made). The term ‘Secretary’ means the Secretary of the Treasury or his delegate. The tax imposed by paragraph (1) shall not apply to kerosene held by any person exclusively for any use to the extent a credit or refund of the tax imposed by section 4081 of the Internal Revenue Code of 1986 is allowable for such use. No tax shall be imposed by paragraph (1) on kerosene held in the tank of a motor vehicle or motorboat. No tax shall be imposed by paragraph (1) on kerosene held on July 1, 1998 , by any person if the aggregate amount of kerosene held by such person on such date does not exceed 2,000 gallons. The preceding sentence shall apply only if such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this paragraph. For purposes of subparagraph (A), there shall not be taken into account fuel held by any person which is exempt from the tax imposed by paragraph (1) by reason of paragraph (4) or (5). All persons treated as a controlled group shall be treated as 1 person. The term ‘controlled group’ has the meaning given to such term by subsection (a) of section 1563 of such Code; except that for such purposes the phrase ‘more than 50 percent’ shall be substituted for the phrase ‘at least 80 percent’ each place it appears in such subsection. Under regulations prescribed by the Secretary, principles similar to the principles of clause (i) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation. No tax shall be imposed by paragraph (1) on kerosene to the extent that tax has been (or will be) imposed on such kerosene under section 4081 or 4091 of such Code. All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply with respect to the floor stock taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section 4081.” 15 cents per gallon in the case of aviation gasoline, and 17.5 cents per gallon in the case of aviation fuel. A person holding, on the tax effective date, any aviation liquid to which the tax imposed by paragraph (1) applies shall be liable for such tax. The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe. The tax imposed by paragraph (1) shall be paid on or before the first day of the 5th month beginning after the tax effective date. The term ‘tax effective date’ means the date which is 7 days after the date of the enactment of this Act [ Feb. 28, 1997 ]. The term ‘aviation liquid’ means aviation gasoline and aviation fuel. The term ‘aviation gasoline’ has the meaning given such term in section 4081 of such Code. The term ‘aviation fuel’ has the meaning given such term by section 4093 of such Code. Aviation liquid shall be considered as ‘held by a person’ if title thereto has passed to such person (whether or not delivery to the person has been made). The term ‘Secretary’ means the Secretary of the Treasury or the Secretary’s delegate. aviation liquid held by any person on the tax effective date exclusively for any use for which a credit or refund of the entire tax imposed by section 4081 or 4091 of such Code (as the case may be) is allowable for such liquid purchased on or after such tax effective date for such use, or aviation fuel held by any person on the tax effective date exclusively for any use described in section 4092(b) of such Code. No tax shall be imposed by paragraph (1) on any aviation liquid held on the tax effective date by any person if the aggregate amount of such liquid (determined separately for aviation gasoline and aviation fuel) held by such person on such date does not exceed 2,000 gallons. The preceding sentence shall apply only if such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this paragraph. Any liquid to which the tax imposed by paragraph (1) does not apply by reason of paragraph (4) shall not be taken into account under subparagraph (A). All persons treated as a controlled group shall be treated as 1 person. The term ‘controlled group’ has the meaning given such term by subsection (a) of section 1563 of such Code; except that for such purposes, the phrase ‘more than 50 percent’ shall be substituted for the phrase ‘at least 80 percent’ each place it appears in such subsection. Under regulations prescribed by the Secretary, principles similar to the principles of clause (i) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation. All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 or 4091 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply with respect to the floor stocks taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section 4081 or 4091, as the case may be.” In the case of gasoline, diesel fuel, and aviation fuel on which tax was imposed under section 4081 or 4091 of the Internal Revenue Code of 1986 before October 1, 1993 , and which is held on such date by any person, there is hereby imposed a floor stocks tax of 4.3 cents per gallon on such gasoline, diesel fuel, and aviation fuel. A person holding gasoline, diesel fuel, or aviation fuel on October 1, 1993 , to which the tax imposed by paragraph (1) applies shall be liable for such tax. The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe. The tax imposed by paragraph (1) shall be paid on or before November 30, 1993 . Gasoline, diesel fuel, and aviation fuel shall be considered as ‘held by a person’ if title thereto has passed to such person (whether or not delivery to the person has been made). The term ‘gasoline’ has the meaning given such term by section 4082 [see section 4083] of such Code. The term ‘diesel fuel’ has the meaning given such term by section 4092 [see section 4083] of such Code. The term ‘aviation fuel’ has the meaning given such term by section 4092 [see section 4093] of such Code. The term ‘Secretary’ means the Secretary of the Treasury or his delegate. The tax imposed by paragraph (1) shall not apply to gasoline, diesel fuel, or aviation fuel held by any person exclusively for any use to the extent a credit or refund of the tax imposed by section 4081 or 4091 of such Code, as the case may be, is allowable for such use. No tax shall be imposed by paragraph (1) on gasoline or diesel fuel held in the tank of a motor vehicle or motorboat. on gasoline held on October 1, 1993 , by any person if the aggregate amount of gasoline held by such person on such date does not exceed 4,000 gallons, and on diesel fuel or aviation fuel held on October 1, 1993 , by any person if the aggregate amount of diesel fuel or aviation fuel held by such person on such date does not exceed 2,000 gallons. For purposes of subparagraph (A), there shall not be taken into account fuel held by any person which is exempt from the tax imposed by paragraph (1) by reason of paragraph (4) or (5). All persons treated as a controlled group shall be treated as 1 person. The term ‘controlled group’ has the meaning given to such term by subsection (a) of section 1563 of such Code; except that for such purposes the phrase ‘more than 50 percent’ shall be substituted for the phrase ‘at least 80 percent’ each place it appears in such subsection. Under regulations prescribed by the Secretary, principles similar to the principles of clause (i) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation. All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 of such Code in the case of gasoline and section 4091 of such Code in the case of diesel fuel and aviation fuel shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply with respect to the floor stock taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section 4081 or 4091.” no tax was imposed on such fuel under section 4041(a) or 4091 of the Internal Revenue Code of 1986 as in effect on December 31, 1993 , and tax would have been imposed by section 4081 of such Code, as amended by this Act, on any prior removal, entry, or sale of such fuel had such section 4081 applied to such fuel for periods before January 1, 1994 . The rate of the tax imposed by subsection (a) shall be the amount of tax which would be imposed under section 4081 of the Internal Revenue Code of 1986 if there were a taxable sale of such fuel on such date. A person holding the diesel fuel on January 1, 1994 , to which the tax imposed by this section applies shall be liable for such tax. The tax imposed by this section shall be paid in such manner as the Secretary shall prescribe. The tax imposed by this section shall be paid on or before July 31, 1994 . The term ‘diesel fuel’ has the meaning given such term by section 4083(a) of such Code. The term ‘Secretary’ means the Secretary of the Treasury or his delegate. The tax imposed by this section shall not apply to fuel held by any person exclusively for any use to the extent a credit or refund of the tax imposed by section 4081 is allowable for such use. Paragraph (1) shall not apply to the holder of any fuel if the holder of such fuel fails to comply with any requirement imposed by the Secretary with respect to dyeing and marking such fuel. All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 of such Code shall, insofar as applicable and not inconsistent with the provisions of this section, apply with respect to the floor stock taxes imposed by this section to the same extent as if such taxes were imposed by such section 4081.” The Secretary shall prescribe regulations which permit any qualified person whose liability for tax under section 4081 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] is payable with respect to semi-monthly periods to pay such tax on or before the day which is 14 days after the close of such semi-monthly period if such payment is made by wire transfer to, except as provided in regulations prescribed by the Secretary of the Treasury or his delegate, any Federal Reserve Bank. any person other than any person whose average daily production of crude oil for the preceding calendar quarter exceeds 1,000 barrels, and any independent refiner (within the meaning of section 4995(b)(4) of such Code). For purposes of paragraph (1), in determining whether any person’s production exceeds 1,000 barrels per day, rules similar to the rules of section 4992(e) of the Internal Revenue Code of 1986 shall apply. If, but for this subsection, the due date under subsection (a) would fall on a Saturday, Sunday, or a holiday in the District of Columbia, such due date shall be deemed to be the immediately preceding day which is not a Saturday, Sunday, or such a holiday.”