Internal Revenue Code:Sec. 4042. Tax on fuel used in commercial transportation on inland waterways
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 31 - RETAIL EXCISE TAXES
Subchapter B - Special Fuels
Statute
Sec. 4042. Tax on fuel used in commercial transportation on inland
waterways
(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:
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If the use occurs: The tax pergallon is:
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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.
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(B) The Leaking Underground Storage Tank Trust Fund financing
rate is 0.1 cent per gallon.
(C) The deficit reduction rate is--
(i) 3.3 cents per gallon after December 31, 2004,
and before July 1, 2005,
(ii) 2.3 cents per gallon after June 30, 2005,
and before January 1, 2007, and
(iii) 0 after December 31, 2006.
(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.
Sources
(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.)
References in Text
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.
Miscellaneous
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
2004 - Subsec.241(b),Pub.L.108-357, amended Sec.4042(b)(2)(C).
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:
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''If the use occurs - The tax is -
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After September 30, 1980 and 4 cents a gallon
before October 1, 1981
After September 30, 1981 and 6 cents a gallon
before October 1, 1983
After September 30, 1983 and 8 cents a gallon
before October 1, 1985
After September 30, 1985 10 cents a gallon''.
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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).''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 4462, 9506, 9508 of this
title; title 33 section 1804.
