§4042 — Tax on fuel used in commercial transportation on inland waterways

3 cases·1 overruled·2 cited

Statute Text — 26 U.S.C. §4042

(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, and

(B)

the Leaking Underground Storage Tank Trust Fund financing rate.

(2)Rates

For purposes of paragraph (1)—

(A)

The Inland Waterways Trust Fund financing rate is 29 cents per gallon.

(B)

The Leaking Underground Storage Tank Trust Fund financing rate is 0.1 cent per gallon.

(3)Exception for fuel on which Leaking Underground Storage Tank Trust Fund financing rate separately imposed

The Leaking Underground Storage Tank Trust Fund financing rate under paragraph (2)(B) shall not apply to the use of any fuel if tax was imposed with respect to such fuel under section 4041(d) or 4081 at the Leaking Underground Storage Tank Trust Fund financing rate.

(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.

Treasury Regulations

Treas. Reg. §Treas. Reg. §48.4042-1 Tax on fuel used in commercial waterway transportation
Treas. Reg. §Treas. Reg. §48.4042-1(a) In general.
Treas. Reg. §Treas. Reg. §48.4042-1(b) Amount of tax.
Treas. Reg. §Treas. Reg. §48.4042-1(c) Person liable for tax.
Treas. Reg. §Treas. Reg. §48.4042-1(d) Time of use.
Treas. Reg. §Treas. Reg. §48.4042-1(e) Liquid fuel.
Treas. Reg. §Treas. Reg. §48.4042-1(f) Commercial waterway transportation—(1) In general.
Treas. Reg. §Treas. Reg. §48.4042-1(g) Specified waterways.
Treas. Reg. §Treas. Reg. §48.4042-1(i) §48.4042-1(i)
Treas. Reg. §Treas. Reg. §48.4042-2 Special rules
Treas. Reg. §Treas. Reg. §48.4042-2(a) Dual use of liquid fuels—(1) Dual use by the propulsion engine.
Treas. Reg. §Treas. Reg. §48.4042-2(b) Voyages crossing boundaries of the specified waterways.
Treas. Reg. §Treas. Reg. §48.4042-2(c) Records required.
Treas. Reg. §Treas. Reg. §48.4042-2(i) §48.4042-2(i)
Treas. Reg. §Treas. Reg. §48.4042-3 Certain types of commercial waterway transportation excluded
Treas. Reg. §Treas. Reg. §48.4042-3(a) Deep draft ocean-going vessels—(1) In general.
Treas. Reg. §Treas. Reg. §48.4042-3(b) Commercial passenger vessels.
Treas. Reg. §Treas. Reg. §48.4042-3(c) Exemption for State or local governments—(1) In general.
Treas. Reg. §Treas. Reg. §48.4042-3(d) Ocean-going barges.
Treas. Reg. §Treas. Reg. §48.4042-3(i) §48.4042-3(i)

3 Citing Cases

Evans v. Zych 644 F.3d 447 · Cir.

Pension Benefit Guar v. United Steelworkers · Cir.

Pension Benefit Guaranty Corporation v. Republic Technologies International, Llc, United Steelworkers of America, Afl-Cio, Clc 386 F.3d 659 · Cir.