§4081 — Imposition of tax
13 cases·2 followed·3 distinguished·1 criticized·2 overruled·5 cited—15% support
Statute Text — 26 U.S.C. §4081
There is hereby imposed a tax at the rate specified in paragraph (2) on—
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).
The rate of the tax imposed by this section is—
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 kerosene which is removed from any refinery or terminal directly into the fuel tank of an aircraft for use in aviation, the rate of tax under subparagraph (A)(iii) shall be—
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.
For purposes of paragraph (2)(C), a refueler truck, tanker, or tank wagon shall be treated as part of a terminal if—
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.
A refueler truck, tanker, or tank wagon meets the requirements of this subparagraph with respect to a terminal if such truck, tanker, or wagon—
has storage tanks, hose, and coupling equipment designed and used for the purposes of fueling aircraft,
is not registered for highway use, and
is operated by—
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.
The Secretary shall require under section 4101(d) reporting by such terminal operator of—
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.
For purposes of paragraph (2)(C), in the case of any kerosene treated as removed from a terminal by reason of this paragraph—
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.
If—
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),
the amount of the tax so paid shall be allowed as a credit against the tax imposed by reason of paragraph (1).
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.
The rates of tax specified in subsection (a)(2)(A)(ii) and (a)(2)(C)(ii) shall be 4.3 cents per gallon—
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.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §48.4081-1 Taxable fuel; definitions
- Treas. Reg. §Treas. Reg. §48.4081-1(a) Overview.
- Treas. Reg. §Treas. Reg. §48.4081-1(b) Definitions.
- Treas. Reg. §Treas. Reg. §48.4081-1(c) Blended taxable fuel, diesel fuel, and gasoline blendstocks; definitions—(1) Blended taxable fuel—(i) In general.
- Treas. Reg. §Treas. Reg. §48.4081-1(d) ASTM and military specifications.
- Treas. Reg. §Treas. Reg. §48.4081-1(e) Other definitions.
- Treas. Reg. §Treas. Reg. §48.4081-1(f) Effective date.
- Treas. Reg. §Treas. Reg. §48.4081-1(i) Distillation range of 125 °F.
- Treas. Reg. §Treas. Reg. §48.4081-2 Taxable fuel; tax on removal at a terminal rack
- Treas. Reg. §Treas. Reg. §48.4081-2(a) Overview.
- Treas. Reg. §Treas. Reg. §48.4081-2(b) Imposition of tax.
- Treas. Reg. §Treas. Reg. §48.4081-2(c) Liability for tax—(1) In general.
- Treas. Reg. §Treas. Reg. §48.4081-2(d) Rate of tax.
- Treas. Reg. §Treas. Reg. §48.4081-2(e) Exemptions.
- Treas. Reg. §Treas. Reg. §48.4081-2(f) Effective date.
- Treas. Reg. §Treas. Reg. §48.4081-3 Taxable fuel; taxable events other than removal at the terminal rack
- Treas. Reg. §Treas. Reg. §48.4081-3(a) Overview.
- Treas. Reg. §Treas. Reg. §48.4081-3(b) Tax on removal from a refinery—(1) Imposition of tax.
- Treas. Reg. §Treas. Reg. §48.4081-3(c) Tax on entry into the United States—(1) Imposition of tax.
- Treas. Reg. §Treas. Reg. §48.4081-3(d) Tax on bulk transfers from a terminal by an unregistered position holder—(1) Imposition of tax.
- Treas. Reg. §Treas. Reg. §48.4081-3(e) Tax on bulk transfers not received at an approved terminal or refinery—(1) Imposition of tax.
- Treas. Reg. §Treas. Reg. §48.4081-3(f) Tax on sales within the bulk transfer/terminal system—(1) Imposition of tax.
- Treas. Reg. §Treas. Reg. §48.4081-3(g) Tax on removal or sale of blended taxable fuel by the blender—(1) Imposition of tax.
- Treas. Reg. §Treas. Reg. §48.4081-3(h) Rate of tax.
- Treas. Reg. §Treas. Reg. §48.4081-3(i) Exemptions.
13 Citing Cases
It did so because claiming the section 6426 excise tax credits against its section 4081 excise tax liabilities was administratively easier than using the income tax credits and provided a quarterly financial benefit, as opposed to the annual financial benefit that would have been provided by general business credits claimed on an income tax return. Petitioner’s entitlement to these credits is not in dispute. As a taxable fuel position holder, petitioner was required to, and did, file Form 720, Q
d persons. The routes Ps’ drivers traveled were determined with respect to daily manifests generated every evening that accommodated the transportation needs of their clients. Ps claimed a credit under sec. 34, I.R.C., for gasoline taxes paid under sec. 4081, I.R.C. R asserted deficiencies denying them the sec. 34, I.R.C. credit. R denied the credit because according to R’s notice of deficiency, Ps’ service did not meet the requirements under sec. 6421, I.R.C., which sec. 34, I.R.C. cross- refer
* # s}: if: jjí Hí the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the product of the number of gallons of gasoline so used multiplied by the rate at which tax was imposed on such gasoline by section 4081. (2) Limitation in case of nonscheduled intercity or local buses. — Paragraph (1)(A) shall not apply in respect of gasoline used in any automobile bus while engaged in furnishing transportation which is not scheduled and not along regular
way business use, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons so used by the rate at which tax was imposed on such gasoline under section 4081. * * * Section 6421(e)(2)(A) provides the definition of off-highway business use as: any use by a person in a trade or business of such person or in an activity of such person described in section 212 * * * otherwise than as a fuel in a