FOR IMMEDIATE RELEASE, Contact: (202) 225-3625
March 27, 1998
No. FC 22-A
Congressman Bill Archer (R-TX), Chairman of the Committee on Ways and Means, today announced that on Thursday, March 26, 1998, the Committee ordered favorably reported, with amendment, H.R. 2400, the "Building Efficient Surface Transportation and Equity Act of 1998," by voice vote.
The Committee's revenue title to H.R. 2400 would provide, generally: an extension of existing Highway Trust Fund excise taxes on motor fuels, an extension and modification of Highway Trust Fund expenditure provisions, a repeal of the truck-tire excise tax, a transfer of the General Fund portion of taxes on motorboat gasoline and small-engine gasoline to the Aquatic Resources Trust Fund, a repeal of the 4.3-cents-per-gallon excise tax on rail diesel fuel, a dyed fuels mandate delay for terminals, and simplification of fuels tax refund procedures.
DESCRIPTION OF TITLE XI OF H.R. 2400 AS APPROVED:
Extension of Existing Taxes and Exemptions. The Highway Trust Fund motor fuels taxes and most exemptions from those taxes, and retail sale and annual use taxes on heavy vehicles, would be extended for six years, October 1, 1999, through September 30, 2005. The excise tax on truck tires would be extended through September 30, 2000. The bill is silent with respect to present-law tax benefits for alcohol-blended fuels. Thus, those benefits would expire as currently scheduled in fiscal year 2001.
Extension of the Highway Trust Fund and Expenditure Authority. Provisions dedicating revenues from highway excise taxes to the Highway Fund and Mass Transit Account would be extended until September 30, 2003. An extension and modification of expenditure authority also would be provided through fiscal year 2003.
Repeal of 4.3-cents-per-gallon Excise Tax on Rail Diesel Fuel. Effective on October l, 2000, the 4.3-cents-per-gallon excise tax imposed on diesel fuel used in trains would be repealed.
Repeal Tire Tax. The current law excise taxes on heavy truck tires would be repealed, effective October 1, 2000.
Transfer General Fund Portion of Motorboat and Small Engine Fuels Tax to Aquatic Resources Trust Fund. The 6.8-cents-per-gallon portion of the tax on fuels used in motorboats and small engines, currently retained in the General Fund, would be transferred to the Aquatic Trust Fund. This provision would be phased in, with 3.4-cents-per-gallon transferred after October 1, 1999, and 6.8-cents-per-gallon transferred after September 30, 2000.
Dyed Fuel Mandate for Registered Terminals. The requirement that registered motor fuel terminal facilities offer to their customers both undyed and dyed fuel if they distribute diesel fuel or kerosene would be delayed two years, to July 1, 2000.
National Recreational Trails Trust Fund Repeal; Extension of the Aquatic Resources Trust Fund and Expenditure Authority. Internal Revenue Code provisions establishing the National Recreational Trails Trust Fund would be repealed. (Authorizations for recreational trail expenditures are provided in H.R. 2400.) Transfers of motorboat and small-engine gasoline tax revenues to the Sport Fish Restoration and Boat Safety Accounts of the Aquatic Resources Trust Fund, and expenditure authority would be modified and extended until September 30, 2003.
Simplification and Technical Corrections. The revenue title also contains provisions which would simplify fuels tax refund procedures, as well as provisions which would make technical corrections.