26 USC 4081 - Imposition of tax

U.S Code last checked for updates: May 18, 2024

§ 4081.

Imposition of tax

(a)

Tax imposed

(1)

Tax on removal, entry, or sale

(A)

In general

There is hereby imposed a tax at the rate specified in paragraph (2) on—

(i)

the removal of a taxable fuel from any refinery,

(ii)

the removal of a taxable fuel from any terminal,

(iii)

the entry into the United States of any taxable fuel for consumption, use, or warehousing, and

(iv)

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).

(B)

Exemption for bulk transfers to registered terminals or refineries

(i)

In general

(ii)

Nonapplication of registration to vessel operators entering by deep-draft vessel

(2)

Rates of tax

(A)

In general

The rate of the tax imposed by this section is—

(i)

in the case of gasoline other than aviation gasoline, 18.3 cents per gallon,

(ii)

in the case of aviation gasoline, 19.3 cents per gallon, and

(iii)

in the case of diesel fuel or kerosene, 24.3 cents per gallon.

(B)

Leaking Underground Storage Tank Trust Fund tax

(C)

Taxes imposed on fuel used in aviation

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—

(i)

in the case of use for commercial aviation by a person registered for such use under section 4101, 4.3 cents per gallon, and

(ii)

in the case of use for aviation not described in clause (i), 21.8 cents per gallon.

(D)

Diesel-water fuel emulsion

(3)

Certain refueler trucks, tankers, and tank wagons treated as terminal

(A)

In general

For purposes of paragraph (2)(C), a refueler truck, tanker, or tank wagon shall be treated as part of a terminal if—

(i)

such terminal is located within an airport,

(ii)

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,

(iii)

such truck, tanker, or wagon meets the requirements of subparagraph (B) with respect to such terminal, and

(iv)

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.

(B)

Requirements

A refueler truck, tanker, or tank wagon meets the requirements of this subparagraph with respect to a terminal if such truck, tanker, or wagon—

(i)

has storage tanks, hose, and coupling equipment designed and used for the purposes of fueling aircraft,

(ii)

is not registered for highway use, and

(iii)

is operated by—

(I)

the terminal operator of such terminal, or

(II)

a person that makes a daily accounting to such terminal operator of each delivery of fuel from such truck, tanker, or wagon.

(C)

Reporting

The Secretary shall require under section 4101(d) reporting by such terminal operator of—

(i)

any information obtained under subparagraph (B)(iii)(II), and

(ii)

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.

(D)

Applicable rate

For purposes of paragraph (2)(C), in the case of any kerosene treated as removed from a terminal by reason of this paragraph—

(i)

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

(ii)

the rate of tax specified in paragraph (2)(C)(ii) shall apply in all other cases.

(4)

Liability for tax on kerosene used in commercial aviation

(b)

Treatment of removal or subsequent sale by blender

(1)

In general

(2)

Credit for tax previously paid

If—

(A)

tax is imposed on the removal or sale of a taxable fuel by reason of paragraph (1), and

(B)

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).

(c)

Later separation of fuel from diesel-water fuel emulsion

(d)

Termination

(1)

In general

(2)

Aviation fuels

The rates of tax specified in subsection (a)(2)(A)(ii) and (a)(2)(C)(ii) shall be 4.3 cents per gallon—

(A)

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

(B)

after May 10, 2024.

(3)

Leaking Underground Storage Tank Trust Fund financing rate

(e)

Refunds in certain cases

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cite as: 26 USC 4081