,i #aacth ,,congress #ast ,session ,h4 ,r4 #cfcf ,,in ,,the ,,house ,,of ,,representatives ,december #c1 #bjac,mr4 ,blumenauer introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to increase the excise tax on gasoline1 diesel1 and kerosene fuels4 #a4 ,short title ,this ,act may be cited as the ,update1 ,promote1 and ,develop ,america's ,transportation ,essentials ,act of #bjac4 #b4 ,findings2 sense of ,congress 7a7 ,findings ,the ,congress finds the following3 7#a7 ,since the passage of ,,safetea-,,lu1 ,congress has transferred over #ej billion from the ,general ,fund to the ,highway ,trust ,fund1 in order to maintain solvency4 7#b7 ,the ,congressional ,budget ,office estimates after the end of ,fiscal year #bjad1 annual ,general ,fund transfers of approximately #ae billion will be necessary in order to maintain current ,highway ,trust ,fund spending levels4 7#c7 ,the ,congressional ,budget ,office also estimates that in order to provide funding for surface transportation projects where the ,federal benefit outweighs the cost1 an additional #hc billion a year would need to be allocated to the ,highway and ,transit ,trust ,funds4 7#d7 ,the ,american ,society for ,civil ,engineers estimates that in order to meet our economic and transportation needs1 the ,united ,states should invest at least an additional #ejj billion in our surface transportation system by #bjbj4 7#e7 ,the ,national ,commission on ,fiscal ,reform and ,responsibility report1 often referred to as the ,simpson-,bowles plan1 includes a recommendation to raise the gas tax by fifteen cents4 7#f7 ,the ,national ,surface ,transportation ,infrastructure ,financing ,commission recommended1 in their #bjji report1 that ,congress take action to prevent the ,highway ,trust ,fund from becoming insolvent1 and to avoid any reductions in infrastructure spending4 ,the ,commission also noted that a ,federal funding system based on a vehicle miles traveled system1 is the consensus choice for the future4 7b7 ,sense of ,congress regarding replacement of gas tax ,it is the sense of ,congress that by #bjbd the gas tax should be repealed and replaced with a more sustainable1 stable funding source4 #c4 ,tax on motor fuels 7a7 ,gasoline other than aviation gasoline ,section #djha7;a77#b77;,a77i7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7i7 in the case of gasoline other than aviation gasoline-- 7,i7 for tax imposed before #bjad1 #ah4c cents per gallon1 7,,ii7 for tax imposed during #bjad1 #bf4c cents per gallon1 7,,iii7 for tax imposed during #bjae1 #cj4c cents per gallon1 and 7,,iv7 for tax imposed after #bjae and before #bjbe1 #cc4c cents per gallon1 4 7b7 ,diesel fuel or kerosene ,section #djha7;a77#b77;,a77iii7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7iii7 in the case of diesel fuel or kerosene-- 7,i7 for tax imposed before #bjad1 #bd4c cents per gallon1 7,,ii7 for tax imposed during #bjad1 #cb4c cents per gallon1 7,,iii7 for tax imposed during #bjae1 #cf4c cents per gallon1 and 7,,iv7 for tax imposed after #bjae and before #bjbe1 #ci4c cents per gallon1 4 7c7 ,increase for inflation ,paragraph 7#b7 of section #djha7;a7 of such ,code is amended by adding at the end the following3 7,e7 ,adjustment for inflation ,in the case of any calendar year beginning after #bjaf1 the rates of tax contained in clauses 7i77,,iv7 and 7iii77,,iv7 of subparagraph 7,a7 shall each be increased by an amount equal to-- 7i7 such rate1 multiplied by 7ii7 the cost of living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjae for calendar year #aiib in subparagraph 7,b7 thereof4 ,any increase under the preceding sentence shall be rounded to the nearest #j4a cents4 4 7d7 ,diesel-,water fuel emulsion ,section #djha7;a77#b77;,d7 of the ,internal ,revenue ,code of #aihf is amended by striking #ai4g cents for #bd4c cents and inserting a rate equal to #ga percent of the rate in effect under subparagraph 7,a7 7without regard to this subparagraph74 7e7 ,termination ,section #djha7;d77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking ,september #cj1 #bjaf and inserting ,december #ca1 #bjbd4 7f7 ,effective date ,the amendments made by this section shall apply to fuels or liquids removed1 entered1 or sold after ,december #ca1 #bjac4 #d4 ,floor stocks tax 7a7 ,imposition of tax ,in the case of any taxable liquid which is held on the floor stocks tax date by any person1 there is hereby imposed a floor stocks tax equal to the excess of the tax which would be imposed on such liquid under section #djda or #djha of the ,internal ,revenue ,code of #aihf had the taxable event occurred on the floor stocks tax date over the tax paid under any such section on such liquid4 7b7 ,liability for tax and method of payment 7#a7 ,liability for tax ,a person holding a liquid on the floor stocks tax date to which the tax imposed by subsection 7a7 applies shall be liable for such tax4 7#b7 ,method of payment ,the tax imposed by subsection 7a7 shall be paid in such manner as the ,secretary shall prescribe4 7#c7 ,time of payment ,the tax imposed by subsection 7a7 shall be paid on or before the date which is #f months after the floor stocks tax date4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,held by a person ,a liquid shall be considered as held by a person if title thereto has passed to such person 7whether or not delivery to the person has been made74 7#b7 ,taxable liquid ,the term taxable liquid means diesel fuel and kerosene 7other than aviation-grade kerosene74 7#c7 ,floor stocks date ,the term floor stocks tax date means any ,january #a of any calendar year beginning after the date of the enactment of this ,act on which a rate of tax under section #djda or #djha of such ,code increases pursuant to an amendment made by section #b4 7#d7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 7d7 ,exception for exempt uses ,the tax imposed by subsection 7a7 shall not apply to taxable liquid held by any person exclusively for any use to the extent a credit or refund of the tax imposed by a section of such ,code is allowable for such use4 7e7 ,exception for fuel held in vehicle tank ,no tax shall be imposed by subsection 7a7 on taxable liquid held in the tank of a motor vehicle or motorboat4 7f7 ,exception for certain amounts of fuel 7#a7 ,in general ,no tax shall be imposed by subsection 7,a7 on any liquid held on the floor stocks tax date by any person if the aggregate amount of liquid held by such person on such date does not exceed #b1jjj gallons4 ,the preceding sentence shall apply only if such person submits to the ,secretary 7at the time and in the manner required by the ,secretary7 such information as the ,secretary shall require for purposes of this paragraph4 7#b7 ,exempt fuel ,for purposes of paragraph 7#a71 there shall not be taken into account fuel held by any person which is exempt from the tax imposed by subsection 7a7 by reason of subsection 7d7 or 7e74 7#c7 ,controlled groups ,for purposes of this section-- 7,a7 ,corporations 7i7 ,in general ,all persons treated as a controlled group shall be treated as #a person4 7ii7 ,controlled group ,the term controlled group has the meaning given to such term by subsection 7a7 of section #aefc of such ,code2 except that for such purposes the phrase more than #ej percent shall be substituted for the phrase at least #hj percent each place it appears in such subsection4 7,b7 ,nonincorporated persons under common control ,under regulations prescribed by the ,secretary1 principles similar to the principles of clause 7i7 shall apply to a group of persons under common control where one or more of such persons is not a corporation4 7g7 ,other laws applicable ,all provisions of law1 including penalties1 applicable with respect to the taxes imposed by chapter #ca or #cb of such ,code shall1 insofar as applicable and not inconsistent with the provisions of this section1 apply with respect to the floor stock taxes imposed by subsection 7a7 to the same extent as if such taxes were imposed by such chapter4