26Title 26The US tax code, read & explained

26 U.S.C. § 4081

§ 4081. Imposition of tax

1,309 words · amended 61 times · cited by 18 other sections

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History

Part of the code since 1954. Last changed May 16, 2024 by the Public Law 118-63.

Every change, newest first (65)
  1. May 16, 2024Public Law 118-63
  2. March 8, 2024Public Law 118-41
  3. December 26, 2023Public Law 118-34
  4. September 30, 2023Public Law 118-15
  5. November 15, 2021Public Law 117-58
  6. October 5, 2018Public Law 115-254
  7. March 23, 2018Consolidated Appropriations Act, 2018
  8. September 29, 2017Public Law 115-63
  9. July 15, 2016Public Law 114-190
  10. March 30, 2016Public Law 114-141
  11. December 4, 2015Public Law 114-94
  12. September 30, 2015Public Law 114-55
  13. July 6, 2012Public Law 112-141
  14. June 29, 2012Public Law 112-140
  15. March 30, 2012Public Law 112-102
  16. February 14, 2012Public Law 112-95
  17. January 31, 2012Public Law 112-91
  18. September 16, 2011Public Law 112-30
  19. August 5, 2011Public Law 112-27
  20. June 29, 2011Public Law 112-21
  21. May 31, 2011Public Law 112-16
  22. March 31, 2011Public Law 112-7
  23. December 22, 2010Public Law 111-329
  24. September 30, 2010Public Law 111-249
  25. August 1, 2010Public Law 111-216
  26. July 2, 2010Public Law 111-197
  27. April 30, 2010Public Law 111-161
  28. March 31, 2010Public Law 111-153
  29. December 16, 2009Public Law 111-116
  30. October 1, 2009Public Law 111-69
  31. March 30, 2009Public Law 111-12
  32. September 30, 2008Public Law 110-330
  33. June 30, 2008Public Law 110-253
  34. February 28, 2008Public Law 110-190
  35. December 26, 2007Public Law 110-161
  36. August 10, 2005Public Law 109-59
  37. August 8, 2005Public Law 109-58
  38. March 31, 2005Public Law 109-6
  39. October 22, 2004American Jobs Creation Act of 2004
  40. June 9, 1998Public Law 105-178
  41. August 5, 1997Taxpayer Relief Act of 1997
  42. February 28, 1997Public Law 105-2
  43. August 20, 1996Small Business Job Protection Act of 1996
  44. August 10, 1993Omnibus Budget Reconciliation Act of 1993
  45. October 24, 1992Public Law 102-486
  46. December 18, 1991Public Law 102-240
  47. November 5, 1990Omnibus Budget Reconciliation Act of 1990
  48. November 10, 1988Technical and Miscellaneous Revenue Act of 1988
  49. December 22, 1987Omnibus Budget Reconciliation Act of 1987
  50. April 2, 1987Public Law 100-17
  51. October 22, 1986Tax Reform Act of 1986
  52. October 17, 1986Public Law 99-499
  53. July 18, 1984Deficit Reduction Act of 1984
  54. January 6, 1983Public Law 97-424
  55. April 2, 1980Public Law 96-223
  56. November 9, 1978Public Law 95-618
  57. November 6, 1978Public Law 95-599
  58. May 5, 1976Public Law 94-280
  59. December 31, 1970Public Law 91-605
  60. June 29, 1961Public Law 87-61
  61. September 21, 1959Public Law 86-342
  62. June 29, 1956Internal Revenue Code of 1954 (original text)
  63. March 29, 1956Internal Revenue Code of 1954 (original text)
  64. March 30, 1955Internal Revenue Code of 1954 (original text)
  65. August 16, 1954Internal Revenue Code of 1954 (original text)

The law as written

Current through Public Law 119-102. Amendment notes omitted.

Structure

  1. (a) Tax imposed
  2. (b) Treatment of removal or subsequent sale by blender
  3. (c) Later separation of fuel from diesel-water fuel emulsion
  4. (d) Termination
  5. (e) Refunds in certain cases
(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

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.

(ii) Nonapplication of registration to vessel operators entering by deep-draft vessel

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).

(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

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.

(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

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.

(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

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.

(b) Treatment of removal or subsequent sale by blender
(1) In general

There is hereby imposed a tax at the rate determined under subsection (a) on taxable fuel removed or sold by the blender thereof.

(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

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.

(d) Termination
(1) In general

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.

(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 September 30, 2028.

(3) Leaking Underground Storage Tank Trust Fund financing rate

The Leaking Underground Storage Tank Trust Fund financing rate under subsection (a)(2) shall apply after September 30, 1997, and before October 1, 2028.

(e) Refunds in certain cases

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.