VOL. III. INTERNAL REVENUE CODE and HIGHWAY TRUST FUND LAWS 26 U.S.C., Internal Revenue Code Sec. 39. Certain uses of gasoline and lubricating oil (a) General rule. There shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the sum of the amounts payable to the taxpayer (1) under section 6420 with respect to gasoline used during the taxable year on a farm for farming purposes (determined without regard to section 6420 (h)), (2) under section 6421 with respect to gasoline used during the taxable year (A) otherwise than as a fuel in a highway vehicle or (B) in vehicles while engaged in furnishing certain public passenger land transportation service (determined without regard to section 6421 (i)), and (3) under section 6424 with respect to lubricating oil used during the taxable year otherwise than in a highway motor vehicle (determined without regard to section 6424 (g)). (b) Transitional rules. For purposes of paragraphs (1) and (2) of subsection (a), a taxpayer's first taxable year beginning after June 30, 1965, shall include the period after June 30, 1965, and before the beginning of such first taxable year. For purposes of paragraph (3) of subsection (a), a taxpayer's first taxable year beginning after December 31, 1965, shall include the period after December 31, 1965, and before the beginning of such taxable year. (c) Exception. Credit shall not be allowed under subsection (a) for any amount payable under section 6421 or 6424, if a claim for such amount is timely filed, and under section 6421(i) or 6424(g) is payable, under such section. (Added June 21, 1965, Pub. L. 89-44, sec. 809 (c), 79 Stat. 167.) * Sec. 4041. Imposition of tax (a) Diesel fuel. There is hereby imposed a tax of 4 cents a gallon upon any liquid (other than any product taxable under section 4081)— (1) sold by any person to an owner, lessee, or other operator of a dieselpowered highway vehicle, for use as a fuel in such vehicle; or (2) used by any person as a fuel in a diesel-powered highway vehicle unless there was a taxable sale of such liquid under paragraph (1). In the case of a liquid taxable under this subsection sold for use or used as a fuel in a diesel-powered highway vehicle (A) which (at the time of such sale or use) is not registered, and is not required to be registered, for highway use under the laws of any State or foreign country, or (B) which, in the case of a diesel-powered highway vehicle owned by the United States, is not used on the highway, the tax imposed by paragraph (1) or by paragraph (2) shall be 2 cents a gallon. If a liquid on which tax was imposed by paragraph (1) at the rate of 2 cents a gallon by reason of the preceding sentence is used as a fuel in a dieselpowered highway vehicle (A) which (at the time of such use) is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or (B) which, in the case of a diesel-powered highway vehicle owned by the United States, is used on the highway, a tax of cents a gallon shall be imposed under paragraph (2). (b) Special motor fuels. There is hereby imposed a tax of 4 cents a gallon upon benzol, benezene, naphtha, liquefied petroleum gas, casinghead and natural gasoline, or any other liquid (other than kerosene, gas oil, or fuel oil, or any product taxable under section 4081 or subsection (a) of this section) — (1) sold by any person to an owner, lessee, or other operator of a motor vehicle, motorboat, or airplane for use as a fuel for the propulsion of such motor vehicle, motorboat, or airplane; or (2) used by any person as a fuel for the propulsion of a motor vehicle, motorboat, or airplane unless there was a taxable sale of such liquid under paragraph (1). In the case of a liquid taxable under this subsection sold for use or used otherwise than as a fuel for the propulsion of a highway vehicle (A) which (at the time of such sale or use) is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or (B) which, in the case of a highway vehicle owned by the United States, is used on the highway, the tax imposed by paragraph (1) or by paragraph (2) shall be 2 cents a gallon. If a liquid on which tax was imposed by paragraph (1) at the rate of 2 cents a gallon by reason of the preceding sentence is used as a fuel for the propulsion of a highway vehicle (A) which (at the time of such use) is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or (B) which, in the case of a highway vehicle owned by the United States, is used on the highway, a tax of 2 cents a gallon shall be imposed under paragraph (2). (c) Rate reduction. On and after October 1, 1972— (1) the taxes imposed by this section shall be 12 cents a gallon; and (2) the second and third sentences of subsections (a) and (b) shall not apply. (d) Exemption for farm use. (1) Exemption. Under regulations prescribed by the Secretary or his delegate— (A) no tax shall be imposed under subsection (a) (1) or (b) (1) on the sale of any liquid sold for use on a farm for farming purposes, and (B) no tax shall be imposed under subsection (a)(2) or (b)(2) on the use of any liquid used on a farm for farming purposes. (2) Use on a farm for farming purposes. For purposes of paragraph (1) of this subsection, use on a farm for farming purposes shall be determined in accordance with paragraphs (1), (2), and (3) of section 6420 (c). (e) Exemption for use as supplies for vessels. Under regulations prescribed by the Secretary or his delegate, no tax shall be imposed under subsection (b) in the case of any fuel sold for use or used as supplies for vessels or aircraft (within the meaning of section 4221(d) (3)). (Aug. 16, 1954, ch. 736, 68A Stat. 478; Mar. 30, 1955, ch. 18, sec. 3(a) (1), 69 Stat. 14; Mar. 29, 1956, ch. 115, sec. 3(a) (1), 70 Stat. 66; Apr. 2, 1956, ch. 160, sec. 2(a) (1), 70 Stat. 89; June 29, 1956, ch. 462, title II, sec. 202, 70 Stat. 387; Sept. 2, 1958, Pub. L. 85-859, title I, sec. 119 (b) (1), 72 Stat. 1286; Sept. 21, 1959, Pub. L. 86-342, title II, sec. 201 (b), 73 Stat. 613; June 29, 1961, Pub. L. 87-61, title II, sec. 201 (a), (c), (d), 75 Stat. 123. June 21, 1965, Pub. L. 89-44, sec. 802(a)(2), 79 Stat. 159.) * Sec. 4061. Imposition of tax (a) Automobiles. There is hereby imposed upon the following articles (including in each case parts or accessories therefor sold on or in connection therewith or with the sale thereof) sold by the manufacturer, producer, or importer a tax equivalent to the specified percent of the price for which so sold: (1) Articles taxable at 10 percent, except that on and after October 1, 1972, the rate shall be 5 percent— Automobile truck chassis. Automobile truck bodies. Automobile bus chassis. Automobile bus bodies. Truck and bus trailer and semitrailer chassis. Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. A sale of an automobile truck, bus, truck or bus trailer or semitrailer shall, for the purposes of this paragraph, be considered to be a sale of a chassis and of a body enumerated in this paragraph. (2)(A) Articles enumerated in subparagraph (B) are taxable at whichever of the following rates is applicable: 10 percent for the period ending on the date of the enactment of the Excise Tax Reduction Act of 1965. 7 percent for the period beginning with the day after the date of the enactment of the Excise Tax Reduction Act of 1965 through December 31, 1965. 6 percent for the period January 1, 1966, through December 31, 1966. 4 percent for the period January 1, 1967, through December 31, 1967. 2 percent for the period January 1, 1968, through December 31, 1968. 1 percent for the period after December 31, 1968. (B) The articles to which subparagraph (A) applies are: Automobile chassis and bodies other than those taxable under paragraph (1). Chassis and bodies for trailers and semitrailers (other than house trailers) suitable for use in connection with passenger automobiles. A sale of an automobile, or of a trailer or semitrailer suitable for use in connection with a passenger automobile, shall, for the purposes of this paragraph, be considered to be a sale of a chassis and of a body enumerated in this subparagraph. (b) Parts and accessories. (1) Except as provided in paragraph (2), there is hereby imposed upon parts or accessories (other than tires and inner tubes) for any of the articles enumerated in subsection (a) (1) sold by the manufacturer, producer, or importer a tax equivalent to 8 percent of the price for which so sold, except that on and after October 1, 1972, the rate shall be 5 percent. (2) No tax shall be imposed under this subsection upon any part or accessory which is suitable for use (and ordinarily is used) on or in connection with, or as a component part of, any article enumerated in subsection (a) (2) or a house trailer. (Aug. 16, 1954, ch. 736, 68A Stat. 481; Mar. 30, 1955, ch. 18, sec. 3(a) (2), 69 Stat. 14; Aug. 12, 1955, ch. 865, sec. 1, 69 Stat. 709; Mar. 29, 1956, ch. 115, sec. 3(a) (2), 70 Stat. 66; June 29, 1956, ch. 462, title II, sec. 203, 70 Stat. 388; Mar. 29, 1957, Pub. L. 85-12, sec. 3(a) (1), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, sec. 3(a)(1), 72 Stat. 259; June 30, 1959, Pub. L. 86-75, sec. 3 (a) (1), 73 Stat. 157; June 30, 1960, Pub. L. 86-564, title II, sec. 202 (a) (1), 74 Stat. 290; June 29, 1961, Pub. L. 87–61, title II, sec. 204, 75 Stat. 126; June 30, 1961, Pub. L. 87-72, sec. 3(a)(1), 75 Stat. 193; June 28, 1962, Pub. L. 87-508, sec. 3(a) (1), 76 Stat. 114; June 29, 1963, Pub. L. 88-52, sec. 3 (a) (1), 77 Stat. 72; June 30, 1964, Pub. L. 88– 348, sec. 2(a)(1), 78 Stat. 237; June 21, 1965, Pub. L. 89-44, sec. 201, 79 Stat. 136.) * Sec. 4063. Exemptions (a) Specified articles. (1) Camper coaches; bodies for self-propelled mobile homes.-The tax imposed under section 4061 shall not apply in the case of articles designed (A) to be mounted or placed on automobile trucks, automobile truck chassis, or automobile chassis, and (B) to be used primarily as living quarters. (2) Feed, seed, and fertilizer equipment.-The tax imposed under section 4061 shall not apply in the case of any body, part or accessory primarily designed (A) to process or prepare seed, feed, or fertilizer for use on farms; (B) to haul feed, seed, or fertilizer to and on farms; (C) to spread feed, seed, or fertilizer on farms; (D) to load or unload feed, seed, or fertilizer on farms; or (E) for any combination of the foregoing. (3) House trailers.-The tax imposed under section 4061 (a) shall not apply in the case of house trailers. (4) Small 3-wheeled trucks.-The tax imposed under section 4061 (a) shall not apply in the case of— (A) an automobile truck chassis which (i) has only 3 wheels, (ii) is powered by a motor which does not exceed 18 brake horsepower (rated at 4,000 revolutions per minute), and (iii) does not exceed 1,000 pounds gross weight; or (B) a body designed primarily to be mounted on a chassis described in subparagraph (A). (b) Sales to manufacturers. Under regulations prescribed by the Secretary or his degelate, the tax under section 4061 shall not apply in the case of sales of bodies by the manufacturer, producer, or importer to a manufacturer or producer of automobile trucks or other automobiles to be sold by such vendee. For the purposes of section 4061, such vendee shall be considered the manufacturer or producer of such bodies. (c) Rebuilt parts and accessories. Under regulations prescribed by the Secretary or his delegate, the tax imposed under section 4061(b) shall not apply in the case of rebuilt parts or accessories. (Aug. 16, 1954, ch. 736, 68A Stat. 482; Aug. 11, 1955, ch. 805, sec. 1(g), 69 Stat. 690; Oct. 13, 1964, Pub. L. 88-653, sec. 5(a), 78 Stat. 1086; June 21, 1965, Pub. L. 89-44, sec. 801 (a), 79 Stat. 157.) Sec. 4071. Imposition of tax (a) Imposition of rate of tax. There is hereby imposed upon the following articles, if wholly or in part of rubber, sold by the manufacturer, producer, or importer, a tax at the following rates: (1) Tires of the type used on highway vehicles, 10 cents a pound. (2) Other tires (other than laminated tires to which paragraph (5) applies), 5 cents a pound. (3) Inner tubes for tires, 10 cents a pound. (4) Tread rubber, 5 cents a pound. (5) Laminated tires (not of the type used on highway vehicles) which consists wholly of scrap rubber from used tire casings with an internal metal fastening agent, 1 cent a pound. (b) Determination of weight. For purposes of this section, weight shall be based on total weight, except that in the case of tires such total weight shall be exclusive of metal rims or rim bases. Total weight of the articles shall be determined under regulations prescribed by the Secretary or his delegate. (c) Rate reduction. On and after October 1, 1972— (1) the tax imposed by paragraph (1) of subsection (a) shall be 5 cents a pound; (2) the tax imposed by paragraph (3) of subsection (a) shall be 9 cents a pound; and (3) paragraph (4) of subsection (a) shall not apply. (Aug. 16, 1954, ch. 736, 68A Stat. 482; June 29, 1956, ch. 462, title II, sec. 204 (a), 70 Stat. 388; Apr. 22, 1960, Pub. L. 86-440, sec. 1(a), 74 Stat. 80; June 29, 1961, Pub. L. 87-61, title II, sec. 202, 75 Stat. 124.) Sec. 4072. Definitions (a) Rubber. For purposes of this chapter, the term "rubber" includes synthetic and substitute rubber. (b) Tread rubber. For purposes of this chapter, the term "tread rubber" means any material(1) which is commonly or commercially known as tread rubber or camelback; or (2) which is a substitute for a material described in paragraph (1) and is of a type used in recapping or retreading tires. (c) Tires of type used on highway vehicles. For purposes of this part, the term "tires of the type used on highway vehicles" means tires of the type used on (1) motor vehicles which are highway vehicles, or (2) vehicles of the type used in connection with motor vehicles which are highway vehicles. (Aug. 16, 1954, ch. 736, 68A Stat. 482; June 29, 1956, ch. 462, title II, sec. 204 (b), 70 Stat. 389.) Sec. 4073. Exemptions (a) Tires of certain sizes. The tax imposed by section 4071 shall not apply to tires which are not more than 20 inches in diameter and not more than 14 inches in cross-section, if such tires are of all-rubber construction (whether hollow center or solid) without fabric or metal reinforcement. (b) Tires with internal wire fastening. The tax imposed by section 4071 shall not apply to tires of extruded tiring with an internal wire fastening agent. (c) Exemption from tax on tread rubber in certain cases. Under regulations prescribed by the Secretary or his degelate, the tax imposed by section 4071(a) (4) shall not apply to tread rubber sold by the manufacturer, producer, or importer, to any person for use by such person otherwise than in the recapping or retreading of tires of the type used on highway vehicles. (Aug. 16, 1954, ch. 736, 68A Stat. 482; June 29, 1956, ch. 462, title II, sec. 204 (c), 70 Stat. 389.) Sec. 4081. Imposition of tax (a) In general. There is hereby imposed on gasoline sold by the producer or importer thereof, or by any producer of gasoline, a tax of 4 cents a gallon. (b) Rate reduction. On and after October 1, 1972, the tax imposed by this section shall be 1% cents a gallon. (Aug. 16, 1954, ch. 736, 68A Stat. 483; Mar. 30, 1955, ch. 18, sec. 3(a) (3), 69 Stat. 14; Mar. 29, 1956, ch. 115, sec. 3(a)(3), 70 Stat. 66; June 29, 1956, ch. 462, title II, sec. 205, 70 Stat. 389; Sept. 21, 1959, Pub. L. 86-342, title II, sec. 202(a), 73 Stat. 613; June 29, 1961, Pub. L. 87-61, title II, sec. 201 (b)-(d), 75 Stat. 123.) Sec. 4082. Definitions (a) Producer. As used in this subpart, the term "producer" includes a refiner, compounder, blender, or wholesale distributor, and a dealer, selling gasoline exclusively to producers of gasoline, as well as a producer. Any person to whom gasoline is sold tax-free under this subpart shall be considered the producer of such gasoline. (b) Gasoline. As used in this subpart, the term "gasoline” means all products commonly or commercially known or sold as gasoline which are suitable for use as a motor fuel. (c) Certain uses defined as sales. If a producer or importer uses (otherwise than in the production of gasoline or of special motor fuels referred to in section 4041(b)) gasoline sold to him free of tax, or produced or imported by him, such use shall for the purposes of this chapter be considered a sale. (d) Wholesale distributor. As used in subsection (a), the term "wholesale distributor" includes any person who (1) sells gasoline to producers, to retailers, or to users who purchase in bulk quantities for delivery into bulk storage tanks, and |