§4091. Imposition of tax

(a) Tax on sale

(1) In general

There is hereby imposed a tax on the sale of aviation fuel by the producer or the importer thereof or by any producer of aviation fuel.

(2) Use treated as sale

For purposes of paragraph (1), if any producer uses aviation fuel (other than for a nontaxable use as defined in section 6427(l)(2)(B)) on which no tax has been imposed under such paragraph, then such use shall be considered a sale.

(b) Rate of tax

(1) In general

The rate of the tax imposed by subsection (a) shall be 21.8 cents per gallon.

(2) Leaking Underground Storage Tank Trust Fund tax

The rate of tax specified in paragraph (1) shall be increased by 0.1 cent per gallon. The increase in tax under this paragraph shall in this title be referred to as the Leaking Underground Storage Tank Trust Fund financing rate.

(3) Termination

(A) On and after January 1, 1996, the rate of tax specified in paragraph (1) shall be 4.3 cents per gallon.

(B) The Leaking Underground Storage Tank Fund financing rate shall not apply during any period during which the Leaking Underground Storage Tank Trust Fund financing rate under section 4081 does not apply.

(c) Reduced rate of tax for aviation fuel in alcohol mixture, etc.

Under regulations prescribed by the Secretary-

(1) In general

The rate of tax under subsection (a) shall be reduced by 13.4 cents per gallon in the case of the sale of any mixture of aviation fuel if-

(A) at least 10 percent of such mixture consists of alcohol (as defined in section 4081(c)(3)), and

(B) the aviation fuel in such mixture was not taxed under paragraph (2).

In the case of such a mixture none of the alcohol in which is ethanol, the preceding sentence shall be applied by substituting "14 cents" for "13.4 cents".

(2) Tax prior to mixing

In the case of the sale of aviation fuel for use (at the time of such sale) in producing a mixture described in paragraph (1), the rate of tax under subsection (a) shall be 10/9 of the rate which would (but for this paragraph) have been applicable to such mixture had such mixture been created prior to such sale.

(3) Later separation

If any person separates the aviation fuel from a mixture of the aviation fuel and alcohol on which tax was imposed under subsection (a) at a rate determined under paragraph (1) or (2) (or with respect to which a credit or payment was allowed or made by reason of section 6427(f)(1)), such person shall be treated as the producer of such aviation fuel. The amount of tax imposed on any sale of such aviation fuel by such person shall be reduced by the amount of tax imposed (and not credited or refunded) on any prior sale of such fuel.

(4) Limitation

In no event shall any rate determined under paragraph (1) be less than 4.3 cents per gallon.

(5) Termination

Paragraphs (1) and (2) shall not apply to any sale after September 30, 2000.

(Added Pub. L. 100–203, title X, §10502(a), Dec. 22, 1987, 101 Stat. 1330–438 ; amended Pub. L. 100–203, title X, §10502(g), Dec. 22, 1987, 101 Stat. 1330–446 ; Pub. L. 100–647, title II, §2001(d)(6)(A)–(C), Nov. 10, 1988, 102 Stat. 3596 ; Pub. L. 101–508, title XI, §§11211(b)(1), (2), (6)(A), (B), (c)(4), (e)(4), 11213(b)(1), (2)(C), (D), (d)(2)(A), 11704(a)(38), Nov. 5, 1990, 104 Stat. 1388–424 to 1388-427, 1388-432, 1388-433, 1388-435, 1388-520; Pub. L. Pub. L. 102–240, title VIII, §8002(a)(4), Dec. 18, 1991, 105 Stat. 2203 ; Pub. L. 103–66, title XIII, §§13241(b)(1), (2)(B)(i), (ii), 13242(a), Aug. 10, 1993, 107 Stat. 510 , 518.)

Prior Provisions

A prior section 4091, acts Aug. 16, 1954, ch. 736, 68A Stat. 483 ; Aug. 11, 1955, ch. 793, §1(a), 69 Stat. 676 ; June 21, 1965, Pub. L. 89–44, title II, §202(a), 79 Stat. 137 , imposed a tax of 6 cents a gallon on lubricating oil (other than cutting oils) sold in the United States by the manufacturer or producer to be paid by the manufacturer or producer, prior to repeal by Pub. L. 97–424, title V, §515(a), (c), Jan. 6, 1983, 96 Stat. 2181 , applicable with respect to articles sold after Jan. 6, 1983.

Amendments

1993-Pub. L. 103–66, §13242(a), amended section generally, substituting subsecs. (a) to (c) relating to tax on aviation fuel for former subsecs. (a) to (e) relating to tax on taxable fuels including aviation and diesel fuel.

Subsec. (b)(1)(A)(ii). Pub. L. 103–66, §13241(b)(2)(B)(i), inserted "and the aviation fuel deficit reduction rate" after "financing rate".

Subsec. (b)(4). Pub. L. 103–66, §13241(b)(1), substituted "6.8 cents" for "2.5 cents".

Subsec. (b)(6), (7). Pub. L. 103–66, §13241(b)(2)(B)(ii), redesignated par. (6) as (7) and added a new par. (6), reading as follows: "Aviation fuel deficit reduction rate.-For purposes of paragraph (1), the aviation fuel deficit reduction rate is 4.3 cents per gallon."

1991-Subsec. (b)(6)(A). Pub. L. 102–240 substituted "1999" for "1995".

1990-Subsec. (b)(1)(A)(i). Pub. L. 101–508, §11211(b)(1)(A), inserted "and the diesel fuel deficit reduction rate" after "financing rate".

Subsec. (b)(2). Pub. L. 101–508, §11211(b)(2), substituted "17.5 cents" for "15 cents".

Subsec. (b)(3). Pub. L. 101–508, §11213(b)(1), substituted "17.5 cents" for "14 cents" and inserted "except as provided in subsection (d)," after "paragraph (1),".

Subsec. (b)(4) to (6). Pub. L. 101–508, §11211(b)(1)(B), added par. (4) and redesignated former pars. (4) and (5) as (5) and (6), respectively.

Subsec. (b)(6)(A). Pub. L. 101–508, §11211(c)(4), substituted "1995" for "1993".

Subsec. (b)(6)(B). Pub. L. 101–508, §11213(d)(2)(A), substituted "January 1, 1996" for "January 1, 1991".

Subsec. (b)(6)(D). Pub. L. 101–508, §11211(b)(1)(C), added subpar. (D).

Subsec. (c)(1). Pub. L. 101–508, §11211(b)(6)(A), substituted "12.1 cents" for "9 cents" in subpar. (A), "13.44 cents" for "10 cents" in subpar. (B), and "and the diesel fuel deficit reduction rate shall be 10/9th of the otherwise applicable such rates" for "shall be 1/9 cent per gallon" in last sentence.

Subsec. (c)(2). Pub. L. 101–508, §11704(a)(38), amended Pub. L. 100–647, §2001(d)(6)(C). See 1988 Amendment note below.

Pub. L. 101–508, §11211(b)(6)(B), substituted "12.1 cents" for "9 cents".

Subsec. (c)(3). Pub. L. 101–508, §11211(e)(4), substituted "2000" for "1993".

Subsec. (d). Pub. L. 101–508, §11213(b)(2)(C)(ii), substituted "Reduced rate of" for "Exemption from" in heading.

Subsec. (d)(1). Pub. L. 101–508, §11213(b)(2)(C)(i), amended par. (1) generally. Prior to amendment, par. (1) read as follows: "The Airport and Airway Trust Fund financing rate shall not apply to the sale of-

"(A) any mixture of aviation fuel at least 10 percent of which consists of alcohol (as defined in section 4081(c)(3)), or

"(B) any aviation fuel for use (at the time of such sale) in producing a mixture described in subparagraph (A)."

Subsec. (d)(2). Pub. L. 101–508, §11213(b)(2)(C)(i), amended par. (2) generally. Prior to amendment, par. (2) read as follows: "If any person separates the aviation fuel from a mixture of the aviation fuel and alcohol on which the Airport and Airway Trust Fund financing rate did not apply by reason of this subsection (or with respect to which a credit or payment was allowed or made by reason of section 6427(f)(2)), such person shall be treated as the producer of such aviation fuel."

Subsec. (d)(3). Pub. L. 101–508, §11211(e)(4), substituted "2000" for "1993".

Subsec. (e). Pub. L. 101–508, §11213(b)(2)(D), added subsec. (e).

1988-Subsec. (b)(4). Pub. L. 100–647, §2001(d)(6)(B), inserted "except as provided in subsection (c)," after "paragraph (1),".

Subsec. (c)(1). Pub. L. 100–647, §2001(d)(6)(A), inserted sentence at end providing that Leaking Underground Storage Tank Trust Fund financing rate shall be 1/9 cent per gallon in the case of a sale described in subparagraph (B).

Subsec. (c)(2). Pub. L. 100–647, §2001(d)(6)(C), as amended by Pub. L. 101–508, §11704(a)(38), substituted "reduced by the amount of tax imposed (and not credited or refunded) on any prior sale of such fuel" for "5 cents per gallon".

1987-Subsec. (b)(5)(B). Pub. L. 100–203, §10502(g), substituted "1991" for "1988".

Effective Date of 1993 Amendment

Amendment by section 13241(b)(1), (2)(B)(i), (ii) of Pub. L. 103–66 effective Oct. 1, 1993, see section 13241(g) of Pub. L. 103–66, set out as a note under section 4041 of this title.

Amendment by section 13242(a) of Pub. L. 103–66 effective Jan. 1, 1994, see section 13242(e) of Pub. L. 103–66, set out as a note under section 4041 of this title.

Effective Date of 1990 Amendment

Amendment by section 11211(b)(1), (2), (6)(A), (B) of Pub. L. 101–508 effective Dec. 1, 1990, see section 11211(b)(7) of Pub. L. 101–508, set out as a note under section 4041 of this title.

Amendment by section 11213(b)(1), (2)(C), (D) of Pub. L. 101–508 effective Dec. 1, 1990, see section 11213(b)(4) of Pub. L. 101–508, set out as a note under section 4041 of this title.

Effective Date of 1988 Amendment

Section 2001(d)(6)(D) of Pub. L. 100–647 provided that: "The amendments made by this paragraph [amending this section] shall take effect as if included in the amendments made by section 10502 of the Revenue Act of 1987 [Pub. L. 100–203]."

Effective Date of 1987 Amendment

Section 10502(g) of Pub. L. 100–203 provided that: "If the Airport and Airway Safety and Capacity Expansion Act of 1987 is enacted [enacted as Pub. L. 100–223], effective on December 31, 1987, sections 4091(b)(5)(B) and 9502(b)(3) of such Code [this title] (as added by this section) are each amended by striking out 'January 1, 1988' and inserting in lieu thereof 'January 1, 1991'."

Effective Date

Subpart applicable to sales after Mar. 31, 1988, see section 10502(e) of Pub. L. 100–203, set out as an Effective Date of 1987 Amendment note under section 40 of this title.

Floor Stocks Tax

Section 13245 of Pub. L. 103–66 provided that:

"(a) Imposition of Tax.-In the case of commercial aviation fuel on which tax was imposed under section 4091 of the Internal Revenue Code of 1986 before October 1, 1995, and which is held on such date by any person, there is hereby imposed a floor stocks tax of 4.3 cents per gallon.

"(b) Liability for Tax and Method of Payment.-

"(1) Liability for tax.-A person holding aviation fuel on October 1, 1995, to which the tax imposed by subsection (a) applies shall be liable for such tax.

"(2) Method of payment.-The tax imposed by subsection (a) shall be paid in such manner as the Secretary shall prescribe.

"(3) Time for payment.-The tax imposed by subsection (a) shall be paid on or before April 30, 1996.

"(c) Definitions.-For purposes of this subsection-

"(1) Held by a person.-Aviation fuel shall be considered as "held by a person" if title thereto has passed to such person (whether or not delivery to the person has been made).

"(2) Commercial aviation fuel.-The term 'commercial aviation fuel' means aviation fuel (as defined in section 4093 of such Code) which is held on October 1, 1995, for sale or use in commercial aviation (as defined in section 4092(b) of such Code).

"(3) Secretary.-The term 'Secretary' means the Secretary of the Treasury or his delegate.

"(d) Exception for Exempt Uses.-The tax imposed by subsection (a) shall not apply to aviation fuel held by any person exclusively for any use for which a credit or refund of the entire tax imposed by section 4091 of such Code is allowable for aviation fuel purchased after September 30, 1995, for such use.

"(e) Exception for Certain Amounts of Fuel.-

"(1) In general.-No tax shall be imposed by subsection (a) on aviation fuel held on October 1, 1995, by any person if the aggregate amount of commercial aviation fuel held by such person on such date does not exceed 2,000 gallons. The preceding sentence shall apply only if such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this paragraph.

"(2) Exempt fuel.-For purposes of paragraph (1), there shall not be taken into account fuel held by any person which is exempt from the tax imposed by subsection (a) by reason of subsection (d).

"(3) Controlled groups.-For purposes of this subsection-

"(A) Corporations.-

"(i) In general.-All persons treated as a controlled group shall be treated as 1 person.

"(ii) Controlled group.-The term 'controlled group' has the meaning given to such term by subsection (a) of section 1563 of such Code; except that for such purposes the phrase 'more than 50 percent' shall be substituted for the phrase 'at least 80 percent' each place it appears in such subsection.

"(B) Nonincorporated persons under common control.-Under regulations prescribed by the Secretary, principles similar to the principles of subparagraph (A) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation.

"(f) Other law applicable.-All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4091 of such Code shall, insofar as applicable and not inconsistent with the provisions of this section, apply with respect to the floor stock taxes imposed by subsection (a) to the same extent as if such taxes were imposed by such section 4091."

Imposition of floor stocks taxes on gasoline, diesel fuel, and aviation fuel, see notes set out under section 4081 of this title.

Section 10502(f) of Pub. L. 100–203 imposed a floor stocks tax on any taxable fuel which on Apr. 1, 1988, was held by a taxable person, at the rate of tax which would have been imposed if such fuel had been sold on such date in a sale subject to tax under section 4091 of this title.

Section Referred to in Other Sections

This section is referred to in sections 40, 4041, 4092, 4093, 4101, 4103, 4221, 6206, 6416, 6427, 9502, 9508 of this title.