26 U.S. Code § 4042 - Tax on fuel used in commercial transportation on inland waterways

(a) In general
There is hereby imposed a tax on any liquid used during any calendar quarter by any person as a fuel in a vessel in commercial waterway transportation.
(b) Amount of tax
(1) In general
The rate of the tax imposed by subsection (a) is the sum of—
(A) the Inland Waterways Trust Fund financing rate,
(B) the Leaking Underground Storage Tank Trust Fund financing rate, and
(C) the deficit reduction rate.
(2) Rates
For purposes of paragraph (1)—
(A) The Inland Waterways Trust Fund financing rate is the rate determined in accordance with the following table:

 
If the use occurs: The tax pergallon is:
Before 1990 10 cents  
During 1990 11 cents  
During 1991 13 cents  
During 1992 15 cents  
During 1993 17 cents  
During 1994 19 cents  
After 1994 20 cents.

(B) The Leaking Underground Storage Tank Trust Fund financing rate is 0.1 cent per gallon.
(C) The deficit reduction rate is—
(i) 3.3 cents per gallon after December 31, 2004, and before July 1, 2005,
(ii) 2.3 cents per gallon after June 30, 2005, and before January 1, 2007, and
(iii) 0 after December 31, 2006.
(3) Exception for fuel on which Leaking Underground Storage Tank Trust Fund financing rate separately imposed
The Leaking Underground Storage Tank Trust Fund financing rate under paragraph (2)(B) shall not apply to the use of any fuel if tax was imposed with respect to such fuel under section 4041 (d) or 4081 at the Leaking Underground Storage Tank Trust Fund financing rate.
(4) Termination of Leaking Underground Storage Tank Trust Fund financing rate
The Leaking Underground Storage Tank Trust Fund financing rate under paragraph (2)(B) shall not apply during any period during which the Leaking Underground Storage Tank Trust Fund financing rate under section 4081 does not apply.
(c) Exemptions
(1) Deep-draft ocean-going vessels
The tax imposed by subsection (a) shall not apply with respect to any vessel designed primarily for use on the high seas which has a draft of more than 12 feet.
(2) Passenger vessels
The tax imposed by subsection (a) shall not apply with respect to any vessel used primarily for the transportation of persons.
(3) Use by State or local government in transporting property in a state or local business
Subparagraph (B) of subsection (d)(1) shall not apply with respect to use by a State or political subdivision thereof.
(4) Use in moving lash and seabee ocean-going barges
The tax imposed by subsection (a) shall not apply with respect to use for movement by tug of exclusively LASH (Lighter-aboard-ship) and SEABEE ocean-going barges released by their ocean-going carriers solely to pick up or deliver international cargoes.
(d) Definitions
For purposes of this section—
(1) Commercial waterway transportation
The term “commercial waterway transportation” means any use of a vessel on any inland or intracoastal waterway of the United States—
(A) in the business of transporting property for compensation or hire, or
(B) in transporting property in the business of the owner, lessee, or operator of the vessel (other than fish or other aquatic animal life caught on the voyage).
(2) Inland or intracoastal waterway of the United States
The term “inland or intracoastal waterway of the United States” means any inland or intracoastal waterway of the United States which is described in section 206 of the Inland Waterways Revenue Act of 1978.
(3) Person
The term “person” includes the United States, a State, a political subdivision of a State, or any agency or instrumentality of any of the foregoing.
(e) Date for filing return
The date for filing the return of the tax imposed by this section for any calendar quarter shall be the last day of the first month following such quarter.

Source

(Added Pub. L. 95–502, title II, § 202(a),Oct. 21, 1978, 92 Stat. 1696; amended Pub. L. 99–499, title V, § 521(a)(3),Oct. 17, 1986, 100 Stat. 1777; Pub. L. 99–662, title XIV, § 1404(a),Nov. 17, 1986, 100 Stat. 4270; Pub. L. 100–647, title II, § 2002(a)(2),Nov. 10, 1988, 102 Stat. 3597; Pub. L. 103–66, title XIII, § 13241(d),Aug. 10, 1993, 107 Stat. 510; Pub. L. 108–357, title II, § 241(b),Oct. 22, 2004, 118 Stat. 1438; Pub. L. 110–172, § 6(d)(1)(B),Dec. 29, 2007, 121 Stat. 2480.)
References in Text

Section 206 of the Inland Waterways Revenue Act of 1978, referred to in subsec. (d)(2), is section 206 ofPub. L. 95–502, title II, Oct. 21, 1978, 92 Stat. 1700, which is classified to section 1804 of Title 33, Navigation and Navigable Waters.
Prior Provisions

A prior section 4042, act Aug. 16, 1954, ch. 736, 68A Stat. 478, provided a cross reference to section 4222 of this title for exemption from tax where special motor fuels are sold for use for certain vessels, prior to repeal by Pub. L. 94–455, title XIX, § 1904(a)(1)(D),Oct. 4, 1976, 90 Stat. 1811.
Amendments

2007—Subsec. (b)(3). Pub. L. 110–172amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “The Leaking Underground Storage Tank Trust Fund financing rate under paragraph (2)(B) shall not apply to the use of any fuel if tax under section 4041 (d) was imposed on the sale of such fuel or is imposed on such use.”
2004—Subsec. (b)(2)(C). Pub. L. 108–357amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “The deficit reduction rate is 4.3 cents per gallon.”
1993—Subsec. (b)(1)(C). Pub. L. 103–66, § 13241(d)(1), added subpar. (C).
Subsec. (b)(2)(C). Pub. L. 103–66, § 13241(d)(2), added subpar. (C).
1988—Subsec. (b)(2). Pub. L. 100–647amended par. (2) generally. Prior to amendment, par. (2) read as follows: “For purposes of paragraph (1)—
“(A) the Inland Waterways Trust Fund financing rate is 10 cents a gallon, and
“(B) the Leaking Underground Storage Tank Trust Fund financing rate is 0.1 cents a gallon.”
1986—Subsec. (b). Pub. L. 99–499and Pub. L. 99–662both amended subsec. (b) generally, effective Jan. 1, 1987. Pub. L. 100–647, § 2002(a)(1) (see Construction of 1986 Amendments note below), provided that for purposes of this section, the amendment made by Pub. L. 99–499be treated as enacted after the amendment made by Pub. L. 99–662. Prior to amendment by Pub. L. 99–499and Pub. L. 99–662, subsec. (b) read as follows:

 
“If the use occurs— The tax is—
After September 30, 1980 and before October 1, 1981 4 cents a gallon  
After September 30, 1981 and before October 1, 1983 6 cents a gallon  
After September 30, 1983 and before October 1, 1985 8 cents a gallon  
After September 30, 1985 10 cents a gallon”.

Effective Date of 2007 Amendment

Amendment by Pub. L. 110–172effective as if included in the provisions of the Energy Policy Act of 2005, Pub. L. 109–58, to which such amendment relates, see section 6(e) ofPub. L. 110–172, set out as a note under section 30C of this title.
Effective Date of 2004 Amendment

Amendment by Pub. L. 108–357effective Jan. 1, 2005, see section 241(c) ofPub. L. 108–357, set out as a note under section 4041 of this title.
Effective Date of 1993 Amendment

Amendment by Pub. L. 103–66effective Oct. 1, 1993, see section 13241(g) ofPub. L. 103–66, set out as a note under section 4041 of this title.
Effective Date of 1988 Amendment

Pub. L. 100–647, title II, § 2002(d),Nov. 10, 1988, 102 Stat. 3597, as amended by Pub. L. 101–239, title VII, § 7812(b),Dec. 19, 1989, 103 Stat. 2412, provided that: “The amendments made by subsections (b) and (c) [amending section 4462 of this title and provisions set out as a note under section 4461 of this title] shall take effect as if included in the provision of the Harbor Maintenance Revenue Act of 1986 [Pub. L. 99–662, title XIV] to which it relates, and the amendment made by subsection (a)(2) [amending this section] shall take effect as if included in the amendment made by section 521(a)(3) of the Superfund Revenue Act of 1986 [Pub. L. 99–499, title V].”
Effective Date of 1986 Amendments

Pub. L. 99–662, title XIV, § 1404(c),Nov. 17, 1986, 100 Stat. 4271, provided that: “The amendments made by this section [amending this section and section 1804 of Title 33, Navigation and Navigable Waters] shall take effect on January 1, 1987.”
Amendment by Pub. L. 99–499effective Jan. 1, 1987, see section 521(e) ofPub. L. 99–499, set out as a note under section 4041 of this title.
Effective Date

Pub. L. 95–502, title II, § 202(d),Oct. 21, 1978, 92 Stat. 1697, provided that: “The amendments made by this section [enacting this section and amending section 4293 of this title] shall take effect on October 1, 1980.”
Construction of 1986 Amendments

Pub. L. 100–647, title II, § 2002(a)(1),Nov. 10, 1988, 102 Stat. 3597, provided that: “For purposes of section 4042 of the 1986 Code, the amendment made by section 521(a)(3) of the Superfund Revenue Act of 1986 [Pub. L. 99–499, amending this section] shall be treated as enacted after the amendment made by section 1404(a) of the Harbor Maintenance Revenue Act of 1986 [Pub. L. 99–662, amending this section].”

The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.

The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013

An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.

26 USCDescription of ChangeSession YearPublic LawStatutes at Large

 

LII has no control over and does not endorse any external Internet site that contains links to or references LII.