Amended 1993, 1997
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(e)(3)(A), inserted “and kerosene” after “diesel fuel” in section catchline.
- 1993 Pub. L. 103-66 Pub. L. 103–66 amended heading and text generally. Prior to amendment, text read as follows:
- 1993 “(a) Gasoline.—For purposes of this subpart, the term ‘gasoline’ includes, to the extent prescribed in regulations—
“(1) gasoline blend stocks, and
“(2) products commonly used as additives in gasoline.
For purposes of paragraph (1), the term ‘gasoline blend stocks’ means any petroleum product component of gasoline.
- 1993 “(b) Certain Uses Defined as Removal.—If a refiner, importer, terminal operator, blender, or compounder uses (other than in the production of gasoline or special fuels referred to in section 4041) gasoline refined, imported, blended, or compounded by him, such use shall for the purposes of this chapter be considered a removal.”
Cases: Gurley v. Rhoden, 421 U.S. 200 (1975)
Final rules 5
(a) In general The tax imposed by section 4081 shall not apply to diesel fuel and kerosene—
Amended 1959, 1986, 1997, 2005, 2007
- 2007 Pub. L. 110-172 Pub. L. 110–172, § 6(d)(2)(B)(i), struck out “(other than such tax at the Leaking Underground Storage Tank Trust Fund financing rate imposed in all cases other than for export)” after “section 4081” in introductory provisions.
- 2005 Pub. L. 109-58 Pub. L. 109–58 inserted “(other than such tax at the Leaking Underground Storage Tank Trust Fund financing rate imposed in all cases other than for export)” after “section 4081” in introductory provisions.
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(c)(1), substituted “diesel fuel and kerosene” for “diesel fuel” in introductory provisions.
- 1986 Pub. L. 99-514 Pub. L. 99–514 amended subsec. (a) generally, substituting definitions of “gasoline” and “gasoline blended stocks” for definition of “producer”.
- 1959 Pub. L. 86-342 Pub. L. 86–342, § 201(e)(1), inserted reference to wholesale distributor.
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(1) which the Secretary determines is destined for a nontaxable use,
(2) which is indelibly dyed by mechanical injection in accordance with regulations which the Secretary shall prescribe, and
Amended 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 854(a), inserted “by mechanical injection” after “indelibly dyed”.
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(3) which meets such marking requirements (if any) as may be prescribed by the Secretary in regulations.
Such regulations shall allow an individual choice of dye color approved by the Secretary or chosen from any list of approved dye colors that the Secretary may publish.
(b) Nontaxable use For purposes of this section, the term “nontaxable use” means—
Amended 1965, 1986, 2004, 2005, 2007
- 2007 Pub. L. 110-172 Pub. L. 110–172, § 11(a)(28), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this section, the term ‘nontaxable use’ means—
“(1) any use which is exempt from the tax imposed by section 4041(a)(1) other than by reason of a prior imposition of tax,
“(2) any use in a train, and
“(3) any use described in section 4041(a)(1)(C)(iii)(II).
The term ‘nontaxable use’ does not include the use of kerosene in an aircraft and such term shall not include any use described in section 6421(e)(2)(C).” See 2004 Amendment notes below.
- 2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(a)(4)(A), struck out “aviation-grade” before “kerosene” in concluding provisions.
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 853(a)(5)(B)(i), inserted at end “The term ‘nontaxable use’ does not include the use of aviation-grade kerosene in an aircraft.”
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 851(d)(2), which directed amendment of subsec. (b) by inserting “and such term shall not include any use described in section 6421(e)(2)(C)” before period at end, was executed by making the insertion after amendment by Pub. L. 108–357, § 853(a)(5)(B)(i), to reflect the probable intent of Congress. See above.
- 1986 Pub. L. 99-514 Pub. L. 99–514 amended subsec. (b) generally, substituting provisions that certain use of gasoline be considered removal for provisions defining “gasoline”.
- 1965 Pub. L. 89-44 Pub. L. 89–44, § 802(a)(1), substituted “gasoline which are suitable for use as a motor fuel” for “gasoline (including casinghead and natural gasoline”.
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(1) any use which is exempt from the tax imposed by section 4041(a)(1) other than by reason of a prior imposition of tax,
(2) any use in a train, and
(3) any use described in section 4041(a)(1)(C)(iii)(II).
Amended 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 857(a), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “any use described in section 6427(b)(1) (after the application of section 6427(b)(3)).”
The term “nontaxable use” does not include the use of kerosene in an aircraft and such term shall not include any use described in section 6421(e)(2)(C).
(c) Exception to dyeing requirements Paragraph (2) of subsection (a) shall not apply with respect to any diesel fuel and kerosene—
(1) removed, entered, or sold in a State for ultimate sale or use in an area of such State during the period such area is exempted from the fuel dyeing requirements under subsection (i) of section 211 of the Clean Air Act (as in effect on the date of the enactment of this subsection) by the Administrator of the Environmental Protection Agency under paragraph (4) of such subsection (i) (as so in effect), and
(2) the use of which is certified pursuant to regulations issued by the Secretary.
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Amended 1970, 1986, 1996, 1997
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(c)(1), substituted “diesel fuel and kerosene” for “diesel fuel” in introductory provisions.
- 1996 Pub. L. 104-188 Pub. L. 104–188 added subsec. (c) and redesignated former subsecs. (c) and (d) as (d) and (e), respectively.
- 1986 Pub. L. 99-514 Pub. L. 99–514, in amending section generally, struck out subsecs. (c) to (e) which defined “sales”, “wholesale distributor”, and “producer”, respectively.
- 1970 Pub. L. 91-258 Pub. L. 91–258 substituted “special fuels referred to in section 4041” for “special motor fuels referred to in section 4041(b)”.
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(d) Additional exceptions to dyeing requirements for kerosene
Amended 1959, 1984, 1986, 1996, 1997, 1998, 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 853(a)(5)(B)(ii), redesignated pars. (2) and (3) as (1) and (2), respectively, and struck out heading and text of former par. (1). Text read as follows: “Subsection (a)(2) shall not apply to aviation-grade kerosene (as determined under regulations prescribed by the Secretary) which the Secretary determines is destined for use as a fuel in an aircraft.”
- 1998 Pub. L. 105-206 Pub. L. 105–206, § 6010(h)(4), substituted “kerosene received by” for “a removal, entry, or sale of kerosene to” in introductory provisions.
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(c)(2), added subsec. (d). Former subsec. (d) redesignated (e).
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(c)(1), substituted “diesel fuel and kerosene” for “diesel fuel”.
- 1996 Pub. L. 104-188 Pub. L. 104–188 added subsec. (c) and redesignated former subsecs. (c) and (d) as (d) and (e), respectively.
- 1986 Pub. L. 99-514 Pub. L. 99–514, in amending section generally, struck out subsecs. (c) to (e) which defined “sales”, “wholesale distributor”, and “producer”, respectively.
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 733(a), in amending subsec. (d) generally, redesignated existing provisions of par. (1) as subpar. (A) and added subpar. (B), and in par. (2) inserted “but only if such person” before “elects”.
- 1959 Pub. L. 86-342 Pub. L. 86–342, § 201(e)(2), added subsec. (d).
(1) Use for non-fuel feedstock purposes Subsection (a)(2) shall not apply to kerosene—
Amended 1998
- 1998 Pub. L. 105-206 Pub. L. 105–206, § 6010(h)(3), reenacted heading without change and amended text of par. (1) generally. Prior to amendment, text read as follows: “Subsection (a)(2) shall not apply to a removal, entry, or sale of aviation-grade kerosene (as determined under regulations prescribed by the Secretary) if the person receiving the kerosene is registered under section 4101 with respect to the tax imposed by section 4091.”
(A) received by pipeline or vessel for use by the person receiving the kerosene in the manufacture or production of any substance (other than gasoline, diesel fuel, or special fuels referred to in section 4041), or
(B) to the extent provided in regulations, removed or entered—
(i) for such a use by the person removing or entering the kerosene, or
(ii) for resale by such person for such a use by the purchaser,
but only if the person receiving, removing, or entering the kerosene and such purchaser (if any) are registered under section 4101 with respect to the tax imposed by section 4081.
(2) Wholesale distributors To the extent provided in regulations, subsection (a)(2) shall not apply to kerosene received by a wholesale distributor of kerosene if such distributor—
Amended 1965
- 1965 Pub. L. 89-44 Pub. L. 89–44, § 802(b)(1), struck out “and give a bond” after “elects to register”.
(A) is registered under section 4101 with respect to the tax imposed by section 4081 on kerosene, and
(B) sells kerosene exclusively to ultimate vendors described in section 6427(l)(5)(B) with respect to kerosene.
Amended 2005, 2006
- 2006 Pub. L. 109-432 Pub. L. 109–432 substituted “6427(l)(5)(B)” for “6427(l)(6)(B)”.
- 2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(3)(C), substituted “section 6427(l)(6)(B)” for “section 6427(l)(5)(B)”.
(e) Kerosene removed into an aircraft In the case of kerosene (other than kerosene with respect to which tax is imposed under section 4043) which is exempt from the tax imposed by section 4041(c) (other than by reason of a prior imposition of tax) and which is removed from any refinery or terminal directly into the fuel tank of an aircraft—
Amended 1984, 1986, 1996, 1997, 2004, 2005, 2007, 2012
- 2012 Pub. L. 112-95 Pub. L. 112–95 inserted “(other than kerosene with respect to which tax is imposed under section 4043)” after “In the case of kerosene” in introductory provisions.
- 2007 Pub. L. 110-172 Pub. L. 110–172, § 6(d)(2)(C)(ii), designated last sentence as concluding provisions.
- 2007 Pub. L. 110-172 Pub. L. 110–172, § 6(d)(2)(C)(i), substituted “an aircraft—” and pars. (1) and (2) for “an aircraft, the rate of tax under section 4081(a)(2)(A)(iii) shall be zero.”
- 2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(a)(4)(E), in heading substituted “Kerosene removed into an aircraft” for “Aviation-grade kerosene” and in text struck out “aviation-grade” before “kerosene”, substituted “section 4081(a)(2)(A)(iii)” for “section 4081(a)(2)(A)(iv)”, and inserted at end “For purposes of this subsection, any removal described in section 4081(a)(3)(A) shall be treated as a removal from a terminal but only if such terminal is located within a secure area of an airport.”
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 853(a)(5)(A), added subsec. (e). Former subsec. (e) redesignated (f).
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(c)(2), redesignated subsecs. (d) and (e) as (e) and (f), respectively.
- 1996 Pub. L. 104-188 Pub. L. 104–188 added subsec. (c) and redesignated former subsecs. (c) and (d) as (d) and (e), respectively.
- 1986 Pub. L. 99-514 Pub. L. 99–514, in amending section generally, struck out subsecs. (c) to (e) which defined “sales”, “wholesale distributor”, and “producer”, respectively.
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 734(c)(1), added subpar. (e).
(1) the rate of tax under section 4081(a)(2)(A)(iii) shall be zero, and
(2) if such aircraft is employed in foreign trade or trade between the United States and any of its possessions, the increase in such rate under section 4081(a)(2)(B) shall be zero.
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For purposes of this subsection, any removal described in section 4081(a)(3)(A) shall be treated as a removal from a terminal but only if such terminal is located within a secure area of an airport.
(f) Exception for Leaking Underground Storage Tank Trust Fund financing rate
Amended 1997, 2004, 2007
- 2007 Pub. L. 110-172 Pub. L. 110–172, § 6(d)(2)(B)(ii), added subsec. (f) and redesignated former subsecs. (f) and (g) as (g) and (h), respectively.
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 853(a)(5)(A), redesignated subsec. (e) as (f). Former subsec. (f) redesignated (g).
- 1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(c)(2), redesignated subsecs. (d) and (e) as (e) and (f), respectively.
(1) In general Subsection (a) shall not apply to the tax imposed under section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate.
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(2) Exception for export, etc. Paragraph (1) shall not apply with respect to any fuel if the Secretary determines that such fuel is destined for export or for use by the purchaser as supplies for vessels (within the meaning of section 4221(d)(3)) employed in foreign trade or trade between the United States and any of its possessions.
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(g) Regulations The Secretary shall prescribe such regulations as may be necessary to carry out this section, including regulations requiring the conspicuous labeling of retail diesel fuel and kerosene pumps and other delivery facilities to assure that persons are aware of which fuel is available only for nontaxable uses.
Amended 2004, 2007
- 2007 Pub. L. 110-172 Pub. L. 110–172, § 6(d)(2)(B)(ii), added subsec. (f) and redesignated former subsecs. (f) and (g) as (g) and (h), respectively.
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 853(a)(5)(A), redesignated subsec. (f) as (g).
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 241(a)(2)(B), which directed substitution of “subsections (a)(1) and (d)(3) of section 4041” for “section 4041(a)(1)” in subsec. (f), was executed by making the substitution in subsec. (g) to reflect the probable intent of Congress and the amendment by Pub. L. 108–357, § 853(a)(5)(A). See Amendment note above and Effective Date of 2004 Amendment notes below.
(h) Cross reference For tax on train and certain bus uses of fuel purchased tax-free, see subsections (a)(1) and (d)(3) of section 4041.
Amended 2007
- 2007 Pub. L. 110-172 Pub. L. 110–172, § 6(d)(2)(B)(ii), added subsec. (f) and redesignated former subsecs. (f) and (g) as (g) and (h), respectively.