HR 5995
110th CONGRESS
2d Session
H. R. 5995
To amend the Internal Revenue Code of 1986 to suspend the highway
fuels taxes, to provide for a Joint Committee on Earmark Reform, and to prohibit
earmarking for the remainder of the 110th Congress.
IN THE HOUSE OF REPRESENTATIVES
May 8, 2008
Mr. RYAN of Wisconsin (for himself, Mr. BOEHNER, Mr. BLUNT, Mr. CANTOR, Mr.
PUTNAM, Mr. HENSARLING, Mr. SENSENBRENNER, Mr. FLAKE, Mr. PENCE, Mrs. BLACKBURN,
Mr. CAMPBELL of California, Mr. JORDAN of Ohio, Mr. BROUN of Georgia, and
Mr. MCCOTTER) introduced the following bill; which was referred to the Committee
on Ways and Means, and in addition to the Committees on Rules and Budget,
for a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To amend the Internal Revenue Code of 1986 to suspend the highway
fuels taxes, to provide for a Joint Committee on Earmark Reform, and to prohibit
earmarking for the remainder of the 110th Congress.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Gas Tax Relief and Earmark Moratorium Act of
2008'.
TITLE I--GAS TAX RELIEF AND HIGHWAY TRUST FUND PRESERVATION
SEC. 101. GAS TAX RELIEF.
(a) Suspension of Highway Fuel Taxes on Gasoline, Diesel Fuel, and Kerosene-
(1) IN GENERAL- Section 4081 of the Internal Revenue Code of 1986 (relating
to imposition of tax on gasoline, diesel fuel, and kerosene) is amended
by adding at the end the following new subsection:
`(f) Suspension of Taxes on Gasoline, Diesel Fuel, and Kerosene-
`(1) IN GENERAL- During the suspension period, each rate of tax referred
to in paragraph (2) shall be reduced to zero cents per gallon.
`(2) RATES OF TAX- The rates of tax referred to in this paragraph are the
rates of tax otherwise applicable under--
`(A) clauses (i) and (iii) of subsection (a)(2)(A) (relating to gasoline,
diesel fuel, and kerosene), determined after application of subsection
(a)(2)(B) and without regard to subsection (a)(2)(C), and
`(B) paragraph (1) of section 4041(a) (relating to diesel fuel and kerosene)
with respect to fuel sold for use or used in a diesel-powered highway
vehicle.
`(3) SUSPENSION PERIOD- For purposes of this section, the term `suspension
period' means the period beginning on May 26, 2008 and ending on September
1, 2008.
`(4) MAINTENANCE OF TRUST FUND DEPOSITS- In determining the amounts to be
appropriated to the Highway Trust Fund under section 9503 and to the Leaking
Underground Storage Tank Trust Fund under section 9508, an amount equal
to the reduction in revenues from highway fuel taxes on gasoline, diesel,
and kerosene by reason of this subsection shall be treated as taxes received
in the Treasury under this section or section 4041.'.
(2) EFFECTIVE DATE- The amendment made by this subsection shall take effect
on the date of the enactment of this Act.
(A) before the tax suspension date, tax has been imposed under section
4081 of the Internal Revenue Code of 1986 on any highway motor fuel, and
(B) on such date such fuel is held by a dealer and has not been used and
is intended for sale,
there shall be credited or refunded (without interest) to the person who
paid such tax (hereafter in this subsection referred to as the `taxpayer')
an amount equal to the excess of the tax paid by the taxpayer over the tax
which would be imposed on such fuel had the taxable event occurred on such
date.
(2) TIME FOR FILING CLAIMS- No credit or refund shall be allowed or made
under this subsection unless--
(A) claim therefor is filed with the Secretary of the Treasury before
the date which is 6 months after the tax suspension date based on a request
submitted to the taxpayer before the date which is 3 months after the
tax suspension date by the dealer who held the highway motor fuel on such
date, and
(B) the taxpayer has repaid or agreed to repay the amount so claimed to
such dealer or has obtained the written consent of such dealer to the
allowance of the credit or the making of the refund.
(3) EXCEPTION FOR FUEL HELD IN RETAIL STOCKS- No credit or refund shall
be allowed under this subsection with respect to any highway motor fuel
in retail stocks held at the place where intended to be sold at retail.
(4) DEFINITIONS- For purposes of this subsection--
(A) TAX SUSPENSION DATE- The term `tax suspension date' means the first
day of the suspension period in effect under section 4081(f) of the Internal
Revenue Code of 1986 (as added by subsection (a) of this section).
(B) HIGHWAY MOTOR FUEL- The term `highway motor fuel' has the meaning
given such term for purposes of subsection (c).
(C) OTHER TERMS- The terms `dealer' and `held by a dealer' have the respective
meanings given to such terms by section 6412 of such Code.
(5) CERTAIN RULES TO APPLY- Rules similar to the rules of subsections (b)
and (c) of section 6412 of such Code shall apply for purposes of this subsection.
(c) Floor Stocks Tax Restoration-
(1) RESTORATION OF EXCISE TAX- In the case of any highway motor fuel which
is held on the tax restoration date by any person, there shall be a floor
stocks tax equal to the excess of the tax which would be imposed on such
fuel had the taxable event occurred on such date over the tax (if any) previously
paid (and not credited or refunded) on such fuel.
(2) LIABILITY FOR TAX AND METHOD OF PAYMENT-
(A) LIABILITY FOR TAX- The person holding highway motor fuel on the tax
restoration date to which the tax imposed by paragraph (1) applies shall
be liable for such tax.
(B) METHOD OF PAYMENT- The tax referred to in paragraph (1) shall be paid
in such manner as the Secretary shall prescribe.
(C) TIME FOR PAYMENT- The tax referred to in paragraph (1) shall be paid
on or before the 45th day after the tax restoration date.
(3) DEFINITIONS- For purposes of this subsection--
(A) TAX RESTORATION DATE- The term `tax restoration date' means the first
day after the suspension period (as defined in section 4081(f) of the
Internal Revenue Code of 1986).
(B) HIGHWAY MOTOR FUEL- The term `highway motor fuel' means any liquid
on which tax would have been imposed under section 4081 of the Internal
Revenue Code of 1986 during the suspension period in effect under section
4081(f) of such Code but for the amendments made by subsection (a).
(C) HELD BY A PERSON- A highway motor 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).
(D) SECRETARY- The term `Secretary' means the Secretary of the Treasury.
(4) EXCEPTION FOR EXEMPT USES- The tax referred to in paragraph (1) shall
not apply to any highway motor fuel held by any person exclusively for any
use to the extent a credit or refund of the tax is allowable for such use.
(5) EXCEPTION FOR CERTAIN AMOUNTS OF FUEL-
(A) IN GENERAL- No tax referred to in paragraph (1) shall be applied against
any highway motor fuel held on the tax restoration date by any person
if the aggregate amount of such highway motor 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 subparagraph.
(B) EXEMPT FUEL- For purposes of subparagraph (A), there shall not be
taken into account any highway motor fuel held by any person which is
exempt from the tax referred to in paragraph (1) by reason of paragraph
(4).
(C) CONTROLLED GROUPS- For purposes of this subsection--
(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.
(ii) 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
if 1 or more of such persons is not a corporation.
(6) OTHER LAWS APPLICABLE- All provisions of law, including penalties, applicable
with respect to the taxes imposed by section 4081 of such Code shall, insofar
as applicable and not inconsistent with the provisions of this subsection,
apply with respect to the floor stock taxes referred to in paragraph (1)
to the same extent as if such taxes were imposed by such section.
SEC. 102. HIGHWAY TRUST FUND PRESERVATION.
(a) In General- Section 9503(b) of the Internal Revenue Code of 1986 is amended--
(1) by adding at the end the following new paragraph:
`(7) SPENDING REPLENISHMENT- If the Secretary of the Treasury determines
that the amount in the Highway Trust Fund (other than the Mass Transit Account)
is insufficient to timely meet the anticipated payments from the account
for fiscal year 2009, the Secretary shall transfer to such fund (excluding
the Mass Transit Account) from the general fund of the Treasury an amount
up to the insufficiency.'
(2) by striking `amounts equivalent to certain taxes and penalties' in the
heading and inserting `certain amounts'.
(b) Revenue-Aligned Budget Authority Adjustment- No adjustment shall be made
pursuant to section 1105 of the Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users Act of 2005 as a result of the enactment of
this title.
TITLE II--EARMARK REFORM
SEC. 201. JOINT SELECT COMMITTEE ON EARMARK REFORM.
(a) Establishment and Composition- There is hereby established a Joint Select
Committee on Earmark Reform. The joint select committee shall be composed
of 16 members as follows:
(1) 8 Members of the House of Representatives, 4 appointed from the majority
party by the Speaker of the House, and 4 from the minority party to be appointed
by the minority leader; and
(2) 8 Members of the Senate, 4 appointed from the majority party by the
majority leader of the Senate, and 4 from the minority party to be appointed
by the minority leader.
A vacancy in the joint select committee shall not affect the power of the
remaining members to execute the functions of the joint select committee,
and shall be filled in the same manner as the original selection.
(1) STUDY- The joint select committee shall make a full study of the practices
of the House, Senate, and Executive Branch regarding earmarks in authorizing,
appropriation, tax, and tariff measures. As part of the study, the joint
select committee shall consider the efficacy of--
(A) the disclosure requirements of clause 9 of rule XXI and clause 17
of rule XXIII of the Rules of the House of Representatives, House Resolution
491, and rule XLIV of the Standing Rules of the Senate, and the definitions
contained therein;
(B) requiring full transparency in the process, with earmarks listed in
bills at the outset of the legislative process and continuing throughout
consideration;
(C) requiring that earmarks not be placed in any bill after initial committee
consideration;
(D) requiring that Members be permitted to offer amendments to remove
earmarks at subcommittee, full committee, floor consideration, and during
conference committee meetings;
(E) requiring that bill sponsors and majority and minority managers certify
the validity of earmarks contained in their bills;
(F) recommending changes to earmark requests made by the Executive Branch
through the annual budget submitted to Congress pursuant to section 1105
of title 31, United States Code;
(G) requiring that House and Senate amendments meet earmark disclosure
requirements, including amendments adopted pursuant to a special order
of business;
(H) establishing new categories for earmarks, including--
(i) projects with National scope;
(ii) military projects; and
(iii) local or provincial projects, including the level of matching
funds required for such project.
(A) The joint select committee shall submit to the House of Representatives
and the Senate a report of its findings and recommendations not later
than 6 months after adoption of this concurrent resolution.
(B) No recommendation shall be made by the joint select committee except
upon the majority vote of the members from each House, respectively.
(C) Notwithstanding any other provision of this resolution, any recommendation
with respect to the rules and procedures of one House that only affects
matters related solely to that House may only be made and voted on by
members of the joint select committee from that House and, upon its adoption
by a majority of such members, shall be considered to have been adopted
by the full committee as a recommendation of the joint select committee.
In conducting the study under paragraph (1), the joint select committee
shall hold not fewer than 5 public hearings.
(c) Resources and Dissolution-
(1) The joint select committee may utilize the resources of the House of
Representatives and the Senate.
(2) The joint select committee shall cease to exist 30 days after the submission
of the report described in subsection(a)(2).
(d) Definition- For purposes of this section, the term `earmark' shall include
congressional earmarks, congressionally directed spending items, limited tax
benefits, or limited tariff benefits as those terms are defined by clause
9 of rule XXI of the Rules of the House of Representatives and rule XLIV of
the Standing Rules of the Senate. Nothing in this subsection shall confine
the study of the joint select committee or otherwise limit its recommendations.
SEC. 202. MORATORIUM ON CONSIDERATION OF EARMARKS.
(a) In the House- In the 110th Congress, it shall not be in order to consider
a bill, joint resolution, amendment, or conference report containing a congressional
earmark, limited tax benefit, or limited tariff benefit (as such terms are
defined by clause 9 of rule XXI of the Rules of the House of Representatives).
(b) In the Senate- [Struck out->][ To be inserted
by the Senate ][<-Struck out]
SEC. 203. REVISION OF CONCURRENT RESOLUTION ON THE BUDGET.
(a) Upon the enactment of this Act, the chairmen of the Committees on the
Budget of the House and the Senate shall reduce the allocation of new budget
authority and the outlays flowing therefrom to the Committees on Appropriations
of the House and the Senate set forth pursuant to section 302(a) of the Congressional
Budget Act of 1974 for fiscal year 2009 by $14.8 billion.
(b) The chairmen of the Committees on the Budget of the House and the Senate
shall make any other necessary and conforming adjustments in the concurrent
resolution on the budget for fiscal year 2009.
END
