118 STAT. 1612 PUBLIC LAW 108–357—OCT. 22, 2004 4083(b)) (other than supplies for vessels or aircraft within the meaning of section 4221(d)(3)), paragraph (1) shall not apply to so much of the tax imposed by section 4081 as is attributable to— ‘‘(i) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and ‘‘(ii) so much of the rate of tax specified in section 4081(a)(2)(A)(iv) as does not exceed 4.3 cents per gallon. ‘‘(B) PAYMENT TO ULTIMATE, REGISTERED VENDOR.— With respect to aviation grade kerosene, if the ultimate purchaser of such kerosene waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor— ‘‘(i) is registered under section 4101, and ‘‘(ii) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).’’. (2) TIME FOR FILING CLAIMS.—Subparagraph (A) of section 6427(i)(4) is amended— (A) by striking ‘‘subsection (l)(5)’’ both places it appears and inserting ‘‘paragraph (4)(B) or (5) of subsection (l)’’, and (B) by striking ‘‘the preceding sentence’’ and inserting ‘‘subsection (l)(5)’’. (3) CONFORMING AMENDMENT.—Subparagraph (B) of section 6427(l)(2) is amended to read as follows: ‘‘(B) in the case of aviation grade kerosene— ‘‘(i) any use which is exempt from the tax imposed by section 4041(c) other than by reason of a prior imposition of tax, or ‘‘(ii) any use in commercial aviation (within the meaning of section 4083(b)).’’. (d) REPEAL OF PRIOR TAXATION OF AVIATION FUEL.— (1) IN GENERAL.—Part III of subchapter A of chapter 32 is amended by striking subpart B and by redesignating subpart C as subpart B. (2) CONFORMING AMENDMENTS.— (A) Section 4041(c) is amended to read as follows: ‘‘(c) AVIATION GRADE KEROSENE.— ‘‘(1) IN GENERAL.—There is hereby imposed a tax upon aviation grade kerosene— ‘‘(A) sold by any person to an owner, lessee, or other operator of an aircraft for use in such aircraft, or ‘‘(B) used by any person in an aircraft unless there was a taxable sale of such fuel under subparagraph (A). ‘‘(2) EXEMPTION FOR PREVIOUSLY TAXED FUEL.—No tax shall be imposed by this subsection on the sale or use of any aviation grade kerosene if tax was imposed on such liquid under section 4081 and the tax thereon was not credited or refunded. ‘‘(3) RATE OF TAX.—The rate of tax imposed by this sub section shall be the rate of tax applicable under section 4081(a)(2)(A)(iv) which is in effect at the time of such sale or use.’’. 26 USC 4091– 4093.
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