8 4 STAT. ]
P U B L I C LAW 91-258-MAY 21, 1970
237
SEC. 202. TAX ON AVIATION FUEL. (a) IMPOSITION OF T A X. — S e c t i o n 4041 ( r e l a t i n g to tax on special ggg*? f2^stfu'i2{!6. fuels) is amended by striking- o u t subsections (c), (d), and (e) and 26 USC 404i. inserting after subsection (b) the following n e w subsections: " (c) NONCOMMERCIAL A VI A T I O N. —
" (1) IN GENERAL.—There is h e r e by imposed a tax of 7 cents a g a l l o n upon any liquid ( other than any p r o d u c t tax a b l e under ^^ ^^^^ ^^g. section 4 0 8 1) — 75 Stat. 123. " (A) sold by any person to a n owner, lessee, o r other opera to r of a n a i r c r a f t, for use as a fuel i n such a i r c r a f t i n nonconmiercial a v i a t i o n; o r " (B) used by any person a s a fuel i n a n a i r c r a f t in noncommercial aviation, unless the r e w a s a tax a b l e sale of such liquid under t h i s section. " (2) G A S O L I N E. — The r e is hereby imposed a tax ( a t the r a t e specified i n paragraph (3)) upon any p r o d u c t tax a b l e under section 4081— " (A) sold by any person to a n owner, lessee, or other opera to r of a n a i r c r a f t, for use as a fuel i n such a i r c r a f t i n noncommercial a v i a t i o n; or " (B) used by any person as a fuel i n a n a i r c r a f t in noncommercial aviation, unless the r e w a s a tax a b l e sale of such product under subparagraph (A). The tax imposed by t h i s paragraph shall be i n a d d i t i o n to any tax imposed under section 4081. " (3) R A T E OF T A X. — The r a t e of tax imposed by paragraph (2) is as follows: " 3 cents a gallon for the period e n d i n g September 30, 1972;and "51/^ cents a gallon for the period after September 30, 1972. " (4) DEFINITION OF NONCOMMERCIAL A VI A T I O N. — For
purposes
of t h i s chapter, the term 'noncommercial aviation" means any use of a n a i r c r a f t, other than use in a business of t r a n s p o r t i n g persons o r property for compensation o r h i r e by air. The term also includes any use of a n a i r c r a f t, i n a business described in the preceding sentence, which is p r o p e r l y allocable to any transportation exempt from the taxes imposed by sections 4261 and 4271 by reason of r,Jl°V:^^' ^^^' section 4281 or 4282. " (5) TERMINATION. — O n and after July 1, 1980, the taxes imposed by paragraph s (1) and (2) shall not a p p l y. " (d) A D D I T I O N A L T A X. — I f a l i q u i d on which tax w a s i m p o s e d on
the sale thereof is tax a b l e a t a h i g h e r r a t e under subsection (c)(1) of this section on the use thereof, the r e is hereby imposed a tax equal to the difference between the tax so imposed and the tax payable a t such I n g h e r rate. "(e)
RATE REDUCTION.—On and after
October 1, 1972—
" (1) the tax e s imposed by subsections (a) and (b) shall be 114 cents a gallon, and " (2) the second and t h i r d sentences of subsections (a) and (b) shall not a p p l y. "(f)
E X E M P T I O N FOR F A R M U S E. —
" (1) E X E M P T I O N. — Under r e g u l a t i o n s prescribed by the Secretary o r h i s delegate, n o tax shall be imposed under t h i s section on any liquid sold for use o r used on a f a r m for f a r m i n g purposes. "(2)
U S E O N A FARM FOR FARMING P U R P O S E S. — For purposes of
paragraph (1) of t h i s subsection, use on a f a r m for f a r m i n g purposes shall be determined in accordance w i t h paragraph s (1), (2), and (3) of section 6 4 2 0 (c). 7o Stat. 87. " (g)
E X E M P T I O N FOR U S E AS S U P P L I E S FOR V E S S E L S. — Under r e g u l a -
tions prescribed by the Secretary o r h i s delegate, n o tax shall be
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