PUBLIC LAW 99-499—OCT. 17, 1986
100 STAT. 1779
(3) F U E L S USED FOR NONTAXABLE PURPOSES.—
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(A) Subsection (m) of section 6427 of such Code (relating 26 USC 6427. to termination), as i n effect on the d a y before the date of the e n a c t m e n t of the T a x Reform Act of 1986, is amended by striking o u t "Subsections" and inserting in Heu thereof "Except with respect to taxes imposed by section 4041(d) Ante, p. 1776. and section 4081 a t the Leaking Under g r o u n d Storage T a n k Trust F u n d financing r a t e, subsections". (B)(i) Section 6427 of such Code, a s so in effect, is amended by redesignating subsection (n) a s subsection (o) and by inserting after subsection (m) the following new subsection:
"(n) P A Y M E N T S FOR T A X E S IMPOSED BY SECTION 4041(d).—For pur-
poses of subsections (a), (b), and (c), the taxes imposed by section 4041(d) shall be t r e a t e d a s imposed by section 4041(a)." (ii) Subparagraph (A) of section 1703(e)(1) of the T a x Reform Act of 1986 is amended— ^ (I) by striking out " and (o)" and inserting in lieu /^ thereof "(o), and (p)", and (II) by striking o u t " and (n)" and inserting in lieu • thereof "(n), and (o)". (C) Paragraph (1) of section 6427(f) of such Code (relating to gasoline used to produce certain alcohol fuels) is amended by striking out " a t the r a t e " and inserting in lieu thereof " a t the Highway T r u s t F u n d financing r a t e ". (d) C O N T I N U A T I O N OF CERTAIN E X E M P T I O N S F R O M TAXES, E T C. —
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26 USC 6427.
ADDITIONAL
(1) Subsection (b) of section 4041 of such Code (relating to exemption for off-highway business use; reduction in tax for qualified m e than o l and ethanol fuel) is amended by adding a t the end thereof the following new paragraph: "(3) COORDINATION WITH TAXES IMPOSED BY SUBSECTION (d).— "(A) O F F - H I G H W A Y BUSINESS U S E. —
"(i) IN GENERAL.—Except a s provided in clause (ii), rules similar to the rules of paragraph (1) shall apply with respect to the taxes imposed by subsection (d). "(ii) LIMITATION O N EXEMPTION FOR OFF-HIGHWAY
BUSINESS USE.—For purposes of subparagraph (A), paragraph (1) shall apply only with respect to off-highway business use in a vessel employed in the fisheries or in the whaling business. "(B) QUALIFIED METHANOL A N D ETHANOL F U E L. — I n
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case of qualified m e than o l or ethanol fuel, subsection (d) shall be applied by substituting '0.05 cents' for '0.1 cents' in paragraph (1) thereof." (2) Paragraph (3) of section 4041(f) of such Code (relating to exemption for farm use) is amended by striking out " O n and after" and inserting in lieu thereof "Except with respect to the taxes imposed by subsection (d), on and after". (3) The last sentence of section 4041(g) of such Code (relating to other exemptions) is amended by striking out " Paragraph s " and inserting in lieu thereof "Except with respect to the taxes imposed by subsection (d), paragraph s ". (4)(A) The last sentence of section 4221(a) of such Code (relating to certain tax-free sales) is amended by striking out "4081" and inserting in lieu thereof "4081 (at the Highway T r u s t F u n d financing rate)".
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23: QL. 3 Part2
Maritime affairs. Fish and fishing.
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