119 STAT. 1970
PUBLIC LAW 109–59—AUG. 10, 2005 ‘‘(D) APPLICABLE RATE.—For purposes of paragraph (2)(C), in the case of any kerosene treated as removed from a terminal by reason of this paragraph— ‘‘(i) the rate of tax specified in paragraph (2)(C)(i) in the case of use described in such paragraph shall apply if such terminal is located within a secured area of an airport, and ‘‘(ii) the rate of tax specified in paragraph (2)(C)(ii) shall apply in all other cases.’’. (4) CONFORMING AMENDMENTS.— (A) Sections 4081(a)(3)(A) and 4082(b) are amended by striking ‘‘aviation-grade’’ each place it appears. (B) Section 4081(a)(4) is amended by striking ‘‘paragraph (2)(C)’’ and inserting ‘‘paragraph (2)(C)(i)’’. (C) The heading for paragraph (4) of section 4081(a) is amended by striking ‘‘AVIATION-GRADE’’. (D) Section 4081(d)(2) is amended by striking so much as precedes subparagraph (A) and inserting the following: ‘‘(2) AVIATION FUELS.—The rates of tax specified in subsection (a)(2)(A)(ii) and (a)(2)(C)(ii) shall be 4.3 cents per gallon—’’. (E) Subsection (e) of section 4082 is amended— (i) by striking ‘‘aviation-grade’’, (ii) by striking ‘‘section 4081(a)(2)(A)(iv)’’ and inserting ‘‘section 4081(a)(2)(A)(iii)’’, (iii) by adding at the end the following new sentence: ‘‘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.’’, and (iv) by striking ‘‘AVIATION-GRADE KEROSENE’’ in the heading thereof and inserting ‘‘KEROSENE REMOVED INTO AN AIRCRAFT’’. (b) REDUCED RATE FOR USE OF CERTAIN LIQUIDS IN AVIATION.— (1) IN GENERAL.—Subsection (c) of section 4041 (relating to imposition of tax) is amended— (A) by striking ‘‘aviation-grade kerosene’’ in paragraph (1) and inserting ‘‘any liquid for use as a fuel other than aviation gasoline’’, (B) by striking ‘‘aviation-grade kerosene’’ in paragraph (2) and inserting ‘‘liquid for use as a fuel other than aviation gasoline’’, (C) by striking paragraph (3) and inserting the following new paragraph: ‘‘(3) RATE OF TAX.—The rate of tax imposed by this subsection shall be 21.8 cents per gallon (4.3 cents per gallon with respect to any sale or use for commercial aviation).’’, and (D) by striking ‘‘AVIATION-GRADE KEROSENE’’ in the heading thereof and inserting ‘‘CERTAIN LIQUIDS USED AS A FUEL IN AVIATION’’. (2) PARTIAL REFUND OF FULL RATE.— (A) IN GENERAL.—Paragraph (2) of section 6427(l) (relating to nontaxable uses of diesel fuel, kerosene and aviation fuel) is amended to read as follows: ‘‘(2) NONTAXABLE USE.—For purposes of this subsection, the term ‘nontaxable use’ means any use which is exempt
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