92 STAT. 3190 26 USC 4221 °°*®-
PUBLIC LAW 95-618—NOV. 9, 1978 (c) EFrECTiVE D A T E. — The amendments m a d e by t h i s section shall apply to sales on or after the first day of the first calendar month beginn i n g more than 10 days after the date of the enactment of t h i s Act. SEC. 233. REMOVAL OF EXCISE TAX ON FUEL, OIL, AND TIRES USED IN CONNECTION WITH INTERCITY, LOCAL, AND SCHOOL BUSES. (a) R E P A Y M E N T OF T A X ON GASOLINE AND OTHER MOTOR FUEI^S USED BY INTERCITY, LOCAL, OR SCHOOL B U S E S. —
26 USC 6421. ,.
(1) GASOLINE.—Subsection (b) of section 6421 (relating to local transit systems) is amended to read as follows:
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" (b) INTERCITY, LOCAL, OR SCHOOL B U S E S. —
26 USC 4221.
" (1) ALLOWANCE.—Except as provided in paragraph (2) and subsection (i), if gasoline is used in an automobile bus while engaged in— " (A) furnishing (for compensation) passenger land transportation available to the general public, or " (B) the transportation of students and employees of schools (as defined in the last sentence of section 4221(d)(7)
26 USC 4081.
the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the product of the number of gallons of gasoline so used multiplied by the rate at which tax was imposed on such gasoline by section 4081.
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"(2)
L I M I T A T I O N I N CASE or NONSCHEDULED INTERCITY OR LOCAL
BUSES.—Paragraph (1)(A) shall not apply in respect of gasoline used in any automobile bus while engaged in furnishing transportation which is not scheduled and not along regular routes unless the seating capacity of such bus is at least 20 adults (not including the d r i v e r). " (2) OTHER FUELS.—Subsection (b) of section 6427 (relating to local transit systems) is amended to read as follows:
26 USC 6427.
"(b)
INTERCITY, LOCAL, O SCHOOL B U S E S. — R
" (1) ALLOWANCE.—Except as provided in paragraph (2) and subsection (g), if any fuel on the sale of which tax was imposed by subsection (a) or (b) of section 4041 is used in an automobile bus while engaged in— " (A) furnishing (for compensation) passenger land transportation available to the general public, or " (B) the transportation of students and employees of schools (as defined in the last sentence of section 4221(d) (T)(C)), the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the product of the number of gallons of such fuel so used multiplied by the rate at which tax was imposed on such fuel by subsection (a) or (b) of section 4041.
26 USC 4041.
" (2) L I M I T A T I O N IN CASE OF N O N S C H E D U L E D I N T E R C I T Y OR LOCAL
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BUSES.—Paragraph (1)(A) shall not apply in respect of fuel used in any automobile bus while engaged in furnishing transportation which is not scheduled and not along regular routes unless the seating capacity of such bus is at least 20 adults (not including the driver)." (3) T E C H N I C A L AMENDMENTS.—
26 USC 6421. . Ante, p. 3186.
(A) Subsection (d) of section 6421 is amended— (i) by strikin/^ out paragraph (2), and (ii) by redesignating paragraph (3) (as added by section 222(a)(1)(B)) as paragraph (2).
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