
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC4042]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                 Subtitle D--Miscellaneous Excise Taxes
 
                     CHAPTER 31--RETAIL EXCISE TAXES
 
                       Subchapter B--Special Fuels
 
Sec. 4042. Tax on fuel used in commercial transportation on 
        inland waterways
        

(a) In general

    There is hereby imposed a tax on any liquid used during any calendar 
quarter by any person as a fuel in a vessel in commercial waterway 
transportation.

(b) Amount of tax

                           (1) In general

        The rate of the tax imposed by subsection (a) is the sum of--
            (A) the Inland Waterways Trust Fund financing rate,
            (B) the Leaking Underground Storage Tank Trust Fund 
        financing rate, and
            (C) the deficit reduction rate.

                              (2) Rates

        For purposes of paragraph (1)--
            (A) The Inland Waterways Trust Fund financing rate is the 
        rate determined in accordance with the following table:


                                                           The tax per
                    If the use occurs:                     gallon is:

      Before 1990.....................................        10 cents
      During 1990.....................................        11 cents
      During 1991.....................................        13 cents
      During 1992.....................................        15 cents
      During 1993.....................................        17 cents
      During 1994.....................................        19 cents
      After 1994......................................         20 cents.


            (B) The Leaking Underground Storage Tank Trust Fund 
        financing rate is 0.1 cent per gallon.
            (C) The deficit reduction rate is 4.3 cents per gallon.

         (3) Exception for fuel taxed under section 4041(d)

        The Leaking Underground Storage Tank Trust Fund financing rate 
    under paragraph (2)(B) shall not apply to the use of any fuel if tax 
    under section 4041(d) was imposed on the sale of such fuel or is 
    imposed on such use.

     (4) Termination of Leaking Underground Storage Tank Trust 
                             Fund financing rate

        The Leaking Underground Storage Tank Trust Fund financing rate 
    under paragraph (2)(B) shall not apply during any period during 
    which the Leaking Underground Storage Tank Trust Fund financing rate 
    under section 4081 does not apply.

(c) Exemptions

                 (1) Deep-draft ocean-going vessels

        The tax imposed by subsection (a) shall not apply with respect 
    to any vessel designed primarily for use on the high seas which has 
    a draft of more than 12 feet.

                        (2) Passenger vessels

        The tax imposed by subsection (a) shall not apply with respect 
    to any vessel used primarily for the transportation of persons.

        (3) Use by State or local government in transporting 
                    property in a state or local business

        Subparagraph (B) of subsection (d)(1) shall not apply with 
    respect to use by a State or political subdivision thereof.

        (4) Use in moving lash and seabee ocean-going barges

        The tax imposed by subsection (a) shall not apply with respect 
    to use for movement by tug of exclusively LASH (Lighter-aboard-ship) 
    and SEABEE ocean-going barges released by their ocean-going carriers 
    solely to pick up or deliver international cargoes.

(d) Definitions

    For purposes of this section--

               (1) Commercial waterway transportation

        The term ``commercial waterway transportation'' means any use of 
    a vessel on any inland or intracoastal waterway of the United 
    States--
            (A) in the business of transporting property for 
        compensation or hire, or
            (B) in transporting property in the business of the owner, 
        lessee, or operator of the vessel (other than fish or other 
        aquatic animal life caught on the voyage).

      (2) Inland or intracoastal waterway of the United States

        The term ``inland or intracoastal waterway of the United 
    States'' means any inland or intracoastal waterway of the United 
    States which is described in section 206 of the Inland Waterways 
    Revenue Act of 1978.

                             (3) Person

        The term ``person'' includes the United States, a State, a 
    political subdivision of a State, or any agency or instrumentality 
    of any of the foregoing.

(e) Date for filing return

    The date for filing the return of the tax imposed by this section 
for any calendar quarter shall be the last day of the first month 
following such quarter.

(Added Pub. L. 95-502, title II, Sec. 202(a), Oct. 21, 1978, 92 Stat. 
1696; amended Pub. L. 99-499, title V, Sec. 521(a)(3), Oct. 17, 1986, 
100 Stat. 1777; Pub. L. 99-662, title XIV, Sec. 1404(a), Nov. 17, 1986, 
100 Stat. 4270; Pub. L. 100-647, title II, Sec. 2002(a)(2), Nov. 10, 
1988, 102 Stat. 3597; Pub. L. 103-66, title XIII, Sec. 13241(d), Aug. 
10, 1993, 107 Stat. 510.)

                       References in Text

    Section 206 of the Inland Waterways Revenue Act of 1978, referred to 
in subsec. (d)(2), is section 206 of Pub. L. 95-502, title II, Oct. 21, 
1978, 92 Stat. 1700, which is classified to section 1804 of Title 33, 
Navigation and Navigable Waters.


                            Prior Provisions

    A prior section 4042, act Aug. 16, 1954, ch. 736, 68A Stat. 478, 
provided a cross reference to section 4222 of this title for exemption 
from tax where special motor fuels are sold for use for certain vessels, 
prior to repeal by Pub. L. 94-455, title XIX, Sec. 1904(a)(1)(D), Oct. 
4, 1976, 90 Stat. 1811.


                               Amendments

    1993--Subsec. (b)(1)(C). Pub. L. 103-66, Sec. 13241(d)(1), added 
subpar. (C).
    Subsec. (b)(2)(C). Pub. L. 103-66, Sec. 13241(d)(2), added subpar. 
(C).
    1988--Subsec. (b)(2). Pub. L. 100-647 amended par. (2) generally. 
Prior to amendment, par. (2) read as follows: ``For purposes of 
paragraph (1)--
        ``(A) the Inland Waterways Trust Fund financing rate is 10 cents 
    a gallon, and
        ``(B) the Leaking Underground Storage Tank Trust Fund financing 
    rate is 0.1 cents a gallon.''
    1986--Subsec. (b). Pub. L. 99-499 and Pub. L. 99-662 both amended 
subsec. (b) generally, effective Jan. 1, 1987. Pub. L. 100-647, 
Sec. 2002(a)(1) (see Construction of 1986 Amendments note below), 
provided that for purposes of this section, the amendment made by Pub. 
L. 99-499 be treated as enacted after the amendment made by Pub. L. 99-
662. Prior to amendment by Pub. L. 99-499 and Pub. L. 99-662, subsec. 
(b) read as follows:


             ``If the use occurs--                     The tax is--

  After September 30, 1980 and before October         4 cents a gallon
   1, 1981.....................................
  After September 30, 1981 and before October         6 cents a gallon
   1, 1983.....................................
  After September 30, 1983 and before October         8 cents a gallon
   1, 1985.....................................
  After September 30, 1985.....................     10 cents a gallon''.


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-66 effective Oct. 1, 1993, see section 
13241(g) of Pub. L. 103-66, set out as a note under section 4041 of this 
title.


                    Effective Date of 1988 Amendment

    Section 2002(d) of Pub. L. 100-647, as amended by Pub. L. 101-239, 
title VII, Sec. 7812(b), Dec. 19, 1989, 103 Stat. 2412, provided that: 
``The amendments made by subsections (b) and (c) [amending section 4462 
of this title and provisions set out as a note under section 4461 of 
this title] shall take effect as if included in the provision of the 
Harbor Maintenance Revenue Act of 1986 [Pub. L. 99-662, title XIV] to 
which it relates, and the amendment made by subsection (a)(2) [amending 
this section] shall take effect as if included in the amendment made by 
section 521(a)(3) of the Superfund Revenue Act of 1986 [Pub. L. 99-499, 
title V].''


                    Effective Date of 1986 Amendments

    Section 1404(c) of Pub. L. 99-662 provided that: ``The amendments 
made by this section [amending this section and section 1804 of Title 
33, Navigation and Navigable Waters] shall take effect on January 1, 
1987.''
    Amendment by Pub. L. 99-499 effective Jan. 1, 1987, see section 
521(e) of Pub. L. 99-499, set out as a note under section 4041 of this 
title.


                             Effective Date

    Section 202(d) of Pub. L. 95-502 provided that: ``The amendments 
made by this section [enacting this section and amending section 4293 of 
this title] shall take effect on October 1, 1980.''


                     Construction of 1986 Amendments

    Section 2002(a)(1) of Pub. L. 100-647 provided that: ``For purposes 
of section 4042 of the 1986 Code, the amendment made by section 
521(a)(3) of the Superfund Revenue Act of 1986 [Pub. L. 99-499, amending 
this section] shall be treated as enacted after the amendment made by 
section 1404(a) of the Harbor Maintenance Revenue Act of 1986 [Pub. L. 
99-662, amending this section].''

                  Section Referred to in Other Sections

    This section is referred to in sections 4462, 9506, 9508 of this 
title; title 33 section 1804.
