Page:United States Statutes at Large Volume 100 Part 3.djvu/967

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2775

tor by a refiner or importer shall not be considered a removal or sale of gasoline by such refiner or importer. "(b) TREATMENT OF REMOVAL OR SUBSEQUENT SALE BY BLENDER OR COMPOUNDER.—

"(1) IN GENERAL.—There is hereby imposed a tax of 9 cents a gallon on gasoline removed or sold by the blender or compounder thereof. "(2) CREDIT FOR TAX PREVIOUSLY PAID.—If—

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u^^^ ^g^^ jg imposed on the removal or sale of gasoline by reason of paragraph (1), and "(B) the blender or compounder establishes the amount of the tax paid with respect to such gasoline by reason of subsection (a), the amount of the tax so paid shall be allowed as a credit against the tax imposed by reason of paragraph (1).

"(c) GASOLINE MIXED WITH ALCOHOL AT REFINERY, ETC.—



"(1) IN GENERAL.—Under regulations prescribed by the Secretary, subsection (a) shall be applied by substituting '3 cents' for '9 cents' in the case of the removal or sale of any gasoline for use in producing gasohol at the time of such removal or sale. For purposes of this paragraph, the term 'gasohol' means any mixture of gasoline if at least 10 percent of such mixture is alcohol. "(2) LATER SEPARATION OF GASOLINE FROM GASOHOL.—If any

person separates the gasoline from a mixture of gasoline and alcohol on which tax was imposed under subsection (a) at a rate equivalent to 3 cents a gallon by reason of this subsection (or with respect to which a credit or payment was allowed or made by reason of section 6427(f)(1)), such person shall be treated as the refiner of such gasoline. The amount of tax imposed on any sale of such gasoline by such person shall be 5% cents a gallon. "(3) ALCOHOL DEFINED.—For purposes of this subsection, the term 'alcohol' includes methanol and ethanol but does not include alcohol produced from petroleum, natural gas, or coal (including peat). Such term does not include alcohol with a proof of less than 190 (determined without regard to any added denaturants). "(4) TERMINATION.—Paragraph (1) shall not apply to any removal or sale after December 31, 1992. "(d) TERMINATION.—On and after October 1, 1988, the taxes imposed by this section shall not apply. "SEC. 4082. DEFINITIONS.

"(a) GASOLINE.—For purposes of this subpart, the term 'gasoline' includes, to the extent prescribed in regulations— "(1) gasoline blend stocks, and "(2) products commonly used as additives in gasoline. For purposes of paragraph (1), the term 'gasoline blend stocks' means any petroleum product component of gasoline. "03) CERTAIN USES DEFINED AS REMOVAL.—If a refiner, importer,

terminal operator, blender, or compounder uses (other than in the production of gasoline or special fuels referred to in section 4041) gasoline refined, imported, blended, or compounded by him, such use shall for the purposes of this chapter be considered a removal.

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