Page:United States Statutes at Large Volume 107 Part 1.djvu/545

 PUBLIC LAW 103-66 —AUG. 10, 1993 107 STAT. 519 which the Leaking Underground Storage Tank Trust Fund financing rate under section 4081 does not apply. "(c) REDUCED RATE OF TAX FOR AVIATION FUEL IN ALCOHOL Regulations. MIXTURE, ETC.—Under regulations prescribed by the Secretary— "(1) IN GENERAL. —The rate of tax under subsection (a) shall be reduced by 13.4 cents per gallon in the case of the sale of any mixture of aviation fuel if— "(A) at least 10 percent of such mixture consists of alcohol (as defined in section 4081(c)(3)), and "(B) the aviation fiiel in such mixture was not taxed under paragraph (2). In the case of such a mixture none of the alcohol in which is ethanol, the preceding sentence shall be applied by substituting *14 cents' for *13.4 cents'. "(2) TAX PRIOR TO MIXING. — In the case of the sale of aviation fuel for use (at the time of such sale) in producing a mixture described in paragraph (1), the rate of tax under subsection (a) shall be i% of the rate which would (but for this paragraph) have been applicable to such mixture had such mixture been created prior to such sale. "(3) LATER SEPARATION.— If any person separates the aviation fuel from a mixture of the aviation fiiel and alcohol on which tax was imposed under subsection (a) at a rate determined under paragraph (1) or (2) (or with respect to which a credit or payment was allowed or made by reason of section 6427(fKl)), such person shall be treated as the producer of such aviation fuel; The amoiuit of tax imposed on any sale of such aviation fuel by such person shall be reduced by the amount of tax imposed (and not credited or refunded) on any prior sale of such fiiel. "(4) LIMITATION. — In no event shall any rate determined under paragraph (1) be less than 4.3 cents per gallon. " (5) TERMINATION. —Paragraphs (1) and (2) shall not apply to any sale after September 30, 2000. «SEC. 4092. EXEMPTIONS. "(a) NONTAXABLE USES.— No tax shall be imposed by section 4091 on aviation fiiel sold by a producer or importer for use by the purchaser in a nontaxable use (as defined in section 6427(1)(2)(B)). "(b) No EXEMPTION FROM CERTAIN TAXES ON FUEL USED IN COMMERCIAL AVIATION.—In the case of fuel sold for use in commercial aviation (other than supplies for vessels or aircrafi; within the meaning of section 4221(d)(3)), subsection (a) shall not apply to so much of the tax imposed by section 4091 as is attributable to— "(1) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and "(2) in the case of fuel sold after September 30, 1995, 4.3 cents per gallon of the rate specified in section 4091(b)(l). For purposes of the preceding sentence, the term 'commercial aviation' means any use of an aircraft other than in noncommercial aviation (as defined in section 4041(c)(4)). "(c) SALES TO PRODUCER. — Under regulations prescribed by the Regulations. Secret£ury, the tax imposed by section 4091 shall not apply to aviation fuel sold to a producer of such fiiel. 69-194O-94-18:QL.3Part1

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