Page:United States Statutes at Large Volume 68A.djvu/518

 478

INTERNAL REVENUE CODE OF 1954

Subchapter E—Special Fuels

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Sec. 4041. Imposition of tax. . - • Sec. 4042. Cross reference. SEC. 4041. IMPOSITION OF TAX. (a) D I E S E L F U E L. — The r e is hereby imposed a tax of 2 cents a gallon upon any liquid (other than any product taxable under section 4081)— (1) sold by any person to an owner, lessee, or other operator of a diesel-powered highway vehicle, for use as a fuel in such vehicle; or (2) used by any person as a fuel in a diesel-powered highway vehicle unless there was a taxable sale of such liquid under paragraph (1). (b) SPECIAL MOTOR FUELS.—There is hereby imposed a tax of 2 cents a gallon upon benzol, benzene, naphtha, liquefied petroleum gas, or any other liquid (other than kerosene, gas oil, or fuel oil, or any product taxable under section 4081 or subsection (a) of this section) — (1) sold by any person to an owner, lessee, or other operator of a motor vehicle, motorboat, or airplane for use as a fuel for the propulsion of such motor vehicle, motorboat, or airplane; or (2) used by any person as a fuel for the propulsion of a motor vehicle, motorboat, or airplane unless there was a taxable sale of such liquid under paragraph (1). (c) RATE REDUCTION.—On and after April 1, 1955, the taxes imposed by this section shall be 1)^ cents a gallon in lieu of 2 cents a gallon. SEC. 4042. CROSS REFERENCE. For exemption from tax where special motor fuels are sold for use for certain vessels, see section 4222.

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