Page:United States Statutes at Large Volume 68 Part 1.djvu/76

 44

PUBLIC LAW 3a4-MAR. 31, 1954

[68 S T A T.

person from whom he collected the tax, or has obtained the consent of such person to the allowance of the credit or refund. For the purpose of this Act, transportation shall not be considered to have begun on or after April 1, 1954, if any part of the transportation paid for (or for which payment has been obligated) commenced before April 1, 1954. SEC. 507. SPECIAL FUELS. (a) EXEMPTION FROM MANUFACTURERS' EXCISE T A X. — (1) AMENDMENT OF SECTION 3412 (c).—Section 3412(c)(2)

(relating to manufacturers' excise tax on gasoline) is hereby amended to read as follows: "(2) the term 'gasoline' means all products commonly or commercially known or sold as gasoline (including casinghead and natural gasoline)." (2) CREDITS AND REFUNDS.—Except in the case of any liquid with respect to which tax was paid under section 3412 as in effect prior to the effective date of this section, clause (iii) of section 3443 (a)(3)(A) is hereby repealed, and clauses (iv), (v), (vi), and (vii) of section 3443(a)(3)(A) are redesignated clauses (iii), ( i v), (v), and (vi), respectively. (b) IMPOSITION OF RETAILERS' EXCISE TAX.—Section 2450 of the Internal Revenue Code is hereby amended to read as follows: "SEC. 2450. TAX. " (a) DIESEL FUEL.—There is hereby imposed a tax of 2 cents a gallon upon any liquid (other than any product taxable under section 3412) — " (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 3412 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." (c) TECHNICAL AMENDMENTS.— (1) CREDITS AND REFUNDS.—Section 2452(a) (relating to credits

and refunds) is hereby amended to read as follows: " (a) NONTAXABLE U S E OR SALE BY VENDEE.—A credit against tax

under this chapter, or a refund, may be allowed or made to a person in the amount of tax paid by him under this chapter with respect to his sale of any liquid to a vendee for use as fuel in a diesel-powered highway vehicle, or with respect to his sale of benzol, benzene, naphtha, liquefied petroleum gas, or any other liquid to a vendee for use as fuel for the propulsion of a motor vehicle, motorboat, or airplane, if such person establishes, in accordance with regulations prescribed by the Secretary, that—

�