Page:United States Statutes at Large Volume 70.djvu/450

 394

PUBLIC LAW 627-JUNE 29, 1956

[70 S T A T.

Ion, used or resold for use as a fuel in a diesel-powered highway vehicle (i) which (at the time of such use or resale) is not registered, and is not required to be registered, for highway use under the laws of any State or foreign country, or (ii) which, in the case of a diesel-powered highway vehicle owned by the United States, is not used on the highway; except that the amount of any overpayment by reason of this subparagraph shall not exceed an amount computed at the rate of 1 cent a gallon; " (K) I n the case of a liquid in respect of which tax was Ante, p. 388. pai(j under section 4041(b)(1) at the rate of 3 cents a gallon, used or resold for use otherwise than as a fuel for the propulsion of a highway vehicle (i) which (at the time of such use or resale) is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or (ii) which, in the case of a highway vehicle owned by the United States, is used on the highway; except that the amount of any overpayment by reason of this subparagraph shall not exceed an amount computed at the rate of 1 cent a gallon; " (L) I n the case of a liquid in respect of which tax was Ante, p. 387. paid under section 4041 at the rate of 3 cents a gallon, used during any calendar quarter in vehicles while engaged in furnishing scheduled common carrier public passenger land transportation service along regular routes; except that (i) this subparagraph shall apply only if the 60 percent passen'"frager fare revenue test set forth in section 6421(b)(2) is met with respect to such quarter, and (ii) the amount of such overpayment for such quarter shall be an amount determined by multiplying 1 cent for each gallon of liquid so used by the percentage which such person's tax-exempt passenger fare revenue (as defined in section 6421(d)(2)) derived from such scheduled service during such quarter was of his total passenger fare revenue (not including the tax imposed by section 4261, relating to the tax on transportation of persons) derived from such scheduled service during such quarter; " (M) I n the case of tread rubber in respect of which tax Ante, p. 389. ^^g paid under section 4071(a)(4), used or resold for use otherwise than in the recapping or retreading of tires of the Ante, p. 389. type used on highway vehicles (as defined in section 4072 (c)), unless credit or refund of such tax is allowable under subsection (b)(3)." (c) PAYMENTS TO ITLTIMATE PURCHASERS.—Subchapter B of chapter 2 6'^ifs°c 6 4^11- ^^ (relating to rules of special application for abatements, credits, and 6420. refunds) is amended by renumbering section 6421 as 6422 and by inAnte, p. 87. serting after section 6420 the following new section: "SEC. 6421. GASOLINE USED FOR CERTAIN NONHIGHWAY PURPOSES OR BY LOCAL TRANSIT SYSTEMS. " (a) NoNHiGHWAY ITsES.—If gasoline is used otherwise than as a fuel in a highway vehicle (1) which (at the time of such use) is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or (2) which, in the case of a highway vehicle owned by the United States, is used on the highway, the Secretary or his delegate shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to 1 cent for each gallon of gasoline so used. "(b)

LOCAL TRANSIT SYSTEMS.—

" (1) ALLOWANCE.—If gasoline is used during any calendar quarter in vehicles while engaged in furnishing scheduled common

�