Page:United States Statutes at Large Volume 104 Part 2.djvu/841

This page needs to be proofread.


PUBLIC LAW 101-508 —NOV. 5, 1990 104 STAT. 1388-433 (A) by striking "14 cents" and inserting "17.5 cents", and (B) by inserting "except as provided in subsection (d)," after "paragraph (1),". (2) CONFORMING AMENDMENTS.— (A) Paragraph (1) of section 4041(c) is amended by striking "14 cents" and inserting "17.5 cents". (B)(i) Subparagraph (B) of section 4041(k)(l), as amended by section 11211, is amended to read as follows: "(B) the rate of the tax imposed by subsection (c)(1) shall be the comparable rate under section 4091(d), and". (ii) Subparagraph (B) of section 4041(m)(l) is amended to read as follows: "(B) the rate of the tax imposed by subsection (c)(l) shall be the comparable rate under section 4091(d)(l)." (C)(i) Paragraphs (1) and (2) of section 4091(d) are amended to read as follows: "(1) IN GENERAL.— The Airport and Airway Trust Fund financing rate shall be— "(A) 4.1 cents per gallon in the case of the sale of any mixture of aviation fuel if— "(i) at least 10 percent of such mixture consists of alcohol (as defined in section 4081(c)(3)), and "(ii) the aviation fuel in such mixture was not taxed under subparagraph (B), and "(B) 4.56 cents per gallon in the case of the sale of aviation fuel for use (at the time of such sale) in producing a mixture described in subparagraph (A). In the case of a sale described in subparagraph (B), the Leaking Underground Storage Tank Trust Fund financing rate shall be Vb cent per gallon. "(2) LATER SEPARATION. —If any person separates the aviation fuel from a mixture of the aviation fuel and alcohol on which tax was imposed under subsection (a) at the Airport and Airway Trust Fund financing rate equivalent to 4.1 cents per gallon by reason of this subsection (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 amount 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 fuel." (ii) The heading for subsection (d) of section 4091 is amended by striking "EXEMPTION FROM" and inserting " RE DUCED RATE OF". (D) Section 4091 is amended by adding at the end thereof the following new subsection: " (e) LOWER RATES OF TAX ON ALCOHOL MIXTURES NOT MADE FROM ETHANOL. —In the case of a mixture described in subsection (c)(l)(A)(i) or (d)(l)(A)(i) none of the alcohol in which is ethanol— "(1) subsections (c)(1)(A) and (c)(2), and subsections (d)(l)(A) and (d)(2), shall each be applied by substituting rates which are 0.6 cents less than the rates contained therein, and "(2) subsections (c)(l)(B) and (d)(l)(B) shall be applied by substituting rates which are 10/9 of the rates determined under paragraph (1)." (3) Subsection (f) of section 6427 is amended to read as follows: