TITLE IX--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986
SEC. 9001. SHORT TITLE; AMENDMENT OF 1986 CODE. [Analysis]
(a) SHORT TITLE.-This title may be cited as the "Surface Transportation Revenue Act of 2004".
(b) AMENDMENT OF 1986 CODE.-Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.
SEC. 9002. EXTENSION OF HIGHWAY-RELATED TAXES AND TRUST FUND. [Analysis]
(a) EXTENSION OF TAXES.-
(1) IN GENERAL.-The following provisions are each amended by striking "2005" each place it appears and inserting "2011":
(A) Section 4041(a)(1)(C)(iii)(I) (relating to rate of tax on certain buses).
(B) Section 4041(a)(2)(B) (relating to rate of tax on special motor fuels).
(C) Section 4041(m)(1)(A) (relating to certain alcohol fuels).
(D) Section 4051(c) (relating to termination of tax on heavy trucks and trailers).
(E) Section 4071(d) (relating to termination of tax on tires).
(F) Section 4081(d)(1) (relating to termination of tax on gasoline, diesel fuel, and kerosene).
(G) Section 4481(e) (relating to period tax in effect).
(H) Section 4482(c)(4) (relating to taxable period).
(I) Section 4482(d) (relating to special rule for taxable period in which termination date occurs).
(2) FLOOR STOCKS REFUNDS.-Section 6412(a)(1) (relating to floor stocks refunds) is amended-
(A) by striking "2005" each place it appears and inserting "2011", and
(B) by striking "2006" each place it appears and inserting "2012".
(b) EXTENSION OF CERTAIN EXEMPTIONS.-The following provisions are each amended by striking "2005" and inserting "2011":
(1) Section 4221(a) (relating to certain tax-free sales).
(2) Section 4483(g) (relating to termination of exemptions for highway use tax).
(c) EXTENSION OF DEPOSITS INTO, AND CERTAIN TRANSFERS FROM, TRUST FUND.- Subsections (b), (c)(2), and (c)(3) of section 9503 (relating to the Highway Trust Fund) are amended-
(A) by striking "2005" each place it appears and inserting "2011", and
(B) by striking "2006" each place it appears and inserting "2012".
(d) EXTENSION AND EXPANSION OF EXPENDITURES FROM TRUST FUND.-
(1) HIGHWAY ACCOUNT.-Section 9503 is amended by striking subsection (c)(1) and inserting the following:
"(1) Federal-aid highway and safety programs.--Except as provided in subsection (e), amounts in the Highway Trust Fund shall be available, as provided by appropriation Acts, for making expenditures authorized by law to be paid out of the Highway Trust Fund before October 1, 2011, to meet those obligations of the United States heretofore or hereafter incurred under the following Acts, as in effect on the date of enactment of the last Act listed:
(A) The Highway Revenue Act of 1956.
(B) The Surface Transportation Assistance Act of 1982.
(C) The Surface Transportation and Uniform Relocation Assistance Act of 1987.
(D) The Intermodal Surface Transportation Efficiency Act of 1991.
(E) The Transportation Equity Act for the 21st Century.
(F) The Motor Carrier Safety Improvement Act of 1999.
(G) the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003.".
(2) MASS TRANSIT ACCOUNT.--Section 9503(e)(3) is amended to read as follows:
"(3) Expenditures from Account.--Amounts in the Mass Transit Account shall be available, as provided by appropriation Acts, for making capital or capital-related expenditures before October 1, 2011 (including capital expenditures for new projects) in accordance with the following Acts and provisions of law, as in effect on the date of enactment of the last Act listed:
"(A) Section 5338(a)(1) or (b)(1) of title 49.
"(B) The Intermodal Surface Transportation Efficiency Act of 1991.
"(C) The Transportation Equity Act for the 21st Century.
"(D) the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003.".
SEC. 9003. EXTENSION OF TAX BENEFITS FOR ALCOHOL FUELS. [Analysis]
(a) EXTENSION OF TAX BENEFITS.-
(1) EXTENSION.-The following provisions are each amended by striking "2007" each place it appears and inserting "2014":
(A) Section 4041(b)(2)(C)(ii) and (D) (relating to termination of reduction in tax for qualified methanol and ethanol fuel).
(B) Section 4041(k)(3) (relating to termination of rates relating to fuels containing alcohol).
(C) Section 4081(c)(8) (relating to termination of special rate for taxable fuels mixed with alcohol).
(D) Section 4091(c)(5) (relating to termination of reduced rate of tax for aviation fuel in alcohol mixture, etc.).
(E) Section 40(h) (relating to termination of credit for ethanol blenders).
(2) EXTENSION OF REFUND AUTHORITY.-Paragraph (4) of section 6427(f) (relating to refund for gasoline, diesel fuel, and aviation fuel used to produce certain alcohol fuels), as amended by the Taxpayer Relief Act of 1997, is amended by striking "2007" and inserting "2012".
(3) CREDIT FOR ALCOHOL USED AS A FUEL.-Paragraph (1) of section 40(e) (relating to termination of credit for alcohol used as a fuel) is amended-
(A) by striking "December 31, 2007" in subparagraph (A) and inserting "December 31, 2014", and
(B) by striking "January 1, 2008" and inserting "January 1, 2015".
(4) TARIFF SCHEDULE.-Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff Schedule of the United States (19 U.S.C. 3007) are each amended in the effective period column by striking "10/1/2007" each place it appears and inserting "10/1/2014".
(b) CONFORMING AMENDMENTS.-
(1) AMOUNT OF REDUCED CREDIT FOR ETHANOL BLENDERS.--The table in paragraph (2) of 40(h) is amended by striking "2005, 2006, or 2007" and inserting "2005 through 2014".
(2) APPLICABLE BLENDER RATE FOR EXEMPTED QUALIFIED METHANOL AND ETHANOL FUEL.--Section 4041(b)(2)(C) is amended by striking "2001" and inserting "2008".
SEC. 9004. PRIVATE ACTIVITY BONDS FOR SURFACE TRANSPORTATION INFRASTRUCTURE. [Analysis]
(a) EXEMPT FACILITY BONDS.--Section 142 is amended--
(1) in subsection (a) by--
(A) striking "or" at the end of paragraph (12);
(B) striking the period at the end of paragraph (13) and inserting a comma; and
(C) adding after paragraph (13) the following new paragraphs:
"(14) highway facilities, or
"(15) surface freight transfer facilities."; and
(2) by adding new subsections (l), (m) and (n) at the end, as follows:
"(l) HIGHWAY FACILITIES.--For purposes of subsection (a)(14), the term "highway facilities" means--
"(1) a surface transportation project eligible for Federal assistance under title 23, United States Code (as in effect on the date of enactment of this subsection), or
"(2) a project for an international bridge or tunnel for which an international entity authorized under Federal or State law is responsible.
"(m) SURFACE FREIGHT TRANSFER FACILITIES.--For purposes of subsection (a)(15), the term "surface freight transfer facilities" means facilities for the transfer of freight from truck to rail or rail to truck (including any temporary storage facilities directly related to such transfers).
"(n) AGGREGATE FACE AMOUNT OF TAX-EXEMPT FINANCING FOR HIGHWAY FACILITIES AND SURFACE FREIGHT TRANSFER FACILITIES.
"(1) IN GENERAL.--The aggregate face amount of bonds issued pursuant to subsections (a)(14) (relating to highway facilities) and (a)(15) (relating to surface freight transfer facilities) shall not exceed $15,000,000,000, determined without regard to any bond the proceeds of which are used exclusively to refund a bond issued pursuant to either of such subsections (or a bond which is a part of a series of refundings of a bond so issued) if the amount of the refunding bond does not exceed the outstanding amount of the refunded bond.
"(2) ALLOCATION.--The Secretary of Transportation shall allocate the amount described in paragraph (1) among eligible projects satisfying the requirements of subsection (a)(14) or (a)(15).".
(b) VOLUME CAP, EXCEPTION FOR CERTAIN BONDS.--Section 146(g) is amended in paragraph (3), by--
(1) striking "(12), or (13)" and inserting "(12), (13), (14), or (15)"; and
(2) striking "and qualified public educational facilities" and inserting "qualified public educational facilities, highway facilities, and surface freight transfer facilities".
(c) EFFECTIVE DATE.--The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.
SEC. 9005. ALL ALCOHOL FUEL TAXES TRANSFERRED TO HIGHWAY TRUST FUND. [Analysis]
(a) IN GENERAL.-Section 9503(b)(4) (relating to certain taxes not transferred to Highway Trust Fund) is amended--
(1) by adding "or" at the end of subparagraph (C);
(2) in subparagraph (D)(iii), by striking ", and" after "2005" and inserting a period; and
(3) by striking subparagraphs (E) and (F).
(b) EFFECTIVE DATE.-The amendments made by this section shall apply to taxes imposed after September 30, 2003.
SEC. 9006. TRANSFER FROM HIGHWAY TRUST FUND TO BOAT SAFETY ACCOUNT. [Analysis]
(a) IN GENERAL.--Section 9503(c)(4)(A) is amended by striking "2005" and inserting "2011".
(b) CONFORMING AMENDMENTS TO LAND AND WATER CONSERVATION FUND.-Section 201(b) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460 l-11(b)) is amended--
(1) by striking "2003" and inserting "2009", and
(2) by striking "2004" each place it appears and inserting "2010".
(c) TECHNICAL CORRECTION TO HOMELAND SECURITY ACT.--Section 1511(e)(2) of the Homeland Security Act of 2002 (Pub. L. No. 107-296) is amended by striking "and to any funds provided to the Coast Guard from the Aquatic Resources Trust Fund of the Highway Trust Fund for boating safety programs", and inserting "and any funds provided to the Coast Guard from the Highway Trust Fund and transferred into the Boat Safety Account of the Aquatic Resources Trust Fund for boating safety programs.".
(d) EXPENDITURES FROM BOAT SAFETY ACCOUNT.--Section 9504(c) is amended by striking "2003" and inserting "2009".
SEC. 9007. EXTENSION OF SMALL-ENGINE FUEL TAXES TRANSFERRED TO SPORT FISH RESTORATION ACCOUNT. [Analysis]
Section 9503(c)(5)(A) is amended by striking the year "2005" and inserting "2011".
SEC. 9008. TECHNICAL CORRECTION. [Analysis]
The last sentence of paragraph (2) of section 9504(b) is amended by striking "subparagraph (B)", and inserting "subparagraph (C)".
SEC. 9009. TRANSFER BY REGISTERED PIPELINE, VESSEL, OR BARGE REQUIRED FOR FUEL TAX EXEMPTION OF BULK TRANSFERS TO REGISTERED TERMINALS OR REFINERIES; DISPLAY OF REGISTRATION REQUIREMENT. [Analysis]
(a) IN GENERAL.--Section 4081(a)(1)(B) (relating to exemption for bulk transfers to registered terminals or refineries) is amended by inserting ", bulk carrier," after "the taxable fuel".
(b) CIVIL PENALTY FOR CARRYING TAXABLE FUELS BY NONREGISTERED PIPELINES OR VESSELS.--
(1) IN GENERAL.-- Part II of subchapter B of chapter 68 (relating to assessable penalties) is amended by adding at the end the following new section:
"§ 6717. Failure to register under section 4101
"(a) FAILURE TO REGISTER.-- Any person who fails to register with the Secretary as required by regulations under section 4101 shall pay a penalty of $1,000 for each day during the period of such failure in which such person engages in an activity for which registration is required.
"(b) JOINT AND SEVERAL LIABILITY.--
"(1) IN GENERAL-.--If a penalty is imposed under this section on any business entity, each officer, employee, or agent of such entity or other contracting party who willfully participated in any act giving rise to such penalty shall be jointly and severally liable with such entity for such penalty.
"(2) AFFILIATED GROUPS.--If a business entity described in paragraph (1) is part of an affiliated group (as defined in section 1504(a)), the parent corporation of such entity shall be jointly and severally liable with such entity for the penalty imposed under this section.".
(2) CONFORMING AMENDMENT.--The table of sections for part II of subchapter B of chapter 68 is amended by adding at the end the following new item:
"6717. Failure to register under section 4101.".
(c) DISPLAY OF REGISTRATION.--
(1) IN GENERAL.--Section 4101 (relating to registration and bond) is amended by adding at the end the following new subsection:
"(e) DISPLAY OF REGISTRATION.--Every vessel operator required by the Secretary to register under this section with respect to the tax imposed by section 4081 shall display proof of such registration in such manner as the Secretary may prescribe.".
(2) CIVIL PENALTY FOR FAILURE TO DISPLAY REGISTRATION.--
(A) IN GENERAL.--Part II of subchapter B of chapter 68 (relating to assessable penalties) is amended by adding at the end the following new section:
"§ 6718. Failure to display proof of registration by vessels or barges
"(a) FAILURE TO DISPLAY PROOF OF REGISTRATION.--Every vessel operator who fails to display proof of registration when required to do so pursuant to section 4101(e) shall pay a penalty of $500 for each such failure. With respect to any vessel, only one penalty shall be imposed by this section during any calendar month.
"(b) MULTIPLE VIOLATIONS.--In determining the penalty under subsection (a) on any person or operator, subsection (a) shall be applied by increasing the amount imposed in subsection (a) by the product of such amount and the number of prior penalties (if any) imposed by this section on such person (or a related person or any predecessor of such person or related person).".
(B) CONFORMING AMENDMENT.--The table of sections for part II of subchapter B of
chapter 68 is amended by adding at the end the following new item:
"6718. Failure to display
proof of registration by vessels or barges.".
(d) EFFECTIVE DATE.--The amendments made by this section shall take effect 90 days after the date of enactment of this Act.
SEC. 9010. RETURNS FILED ELECTRONICALLY. [Analysis]
(a) INFORMATION REPORTING.--Section 4101(d) (relating to information reporting) is amended to read as follows:
"(d) INFORMATION REPORTING.-
"(1) The Secretary may require--
"(A) information reporting by any person registered under this section, and
"(B) information reporting by such other persons as the Secretary deems necessary to carry out this part.
"(2) Information reporting required by the Secretary under paragraph (1) of this subsection shall be by electronic format for any person having at least 25 reportable transactions in a month.".
(b) USE TAX ON CERTAIN VEHICLES.--Section 4481(b) is amended by adding the following new sentence at the end: "Any return of tax imposed by this section reporting at least 25 vehicles shall be filed by electronic format.".
(c) ELECTRONIC FORMAT.--The Secretary of the Treasury shall describe the electronic formats for filing under subsections (a) and (b) not later than 90 days after the date of the enactment of this Act.
(d) EFFECTIVE DATE.--The amendment made by subsection (a) shall apply to returns due after the date the Secretary of the Treasury describes the electronic format for filing under subsection (a) and the amendment made by subsection (b) shall apply to returns due after the date the Secretary of the Treasury describes the electronic format for filing under subsection (b).
SEC. 9011. CIVIL PENALTY FOR REFUSAL OF ENTRY. [Analysis]
(a) Section 4083(c)(3) is amended by adding at the end a new sentence as follows:
"For purposes of this subsection, the penalty provided by section 7342 shall be treated as an assessable penalty and assessed in accordance with section 6671.".
(b) EFFECTIVE DATE.-- The amendments made by this section shall take effect 90 days after the date of enactment of this Act.
SEC. 9012. REQUIREMENT OF TAX PAYMENT DECAL; ELIMINATION OF INSTALLMENT PAYMENTS OF HIGHWAY USE TAX. [Analysis]
(a) DISPLAY OF PROOF OF PAYMENT OF TAX.--Section 4481(b) (relating to imposition of tax on use of certain highway motor vehicles) is amended by adding a sentence at the end as follows:
"Every person, agency, or instrumentality who has paid the tax imposed by this section shall display proof of such payment in a manner as the Secretary may prescribe.".
(b) CIVIL PENALTY FOR FAILURE TO DISPLAY PROOF OF TAX PAYMENT DECAL.--
(1) IN GENERAL.--Part II of subchapter B of chapter 68 (relating to assessable penalties) is amended by adding at the end the following new section:
"§ 6719. Failure to display proof of tax payment decal
"(a) IMPOSITION OF PENALTY.--Each person, agency, or instrumentality who fails to display proof of payment of tax when required to do so pursuant to the last sentence of section 4481(b) (relating to the display of proof of payment of tax) shall pay a penalty of $50. With respect to any vehicle, only one penalty shall be imposed by this section during any calendar month.
"(b) MULTIPLE VIOLATIONS.--In determining the penalty under subsection (a) on any person, agency, or instrumentality, subsection (a) shall be applied by increasing the amount imposed in subsection (a) by the product of such amount and the number of prior penalties (if any) imposed by this section on such person, agency, or instrumentality. ".
(2) CONFORMING AMENDMENT.--The table of sections for part II of subchapter B of chapter 68 is amended by adding at the end the following new item:
"6719. Failure to display proof of tax payment decal.".
(c) ELIMINATION OF PRIVILEGE TO PAY HIGHWAY USE TAX IN INSTALLMENTS.--
(1) REPEAL.--Section 6156 (relating to the privilege to pay in installments the tax imposed under section 4481 of such Code on use of highway motor vehicles) is repealed.
(2) CONFORMING AMENDMENT.--The table of sections for subchapter A of chapter 62 is amended by striking the item relating to section 6156.
(d) EFFECTIVE DATE.--The amendments made by this section shall apply to taxable periods beginning after the date of the enactment of this Act.
SEC. 9013. ADDITIONAL RULES REGARDING INSPECTIONS OF RECORDS. [Analysis]
(a) PROVISION OF COPIES OF RECORDS.--Section 4102 (relating to inspection of records by local officers) is amended by inserting ", and copies shall be furnished upon request of," after "inspection by".
(b) INSPECTION BY OTHER ENFORCEMENT AGENCIES.--Section 4102 of the Internal Revenue Code of 1986, as amended by subsection (a), is amended by inserting "; such records and information on returns required to be filed with respect to taxes under section 4481 shall be open to inspection by officers of any State agency charged with the registration and licensing of vehicles described in such section and officers of any other Federal or State agency charged with the enforcement of Federal or State law regarding taxable fuels or criminal activities regarding taxable fuels" after "section 4083)".
(c) EFFECTIVE DATE.--The amendments made by this section shall take effect on the date of the enactment of this Act.