US SENATE URGED TO RESOLVE DIESEL FUEL DILEMMA

US SENATE URGED TO RESOLVE DIESEL FUEL DILEMMA

Post by BOAT » Sat, 04 Mar 1995 03:48:52

3/2/95
From the BOAT/U.S. Newswire:
SENATE URGED TO RESOLVE DIESEL FUEL DILEMMA

 WASHINGTON, DC - 500,000-member BOAT/U.S. (Boat Owners Association of The
United States) today urged the U.S. Senate to finally fix a federal
regulation that has made it difficult, if not impossible, for many owners
of diesel-powered recreational boats to obtain fuel.

 The Internal Revenue Service (IRS) last year issued regulations mandating
that marine diesel fuel be dyed - red for non-taxed commercial use and
clear for taxed recreational use. The IRS regulation came in the wake of a
24.4 cents per gallon tax on diesel fuel levied by Congress - only on fuel
used by recreational boaters - in order to raise revenues to offset the
repeal of another ill-conceived tax - the 10% luxury tax on boats.

 This caused distribution problems in many parts of the country where
marine fuel retailers - who often have only one diesel tank and pump -
were forced to make a choice between selling to either commercial or
recreational customers.

 Now, along major stretches of the east coast from Connecticut to Maine;
the ***ia coast; along the Gulf Coast from Tampa, Florida to Galveston,
Texas; in parts of California; and the Pacific Northwest and much of
Alaska, owners of recreational diesel-powered boats have to travel for
hours, if not days, to obtain clear diesel fuel.

BOAT/U.S. urged the lawmakers to co-sponsor S. 478, legislation introduced
last week by Sens. John Breaux (LA) and John Chafee (RI), which would
allow recreational boaters to purchase any color fuel as long as they paid
the necessary tax to the fuel retailer. Last year, the Senate voted 79-20
to approve similar legislation.

BOAT/U.S. is also urging all owners of diesel-powered boats to contact the
chairmen of the Congressional tax-writing committees - Senate Finance
Committee Chairman Bob Packwood (OR) and House Ways and Means Committee
Chairman Bill Archer (TX), to encourage them to approve corrective
legislation this year.