BOAT/U.S. Newswire: House Bill...Resolve Diesel Dilemma

BOAT/U.S. Newswire: House Bill...Resolve Diesel Dilemma

Post by BOAT » Fri, 13 May 1994 21:06:02

From the BOAT/U.S. Newswire, 5-11-94:
Hoyer Bill Would Resolve Diesel Fuel Dilemma For Boaters

 WASHINGTON, DC - Maryland Congressman Steny Hoyer today introduced legislation
that would put an end to the chaos caused by Internal Revenue Service (IRS)
regulations issued to collect federal taxes on diesel fuel sold to recreational
boat owners.
 The IRS rules prohibit recreational diesel boat owners from purchasing
anything but clear fuel taxed at the rate of 24.4 cents a gallon. Commercial
boaters are allowed to purchase blue-dyed "untaxed" fuel. However, as most
marine fuel retailers only have one diesel pump, the dual fuel rules have
forced them to choose between selling fuel to either recreational or commercial
vessels.
 The tax was imposed January 1 to offset the cost of repealing the 10% federal
luxury tax on new boats selling for over $100,000.
 The regulations have led to major shortages of fuel around the country and a
loss of business to fuel retailers, particularly where commercial and
recreational boating co-exist. BOAT/U.S. (Boat Owners Association of The United
States) has received reports that some diesel boaters have had to travel up to
two days to find clear fuel.
 Hoyer's bill, H.R. 4371, would allow recreational diesel boat owners to
purchase clear or blue-dyed fuel and simply pay the federal tax to the fuel
retailer, who would turn it over to the IRS.
 BOAT/U.S. is urging all diesel boat owners to contact their representatives in
the House and ask that they cosponsor H.R. 4371. They should also contact their
Senators to ask that they cosponsor S. 2029, an identical bill introduced in
the U.S. Senate by Sen. John Breaux of Louisiana.
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