BOAT/U.S. Newswire: Bill Would Solve Diesel Fuel Dilemma

BOAT/U.S. Newswire: Bill Would Solve Diesel Fuel Dilemma

Post by BOAT » Fri, 22 Apr 1994 23:53:02

From the BOAT/U.S. Newswire, 4/20/94. Contact: Dave Pilvelait, director, media

Legislation Introduced to Resolve Diesel Fuel Tax Dilemma
WASHINGTON, DC - U.S. Senator John Breaux of Louisiana has introduced
legislation that would put an end to the chaos caused by Internal Revenue
Service (IRS) regulations on diesel fuel used by recreational boat owners.

To enforce compliance with a 24.4 cents per gallon federal tax imposed January
1 on diesel fuel used only by recreational boaters, the IRS issued regulations
that prohibit diesel boat owners from purchasing anything but clear "taxed" low
sulfur fuel. Commercial boaters are allowed to purchase blue-dyed "untaxed"
high sulfur fuel.

However, most marine fuel retailers have only one tank and pump, forcing them
to choose between fueling either recreational or commercial vessels. This has
led to major shortages around the country, according to BOAT/U.S. (Boat Owners
Association of The United States). The association reports that some diesel
boaters have had to travel up to two days to find clear "taxed" fuel.

Senator Breaux's bill, S. 2029, would allow recreational diesel boat owners to
purchase any kind of fuel, including blue-dyed diesel and pay the federal tax
to the fuel retailer, who would then turn the tax over to the IRS.

"The current situation is not simply a matter of inconvenience, it's a major
safety issue, especially if a boat runs out of fuel in bad weather or at
night," said BOAT/U.S. Government Affairs Vice President Michael Sciulla.

BOAT/U.S. is urging all diesel boat owners to contact their U.S. Senators to
ask that they cosponsor S. 2029. Anyone having difficulty obtaining diesel fuel