WASHINGTON, DC - A senior member of the tax-writing House Ways and Means
Committee, Rep. Clay Shaw (FL), has introduced legislation that would help
resolve a federal regulatory problem that has made it difficult, if not
impossible, for many owners of diesel-powered recreationalboats to obtain
H.R. 1956 would suspend for two years a 24.4 cents per gallon tax on
diesel fuel used only by recreational boat owners in order to give the
Treasury Department time to develop a less burdensome means of collecting
the tax. The tax was levied by Congress in order to raise revenue to
offset the repeal of the 10% luxury tax on boats, furs and jewelry.
Treasury Department regulations issued last year mandated that non-taxed,
marine diesel fuel to be used by commercial boats be dyed red, to
differentiate it from the clear, taxed fuel to be used by recreational
boats. This method has caused distribution problems in many parts of the
USA where marine fuel retailers - who often have just one diesel tank and
pump - have been forced to choose between selling to either commercial or
This boating season, owners of diesel-powered recreational boats along the
east and gulf coasts, parts of California, the Pacific Northwest and
Alaska have had to travel for hours, and in some cases days, to obtain
clear diesel fuel.
BOAT/U.S. is urging boaters to contact their representatives in Congress
to encourage them to support the Shaw bill, H.R. 1956.