way Act of 1954; except that the amount expended for the purposes of this section shall not exceed $200,000.

Sec. 118. Emergency fund

And provided further, That the funds herein authorized shall be available for use on any projects programed and approved at any time during the fiscal year ending June 30, 1956, and thereafter, which meet the provisions of this section, including projects which may have been previously approved during the fiscal year ending June 30, 1956, from any other category of funds under the Federal-Aid Road Act approved July 11, 1916, as amended and supplemented.

TITLE II-HIGHWAY REVENUE ACT OF 1956*

Sec. 201. Short title for title II

(a) SHORT TITLE. This title may be cited as the "Highway Revenue Act of 1956".

(b) AMENDMENT OF 1954 CODE.-Whenever in this title an amendment is expressed in terms of an amendment to 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 1954. Sec. 202. Increase in taxes on diesel fuel and on special motor

fuels

(a) DIESEL FUEL.-Subsection (a) of section 4041 (relating to tax on diesel fuel) is amended by striking out "2 cents a gallon" and inserting in lieu thereof "3 cents a gallon”, and by adding after paragraph (2) the following:

"In the case of a liquid taxable under this subsection sold for use or used as a fuel in a diesel-powered highway vehicle (A) which (at the time of such sale or use) is not registered, and is not required to be registered, for highway use under the laws of any State or foreign country, or (B) which, in the case of a dieselpowered highway vehicle owned by the United States, is not used on the highway, the tax imposed by paragraph (1) or by paragraph (2) shall be 2 cents a gallon in lieu of 3 cents a gallon. If a liquid on which tax was imposed by paragraph (1) at the rate of 2 cents a gallon by reason of the preceding sentence is used as a fuel in a diesel-powered highway vehicle (A) which (at the time of such use) is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or (B) which, in the case of a diesel-powered highway vehicle owned by the United States, is used on the highway, a tax of 1 cent a gallon shall be imposed under paragraph (2).”

(b) SPECIAL MOTOR FUELS.-Subsection (b) of section 4041 (relating to special motor fuels) is amended by striking out "2 cents a gallon" and inserting in lieu thereof "3 cents a gallon”, and by adding after paragraph (2) the following:

"In the case of a liquid taxable under this subsection sold for use Or used otherwise than as a fuel for the propulsion of a highway vehicle (A) which (at the time of such sale or use) is registered. or is required to be registered, for highway use under the laws of

4 For amendments to this title by Sec. 201 of the Federal-Aid Highway Act of 959, see pp. 80-83. For complete text of tax laws, see Title 26, United States Code.

any State or foreign country, or (B) which, in the case of a highway vehicle owned by the United States, is used on the highway, the tax imposed by paragraph (1) or by paragraph (2) shall be 2 cents a gallon in lieu of 3 cents a gallon. If a liquid on which tax was imposed by paragraph (1) at the rate of 2 cents a gallon by reason of the preceding sentence is used as a fuel for the propulsion of a highway vehicle (A) which (at the time of such use) is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or (B) which, in the case of a highway vehicle owned by the United States, is used on the highway, a tax of 1 cent a gallon shall be imposed under paragraph (2)."

(c) RATE REDUCTION.-Subsection (c) of section 4041, relating to rate reduction) is amended to read as follows:

"(c) RATE REDUCTION.-On and after July 1, 1972

"(1) the taxes imposed by this section shall be 112 cents a gallon; and

"(2) the second and third sentences of subsections (a) and (b) shall not apply."

Sec. 203. Increase in tax on trucks, truck trailers, buses, etc.

So much of paragraph (1) of section 4061 (a) (relating to tax on trucks, truck trailers, buses, etc.) as precedes "Automobile truck chassis" is amended to read as follows:

"(1) Articles taxable at 10 percent, except that on and after July 1, 1972, the rate shall be 5 percent-”.

Sec. 204. Increase in taxes on tires of the type used on highway vehicles; tax on tread rubber, etc.

(a) IN GENERAL.-Section 4071 (relating to tax on tires and tubes) is amended to read as follows:

"Sec. 4071. Imposition of tax

"(a) IMPOSITION AND RATE OF TAX.-There is hereby imposed upon the following articles, if wholly or in part of rubber, sold by the manufacturer, producer, or importer, a tax at the following

rates:

"(1) Tires of the type used on highway vehicles, 8 cents a pound.

"(2) Other tires, 5 cents a pound.

"(3) Inner tubes for tires, 9 cents a pound.

"(4) Tread rubber, 3 cents a pound.

"(b) DETERMINATION OF WEIGHT.-For purposes of this section, weight shall be based on total weight, except that in the case of tires such total weight shall be exclusive of metal rims or rim bases. Total weight of the articles shall be determined under regulations prescribed by the Secretary or his delegate.

(c) RATE REDUCTION.-On and after July 1, 1972

"(1) the tax imposed by paragraph (1) of subsection (a) shall be 5 cents a pound; and

66

"(2) paragraph (4) of subsection (a) shall not apply." (b) TREAD RUBBER DEFINED.-Section 4072 (defining the term "rubber") is amended to read as follows:

5 For amendments relating to laminated tires, see the Act approved April 22, 1960 (74 Stat. 80).

"Sec. 4072. Definitions

"(a) RUBBER. For purposes of this chapter, the term 'rubber' includes synthetic and substitute rubber.

"(b) TREAD RUBBER.-For purposes of this chapter, the term tread rubber' means any material—

"(1) which is commonly or commercially known as tread rubber or camelback; or

"(2) which is a substitute for a material described in paragraph (1) and is of a type used in recapping or retreading

tires.

"(c) TIRES OF THE TYPE USED ON HIGHWAY VEHICLES.-For purposes of this part, the term 'tires of the type used on highway vehicles' means tires of the type used on

"(1) motor vehicles which are highway vehicles, or

"(2) vehicles of the type used in connection with motor vehicles which are highway vehicles."

(c) EXEMPTION OF CERTAIN TREAD RUBBER FROM TAX.-Section 4073 (relating to exemptions) is amended by adding at the end thereof the following new subsection :

"(c) EXEMPTION FROM TAX ON TREAD RUBBER IN CERTAIN CASES.-Under regulations prescribed by the Secretary or his delegate, the tax imposed by section 4071 (a) (4) shall not apply to tread rubber sold by the manufacturer, producer, or importer, to any person for use by such person otherwise than in the recapping or retreading of tires of the type used on highway vehicles."

(d) TECHNICAL AMENDMENT.-The table of sections for part II of subchapter A of chapter 32 is amended by striking out

"Sec. 4072. Definition of rubber."

and inserting in lieu thereof

"Sec. 4072. Definitions."

Sec. 205. Increase in tax on gasoline

Section 4081 (relating to tax on gasoline) is amended to read Ls follows:

'Sec. 4081. Imposition of tax

"(a) IN GENERAL.-There is hereby imposed on gasoline sold y the producer or importer thereof, or by any producer of gasoine, a tax of 3 cents a gallon.

"(b) RATE REDUCTION.-On and after July 1, 1972, the tax mposed by this section shall be 12 cents a gallon.”

jec. 206. Tax on use of certain vehicles

(a) IMPOSITION OF TAX.-Chapter 36 (relating to certain other xcise taxes) is amended by adding at the end thereof the followng new subchapter:

"Subchapter D-Tax on Use of Certain Vehicles

"Sec. 4481. Imposition of tax.

"Sec. 4482. Definitions.

"Sec. 4483. Exemptions.

"Sec. 4484. Cross reference.

"Sec. 4481. Imposition of tax

"(a) IMPOSITION OF TAX.-A tax is hereby imposed on the use of any highway motor vehicle which (together with the semitrailers and trailers customarily used in connection with highway motor vehicles of the same type as such highway motor vehicle) has a taxable gross weight of more than 26,000 pounds, at the rate of $1.50 a year for each 1,000 pounds of taxable gross weight or fraction thereof.

"(b) BY WHOм PAID.-The tax imposed by this section shall be paid by the person in whose name the highway motor vehicle is, or is required to be, registered under the law of the State in which such vehicle is, or is required to be, registered, or, in case the highway motor vehicle is owned by the United States, by the agency or instrumentality of the United States operating such vehicle.

"(c) PRORATION OF TAX.-If in any year the first use of the highway motor vehicle is after July 31, the tax shall be reckoned proportionately from the first day of the month in which such use occurs to and including the 30th day of June following.

"(d) ONE PAYMENT PER YEAR.-If the tax imposed by this section is paid with respect to any highway motor vehicle for any year, no further tax shall be imposed by this section for such year with respect to such vehicle.

"(e) PERIOD TAX IN EFFECT. The tax imposed by this section shall apply only to use after June 30, 1956, and before July 1,

1972.

"Sec. 4482. Definitions

"(a) HIGHWAY MOTOR VEHICLE. For purposes of this subchapter, the term 'highway motor vehicle' means any motor vehicle which is a highway vehicle.

"(b) TAXABLE GROSS WEIGHT. For purposes of this subchapter, the term 'taxable gross weight', when used with respect to any highway motor vehicle, means the sum of

"(1) the actual unloaded weight of—

"(A) such highway motor vehicle fully equipped for service, and

"(B) the semitrailers and trailers (fully equipped for service) customarily used in connection with highway motor vehicles of the same type as such highway motor vehicle, and

"(2) the weight of the maximum load customarily carried on highway motor vehicles of the same type as such highway motor vehicle and on the semitrailers and trailers referred to in paragraph (1)(B).

Taxable gross weight shall be determined under regulations prescribed by the Secretary or his delegate (which regulations may include formulas or other methods for determining the taxable gross weight of vehicles by classes, specifications, or otherwise). "(c) OTHER DEFINITIONS. For purposes of this subchapter"(1) STATE. The term 'State' means a State, a Territory of the United States, and the District of Columbia.

"(2) YEAR. The term 'year' means the one-year period beginning on July 1.

"(3) USE. The term 'use' means use in the United States on the public highways.

"Sec. 4483. Exemptions

"(a) STATE AND LOCAL GOVERNMENTAL EXEMPTION.-Under regulations prescribed by the Secretary or his delegate, no tax shall be imposed by section 4481 on the use of any highway motor vehicle by any State or any political subdivision of a State.

"(b) EXEMPTION FOR UNITED STATES.-The Secretary may authorize exemption from the tax imposed by section 4481 as to the use by the United States of any particular highway motor vehicle, or class of highway motor vehicles, if he determines that the imposition of such tax with respect to such use will cause substantial burden or expense which can be avoided by granting tax exemption and that full benefit of such exemption, if granted, will accrue to the United States.

"(c) CERTAIN TRANSIT-TYPE BUSES.-Under regulations prescribed by the Secretary or his delegate, no tax shall be imposed by section 4481 on the use of any bus which is of the transit type (rather than of the intercity type) by a person who, for the last 3 months of the preceding year (or for such other period as the Secretary or his delegate may by regulations prescribe for purposes of this subsection), met the 60-percent passenger fare revenue test set forth in section 6421 (b) (2) as applied to the period prescribed for purposes of this subsection.

“Sec. 4484. Cross reference

"For penalties and administrative provisions applicable to this subchapter, see subtitle F."

(b) MODE AND TIME OF COLLECTION OF TAX.-Section 6302 (b) (relating to discretion as to method of collecting tax) is amended by inserting "section 4481 of chapter 36," after "33,".

(c) TECHNICAL AMENDMENT.-The table of subchapters for chapter 36 is amended by adding at the end thereof the following: "Subchapter D. Tax on use of certain vehicles."

Sec. 207. Floor stocks taxes

(a) IMPOSITION OF TAXES.-Subchapter F of chapter 32 (special provisions applicable to manufacturers excise taxes) is amended by renumbering section 4226 as 4227 and by inserting after section 4225 the following new section:

"Sec. 4226. Floor stocks taxes

"(a) IN GENERAL.

"(1) 1956 TAX ON TRUCKS, TRUCK TRAILERS, BUSES, ETC.-On any article subject to tax under section 4061(a) (1) (relating to tax on trucks, truck trailers, buses, etc.) which, on July 1, 1956, is held by a dealer for sale, there is hereby imposed a floor stocks tax at the rate of 2 percent of the price for which the article was purchased by such dealer. If the price for which the article was sold by the manufacturer, producer, or importer is established to the satisfaction of the Secretary or his delegate, then in lieu of the amount specified in the preceding sentence, the tax imposed by this paragraph shall be at