November 16, 1993
New Law Puts Excise Tax
on Fuel Floor Stocks
WASHINGTON - Recent legislation has imposed a floor stocks
excise tax on certain transportation fuels, due to the Internal
Revenue Service by Nov. 30.
Any person holding gasoline, diesel fuel or non-commercial
aviation fuel on Oct. 1, 1993, on which tax was imposed before Oct.
1, 1993, is liable for this additional tax, according to the IRS.
This tax will not apply to fuel held in vehicle supply tanks of
cars or trucks. It will also not apply to fuel in storage tanks
with an aggregate of fewer than 4,000 gallons of gas, or 2,000
gallons each of diesel or aviation fuel.
For fuel previously taxed at the 14.1-cent or 20.1-cent rates,
or at some other rate required by law, the floor stock tax is 4.3
cents per gallon.
Any taxpayer who is liable for the floor stock tax, and who is
also liable for other excise taxes normally due Oct. 31--Nov. 1 this
year because of the weekend--may file Form 720, Quarterly Federal
Excise Tax Return, for all third-quarter excise taxes on or before
November 30. The delayed filing date for the Form 720, however,
does not extend the due date for making deposits or payments of
other excise taxes.
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