26 U.S.C. § 4661 — Imposition of tax

Page 2996 TITLE 26—INTERNAL REVENUE CODE § 4661 Executive Documents TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS For termination of Trust Territory of the Pacific Is- lands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions. Subchapter B—Tax on Certain Chemicals Sec. 4661. Imposition of tax. 4662. Definitions and special rules. § 4661. Imposition of tax (a) General rule There is hereby imposed a tax on any taxable chemical sold by the manufacturer, producer, or importer thereof. (b) Amount of Tax The amount of tax imposed by subsection (a) shall be determined in accordance with the fol- lowing table: In the case of: The tax is the following amount per ton: Acetylene .......................................... $9.74 Benzene ............................................. 9.74 Butane ............................................... 9.74 Butylene ............................................ 9.74 Butadiene .......................................... 9.74 Ethylene ............................................ 9.74 Methane ............................................. 6.88 Napthalene ........................................ 9.74 Propylene .......................................... 9.74 Toluene .............................................. 9.74 Xylene ............................................... 9.74 Ammonia ........................................... 5.28 Antimony .......................................... 8.90 Antimony trioxide ............................. 7.50 Arsenic .............................................. 8.90 Arsenic trioxide ................................. 6.82 Barium sulfide ................................... 4.60 Bromine ............................................. 8.90 Cadmium ........................................... 8.90 Chlorine ............................................. 5.40 Chromium .......................................... 8.90 Chromite ........................................... 3.04 Potassium dichromate ...................... 3.38 Sodium dichromate ........................... 3.74 Cobalt ................................................ 8.90 Cupric sulfate .................................... 3.74 Cupric oxide ....................................... 7.18 Cuprous oxide .................................... 7.94 Hydrochloric acid .............................. 0.58 Hydrogen fluoride .............................. 8.46 Lead oxide ......................................... 8.28 Mercury ............................................. 8.90 Nickel ................................................ 8.90 Phosphorus ........................................ 8.90 Stannous chloride ............................. 5.70 Stannic chloride ................................ 4.24 Zinc chloride ..................................... 4.44 Zinc sulfate ....................................... 3.80 Potassium hydroxide ......................... 0.44 Sodium hydroxide ............................. 0.56 Sulfuric acid ...................................... 0.52 Nitric acid ......................................... 0.48. (c) Termination No tax shall be imposed by this section after December 31, 2031. (Added Pub. L. 96–510, title II, § 211(a), Dec. 11, 1980, 94 Stat. 2798; amended Pub. L. 99–499, title V, § 513(a), Oct. 17, 1986, 100 Stat. 1761; Pub. L. 99–509, title VIII, § 8032(c)(3), Oct. 21, 1986, 100 Stat. 1958; Pub. L. 117–58, div. H, title II, § 80201(a)(1), (b)(1), Nov. 15, 2021, 135 Stat. 1328, 1329.) Editorial Notes CODIFICATION Amendment by Pub. L. 99–509, title VIII, § 8031(d)(2), Oct. 21, 1986, 100 Stat. 1956, to subsec. (c) of this section was not executed to text pursuant to Pub. L. 99–509, title VIII, § 8031(e)(2), which provided that the amend- ments made by section 8031 shall not take effect if the Superfund Amendments and Reauthorization Act of 1986 is enacted. The Superfund Amendments and Reau- thorization Act of 1986 was enacted as Pub. L. 99–499, approved Oct. 17, 1986. AMENDMENTS 2021—Subsec. (b). Pub. L. 117–58, § 80201(b)(1), amended subsec. (b) generally. Prior to amendment, subsec. (b) set out the amount of tax on certain taxable chemicals. Subsec. (c). Pub. L. 117–58, § 80201(a)(1), amended sub- sec. (c) generally. Prior to amendment, text read as fol- lows: ‘‘No tax shall be imposed under this section dur- ing any period during which the Hazardous Substance Superfund financing rate under section 4611 does not apply.’’ 1986—Subsec. (b). Pub. L. 99–499 inserted at end ‘‘For periods before 1992, the item relating to xylene in the preceding table shall be applied by substituting ‘10.13’ for ‘4.87’.’’ Subsec. (c). Pub. L. 99–509 substituted ‘‘the Hazardous Substance Superfund financing rate under section 4611 does not apply’’ for ‘‘no tax is imposed under section 4611(a)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Pub. L. 117–58, div. H, title II, § 80201(d), Nov. 15, 2021, 135 Stat. 1330, provided that: ‘‘The amendments made by this section [amending this section and sections 4671 and 4672 of this title] shall take effect on July 1, 2022.’’ EFFECTIVE DATE OF 1986 AMENDMENTS Amendment by Pub. L. 99–509 effective on commence- ment date as defined in former section 4611(f)(2), see section 8032(d) of Pub. L. 99–509, set out as a note under section 4611 of this title. Pub. L. 99–499, title V, § 513(h), Oct. 17, 1986, 100 Stat. 1765, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section [amending this section and section 4662 of this title] shall take effect on January 1, 1987. ‘‘(2) REPEAL OF TAX ON XYLENE FOR PERIODS BEFORE OCTOBER 1, 1985.— ‘‘(A) REFUND OF TAX PREVIOUSLY IMPOSED.— ‘‘(i) IN GENERAL.—In the case of any tax imposed by section 4661 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] on the sale or use of xylene before October 1, 1985, such tax (including interest, additions to tax, and additional amounts) shall not be assessed, and if assessed, the assessment shall be abated, and if collected shall be credited or re- funded (with interest) as an overpayment. ‘‘(ii) CONDITION TO ALLOWANCE.—Clause (i) shall not apply to a sale of xylene unless the person who (but for clause (i)) would be liable for the tax im- posed by section 4661 on such sale meets require- ments similar to the requirements of paragraph (1) of section 6416(a) of such Code. For purposes of the preceding sentence, subparagraph (A) of section 6416(a)(1) of such Code shall be applied without re- gard to the material preceding ‘has not collected’. Page 2997 TITLE 26—INTERNAL REVENUE CODE § 4662 ‘‘(B) WAIVER OF STATUTE OF LIMITATIONS.—If on the date of the enactment of this Act [Oct. 17, 1986] (or at any time within 1 year after such date of enactment) refund or credit of any overpayment of tax resulting from the application of subparagraph (A) is barred by any law or rule of law, refund or credit of such over- payment shall, nevertheless, be made or allowed if claim therefor is filed before the date 1 year after the date of the enactment of this Act. ‘‘(C) XYLENE TO INCLUDE ISOMERS.—For purposes of this paragraph, the term ‘xylene’ shall include any isomer of xylene whether or not separated. ‘‘(3) INVENTORY EXCHANGES.— ‘‘(A) IN GENERAL.—Except as otherwise provided in this paragraph, the amendment made by subsection (f) [amending section 4662 of this title] shall apply as if included in the amendments made by section 211 of the Hazardous Substance Response Revenue Act of 1980 [Pub. L. 96–510, enacting this chapter]. ‘‘(B) RECIPIENT MUST AGREE TO TREATMENT AS MANU- FACTURER.—In the case of any inventory exchange be- fore January 1, 1987, the amendment made by sub- section (f) shall apply only if the person receiving the chemical from the manufacturer, producer, or im- porter in the exchange agrees to be treated as the manufacturer, producer, or importer of such chemical for purposes of subchapter B of chapter 38 of the In- ternal Revenue Code of 1986. ‘‘(C) EXCEPTION WHERE MANUFACTURER PAID TAX.—In the case of any inventory exchange before January 1, 1987, the amendment made by subsection (f) shall not apply if the manufacturer, producer, or importer treated such exchange as a sale for purposes of sec- tion 4661 of such Code and paid the tax imposed by such section. ‘‘(D) REGISTRATION REQUIREMENTS.—Section 4662(c)(2)(B) of such Code (as added by subsection (f)) shall apply to exchanges made after December 31, 1986. ‘‘(4) EXPORTS OF TAXABLE SUBSTANCES.—Subclause (II) of section 4662(e)(2)(A)(ii) of such Code (as added by this section) shall not apply to the export of any taxable substance (as defined in section 4672(a) of such Code) before January 1, 1989. ‘‘(5) SALES OF INTERMEDIATE HYDROCARBON STREAMS.— ‘‘(A) IN GENERAL.—Except as otherwise provided in this paragraph, the amendment made by subsection (g) [amending section 4662 of this title] shall apply as if included in the amendments made by section 211 of the Hazardous Substances Response Revenue Act of 1980. ‘‘(B) PURCHASER MUST AGREE TO TREATMENT AS MAN- UFACTURER.—In the case of any sale before January 1, 1987, of any intermediate hydrocarbon stream, the amendment made by subsection (g) shall apply only if the purchaser agrees to be treated as the manufac- turer, producer, or importer for purposes of sub- chapter B of chapter 38 of such Code. ‘‘(C) EXCEPTION WHERE MANUFACTURER PAID TAX.—In the case of any sale before January 1, 1987, of any in- termediate hydrocarbon stream, the amendment made by subsection (g) shall not apply if the manu- facturer, producer, or importer of such stream paid the tax imposed by section 4661 with respect to such sale on all taxable chemicals contained in such stream. ‘‘(D) REGISTRATION REQUIREMENTS.—Section 4662(b)(10)(C) of such Code (as added by subsection (g)) shall apply to exchanges made after December 31, 1986.’’ EFFECTIVE DATE Subchapter effective Apr. 1, 1981, see section 211(c) of Pub. L. 96–510, set out as a note under section 4611 of this title. § 4662. Definitions and special rules (a) Definitions For purposes of this subchapter— (1) Taxable chemical Except as provided in subsection (b), the term ‘‘taxable chemical’’ means any sub- stance— (A) which is listed in the table under sec- tion 4661(b), and (B) which is manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing. (2) United States The term ‘‘United States’’ has the meaning given such term by section 4612(a)(4). (3) Importer The term ‘‘importer’’ means the person en- tering the taxable chemical for consumption, use, or warehousing. (4) Ton The term ‘‘ton’’ means 2,000 pounds. In the case of any taxable chemical which is a gas, the term ‘‘ton’’ means the amount of such gas in cubic feet which is the equivalent of 2,000 pounds on a molecular weight basis. (5) Fractional part of ton In the case of a fraction of a ton, the tax im- posed by section 4661 shall be the same frac- tion of the amount of such tax imposed on a whole ton. (b) Exceptions; other special rules For purposes of this subchapter— (1) Methane or butane used as a fuel Under regulations prescribed by the Sec- retary, methane or butane shall be treated as a taxable chemical only if it is used otherwise than as a fuel or in the manufacture or pro- duction of any motor fuel, diesel fuel, aviation fuel, or jet fuel (and, for purposes of section 4661(a), the person so using it shall be treated as the manufacturer thereof). (2) Substances used in the production of fer- tilizer (A) In general In the case of nitric acid, sulfuric acid, ammonia, or methane used to produce am- monia which is a qualified fertilizer sub- stance, no tax shall be imposed under sec- tion 4661(a). (B) Qualified fertilizer substance For purposes of this section, the term ‘‘qualified fertilizer substance’’ means any substance— (i) used in a qualified fertilizer use by the manufacturer, producer, or importer, (ii) sold for use by any purchaser in a qualified fertilizer use, or (iii) sold for resale by any purchaser for use, or resale for ultimate use, in a quali- fied fertilizer use. (C) Qualified fertilizer use The term ‘‘qualified fertilizer use’’ means any use in the manufacture or production of fertilizer or for direct application as a fer- tilizer. (D) Taxation of nonqualified sale or use For purposes of section 4661(a), if no tax was imposed by such section on the sale or