26 U.S.C. § 4042 - U.S. Code - Unannotated Title 26. Internal Revenue Code § 4042. Tax on fuel used in commercial transportation on inland waterways

(1) In general.--The rate of the tax imposed by subsection (a) is the sum of--

(2) Rates.--For purposes of paragraph (1)--

(3) Exception for fuel on which Leaking Underground Storage Tank Trust Fund financing rate separately imposed.--The Leaking Underground Storage Tank Trust Fund financing rate under paragraph (2)(B) shall not apply to the use of any fuel if tax was imposed with respect to such fuel under section 4041(d) or 4081 at the Leaking Underground Storage Tank Trust Fund financing rate.

(4) Termination of Leaking Underground Storage Tank Trust Fund financing rate.--The Leaking Underground Storage Tank Trust Fund financing rate under paragraph (2)(B) shall not apply during any period during which the Leaking Underground Storage Tank Trust Fund financing rate under section 4081 does not apply.

(1) Deep-draft ocean-going vessels.--The tax imposed by subsection (a) shall not apply with respect to any vessel designed primarily for use on the high seas which has a draft of more than 12 feet.

(2) Passenger vessels.--The tax imposed by subsection (a) shall not apply with respect to any vessel used primarily for the transportation of persons.

(3) Use by State or local government in transporting property in a state or local business.--Subparagraph (B) of subsection (d)(1) shall not apply with respect to use by a State or political subdivision thereof.

(4) Use in moving LASH and SEABEE ocean-going barges.--The tax imposed by subsection (a) shall not apply with respect to use for movement by tug of exclusively LASH (Lighter-aboard-ship) and SEABEE ocean-going barges released by their ocean-going carriers solely to pick up or deliver international cargoes.

(1) Commercial waterway transportation.--The term “commercial waterway transportation” means any use of a vessel on any inland or intracoastal waterway of the United States--

(2) Inland or intracoastal waterway of the United States.--The term “inland or intracoastal waterway of the United States” means any inland or intracoastal waterway of the United States which is described in section 206 of the Inland Waterways Revenue Act of 1978.

(3) Person.--The term “person” includes the United States, a State, a political subdivision of a State, or any agency or instrumentality of any of the foregoing.