I.R.C. § 4671(a) General Rule
There is hereby imposed a tax on any taxable substance sold or used by the importer
I.R.C. § 4671(b) Amount Of Tax
I.R.C. § 4671(b)(1) In General
Except as provided in paragraph (2), the amount of the tax imposed by subsection
(a) with respect to any taxable substance shall be the amount of the tax which would
have been imposed by section 4661
on the taxable chemicals
used as materials in the manufacture or production of such substance if such taxable
chemicals had been sold in the United States for use in the manufacture or production
of such taxable substance.
I.R.C. § 4671(b)(2) Rate Where Importer Does Not Furnish Information To Secretary
If the importer does not furnish to the Secretary (at such time and in such manner
as the Secretary shall prescribe) sufficient information to determine under paragraph
(1) the amount of the tax imposed by subsection (a) on any taxable substance, the
amount of the tax imposed on such taxable substance shall be 5 percent of the appraised
value of such substance as of the time such substance was entered into the United
States for consumption, use, or warehousing.
I.R.C. § 4671(b)(3) Authority To Prescribe Rate In Lieu Of Paragraph (2) Rate
The Secretary may prescribe for each taxable substance a tax which, if prescribed,
shall apply in lieu of the tax specified in paragraph (2) with respect to such substance.
The tax prescribed by the Secretary shall be equal to the amount of tax which would
be imposed by subsection (a) with respect to the taxable substance if such substance
were produced using the predominant method of production of such substance.
I.R.C. § 4671(c) Exemptions For Substances Taxed Under Sections 4611 And 4661
No tax shall be imposed by this section on the sale or use of any substance if tax
is imposed on such sale or use under section 4611
I.R.C. § 4671(d) Tax-Free Sales, Etc. For Substances Used As Certain Fuels Or In The Production Of
Fertilizer Or Animal Feed
Rules similar to the following rules shall apply for purposes of applying this section
with respect to taxable substances used or sold for use as described in such rules:
I.R.C. § 4671(d)(1)
Paragraphs (2), (5), and (9) of section 4662(b)
(relating to tax-free sales of chemicals used as fuel or in the production
of fertilizer or animal feed).
I.R.C. § 4671(d)(2)
Paragraphs (2), (3), and (4) of section 4662(d)
(relating to refund or credit of tax on certain chemicals used as fuel or in the
production of fertilizer or animal feed).
I.R.C. § 4671(e) Termination
No tax shall be imposed under this section during any period during which the Hazardous
Substance Superfund financing rate under section 4611
does not apply.
(Added Pub. L. 99-499, title V, 515(a), Oct. 17, 1986,
100 Stat. 1767, and amended Pub. L. 99-509, title VIII, 8032(c)(3), Oct. 21, 1986, 100 Stat. 1958.)
1986--Subsec. (e). 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)”.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-509 effective on the commencement date as defined in section 4611(f)(2), see section
8032(d) of Pub. L. 99-509, set out as a note under section 4611 of this title.
Section 515(c) of Pub. L. 99-499 provided that:
“The amendments made by this section [enacting this subchapter] shall take effect
on January 1, 1989.”
Section 515(d) of Pub. L. 99-499 provided that:
“(1) In general.--The Secretary of the Treasury or his delegate shall conduct
a study of issues relating to the implementation of--
“(A) the tax imposed by the section 4671 of the Internal Revenue Code
of 1986 (as added by this section), and
“(B) the credit for exports of taxable substances under section 4661(e)(2)(A)(ii)(II)
of such Code.
In conducting such study, the Secretary of the Treasury or his delegate shall consult
with the Environmental Protection Agency and the International Trade Commission.
“(2) Report.--The report of the study under paragraph
(1) shall be submitted not later than January 1, 1988, to the Committee on Ways and
Means of the House of Representatives and the Committee on Finance of the Senate.”