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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