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legislative history accompanying the 1978 amendment of section
6421 supports their expansive definition of “automobile bus”:
Explanation of provisions
The bill removes the excise taxes on highway tires,
inner tubes, and tread rubber, gasoline and other motor
fuels, and lubricating oil for private intercity, local
and school bus operations.
* * * * * * *
An “intercity or local bus” means any bus which is used
predominantly in furnishing (for compensation)
passenger land transportation available to the general
public if either (1) the transportation is scheduled
and along regular routes, or (2) the passenger seating
capacity of the bus is at least 20 adults (not
including the driver). Thus, under the first
alternative portion of this definition, a bus which is
used predominantly (that is, more than 50 percent) in
providing (for compensation) scheduled transportation
along regular routes (such as is provided by local
transit systems or an intercity bus operation providing
regularly scheduled service along regular routes) will
qualify for the exemption from the taxes on tires,
tubes, and tread rubber, regardless of the size of the
bus involved. For nonscheduled (i.e., charter)
operations (covered by the second alternative portion
of the definition), the exemption is available only if
the bus has a passenger seating capacity of at least 20
adults (not including the driver) and the
transportation is available to the general public. The
purpose of the “at least 20 passenger” requirement is
to insure that, in situations where regularly scheduled
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