Rep. Markey Seeks Revision of Tar Sands Import Tax Regulations
Rep. Ed Markey (D-Mass.) asked Treasury Secretary Tim Geithner in a July 31 letter to review an Internal Revenue Service (IRS) decision that exempts importers of tar sands oils from paying into a trust fund reserved to pay for oil…
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spill cleanups. Crude oil importers are required to pay a 8-cents-per-barrel excise tax, which is the largest revenue source for the trust fund, he said. An IRS decision in May 2011 said tar sands oil is not crude oil, and therefore importers of tar sands oil don't have to pay into the Oil Spill Liability Trust Fund. Markey said the IRS decision was based off an "outdated" 1980 congressional report that said the term 'crude oil' didn't include tar sands oils. The IRS decision was a result of "inadequate understanding" of terminology used by regulatory and industry bodies, he said.