Sec. 3. Freight mobility infrastructure tax

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Chapter 33 of the Internal Revenue Code of 1986 is amended by adding after subchapter C the following new subchapter: Sec. 4286. Imposition of tax. There is hereby imposed upon taxable ground transportation of property within the United States a tax equal to 1 percent of the amount paid for such transportation. Except as provided by paragraph (2), the tax imposed by subsection

(a)shall be paid— by the person making the payment subject to tax, or in the case of transportation by a related person, by the person for whom such transportation is made. If a payment subject to tax under subsection

(a)is made outside the United States and the person making such payment does not pay such tax, such tax— shall be paid by the person to whom the property is delivered in the United States after the final segment of transportation in the United States, and shall be collected by the person furnishing the last segment of such transportation. For purposes of this section, rules similar to the rules of section 4271(c) shall apply. In the case of transportation of property by the taxpayer or a person related to the taxpayer, the fair market value of such transportation shall be the amount which would be paid for transporting such property if such property were transported by an unrelated person, determined on an arms’ length basis. For purposes of this subchapter— The term taxable ground transportation means transportation of property by— freight rail, or commercial motor vehicle (as defined in section 31101(1) of title 49, United States Code) for a distance of more than 50 miles. For purposes of subparagraph (A), the term property does not include baggage accompanying a passenger traveling on an established line. A person (hereinafter in this paragraph referred to as the related person ) is related to any person if— the related person bears a relationship to such person specified in section 267(b) or 707(b)(1), or the related person and such person are engaged in trades or businesses under common control (within the meaning of subsections

(a)and

(b)of section 52). For purposes of the preceding sentence, in applying section 267(b) and 707(b)(1), 10 percent shall be substituted for 50 percent . There are hereby appropriated to the National Freight Mobility Infrastructure Fund amounts equivalent to the taxes received in the Treasury under subsection (a). The tax imposed by subsection

(a)shall not apply to the transportation of property purchased for the exclusive use of the United States, or any State or political subdivision thereof. . Section 6415 of such Code is amended by striking or 4271 each place it appears and inserting 4271, or 4286 . Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury shall issue regulations to carry out the amendments made by this section. The amendments made by this section shall apply to transportation beginning on or after the last day of the 180-day period beginning on the date of the issuance of regulations under subsection (c).