The election to pay in installments has been repealed, beginning with Form 2290 for the period July 1, 2005, through June 30, 2006.

Super single tires designed for steering are taxable at the rate of $.0945, retroactive to January 1, 2005. Taxpayers must file Form 720X to report the $.04725 tax rate increase on super single tires designed for steering reported on Forms 720 for the first and second calendar quarters of 2005.

The gas guzzler tax on limousines with a gross unloaded vehicle weight of greater than 6,000 pounds is repealed, effective for sales, uses, or leases by the manufacturer, producer, or importer.

Fishing rods and fishing poles (and component parts) taxed at a rate of 10% will have a maximum tax of $10 per article.

Tractors that have a gross vehicle weight of 19,500 pounds or less and a gross combined weight of 33,000 pounds or less are excluded from the 12% retail tax.

The taxation and claims relating to kerosene for use in aviation have been revised. The terminology has changed from aviation-grade kerosene to kerosene for use in aviation. Generally, kerosene is taxed at $.244 per gallon unless a reduced rate applies.

Registered ultimate vendors claims for undyed diesel fuel and undyed kerosene (other than kerosene for use in aviation) sold for use on a farm for farming purposes have been eliminated. Ultimate purchasers may use Schedule C (Form 720), Schedule 1 (Form 8849), or Form 4136 to make these claims.

The LUST tax rate ($.001) generally applies to removals, entries, and sales of dyed diesel fuel, dyed kerosene, kerosene for use in aviation (nontaxable uses and foreign trade), gasoline blendstocks, kerosene used for a feedstock purpose, and diesel fuel or kerosene used in Alaska. The following IRS Nos. have been added to Form 720.

The LUST tax will not be credited or refunded, except for exported taxable fuel. The rates on Schedule C (Form 720), Schedules 1 and 2 (Form 8849), and Form 4136 have been reduced by $.001 to reflect this change. Lines have been added to Schedule C (Form 720), Schedule 1 (Form 8849), and Form 4136 to make claims for exported taxable fuel.

For amounts paid during 2006, the tax on the use of international air travel facilities will be $14.50 per person for flights that begin or end in the United States, or $7.30 per person for domestic segments that begin or end in Alaska or Hawaii (applies only to departures). For amounts paid for each domestic segment of taxable transportation of persons by air, the domestic segment tax is $3.30 per segment for transportation that begins in 2006.

The tax on arrow shafts has increased to $.40 per arrow shaft.

Renewable diesel will generally be treated the same as biodiesel for credit purposes. The renewable diesel mixture credit is $1.00 per gallon of renewable diesel.

A reduced rate of tax on a diesel-water fuel emulsion applies if certain conditions are met. IRS No. 104 has been added to Form 720. Claims can be made for nontaxable uses of a diesel-water fuel emulsion and for diesel fuel used to produce a diesel-water fuel emulsion.

Three new IRS Nos. have been added to report taxable tires instead of IRS No. 66.

Claims for gasoline, undyed diesel fuel, and undyed kerosene used exclusively by a state or local government or nonprofit educational organization can be made by the registered credit card issuer if the fuel was purchased with a credit card issued to the state or local government or nonprofit educational organization. Other conditions must be met.

The oil spill liability taxes (IRS Nos. 18 and 21) have been reinstated beginning April 1, 2006.