Special Motor Fuel [Internal Revenue] Law and Legal Definition

Pursuant to 26 CFR 48.4041-8 (d) [Title 26 Internal Revenue; Chapter I Internal Revenue Service, Department of the Treasury; Subchapter D Miscellaneous Excise Taxes; Part 48 Manufacturers and Retailers Excise Taxes; Subpart F Special Fuels], (1) Except as provided in paragraph (f)(2) of this section, the term special motor fuel means “any liquid fuel, including --

(i) Any liquefied petroleum gas (such as propane, butane, pentane, or mixtures of the same);

(ii) Liquefied natural gas; or

(iii) Benzol, benzene, naptha, or any other liquid, whether a refined, partly refined, or unrefined product, 10 percent of which has been recovered when the thermometer reads 347[degrees] F. (175[degrees] C.) or 95 percent of which has been recoverd when the thermometer reads 464[degrees] F. (240[degrees] C.) when subjected to distillation in accordance with the "Standard Method of Test for Distillation of Gasoline, Naptha, Kerosene, and Similar Petroleum Products" (A.S.T.M. designation: D86) of the American Society for Testing Materials, regardless of the trade name under which sold.

(2) The term "special motor fuel" does not include any product taxable under the provisions of section 4081 [26 USCS § 4081], nor does it include "kerosene, gas oil, or fuel oil", as defined in paragraph (g) of this section.”