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PUBLIC LAW 89-37-JUNE 11, 1965

[79 STAT.

NAVAL VESSELS

For naval vessels: For the Navy, $1,721,000,000, of which amount $133,600,000 is authorized only for the construction of two nuclear powered submarines and $150,500,000 is authorized only for the construction of a nuclear powered guided missile frigate. TITLE II — K E S E A R C H, DEVELOPMENT, T E S T, AND EVALUATION SEC. 201. Funds are hereby authorized to be appropriated during fiscal year 1966 for the use of the Armed Forces of the United States for research, development, test, and evaluation, as authorized by law, in amounts as follows: For the Army, $1,406,400,000; For the Navy (including the Marine Corps), $1,439,200,000; For the Air Force, $3,103,900,000, of which amount $150,000,000 is authorized only for the Manned Orbiting Laboratory and $7,000,000 is authorized only for the development of an advanced manned strategic For Defense agencies, $495,000,000. TITLE III—GENERAL PROVISIONS

77 Stat. 329.

SEC. 301. Outstanding tonnage balances remaining in law for construction of Navy ships are hereby repealed. SEC. 302. The distribution of the assignments and contracts for construction of warships and escort vessels for which appropriations are authorized by this Act and hereafter shall be in accordance with the requirement of the Act of March 27, 1934 (48 Stat. 503), that the first and each succeeding alternate vessel shall be constructed in the Government Navy yards: Provided, That, if inconsistent with the public interests in any year to have a vessel or vessels constructed as required above, the President may have such vessel or vessels built in a Government or private yard as he may direct. SEC. 303. The assignment of naval ship conversion, alteration, and repair projects shall be made on the basis of economic and military considerations and shall not be restricted by requirements that certain portions of such naval ship work be assigned to particular types of shipyards or to particular geographical areas or by similar requirements. g^c. 304. Section 412(b) of Public Law 86-149, as amended, is amended to read as follows: "(b) No funds may be appropriated after December 31, 1960, to or for the use of any armed force of the United States for the procurement of aircraft, missiles, or naval vessels, or after December 31, 1962, to or for the use of any armed force of the United States for the research, development, test, or evaluation of aircraft, missiles, or naval vessels, or after December 31, 1963, to or for the use of any armed force of the United States for any research, development, test, or evaluation, or after December 31, 1965, to or for the use of any armed force of the United States for the procurement of tracked combat vehicles, unless the appropriation of such funds has been authorized by legislation enacted after such dates." ,SEC. 305. No funds may be appropriated after June 30, 1966, to or for the use of any armed force of the United States for use as an emergency fund for research, development, test, and evaluation, or procurement or production related thereto unless the appropriation of such funds has been authorized by legislation enacted after that date.

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129

PUBLIC LAW 89-39-JUNE 14, 1965

SEC. 306. (a) Section 8074 of title 10, United States Code, is amended by adding the following new subsection at the end thereof: "(c) The Military Air Transport Service is redesignated as the Military Airlift Command." (b) The amendment made by subsection (a) of this section shall become effective January 1, 1966. Approved June 11, 1965.

72 Stat. 517.

Effective date.

Public Law 89-38 AN ACT For the relief of the town of Kure Beach, North Carolina. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury is authorized and directed to pay, out of any money in the Treasury not otherwise appropriated, to the town of Kure Beach, North Carolina, the sum of $100,000, which sum was determined by the Court of Claims in congressional case numbered 2-60, decided December 11, 1964, to be the amount equitably due to the town of Kure Beach in full settlement of its claims against the United States based upon the impairment of the collateral value of bonds issued by the Reconstruction Finance Corporation caused by the taking of a buffer zone by the Army extending across the Cape Fear River and into the town of Kure Beach and the resulting partial frustration of the town's obligation to the Housing and Home Finance Agency, holder of the bonds. The amount authorized by this Act is to be paid the town of Kure Beach, North Carolina, on the condition that it be paid to the Housing and Home Finance Agency in accordance with the stipulation entered into by the parties m the proceedings before the Court of Claims in Congressional Case No. 2-60 and referred to in the decision of the Court. No part of the amount appropriated in this Act shall be paid or delivered to or received by any agent or attorney on account of services rendered in connection with this claim, and the same shall be unlawful, any contract to the contrary notwithstanding. Any person violating the provisions of this Act shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined in any sum not exceeding $1,000. Approved June 12, 1965.

June 12, 1965 [H. R. 821]

Kure B e a c h, N. C, relief.

Penalty.

Public Law 89-39 AN ACT To extend the boiundaries of the Kaniksu National Forest in the State of Idaho, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, the Secretary of Agriculture is authorized to acquire by exchange, purchase, or otherwise, the real property described in section 3 of this Act. Upon such acquisition the boundaries of the Kaniksu National Forest are extended to include such real property. SBO. 2. I n the acquisition of the real property described in section

June 14, 1L965 [S. 435]

Kaniksu National For e s t, Idaho. Boundarieis extension.

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Description,

PUBLIC LAW 89-40-JUNE 14, 1965

[79 STAT.

3, the Secretary of Agriculture shall be guided by the following policies; (1) He should make every reasonable effort to acquire the property by negotiated purchase. (2) The property should be appraised at its fair market value b j the Secretary of Agriculture before the initiation of negotiations, and the owner or his designated representative should be given an opportunity to accompany the appraiser during an inspection of the property. SEC. 3. The real property authorized to be acquired under authority of this Act is more particularly described as follows: Township 63 north, range 4 west, Boise meridian: Section 18, southeast quarter southeast quarter; section 19, northeast quarter northeast quarter, lot 3 (southeast quarter northeast quarter); section 20, southwest quarter northwest quarter; section 33, lot 1 (northeast quarter northwest quarter), lot 2 (southeast quarter northwest quarter), lot 3 (northeast quarter southeast quarter), lot 6 (southeast quarter southwest quarter), west half southwest quarter northeast quarter, west half northwest quarter southeast quarter, southwest quarter southeast quarter. Township 63 north, range 5 west, Boise meridian: Section 24, northeast quarter northeast quarter, east half northwest quarter northeast quarter, northeast quarter northeast quarter southwest quarter northeast quarter, northwest quarter southeast quarter northeast quarter, lot 2 (northeast quarter southeast quarter northeast quarter), lot 3 (northeast quarter southeast quarter southeast quarter northeast quarter). Approved June 14, 1965. Public Law 89-40

June 14, 1965 [H. R. 7597]

Veterans. Life insurance. 78 Stat. 1096.

Revolving fund, establishment in Treasury.

AN ACT To establish the Veterans Reopened Insurance Fund in the Treasury and to authorize initial capital to operate insurance programs under title 38, United States Code, section 725.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress as^emMed, That, effective May 1, 1965, section 725 of title 38, United States Code, is amended as follows: (1) By placing a period after the word "basis" in clause (8) of subsection (b) and striking all of the remainder of such clause. (2) By substituting a period for the semicolon at the end of clause (7) of subsection (c) and striking all of the remainder of the subsection. (3) By amending subsection (d)(1) to read as follows: " (d)(1) All premiums and collections on insurance issued pursuant to this section and any total disability income provision attached thereto shall be credited to the Veterans Reopened Insurance Fund, a revolving fund established in the Treasury of the United States, and all payments on such insurance and any total disability provision attached thereto shall be made from that fund. For actuarial and accounting purposes, the assets and liabilities (including liabilities for repayment of advances hereinafter authorized, and adjustment of

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 79 STAT. ]

PUBLIC LAW 89-41-JUNE 17, 1965

premiums) attributable to the insured groups established under this section shall be separately determined. Such amounts in the Veterans Special Term Insurance Fund in the Treasury, not exceeding $1,650,000 in the aggregate, as may hereafter be determined by the Administrator to be m excess of the actuarial liabilities of that fund, including contingency reserves, shall be available for transfer to the Veterans Eeopened Insurance Fund as needed to provide initial capital. Any amounts so transferred shall be repaid to the Treasury over a reasonable period of time with interest as determined by the Secretary of the Treasury taking into consideration the average yield on all marketable interest-bearing obligations of the United States of comparable maturities then forming a part of the public debt." (4) By striking the words "subsection (b) of" wherever they appear in subsection (d)(2). (5) By striking the following words from subsection (d)(3): "or the National Service Life Insurance appropriation, as appropriate,". Approved June 14, 1965.

131 Initial capital.

Public Law 89-41 AN ACT To provide assistance to the States of California, Oregon, Washington, Nevada, and Idaho for the reconstruction of areas damaged by recent floods and high waters.

June 17, 1965 [S. 2089]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That Congress ^^^i^^l^^^^^^^ hereby recognizes (1) that the States of California, Oregon, Washing- Refief AcTof 1965 ton, Nevada, and Idaho have experienced extensive property loss and damage as the result of floods and high waters during December 1964, and January and February 1965, (2) that much of the affected area is federally owned and administered, and (3) that the livelihood of the people in the area is dependent on prompt restoration of transportation facilities, and therefore Congress declares the need for special measures designed to aid and accelerate those States in their efforts to provide for the reconstruction of devastated areas. Highways, roads, SEC. 2. There is authorized to be appropriated, out of any money etc., reconstruction. in the Treasury not otherwise appropriated, in addition to the Appropriation. amounts authorized in section 125 of title 23 of the United States Code, not to exceed $50,000,000 for the fiscal year ending June 30, 73 Stat. 612. 1965, and not to exceed $20,000,000 for the fiscal year ending June 30, 1966. Such sums shall be obligated and expended by the Secretary of Commerce in accordance with such section 125, and related provisions of title 23 of the United States Code for the repair and reconstruction of highways, roads, and trails, damaged as the result of a disaster. Timber sales SEC. 3. (a) Notwithstanding provisions of existing contracts, the ^„„^.„^^^., recontractors, Secretary of the Interior and the Secretary of Agriculture, separately, imbursVm'en'ts." and as part of the regular road and trail construction program, shall reimburse timber sale contractors or otherwise arrange to bear road and trail construction and restoration costs either directly or in cooperation with timber purchasers to the extent of costs determined by the respective Secretary as incurred or to be incurred for restoring roads in any stage of construction authorized by a contract for the purchase of timber from lands under his jurisdiction to substantially the same condition as existed prior to the damage resulting from the floods of December 1964, and January and February of 1965 in California, Oregon, Washington, Nevada, and Idaho, and to the

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Exception.

For e s t development roads and trails. 78 Stat. 397.

Timber s a l e s, public notice. 31 Stat. 6 6 1.

P u b l i c land entry, time extension.

E e l River, Calif., survey, e t c. Report to Congress.

PUBLIC LAW 89-41-JUNE 17, 1965

[79 STAT.

extent costs determined b^ the respective Secretary as incurred or to be incurred for completing road construction not performed under any such contract prior to the floods but which, because of changed conditions resulting from the floods, exceed road construction costs as originally determined by the respective Secretary. The costs for such road restoration, reconstruction, and construction under any single timber purchase contract on roads not accepted prior to the floods, whether construction was complete, partial, or not yet begun, shall be borne as follows: 15 per centum of all amounts shall be borne by the timber purchaser, except that such purchaser shall not be required to bear costs of more than $4,500, and the Secretary shall bear the remaining portion of such costs. This subsection shall not apply (1) in the case of any road restoration or reconstruction if the cost of such restoration or reconstruction is less than $500, and (2) in the case of any road construction if the increase in the cost of such construction as the result of the floods is less than $500 more than the construction costs as originally determined by the respective Secretary. (b) Where the Secretary determines that damages are so great that restoration, reconstruction, or construction is not practical under the cost-sharing arrangement authorized by subsection (a) of this section, the Secretary may allow cancellation of the contract notwithstanding provisions therein. (c) Paragraph (3) of section 2 of the Federal-Aid Highway Act of 1964 is amended to read as follows: "(3) For forest development roads and trails, $123,000,000 for the fiscal year ending June 30, 1966, of which not to exceed $38,000,000 shall be used solely for the construction, repair, and reconstruction of forest development roads and trails in the States of California, Oregon, Washington, Nevada, and Idaho, necessary because of the floods and high waters in such States during December 1964, and January and February 1965, and $85,000,000 for the fiscal year ending June 30, 1967." (d) The Secretary of Agriculture is authorized to reduce to seven days the minimum period of advance public notice required by the first section of the Act of June 4, 1897 (16 U.S.C. 476), in connection with the sale of timber from national forests, whenever the Secretary determines that the sale of such timber will assist in the reconstruction of any area of California, Oregon, Washington, Nevada, and Idaho damaged by floods or high waters during December 1964, and January and February 1965. SEC. 4. The Secretary of the Interior is authorized to give any public land entryman such additional time in which to comply with any requirement of law in connection with any public land entry for lands in California, Oregon, Washington, Nevada, and Idaho, as the Secretary finds appropriate because of interference with the entryman's ability to comply with such requirement resulting from floods and high waters during December 1964, and January and February 1965. SEC. 5. (a) The President, acting through the Office of Emergency Planning, shall make a survey to determine what protective works would be necessary to prevent the recurrence of damage by floods or high waters to those banks of the Eel River, California, which are adjacent to the trackage of any common carrier by railroad and shall report to Congress the results of such survey together with the cost of any recommended work within sixty days after the date of enactment of this Act. The President, acting through the Office of

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PUBLIC LAW 89-41-JUNE 17, 1965

Emergency Planning, is authorized to perform all or any part of the recommended work determined to be in the public interest and to reimburse any common carrier for any of such recommended work performed by such carrier. The Corps of Engineers of the United States Army shall be used to make the survey authorized by this section, shall recommend necessary work that has been determined by the President acting through the Office of Emergency Planning to be in the public interest, and shall be used to supervise any work authorized to be performed under this section. (b) There is authorized to be appropriated not to exceed $3,875,000 to carry out this section. SEC. 6. Loans made pursuant to paragraph (1) of section 7(b) of the Small Business Act (15 U.S.C. 636(b)) for the purpose of replacing, reconstructing, or repairing dwellings in California, Oregon, Washington, Nevada, and Idaho, damaged or destroyed by the floods and high waters of December 1964, and January and February 1965, may have a maturity of up to thirty years, except that section 7(c) of such Act shall not apply to such loans. SEC. 7. This Act, other than section 5 and the amendment made by section 3(c), shall not be in effect after June 30, 1966, except with respect to payment of expenditures for obligations and commitments entered into under this Act on or before such date. SEC. 8. This Act may be cited as the "Pacific Northwest Disaster Belief Act of 1965". Approved June 17, 1965.

133

j^ans^" """^^"^'^ °72 Stat. 389.

J 5 ^?^- g^|Effective date.

^^"""^ ""^•

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PUBLIC LAW 89-42-JUNE 18, 1965

[79 STAT.

Public Law 89-42 June 18, 1965 [H. R. 67551

Flood control projects. Additional appropriations.

AN ACT Authorizing additional appropriations for prosecution of projects in certain comprehensive river basin plans for flood control, navigation, and other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, (a) in addition to previous authorizations, there is hereby authorized to be appropriated for the prosecution of the comprehensive plan of development of each river basin under the jurisdiction of the Secretary of the Army referred to in the first column below, which was basically authorized by the Act referred to by date of enactment in the second column below, an amount not to exceed that shown opposite such river basin in the third column below: Basin

59 Stat. 52 Stat. 68 Stat. 62. Stat.

17. 1218, 1259. 1176.

45 33 49 64

534. 702a. 1586. 165.

Stat. use Stat. Stat.

Alabama-Coosa Arkansas River Urazoa River Central and Southern Florida Columbia River Lower Mississippi Missouri River Ohio River Ouachita River Upper Mississippi River West Branch Susquehanna River

Act of Congress

March 2, 1945 June 28, 1938 September 3, 1954 June 30, 1948 June 28, 1938 May 15, 1928 June 28, 1938 June 22, 1936 May 17, 1950 June 28, 1938 September 3, 1954

Amount

$38,000,000 290, 000, 000 14, 000, 000 30,000, 000 223,000,000 53, 000; 000 116, 000, 000 89,000,000 11, 000,^000 27,000,000 17,000,000

(b) The total amount ajithorized to be appropriated by this section shall not exceed $908,000,600.

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PUBLIC LAW 89-43-JUNE 18, 1965

SEC. 2. In addition to previous authorizations, the completion of the Great Lakes to Hudson River Waterway, New York, project, approved in the River and Harbor Act of August 30, 1936, as amended, is hereby authorized at an estimated cost of $6,000,000. SEC. 3. In addition to previous authorizations, the completion of the comprehensive plan for flood control and other purposes in the Los Angeles River Basin, approved by the Flood Control Act of August 18, 1941, as amended and supplemented, is hereby authorized at an estimated cost of $31,000,000. Approved June 18, 1965.

135

^^ ^*^*' ^''^°'

^^ ^ ® " ^''^'

Public Law 89-43 AN ACT jy^g ig^ j^ggg To farther amend the Reorganization. Act of 1949, as amended, so that such Act ___iaii£:i] will apply to reorganization plans transmitted to the Congress at any time before December 31, 1968.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (b) A.!t*o/^i94?*"°" of section 6 of the Reorganization Act of 1949 (63 Stat. 205; 6 U.S.C. Extension* 133Z-3), as last amended by the Act of Julv 2, 1964 (78 Stat. 240), is hereby further amended by striking out "June 1, 1966" and inserting in lieu thereof "December 31, 1968". Approved June 18, 1965.

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 PUBLIC LAW 89-44-JUNE 21, 1965

136

[79 STAT.

Public Law 89-44 AN ACT To reiluce excise taxes, and for other purposes.

June 21, 1965 [H. R. 8371]

Excise Tax Reduction Act of 1965,

68A Stat. 3. 26 USC 1 etseq.

Be it enacted by the Semite and House of Representatives Uniisd States of America in Congress assembled,

of the

SECTION 1. SHORT TITLE, ETC.

(a) SHORT TITLE.—This Act may be cited as the "Excise Tax Reduction Act of 1965". (b) AMENDMENT OF 1954 CODE.—Except as otherwise expressly provided, whenever in this Act an amendment is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference is to a section or other provision of the Internal Revenue Code of 1954.

TITLE I—RETAILERS EXCISE TAXES 68A Stat. 473; 72 Stat. 1275, 1276.

72 Stat. 1277; 73 Stat. 617. 72 Stat. 1286.

72 Stat. 1305.

SEC. 101. REPEAL OF RETAILERS EXCISE TAXES. (a) IN GENERAL.—Subchapters A (relating to jewelry and related items), B (relating to furs), C (relating to toilet preparations), and D (relating to luggage, handbags, etc.) of chapter 31 are repealed. (b)

TECHNICAL AND CONFORMING AMENDMENTS.—

(1) The table of subchapters for chapter 31 is amended by striking out the items relating to subchapters A, B, C, and D. (2) Sections 4051 through 4053 are repealed and the table of sections for subchapter F of chapter 31 is amended by striking out the items relating to sections 4051,4052, and 4053. (3) Section 4055 is amended by striking o u t ", in the case of the tax imposed by section 4041,". (4) Section 4057(a) is amended by striking out ", in the case of a tax imposed by section 4041,". (5) Section 4224 (relating to exemption for articles taxable as jewelry) is repealed and the table of sections for subchapter G of chapter 32 is amended by striking out the item relating to section 4224. (6) Section 6011(c) (relating to return of retailers excise taxes by suppliers) is repealed.

TITLE II—MANUFACTURERS EXCISE TAXES SEC. 201. AUTOMOBILES AND AUTOMOBILE PARTS. 68A Stat. 4 8 1.

(a) PASSENGER AUTOMOBILES, ETC.—Paragraph (2) of section 4061(a) (relating to imposition of tax) is amended to read as follows: "(2)(A) Articles enumerated in subparagraph (B) are taxable at whichever of the following rates is applicable: "10 percent for the period ending on the date of the enactment of the Excise Tax Reduction Act of 1965. "7 percent for the period beginning with the day after the date of the enactment of the Excise Tax Reduction Act of 1965 through December 31, 1965. "6 percent for the period January 1, 1966, through December 31, 1966. "4 percent for the period January 1, 1967, through December 31, 1967. "2 percent for the period January 1, 1968, through December 31, 1968.

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PUBLIC LAW 89-44-JUNE 21, 1965

137

" l percent for the period after December 31, 1968. " (B) The articles to which subparagraph (A) applies a r e: "Automobile chassis and bodies other than those taxable under paragraph (1). "Chassis and oodies for trailers and semitrailers (other than house trailers) suitable for use in connection with passenger automobiles. A sale of an automobile, or of a trailer or semitrailer suitable for use in connection with a passenger automobile, shall, for the purposes of this paragraph, be considered to be a sale of a chassis and of a body enumerated in this subparagraph." (b)

PARTS AND ACCESSORIES.—

(1) Effective as provided by section 701(a)(1), subsection (b) of section 4061 (relating to imposition of tax on parts and accessories) is amended by striking out "and other than automobile radio and television receiving sets" and by striking out ", except that on and after July 1, 1965, the rate shall be 5 percent". (2) Effective as provided by section 701(a)(2), subsection (b) of section 4061 is amended to read as follows: "(b)

PARTS AND ACCESSORIES.—

"(1) Except as provided in paragraph (2), there is hereby imposed upon parts or accessories (other than tires and inner tubes) for any of the articles enumerated in subsection (a)(1) sold by the manufacturer, producer, or importer a tax equivalent to 8 percent of the price for which so sold, except that on and after October 1, 1972, the rate shall be 5 percent. "(2) No tax shall be imj)Osed under this subsectiqn upon any part or accessory which is suitable for use (and ordinarily is used) on or in connection with, or as a component part of, any article enumerated in subsection (a)(2) or a house trailer." (c) TECHNICAL AMENDMENT.—The last sentence of paragraph (1) of section 4061(a) is amended by striking out "the chassis and of the body" and inserting in lieu thereof "a chassis and of a body enumerated in this paragraph". SEC. 202. LUBRICATING OIL. (a) IMPOSITION OF TAX.—Section 4091 (relating to imposition of tax) is amended to i*ead as follows: "SEC. 4091. IMPOSITION OF TAX. "There is hereby imposed on lubricating oil (other than cutting oils) which is sold in the United States by the mainifacturer or producer a tax of 6 cents a gallon, to be paid by the manufacturer or producer." (b)

^°^'' P- i^^^^A Stat. 482.

PAYMENTS

TO ULTIMATE

PURCHASERS.—Subchapter

B

^^ ^*^*- ^''^•

of

chapter 65 (relating to rules of special application) is amended by 68A Stat. 794; 70 Stat. 87, 394; adding at the end thereof the following new section: 72 stat! 9 "SEC. 6424. LUBRICATING OIL NOT USED IN HIGHWAY MOTOR VEHICLES. " (a) PAYMENTS.—Except as provided in subsection (g), if lubricating oil (other than cutting oils, as defined in section 4092(b), and ^^ ^*^*- ^''^ other than oil which has previously been used) is used otherwise than in a highway motor vehicle, the Secretary or his delegate shall pay (without interest) to the ultimate purchaser of such lubricating oil an amount equal to 6 cents for each gallon of lubricating oil so used. "(b)

T I M E FOR F I L I N G CLAIMS; PERIOD COVERED.—

"(1) GENERAL RULE.—Except as provided in paragraph (2), not more than one claim may be filed under subsection (a) by any person with respect to lubricating oil used during his taxable year. 49-850 0-66—12

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PUBLIC LAW 89-44-JUNE 21, 1965

[79 STAT.

No claim shall be allowed under this paragraph with respect to lubricating oil used during any taxable year unless filed by such ^person not later than the time prescribed by law for filing an mcome tax return for such taxable year. For purposes of this subsection, a person's taxable year shall be his taxable year for purposes of subtitle A, except that a person's first taxable year beginning after December 31, 1965, shall include the period after December 31, 1965, and before the oeginning of such first taxable year. "(2) EXCEPTION.—If $1,000 or more is payable under this section to any person with respect to lubricating oil used during any of the first three quarters of his taxable year, a claim may be filed under this section by such person with respect to lubricating oil used during such quarter. No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the quarter for which the claim is

Ante, p. 137.

"(c) EXEMPT SALES.—No amount shall be payable under this section with respect to any lubricating oil which the Secretary or his delegate determines was exempt from the tax imposed by section 4091. The amount which (but for this sentence) would be payable under this section with respect to any lubricating oil shall be reduced by any other amount which the Secretary or his delegate determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such lubricating oil. "(d)

APPLICABLE LAWS.—

"(1) IN GENERAL.—All provisions of law, including penalties, applicable in respect of the tax imposed by section 4091 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed. "(2)

68A Stat. 9 0 1.

EXAMINATION OF BOOKS AND WITNESSES.—For the purpose

of ascertaining the correctness of any claim made under this section, or the correctne* of any payment made in respect of any such claim, the Secretary or his delegate shall have the authority granted by paragraphs (1), (2), and (3) of section 7602 (relating to examination of books and witnesses) as if the claimant were the person liable for tax. " (e) REGULATiONs.-The Secretary or his delegate may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section. " (f) EFFECTIVE DATE.—This section shall apply only with respect to lubricating oil placed in use after December 31, 1965. "(g)

INCOME TAX CREDIT IJT L I E U OF PAYMENT.— "(1) PERSONS NOT SUBJECT TO INCOME TAX.—Payment shall be

made under subsection (a) only to— " (A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or an agency or instrumentality of one or more States or political subdivisions, or " (B) an organization exempt from tax under section 501 (a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year). "(2) EXCEPTION.—Paragraph (1) shall not apply to a payment of A claim filed under subsection (b)(2).

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 79 STAT. ] "(3)

PUBLIC LAW 8 9 - 4 4 - J U N E 21, 1965

139

ALLOWANCE OF CREDIT AGAINST INCOME T A X. —

"For allowance of credit against the tax imposed by subtitle A for lubricating oil used, see section 39." "(h)

CROSS R E F E R E N C E S. —

"(1) For civil penalty for excessive claims under this section, see section 6675. "(2) For fraud penalties etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures)." (c) T E C H N I C A L A N D CONFORMING AMENDMENTS. —

(1)(A) Subpart B of part III of subchapter A of chapter 32 is amended by adding at the end thereof the following new section: "SEC. 4094. CROSS REFERENCE.

^^A Stat. 483.

"For provisions to relieve purchasers of lubricating oil from excise tax in the case of lubricating oil used otherwise than in a highway motor vehicle, see sections 39 and 5424."

Ante, p. 1.37.

(B) The table of sections for such subpart B is amended by adding at the end thereof the following: "Sec. 4094. Cross reference."

(2)(A) Section 6206 is amended— ^o ^'^'' ^o- ^^e. (i) by striking out "6420 AND 6421" in the heading and inserting in lieu thereof "6420, 6421, AND 6424", (ii) by striking out "6420 or 6421" each place it appears in the text and inserting in lieu thereof "6420, 6421, or 6424", and (iii) by inserting "(or, in the case of lubricating oil, by Ante, p. 137. section 4091)" after "4081". (B) The table of sections for subchapter A of chapter 63 is amended by striking out "6420 and 6421" and inserting in lieu thereof "6420, 6421, and 6424". (3)(A) Section 6675 is amended— ^o Stat. 90,396. (i) by inserting "OR LUBRICATING OIL" after "GASOLINE" in the heading; (ii) by striking out "or" before 6421 in subsection (a) and inserting in lieu thereof a comma, and by inserting ", or 6424 (relating to lubricating. oil not used in highway motor vehiclesT" in such subsection after "systems)"; (iii) by striking out "or 6421," in subsection (b)(1) and inserting in lieu thereof "6421, or 6424,". (B) The table of sections for subchapter B of chapter 68 is amended by striking out "certain gasoline" and inserting in lieu thereof "certain gasoline or lubricating oil".

(4) Sections 7210, 7603, and 7604, and the first sentence of section 7605(a), are each amended by inserting "6424(d)(2)," oo?1n%°I; fi"*' after "6421(f)(2),". The second sentence of section 7605(a) is 396. ' amended by striking out "or 6421(f)(2)," and inserting in lieu thereof ",6421(f)(2),or6424(d)(2),^ SEC. 203. HOUSEHOLD APPLIANCES. Repeals. Subchapter B of chapter 32 (relating to refrigeration equipment; 26 USC r4iu!" electric, gas, and oil appliances; and electric light bulbs) is repealed 4131. and the table of subchapters for chapter 32 is amended by striking out the item relating to subchapter B.

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 140 Repeal. 72^st^t!*i278r' 26 USC 4141-

4151

68A Stat, 489.

^e^vsc 41714173.

26 USC 4191 4211.

72 Stat. 1280.

72 Stat. 1310.

72 Stat. 1279.

PUBLIC LAW 89-44-JUNE 21, 1965

[79

STAT.

gg^ 204. ENTERTAINMENT EQUIPMENT. Subchapter C of chapter 32 (relating to radio and television sets, phonographs and records, etc.; and musical instruments) is repealed and the table of subchapters for chapter 32 is amended by striking out the item relating to subchapter C. SEC. 205. RECREATIONAL EQUIPMENT. (a) SPORTING GOODS.—Section 4161 (relating to sporting goods) is amended to read as follows: "SEC. 4161. IMPOSITION OF TAX. "There is hereby imposed upon the sale of fishing rods, creels, reels, and artificial lures, baits, and flies (including parts or accessories of such articles sold on or in connection therewith, or with the sale thereof) by the manufacturer, producer, or importer a tax equivalent to 10 percent of the price for which so sold." (^) PHOTOGRAPHIC EQUIPMENT. — Part II of subchapter D of chapler 32 (relating to photographic equipment) is repealed and the table of parts for such subchapter is amended by striking out the item relating to part II. SEC. 206. BUSINESS MACHINES AND OTHER ITEMS. Subchapter E of chapter 32 (relating to business machines; pens and mechanical pencils and lighters; and matches) is repealed and the table of subchapters for chapter 32 is amended by striking out the item relating to subchapter E. SEC. 207. PARTIAL PAYMENTS; SALES OF INSTALLMENT ACCOUNTS. (a) PARTIAL PAYMENTS.—Section 4216(c) (relating to definition of price; partial payments) is amended by striking out "that portion of the total tax which is proportionate to the portion of the total amount to be paid represented by such payment." in the material following paragraph (4) and inserting in lieu thereof "a percentage of such payment equal to the rate of tax in effect on the date such payment is due." (^^ SALES OF INSTALLMENT ACCOUNTS.—Section 4216(e) (relating to definition of price; sales of installment accounts) is amended— (1) by striking out "total tax; " in paragraph (1) and inserting in lieu thereof "total tax which would be payable if such installment accounts had not been sold or otherwise disposed of (computed as provided in subsection (c)); "; and (2) by amending paragraph (2) to read as follows: "(2) if any such sale is pursuant to the order of, or subject to the approval of, a court of competent jurisdiction in a bankruptcy or insolvency proceeding, the amount computed under paragraph (1) shall not exceed the sum of the amounts computed by multiplying (A) the proportionate share of the amount for which such accounts are sold which is allocable to each unpaid installment payment by (B) the rate of tax under this chapter in effect on the date such unpaid installment payment is or was due." ^^.-j CONFORMING AMENDMENT.—Section 6416(b)(5) (relating to return of certain installment accounts) is amended by striking out "proportionate" and inserting in lieu thereof "allocable". SEC. 208. TECHNICAL AND CONFORMING CHANGES. (a) Section 4216(b)(2) (relating to constructive sale price; special rule) is amended— (1) by striking out the material immediately preceding subpara<rraph (A) and inserting in lieu thereof the following: " (2) SPECIAL RULE.—If an article is sold at retail or to a retailer, and if—";

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PUBLIC LAW 89-44-JUNE 21, 1965

(2) by striking out in subparagraph (A) ", to retailers, or to special dealers" and inserting in lieu thereof: "or to retailers"; (3) by striking out "(other than special dealers)" each place it appears; and (4) by striking out in subparagraph (C) "4191 (relating to business machines), or 4211 (relating to matches),". (b) Paragraph (3) (relating to special dealer) of section 4216(b) is repealed. (c) Section 4218 (relating to use by manufacturer or importer considered a sale) is amended— (1) by striking out the heading to subsection (b) and inserting in lieu thereof the following: "(b)

141

72s^tat! 1279. ^2 Stat. 128I.

T I R E S AND T U B E S. — ".

(2) by striking out in subsection (b) "or an automobile radio or television receiving set taxable under section 4141,"; (3) by striking out the heading to subsection (c) and inserting in lieu thereof the following: "(c)

AUTOMOTIVE PARTS AND ACCESSORIES.—"

(4) by striking out in subsection (c) "a radio or television component taxable under section 4141, or a camera lens taxable under section 4171,". (d) Section 4221 (relating to certain tax-free sales) is amended— (1) by striking out in subsection (d)(6)(B) "a radio or television component taxable under section 4141, or a camera lens taxable under section 4171,"; (2) by striking out the heading to paragraph (2) of subsection (e) and inserting in lieu thereof the following: "(2)

^^ ^*°*- ^^^^•

T I R E S AND TUBES.—";

(3) by striking out "or 4141" in subparagraphs (A) and (C) of subsection (e)(2); (4) by striking out "tire, inner tube, or automobile radio or television receiving set" in subparagraphs (A) and (C) of subsection (e)(2) and inserting in lieu thereof "tire or inner tube"; (5) by striking out "tire, tube, or receiving set" each place it appears in subparagraphs (A)(i) and (B) of subsection (e)(2) and inserting in lieu thereof "tire or tube"; (6) by striking out paragraph (3) of subsection (e); and (7) by striking out subsection (f). (e) Section 4222 (relating to registration) is amended by striking out paragraph (4) or subsection (b). (f) Section 4227(2) is amended by striking out "and automobile yQ^ltt%\^^^'' radio and television receiving sets,".

SEC. 2 9 REFUNDS WITH RESPECT TO FLOOR STOCKS AND CERTAIN 0. CONSUMER PURCHASES. (a) PASSENGER AUTOMOBILES, ETC.—Section 6412(a)(1) (relating to floor stocks refunds on passenger automobiles, etc.) is amended to read as follows: "(1) PASSENGER AUTOMOBILES, ETC.—Where before the day after the date of the enactment of the Excise Tax Reduction Act of 1965, or before January 1, 1966, 1967, 1968, or 1969, any article subject to the tax imposed by section 4061(a)(2) has been sold by the manufacturer, producer, or importer and on such day or such date is held by a dealer and has not been used and is intended for sale, there shall be credited or refunded (without interest) to the manufacturer, producer, or importer an amount equal to

7o Stat. 392.

^"^^' P- ^^^•

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PUBLIC LAW 89-44-JUNE 21, 1965

[79 STAT.

the difference between the tax paid by the manufacturer, producer, pr importer on his sale of the article and the amount of tax made jipplicable to the article on such day or such date, if— " (A) claim for such credit or refund is filed with the Secretary or his delegate on or before the 10th day of the 8th calendar month beginning after such day or such date based upon a request submitted to the manufacturer, producer, or importer before the first day of the 7th calendar month beginning after such day or such date by the dealer who held the article in respect of which the credit or refund is claimed; and " (B) on or before such 10th day reimbursement has been made to the dealer by the manufacturer, producer, or importer for the tax reduction on the article or written consent has been obtained from the dealer to allowance of the credit or refund." (b) FLOOR STOCK REFUNDS; OTHER MANUFACTURERS EXCISE TAXES AND TAX ON PLAYING CARDS.—

p^sT*'^148^^' ^'^°' °^' ''* ' An(e, pp. 137,

(1) IN GENERAL.—Where before the day after the date of the enactment of this 'Act, any article subject to the tax imposed by section 4111, 4121, 4141, 4151, 4161, 4171, 4191, or 4451 of the Internal Revenue Code of 1954 (hereinafter in this Act referred to as the "Code"), or where before January 1, 1966, any article subject to the tax imposed by section 4061(b), 4091 (1), or 4131 of ^^jjg Code, has been sold by the manufacturer, producer, or importer, and on such day or such date is held by a dealer and has not been used and is intended for sale, there shall be credited or refimded (without interest) to the manufacturer, producer, or importer an amount equal to the difference between the tax paid by the manufacturer, producer, or importer on his sale of the article and the amount of tax made applicable to the article on such day or such date, if— (A) claim for such credit or refund is filed with the Secretary of the Treasury or his delegate on or before February 10, 1966 (or August 10, 1966, in the case of an article subject to the tax imposed by section 4061(b), 4091(1), or 4131 of the Code), based upon a request submitted to the manufacturer, producer, or importer oefore January 1, 1966 (or July 1, 1966, in the case of an article subject to the tax imposed by section 4061(b), 4091(1), or 4131 of the Code), by the dealer who held the article in respect of which the credit or refund ^s claimed; and (B) on or before such February 10 (or such August 10 in the case of an article subject to the tax imposed by section 4061(b), 4091(1), or 4131 of the Code) reimbursement has been made to the dealer by the manufacturer, producer, or importer for the tax reduction on the article or written consent has been obtained from the dealer to allowance of the credit or refund. (2) DEFINITIONS.—For purposes of this subsection— (A) The term "dealer" includes a wholesaler, jobber, distributor, or retailer. (B) An article shall be considered as "held by a dealer" if title thereto has passed to the dealer (whether or not delivery to him has w e n made), and if for purposes of con-

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143

sumption title to the article or possession thereof has not at any time been transferred to any person other than a dealer. For purposes of paragraph (1) and notwithstanding the receding sentence, an article shall be considered as "held y a dealer" and not to have been used, although possession of such article has been transferred to another person, if such article is returned to the dealer in a transaction under which any amount paid or deposited by the transferee for such article is refunded to him (other than amounts retained by the dealer to cover damage to the article). Moreover, such an article shall be considered as held by a dealer on the day after the date of the enactment of this Act even though it is in the possession of the transferee on such day, if it is returned to the dealer (in a transaction described in the preceding sentence) before August 1, 1965. (C) I n the case or an article subject to the tax imposed by section 4451 (relating to playing cards) — (i) an article shall be treated as having been sold by the manufacturer before the day after the date of the enactment of this Act if it has been removed for consumption or sale before such day, and (ii) if an article has been removed for consumption or sale, but has not been sold, by the manufacturer before such day, the manufacturer shall be treated as the dealer.

E

(3) LIMITATION ON ELIGIBILITY FOR CREDIT OR REFUND.—No

manufacturer, producer, or importer shall be entitled to credit or refund under paragraph (1) unless he has in his possession such evidence of the inventories with respect to which the credit or refund is claimed as may be required by regulations prescribed by the Secretary of the Treasury or his delegate under this subsection. (4) OTHER LAWS APPLICABLE.—All provisions of law, including

penalties, applicable in respect of the taxes imposed by sections 4061(b), 4091(1), 4111, 4121, 4131, 4141, 4151, 4161, 4171, 4191, and 4451 of the Code shall, insofar as applicable and not incon- .3^"'*' ^^'p ^^^' sistent with paragraphs (1)., (2), and (3) of this subsection, p. Ag. ' °*' apply in respect of the credits and refunds provided for in paragraph (1) to the same extent as if the credits or refunds constituted overpayments of the taxes, (c) EEFITNDS W I T H EESPECT TO CERTAIN CONSUMER PURCHASES.—

(1) IN GENERAL.—Where after May 14, 1965, and before the day after the date of the enactment of this Act, a new automotive item subject to the tax imposed by section 4061(a)(2) of the Code, or a new self-contained air-conditioning unit subject to the tax imposed by section 4111 of the Code, has been sold to an ultimate purchaser, there shall be credited or refunded (without interest) to the manufacturer, producer, or importer of such article an amount equal to the difference between the tax paid by such manufacturer, producer, or importer on his sale of the article, and the tax made applicable to the article on such day, if— (A) claim for such credit or refund is filed with the Secretary of the Treasury or his delegate on or before February 10, 1966, based upon information submitted to the manufacturer, producer, or importer before January 1, 1966, by the person who sold the article (in respect to which the credit or refund is claimed) to the ultimate purchaser; and

"*"'*' P* '^^*

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PUBLIC LAW 89-44-JUNE 21, 1965

[79 STAT.

(B) on or before February 10, 1966, reimbursement has been made to the ultimate purchaser for the tax reduction on the article. (2) LIMITATION ON ELIGIBILITY FOR CREDIT OR REFUND.—No

manufacturer, producer, or importer shall be entitled to a credit or refund under paragraph (1) with respect to an article unless he has in his possession such evidence of the sale of the article to an ultimate purchaser, and of the reimbursement of the tax to such purchaser, as may be required by regulations prescribed by the Secretary of the Treasury or his delegate under this subsection. (3) OTHER LAWS APPLICABLE.—All provisions of law, including Ante, p p. 136, 139.

fsA^stat 797 70 Stat. 398. 23 USC 120 note.

Ante, p. 137.

68Astat. 478. 389? ^*^*' ^^^'

penalties, applicable in respect to the taxes imposed by sections 4061(a)(2) and 4111 of the Code shall, insofar as applicable and not inconsistent with paragraphs (1) and (2) of this subsection, apply in respect of the credits and refunds provided for in paragraph (1) to the same extent as if the credits or refunds constituted overpayments of the tax. (d) Section 6412(e) (relating to cross reference) is repealed. SEC. 210. HIGHWAY TRUST FUND. (a) Section 209(c)(1) of the Highway Revenue Act of 1956 (relating to general provisions for transfers to the Highway Trust Fund) is amended— (1) by striking out "and" at the end of subparagraph (F); (2) by striking out the period at the end of subparagraph (G) and inserting in lieu thereof "; and"; (3) by inserting after subparagraph (G) the following new subparagraph: " (H) 100 percent of the taxes received after December 31, 1965, under sections 4061(b) (tax on parts and accessories foj. trucks, buscs, etc.) and 4091 (tax on lubricating oil)."; and (4) by adding at the end thereof the following new sentence: "In the case of any tax described in subparagraph (H), amounts received during the calendar year 1966 shall be taken into account only to the extent attributable to liability for tax incurred after December 31, 1965." (b) Subparagraph (A) of section 209(c)(3) of the Highway Revenue Act of 1956 (relating to transfers to the Highway Trust Fund for liabilities incurred before October 1, 1972) is amended to read as follows: " (A) 100 peTccnt of the taxes under sections 4041 (taxes on diesel fuel and special motor fuels), 4061 (b) (tax on parts and accessories for trucks, buses, etc.), 4071(a)(4) (tax on (c) Section 209(f)(3) of the Highway Revenue Act of 1956 (relating to transfers from trust fund for gasoline used on farms and for certain other purposes) is amended as follows: (1) by striking out the heading and inserting in lieu thereof the following: " (3) TRANSFERS FROM TRUST F U N D FOR GASOLINE A N D LUBRICATI N G OIL USED FOR CERTAIN P U R P O S E S. — ";
 * ^®^^ rubber), 4081 (tax on gasoline), and 4091 (tax on lubricating oil);".

(2) by striking out "and 6421" and inserting ", 6421"; and

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145

(3) by inserting after "transit systems)" the following: ", and 6424 (relating to amounts paid in respect of lubricating oil not Ante, p. 1.37. used in highway motor vehicles)".

TITLE III—TAXES ON FACILITIES AND SERVICES SEC. 301. REPEAL OF ADMISSIONS AND CLUB DUES TAXES. Subchapter A (relating to admissions and club dues) of chapter 33 T^^x^c^iiu is repealed and the table of subchapters for chapter 33 is amended by 4243. striking out the item relating to subchapter A. SEC. 302. COMMUNICATIONS TAX. Subchapter B of chapter 33 (relating to communications taxes) is ^^ Stat. 1239. amended to read as follows: "Subchapter B—Communications "Sec. 4251. Imposition of tax. "Sec. 4252. Definitions. "Sec. 4253. Exemptions. "Sec. 4254. Computation of tax. "SEC. 4251. IMPOSITION OF TAX. " (a) IN GENERAL.—

"(1) Except as provided in subsection (b), there is hereby imposed on amounts paid for the following communication services a tax equal to the percent of the amount so paid specified in paragraph (2): "Local telephone service. "Toll telephone service. "Teletypewriter exchange service. "The taxes imposed by this section shall be paid by the person paying for the services. " (2) The rate of tax referred to in paragraph (1) is as follows: "Amounts paid pursuant to bills first rendered— Percent— "During 1966 3 "During 1967 2 "During 1968 1 "(b) TERMINATION or TAX.—The tax imposed by subsection (a)

shall not apply to amounts paid pursuant to bills first rendered on or after January 1, 1969. "(c) SPECIAL RULE. — For purposes of subsections (a) and (b). in the case of communication services rendered before November 1 oi any calendar year for which a bill has not been rendered before the close of such year, a bill shall be treated as having been first rendered during such year. "SEC. 4252. DEFINITIONS. " (a) LOCAL TELEPHONE SERVICE.—For purposes of this subchapter,

the term 'local telephone service' means—• "(1) the access to a local telephone system, and the privilege of telephonic quality communication with substantially all persons having telephone or radio telephone stations constituting a part of such local telephone system, and "(2) any facility or service provided in connection with a service described in paragraph (1),

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PUBLIC LAW 89-44-JUNE 21, 1965

[79 STAT.

The term 'local telephone service' does not include any service which is a 'toll telephone service' or a 'private communication service' as defined in subsections (b) and (d). " (b) TOLL TELEPHONE SERVICE.—For purposes of this subchapter, the term 'toll telephone service' means— "(1) a telephonic quality communication for which (A) there is a toU charge which varies in amount with the distance and elapsed transmission time of each individual communication and (B) the chargB is paid within the United States, and "(2) a service which entitles the subscriber, upon payment of a periodic charge (determined as a flat amount or upon the basis of total elapsed transmission time), to the privilege of an unlimited number of telephonic communications to or from all or a substantial portion of the persons having telephone or radio telephone stations in a specified area which is outside the local telephone system area in which the station provided with this service is located. "(c) TELETYPEWRITER EXCHANGE SERVICE.—For purposes of this subchapter, the term 'teletypewriter exchange service' means the access Jtrom a teletypewriter or other data station to the teletypewriter exchange system of which such station is a part, and the privilege of intercommunication by such station with substantially all persons having teletypewriter or other data stations constituting a part of the same teletypewriter exchange system, to which the subscriber is entitled upon payment of a charge or charges (whether such charge or charges are determined as a flat periodic amount, on the basis of distance and elapsed transmission timCj or in some other manner). The term 'teletypewriter exchange service' does not include any service which is 'local telephone service' as defined in subsection (a). " (d) PRIVATE COMMUNICATION SERVICE.—For purposes of this subchapter, the term 'private communication service' means— " (1) the communication service furnished to a subscriber which entitles the subscriber— " (A) to exclusive or priority use of any communication channel or groups of channels, or " (B) to the use of an intercommunication system for the subscriber's stations, regardless of whether such channel, groups of channels, or intercommunication system may be connected through switching with a service described in subsection (a), (b), or (c), "(2) switching capacity, extension lines and stations, or other associated services which are provided in connection with, and are necessary or unique to the use of, channels or systems described in paragraph (1), and ''(3) the channel mileage which connects a telephone station located outside a local telephone system area with a central office in such local telephone system, except that such term does not include any communication service unless a separate charge is made for such service. "SEC. 4253. EXEMPTIONS.

" (a) CERTAIN COIN-OPERATED SERVICE.—Service paid for by inserting coins in coin-operated telephones available to the public shall not be subject to the tax imposed by section 4251 with respect to local telephone service, or with respect to toll telephone service if the charge for such toll telephone service is less than 25 cents; except that where such coin-operated telephone service is furnished for a guaranteed

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amount, the amounts paid under such ^ a r a n t e e plus any fixed monthly or other periodic charge shall be subject to the tax. " (b) NEWS SERVICES.—No tax shall be imposed under section 4251, except with respect to local telephone service, on any payment received from any person for services used in the collection of news for the public press, or a news ticker service furnishing a general news service similar to that of the public press, or radio broadcasting, or in the dissemination of news through the public press, or a news ticker service furnishing a general news service similar to that of the public press, or by means of radio broadcasting, if the charge for such service IS billed in writing to such person. "(c) INTERNATIONAL, ETC.. ORGANIZATIONS.—No tax shall be imposed under section 4251 on any payment received for services furnished to an international organization, or to the American National Red Cross. " (d) SERVICEMEN IN COMBAT ZONE.—No tax shall be imposed under section 4251 on any payment received for any toll telephone service which originates within a combat zone, as defined in section 112, ^^^ ^*^*- ^'*from a member of the Armed Forces of the United States performing service in such combat zone, as determined under such section, provided a certificate, setting forth such facts as the Secretary or his delegate may by regulations prescribe, is furnished to the person receiving such payment. "(e) ITEMS OTHERWISE TAXED.—Only one payment of tax under section 4251 shall be required with respect to the tax on any service, notwithstanding the lines or stations of one or more persons are used in furnishing such service. " (f) COMMON CARRIEKS AND COMMUNICATIONS COMPANIES.—No tax

shall be imposed under section 4251 on the amount paid for any toll telephone service described in section 4252(b)(2) to the extent that the amount so paid is for use by a common carrier, telephone or telegraph company, or radio broadcasting station or network in the conduct of its business as such. " (g) INSTALLATION CHARGES.—No tax shall be imposed under section 4251 on so much of any amount paid for the installation of any instrument, wire, pole, switchboard, apparatus, or equipment as is properly attributable to such installation. "SEC. 4254. COMPUTATION OF TAX.

" (a) GENERAL RULE. — I f a bill is rendered the taxpayer for local telephone service or toll telephone service— " (1) the amount on which the tax with respect to such services shall be based shall be the sum of all charges for such services included in the bill; except that " (2) if the person who renders the bill groups individual items for purposes of rendering the bill and computing the tax, then (A) the amount on which the tax with respect to each such group shall be based shall be the sum of all items within that group, and (B) the tax on the remaining items not included in any such group shall be based on the charge for each item separately. " (b) W H E R E PAYMENT I s MADE FOR TOLL TELEPHONE SERVICE I N COIN-OPERATED TELEPHONES.—If the tax imposed by section 4251 with

respect to toll telephone service is paid by inserting coins in coin-

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 148

76 Stat. 115; 78 Stat. 237.

26 USC 4261 note.

Repeal. 68A Stat. 510. 26 USC 4286, 4287.

76 Stat. 117.

68A Stat. 744; 78 Stat. 73.

PUBLIC LAW 89-44-JUNE 21, 1965

[79 STAT.

operated telephones, tax shall be computed to the nearest multiple of 5 cents, except that, where the tax is midway between multiples of 5 cents, the next higher multiple shall apply." SEC. 303. TAX ON TRANSPORTATION OF PERSONS BY AIR. (a) IN GENERAL.—Section 4261 (relating to imposition of tax on transportation of persons by air) is amended by striking out "November 15, 1962, and before July 1, 1965" wherever it appears and inserting in lieu thereof "November 15, 1962". (b) CONFORMING AMENDMENT.—Section 5 of the Tax Rate Extension Act of 1962 (76 Stat. 115) is amended by striking out subsection (e). SEC. 304. SAFE DEPOSIT BOXES. Subchapter D of chapter 33 (relating to safe deposit boxes) is hereby repealed and the table of subchapters for chapter 33 is amended by striking out the item relating to subchapter D. SEC. 305. CONFORMING CHANGES. (a) Section 4291 (relating to cases where persons receiving payment must collect tax) is amended to read as follows: "SEC. 4291. CASES WHERE PERSONS RECEIVING PAYMENT MUST COLLECT TAX. "Except as otherwise provided in section 4264(a), every person receiving any payment for facilities or services on which a tax is imposed upon the payor thereof under this chapter shall collect the amount of the tax from the person making such payment." (b) Section 6040 (relating to cross references) is amended by striking out paragraph (6).

TITLE IV—MISCELLANEOUS TAXES Repeals.

72 Stat. 1293. 26 USC 430 14354.

SEC. 401. DOCUMENTARY STAMP TAXES. (a) IN GENERAL.—Subchapters A (relating to issuance of capital stock, etc.) and B (relating to sales or transfers of capital stock, etc.) of chapter 34 are repealed and the table of subchapters for chapter 34 is amended by striking out the items relating to such subchapters. (b) CONVEYANCES.—Section 4361 (relating to tax on conveyances) is amended by adding at the end thereof the following new sentence: "The tax imposed by this section shall not apply on or after January 1, 1968." (c) TECHNICAL AND CONFORMING CHANGES.—Section 4381 (relating

68A Stat. 529. 26 USC 44514457.

68A Stat. 531; 73 Stat. 620.

to definitions) is repealed and the table of sections for subchapter E of chapter 34 is amended by striking out the item relating to such section. SEC. 402. PLAYING CARDS. Subchapter A of chapter 36 (relating to playing cards) is repealed and the table of subchapters for chapter 36 is amended by striking out the item relating to subchapter A. SEC. 403. OCCUPATIONAL TAX ON COIN-OPERATED DEVICES. (a) IN GENERAL.—Section 4461 (relating to imposition of tax) is amended by striking out subsection (a) and so much of subsection (b) as precedes paragraph (1) and inserting in lieu thereof the following: " (a) IN GENERAL.—There shall be imposed a special tax to be paid by every person who maintains for use or permits the use of, on any

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place or premises occupied by him, a coin-operated gaming device (as defined in section 4462) at the following rates: " ( I J $250 a year; and "(2) $250 a year for each additional device so maintained or the use of which is so permitted. If one such device is replaced by another, such other device shall not be considered an additional device, " (b) EXCEPTION.—No tax shall be imposed on a device which is commonly known as a claw, crane, or digger machine if—" (b) DEFINITION-.—Section 4462 (relating to definition of coinoperated amusement or gaming device) is amended to read as follows:

149

72 Stat. 1304.

«SEC. 4462. DEFINITION OF COIN-OPERATED GAMING DEVICE.

" (a) IN GENERAL.—For purposes of this subchapter, the term 'coinoperated gaming device' means any machine which is— "(1) a so-called 'slot' machine which operates by means of the insertion of a coin, token, or similar object and which, by application of the element of chance, may deliver, or entitle the person playing or operating the machine to receive, cash, premiums, merchandise, or tokens, or "(2) a machine which is similar to machines described in paragraph (1) and is operated without the insertion of a coin, token, or similar object. "(b) EXCLUSIONS.—The term 'coin operated gaming device' does not include— " (1) a bona fide vending or amusement machine in which gaming features are not incorporated; or "(2) a vending machine operated by means of the insertion of a one cent coin, which, when it dispenses a prize, never dispenses a prize of a retail value of, or entitles a person to receive a prize of a retail value of, more than 5 cents, and if the only prize dispensed is merchandise and not cash or tokens." (c) CLERICAL AMENDMENT.—The table of sections for subchapter B of chapter 36 is amended by striking out: "Sec. 4462. Definition of coin-operated amusement or gaming device."

and inserting in lieu thereof: "Sec. 4462. Definition of coin-operated gaming device."

SEC. 404. OCCUPATIONAL TAX ON BOWLING ALLEYS, BILLIARD AND POOL TABLES. Subchapter C of chapter 36 (relating to occupational tax on bowling 26^sc'*44n-' alleys, billiard and pool tables) is repealed and the table of subchap- 4474. ters for chapter 36 is amended by striking out the item relating to subchapter C.

SEC. 4 5 TECHNICAL AND CONFORMING CHANGES. 0. (a) Section 4402(2) (relating to exemption from tax on wagers) is amended by striking out "section 4462(a)(2)(B), " and inserting in lieu thereof "section 4462(a)(2),". (b) Section 4901(a) (relating to payment of tax as condition precedent to carrying on certain business) is amended by striking out "4461(2)" and inserting in lieu thereof "4461(a)(1)". (c) Section 4905(b)(1) (relating to registration) is amended by striking out "playing cards," and by striking out "4455,". (d) Paragraph (2) of section 4914(a) (relating to transactions not considered acquisitions) is amended by inserting before the semicolon at the end thereof "as in effect on January 1, 1965".

72 Stat. 1305. ^^^ ^*^** ^^^•

'^^ ^*^*- *^^'

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PUBLIC LAW 89-44-JUNE 21, 1965

[79 STAT.

TITLE V—ALCOHOL AND TOBACCO TAXES 78^statr*237^^'*'

^*p**^*

Repeal. 78"tS.^*237'*°' 26 USC 5701 note.

72 Stat. 1414.

SEC. 501. PRESENT TAX RATES MADE PERMANENT. (*) Section 5001(a) (relating to imposition, rate, and attachment of tax on distilled spirits) is amended by striking out the last sentence of paragraph (1) and the last sentence of paragraph (3). (b) Section 5022 (relating to tax on cordials and liqueurs containing wine) is amended by striking out at the end of the first sentence "until July 1, 1965, and on or after July 1, 1965, at the rate of $1.60 per wine gallon and a proportionate tax at a like rate on all fractional parts of such wine gallon^'. (c) Section 5041(b) (relating to rates of tax on wine) is amended— (1) by striking out in paragraph (1) ", except that on and after July 1, 1965, the rate shall be 15 cents per wine gallon"; (2) by striking out in paragraph (2) ", except that on and after July 1, 1965, the rate shall be 60 cents a wine gallon"; (3) by striking out in paragraph (3) ", except that on and after July 1, 1965, the rate shall be $2.00 per wine gallon"; (4) by striking out in paragraph (4) ", except that on and after July 1, 1965, the rate shall be $3.00 per wine gallon"; and (5) by striking out in paragraph (5) ", except that on and after July 1, 1965, the rate shall be $2.00 per wine gallon". (d) Section 5051(a) (relating to imposition and rate of tax on beer) is amended by striking out the second sentence. (e) Section 5063 f relating to floor stocks refunds on distilled spirits, wines, cordials, and oeer) is hereby repealed and the table of sections for subpart E of part I of subchapter A of chapter 51 is amended by striking out the item relating to section 5063. (f) Paragraph (1) of section 5701(c) (relating to rate of tax on cigarettes) is amended by striking out "until July 1, 1965, and $3.50 per thousand on and after July 1, 1965". (g) Section 5707 (relating to floor stocks refund on cigarettes) is hereby repealed and the table of sections for subchapter A of chapter 52 is amended by striking out the item relating to section 5707. (^).Section 497 of the Revenue Act of 1951 (relating to refunds on articles from foreign trade zones) is hereby repealed. SEC. 502. REPEAL OF TAX ON TOBACCO OTHER THAN CIGARS AND CIGARETTES. ^^^ REPEAL.—Section 5701 (relating to rates of taxes on tobacco, cigarsj cigarettes, etc.) is amended by striking out subsection (a) (relating to tobacco) and redesignating subsections (b), (c), (d), (e), a n a (f) as subsections (a), (D), (C), (d), and (e), respectively. (b)

CONFORMING AND CLERICAL AMENDMENTS.—

(1) The heading of chapter 52 is amended by striking out "TOBACCO,". (2) The table of subchapters for chapter 52 is amended— (A) by striking out in the item relating to subchapter B "export warehouse proprietors, and dealers in tobacco materials"

and inserting in lieu thereof "and export warehouse proprietors"; (B) by striking out the item relating to subchapter D and redesignating the items relating to subchapters E, F, and G as relating to subchapters D, E, and F, respectively; and (C) by striking out in the item relating to subchapter D

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(as redesignated by subparagraph (B)) "export warehouse proprietors, and dealers in tobacco materials" and inserting i n lieu thereof "and export warehouse proprietors".

(3) Section 5702 (relating to definitions applicable to the taxes pJa\^*^*\64^^' on tobacco, cigars, cigarettes, etc.) is amended— (A) by striking out subsections (a), (1), and (m) and redesignating subsections (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (n), and (o) as subsections (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), and (1), respectively; (B) by striking out "manufactured tobacco, cigars, and" in subsection (c) (as redesignated) and inserting in lieu thereof "cigars and"; and (C) by striking out subsection (d) (as redesignated) and inserting in lieu thereof the following: "(d)

MANTJTACTURER OF TOBACOO PRODUCTS.—^'Manufacturer

of

tobacco products' means any person who manufactures cigars or cigarettes, except that such term shall not include— "(1) a person who produces cigars or cigarettes solely for his own personal consumption or use; or "(2) a proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse." (4) Section 5704 (relating to exemption from tax) is amended— (A) by striking out subsection (c) and redesignating subsections (d) and (e) as (c) and (d),respectively; and (B) by striking out subsection (c) (as redesignated) and inserting in lieu wiereof the following: " (c) TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES R E LEASED IN BOND FROM CUSTOMS CUSTODY.—Tobacco products and cig-

arette papers and tubes, imported or brought into the United Statues, may be released from customs custody, without payment of tax, for delivery to a manufacturer of tobacco products or cigarette papers and tubes, in accordance with such regulations and under such bond as the Secretary or his delegate shall prescribe." (5^ The heading of subchapter B of chapter 52 is amended by striking out "Export Warehouse Proprietors, and Dealers in Tobacco Materials" and inserting in lieu thereof "and Export Warehouse Proprietors". (6) Section 5711(a) (relating to requirement for bond) is amended by striking out "as an export warehouse proprietor, or as a dealer in tobacco materials," and inserting in lieu thereof "or as an export warehouse proprietor,". (7) Chapter 52 (relating to cigars, cigarettes, and cigarette papers and tubes) is amended by striking out subchapter D and redesignating subchapters E, F, adld G as subchapters D, E, and F, respectively. (8) The heading of subchapter D (as redesignated) is amended by striking out "Export Warehouse Proprietors, and Dealers in Tobacco Materials" and inserting in lieu thereof "and Export Warehouse Proprietors". (9) Section 5741 (relating to records) is amended by striking out "every export warehouse proprietor, and every dealer in tobacco materials" and inserting in lieu thereof "and every export warehouse proprietor,".

^^ ^*^** ^"*-

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72 Stat. 1425.

PUBLIC LAW 89-44-JUNE 21, 1965

[79 STAT.

(10) The table of sections for subchapter E (as redesignated) is amended by striking out in the item relating to section 5753 "cigarette papers and tubes, and tobacco materials" and inserting in lieu thereof "and cigarette papers and tubes". (H) Section 5753 (relating to disposal of forfeited, condemned, and abandoned tobacco products, cigarette papers and tubes, and tobacco materials) is amended to read as follows: TOBACCO PRODUCTS, AND CIGARETTE PAPERS AND TUBES. "If it appears that any forfeited, condemned, or abandoned tobacco products, or cigarette papers and tubes, when offered for sale, will not bring a price equal to the tax due and payable thereon, and the expenses incident to the sale thereof, sUch articles shall not be sold for consumption in the United States but shall be disposed of in accordance with such regulations as the Secretary or his delegate shall prescribe." (12) Section 5762 (relating to" criminal penalties) is amended— (A) by striking out "as an export warehouse proprietor, or as a dealer in tobacco materials" iii subsection (a)(l) and inserting in lieu thereof "or as an export warehouse proprietor,"; and (B) by striking out subsection (a)(2) and inserting in lieu thereof the following: "(2)
 * SEC. 5753. DISPOSAL OF FORFEITED, CONDEMNED, AND ABANDONED

FAILING TO FURNISH INFORMATION OR FURNISHING FALSE

INFORMATION.—Fails to keep or make any record, return, report, or inventory, or keeps or makes any false or fraudulent record, rettirn, report, or inventory, required by this chapter or regulations thereynder; or". (13) Section 5763 (relating to forfeitures) is amended— (A) by gtriking out subsection (b) and inserting in lieu thereof the following: "(b) PERSONAL PROPERTY OF QUALIFIED MANUFACTURERS, AND EXPORT WAREHOUSE PROPRIETORS, ACTTING W I T H I N T E N T TO

DEFRAUD.—All tobacco products and cigarette papers and tubes, packages, internal revenue stamps, machinery, fixtures, equipment, and all other materialrs and personal property on the premises of any qualified manufacturer of tobacco products or cigarette papers and tubes, or export warehouse proprietor, who, with intent to defraud the United States, fails to keep or make any record, return, report, or inventory, or keeps or makes any false or fraudulent record, return, report, or inventory, required by this chapter; or refuses to pay any tax imposed by this chapter, or attempts in any manner to evade or defeat the tax or the payment thereof; or removes, contrary to any provision of this chapter, any article subject to tax under this chapter, shall be forfeiteid to tjie United States." and (B) by striking out subsection (c) and inserting in lieu thereof the following: "(c)

EEAL AND PERSONAL PROPERTY OF ILLICIT OPERATORS.—All

tobacco products, cigarette papers and tubes, machinery, fixtures, equipment, and other materials and personal property on the premises or any person engaged in business as a manufacturer of tobacco products or cigarette papers and tubes, or export warehouse proprietor,

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153

without filing the bond or obtaining the permit, as required by this chapter, together with all his right, title, and interest in the building in which such business is conducted, and the lot or tract of ground on which the building is located, shall be forfeited to the United States."

TITLE VI—ADMINISTRATIVE PROVISIONS SEC. 601. TECHNICAL AND CONFORMING CHANGES. (a) Section 6103(a) (relating to public record and inspection of returns) is amended by striking out " B, C, and D " in paragraph (2) and inserting in lieu thereof "B and C". (b) Section 6415 (relating to credits or refunds to persons who collected certain taxes) is amended— (1) by striking out "section 4231(1), 4231(2), 4231(3), 4241, 4251, 4261, or 4286" each place it appears and inserting in lieu thereof "section 4251 or 4261"; and (2) by striking out the last sentence of subsection (a). (c) Section 6416 (relating to credits and refunds of certain taxes on sales and services) is amended— (1) by striking out in the material in subsection (a)(1) which precedes subparagraph (A) "section 4231(4), (5), or (6) (cabarets, etc.),"; (2) by striking out ", admission, or service" each place it appears in subsection (a)(1)(A); (3) by amending subparagraph (B) of subsection (a)(1) to read as follows: " (B) has repaid the amount of the tax to the ultimate purchaser of the article;"; (4) by striking out "or (D) " in subsection (a)(1)(C); (5) by striking out " (i), (ii), or (iii), as the case may be," in subsection (a)(1)(D); (6) by striking out subparagraphs (A) and (B) of subsection (a)(3), by striking out " ( i i) " m subparagraph (C) of such subsection, and by striking out "or (D) " in subparagraph (D) of such subsection; (7) by striking out "31 or" and " (in the case of a tax imposed by chapter 32)" in subsection (b)(1); (8) by amending subparagraph (F) of subsection (b)(2) to read as follows: " (F) in the case of a tire or inner tube, resold for use as provided in subparagraph (C) of paragraph (3) and the other article referred to in such subparagraph is by any person exported or sold as provided in such subparagraph;"; (9) by striking out subparagraphs (N), (O), (P), and (Q) of subsection (b)(2); (10) by striking out " (D), " in subparagraph (A) of subsection (b)(3), by striking out subparagraph (D) of such subsection, and by amending subparagraphs (B) and (C) of such subsection to read as follows: " (B) in the case of a part or accessory taxable under section 4061(b), such article is used by the second manufacturer or producer as material in the manufacture or production of, or as a component part of, any other article manufactured or produced by him;

49-850 0-66—13

SSA Stat. 753.

H f ^ - i^^ff**

^"'®' P- ^37.

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 154 70 Stat. 388.

PUBLIC LAW 89-44-JUNE 21, 1%5

[79 STAT.

" (C) in the case of a tire or inner tube taxable under section 40Y1, such article is sold by the second manufacturer or producer on or in connection with, or with the sale of, any other article manufactured or produced by him and such other article is by any person exported, sold to a State or local government for the exclusive use of a State or local government, sold to a nonprofit educational organization for its exclusive use, or used or sold for use as supplies for vessels or aircraft;"; (11) by amending paragraph (4) of subsection (b) to read as follows: " (4) TIRES AND INNER TUBES.—If—

72 Stat. 1281.

68A Stat. 829.

" (A) a tire or inner tube taxable under section 4071 is sold by the manufacturer, producer, or importer thereof on or in connection with, or with the sale of, any other article manufactured or produced by him; and " (B) such other article is by any person exported, sold to a State or local government for the exclusive use of a State or local government, sold to a nonprofit educational organization for its exclusive use, or used or sold for use as supplies for vessels or aircraft, any tax imposed by chapter 32 in respect of such tire or inner tube which has been paid by the manufacturer, producer, or importer thereof shall be deemed to be an overpayment by him."; (12) by striking out "4053(b)(1) or" each place it appears in subsection (b)(5). (13) by amending subsection (c) to read as follows: "(c) CREDIT FOR TAX PAID ON TIRES OR INNER TUBES.—If tires or inner tubes on which tax has been paid under chapter 32 are sold on or in connection with, or with the sale of, another article taxable under chapter 32, there shall (under regulations prescribed by the Secretary or his delegate) be credited (without interest) against the tax imposed on the sale of such other article, an amount determined by multiplying the applicable percentage rate of tax for such other article by— "(1) the purchase price (less, in the case of tires, the part of such price attributable to the metal rim or rim base), if such tires or inner tubes were taxable under section 4071 (relating to tax on tires and inner tubes); or "(2) if such tires or inner tubes were taxable under section 4218 (relating to use by manufacturer, producer, or importer), the price (less, in the case of tires, the part of such price attributable to the metal rim or rim base) at which such or similar tires or inner tubes are sold, in the ordinary course of trade, by manufacturers, producers, or importers thereof, as determined by the Secretary or his delegate. The credit provided by this subsection shall be allowable only in respect of the first sale on or in connection with, or with the sale of, another article on the sale of which tax is imposed under chapter 32."; (14:) by striking out subsection (d); and (15) subsection (g) is amended by striking out "sections 4061(a), 4111, 4121, 4141," and inserting in lieu thereof "section 4061(a),". (^) Section 6802 (relating to supply and distribution of stamps) is amended— (1) by striking o u t " (other than the stamps on playing cards)" in paragraph (1); and (2) by striking out paragraph (3).

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 79 STAT. ]

PUBLIC LAW 89-44-JUNE 21, 1965

(e) Section 6806 (relating to posting occupation tax stamps) is amended by striking out "AMUSEMENT AND" in the heading of subsection (b). (f) Section 6808 (relating to special provision relating to stamps) is amended by striking out paragraphs (1) and (9). (g) Section 7012 (relating to cross references) is amended by striking out subsection (d). (h) Section 7 2 7 2 (D) (relating to cross references) is amended by striking out "4455,". (i) Section 7275 (relating to failure to print correct price on tickets) is repealed and the table of sections for subchapter B of chapter 75 is amended by striking out the item relating to section 7275. (j) Section 7S26(a) (relating to disposal of forfeited or abandoned property in special cases) is amended h^ striking out "section 4462 (a)(2) " and inserting in lieu thereof "section 4462".

TITLE VII—EFFECTIVE DATES OF TITLES I-VI SEC. 701. EFFECTIVE DATES. (a) RETAILERS AND MANUFACTURERS EXCISE TAXES.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by titles I and II of this Act shall apply with respect to articles sold on or after the day after the date of the enactment of this Act. (2) SPECIAL RULES.—The amendments made by sections 201 (b)(2) (relating to automobile parts and accessories) and 202(a) (relating to lubricating oil) shall apply with respect to articles sold on or after Januarv 1, 1966. The amendments made by section 202(b) and (c) (relating to payments with respect to lubricating oil) shall take effect January 1, 1966. The amendments made by section 203, insofar as they relate to the tax imposed by section 4131 (relating to electric light bulbs) of the Code, and the amendments made by section 208, insofar as they relate to the tax imposed by section 4061(b) (relating to automotive parts and accessories), section 4091 (relating to lubricating oil), or section 4131 (relating to electric light bulbs) of the Code, shall apply with respect to articles sold on or after January 1, 1966. The amendments made by sections 207 (relating to partial payments; sales of installment accounts) and 209(a) (relating to floor stocks refunds on passenger automobiles, etc.) shall take effect on the day after the date of the enactment of this Act. The amendments made by section 210 (relating to Highway Trust Fund) shall take effect January 1, 1966. (3) INSTALLMENT SALES, ETC.—For purposes of paragraphs (1) and (2), an article shall not be considered sold oefore the day after the date of the enactment of this Act or before January 1, 1966, as the case may be, unless possession or right to posse^^ion passes to the purchaser before such day or such date. Iti the case of— ^A) a lease, (B) a contract for the sale of an article where it is provided that the price shall be paid by installments and title to the article sold does not pass until a future date notwithstanding partial payment by installments.

155

®^^ ^*^*' ^'^*

72 Stat. 1429. Ante,

p. 149.

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PUBLIC LAW 89-44-JUNE 21, 1965

[79 STAT.

(C) a conditional sale, or (D) a chattel mortgage arrangement wherein it is provided that the sale price shall be paid in installments, entered into before such day or such date, payments made on or after such day or such date with respect to the article leased or sold shall, for purposes of this subsection, be considered as payments made with respect to an article sold on or after such day or such date, if the lessor or vendor establishes that the amount of payments payable on or after such day or such date with respect to such article has been reduced by an amount equal to the tax reduction applicable with respect to the lease or sale of such article. (4)

ELECTRIC LIGHT BULBS USED I N MANUFACTURE OF ARTICLES

UPON WHICH TAX IS REPEALED.—For purposes of applying section 4218(a) of the Code with respect to the use of an electric light bulb or tube by the manufacturer, producer, or importer thereof, and for purposes of applying section 4221(d)(6)(A) of the Code with respect to the sale of an electric light bulb or tube for use in further manufacture, an article which was taxable under chapter 32 of the Code on the date of the enactment of this Act shall, during the period beginning with the day after the date of the enactment of this Act through December 31, 1965, be treated as an article taxable under such chapter, (b)

FACILITIES AND SERVICES TAXES.— (1) ADMISSIONS AND CLUB DUES.—

(A) The amendments made by sections 301 and 305 insofar as they relate to the taxes imposed by section 4231 of the Code, shall apply with respect to admissions, services, or uses after noon, December 31, 1965, (B) The amendments made by sections 301 and 305 insofar as they relate to the taxes imposed by section 4241 of the Code, shall apply with respect to— (i) dues and membership fees attributable to periods beginning on or after January 1, 1966; (ii) initiation fees (other than initiation fees to which clause (iii) applies) and amounts paid for life memberships attributable to memberships beginning on or after January 1, 1966; (iii) initiation fees paid on or after July 1, 1965, to a new club or organization which first makes its facilities available to members on or after such date; and (iv) in the case of amounts described in section 4243(b) of the Code, 3-year periods beginning on or after January 1, 1966. (2)

72 Stat. 1289.

COMMUNICATIONS.—

(A) The amendments made by section 302 (relating to communication services) shall apply to amounts paid pursuant to bills rendered on or after January 1, 1966, for services rendered on or after such date. I n the case of amounts paid pursuant to bills rendered on or after January 1, 1966, for services which were rendered before such date and for which no previous bill was rendered, such amendments shall apply except with respect to such services as were rendered more than 2 months before such date. I n the case of services rendered more than 2 months before such date, the provisions of Subchapter B of chapter 33 of the Code in effect at the time such services were rendered shall apply to the amounts paid for such services.

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(B) Section 4251(b) of the Code, as in effect June 30, Jl^^^,%\^^'' 1965, is repealed effective on and after July 1, 1966. (3) TRANSPORTATION OF PERSONS BY AIR.—The amendments made by section 303 shall apply with respect to amounts paid for transportation, and amounts paid for accommodations in connection with transportation, beginning on or after July 1, 1965. (4) SAFE DEPOSIT BOXES.—The amendments made by section 304 shall apply with respect to use periods beginning on or after July 1, 1965. (c)

MISCELLANEOUS TAXES.—

(1) The amendments made by section 401 (relating to documentary stamp taxes) shall apply on and after January 1, 1966. (2) The amendments made by section 402 (relating to playing cards) and by subsection (c) of section 405 shall apply on and after the day after the date of the enactment of this Act. The amendments made by sections 403 (relating to occupational tax on coin-operated devices) and 404 (relating to occupational tax on bowling alleys, billiard and pool tables), and by subsections (a), (b), and (d) of section 405 (relating to technical and conforming changes) shall apply on and after July 1, 1965. (d) ALC!OHOL AND TOBACCO EXCISE TAXES.—The amendments made by section 501 shall apply on and after July 1, 1965. The amendments made by section 502 shall apply on and alter January 1, 1966. (e) ADMINISTRATIVE PROVISIONS.—Each amendment made by title VI, to the extent it relates to any tax provision changed by this Act, shall take effect in a manner consistent with the effective date for such changed tax provision.

TITLE VIII—MISCELLANEOUS STRUCTURAL CHANGES SEC. 801. MOTOR VEHICLES. (a) EXEMPTIONS FROM TAX.—Subsection (a) of section 4063 (relati n g to specific articles exempt from the tax on automobiles) is amended to read as follows: "(a)

SPECIFIED ARTICLES.— "(1) CAMPER COACHES;

BODIES FOR SELF-PROPELLED

SSA Stat. 482.

MOBILE

HOMES.—The tax imposed under section 4061 shall not apply in

the case of articles designed (A) to be mounted or placed on automobile trucks, automobile truck chassis, or automobile chassis, and (B) to be used primarily as living quarters. " (2) FEED, SEED, AND FERTILIZER EQUIPMENT.—The tax imposed

under section 4061 shall not apply in the case of any body, part or accessory primarily designed— " (A) to process or prepare seed, feed, or fertilizer for use on farms; " ^ B) to haul feed, seed, or fertilizer to and on farms; ^'(C) to spread feed, seed, or fertilizer on farms; " (D) to load or unload feed, seed, or fertilizer on farms; or " (E) for any combination of the foregoing. ^'(3) HOUSE TRAILERS.—The tax imposed under section 4061(a) shall not apply in the case of house trailers.

^"'^'PP- ^^e. i37.

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 158 Ante, p. 136.

PUBLIC LAW 89-44-JUNE 21, 1965

"(4) SMALL 3-WHEELED TRUCKS.—The tax imposed under section 4061(a) shall not apply in the case of— " (A) an automobile truck chassis which— "^i) has only 3 wheels, "(ii) is powered by a motor which does not exceed 18 brake horsepower (rated at 4,000 revolutions per minute), and "(iii) does not exceed 1,000 pounds gross weight; or " (B) a body designed primarily to be mounted on a chassis described in subparagraph (A). " (b)

26'us*c*42?6!*

78 Stat. 1086.

COMPONENTS.—For

REBUILDING or

PARTS NOT CONSIDERED MANUFACTURING.—

Paragraph (6) of section 4221(d) (relating to tax-free sales for use in further manufacture) is amended by adding at the end thereof the following new sentence: "For purposes of subparagraph (B), the rebuilding of a part or acccssoTy which is exempt from tax under section 4063(c) shall not constitute the manufacture or production of such part or accessory." (d)

74^st^t!*534^^^* 72 st'at. 1306.

CERTAIN TRUCKS INCORPORATING USED

purposes of the tax imposed by section 4061(a)(1) (relating to trucks, buses, etc.), in determming the price for which an article is sold, the value of any component of such article shall be excluded from the price, if— "(1) such component is furnished by the first user of such article, and "(2) such component has been used prior to such furnishing." (c)

72 Stat. 1283.

MANUFACTURERS' PRICE OF TRUCKS I N W H I C H USED PARTS ARE

INCORPORATED.—Section 4216 (relating to definition of price) is amended by adding at the end thereof the following new subsection: "(g)

68A Stat. 481.

[79 STAT.

SCHOOL BUSES.— (1) TAX-FREE SALES.—Subsection (e) of section 4221 (relating

to certain tax-free sales) is amended by adding at the end thereof the following new paragraph: "(6) SCHOOL BUSES.—Under regulations prescribed by the Secretary or his delegate, the tax imposed by section 4061(a) shall not apply to a bus sold to any person for use exclusively in transporting students and employees of schools operated by State or local governments or by nonprofit educational organizations. For purposes of this paragraph, incidental use of a bus in providing transportation for a State or local government or a nonprofit organization described in section 501(c) which is exempt from (2) CREDITS O REFUNDS.—SubsectioD (b)(2) of section 6416 R (relating to special cases in which tax payments are considered overpayments) is amended by adding at the end thereof the following new subparagraph: " (R) in the case of a bus chassis or body taxable under section 4061(a), sold to any person for use as described in section 4221(e)(5). " (e) EFFECTIVE DATES.^—The amendments made by subsections (a), (b), and (d) shall apply with respect to articles sold on or after the day after the da*© or the enactment of this Act. The amendment made by subsection (c) shall apply with respect to articles sold on or after January 1, 1965.
 * ^x under section 501(a) shall be disregarded."

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SEC. 802. GASOLINE. (a)

DEFINITLON OF GASOLINE.—

(1) IN GENERAL.—Subsection (b) of section 4082 (relating to ^^A Stat. 483. dennition of gasoline) is amended to read as follows: " (b) GASOLINE.—As used in this subpart, the term 'gasoline' means all products commonly or commercially known or sold as gasoline which are suitable for use as a motor fuel." (2) CASINGHEAD AND NATURAL GASOLINE.—Section 4041(b) 75^stlt!*i2'3*^^' (relating to special motor fuels) is amended by inserting after "liquefied petroleum gas," in the material preceding paragraph (1) "casinghead and natural gasoline,". (b)

REPEAL OF BONDING REQUIREMENTS.—

(1) Section 4082(d)(2) (relating to definition of wholesale distributors) is amended by striking out "and give a bond". (2) Section 4101 (relating to registration and bond) is amended to read as follows: •*SEC. 4101. REGISTRATION. "Every person subiect to tax under section 4081 or section 4091 1

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shall, before incurring any liability for tax under such sections, register with the Secretary or his delegate," (3) Section 7103(d)(3) (relating to cross references) is amended by striking out the semicolon at the end of subparagraph (E) and inserting m lieu thereof a period, and by striking out subparagraph (F). (4) Section 7232 (relating to failure to register or give bond, or false statement by manufacturer or producer of gasoline or lubricating oil) is amended— (A) by striking out "OR GIVE BOND" in the heading of such section; (B) by striking out "or give bond" in the text of such section; and (C) by striking out "and bonded" in the text of such section. (5) The table of sections for subpart C of part III of subchapter A of chapter 32 is amended by striking out, in the item relating to section 4101, "and bond". (6) The table of sections for part II of subchapter A of chapter 75 is amended by striking out, in the item relating to section 7232, "or give bond".

73 Stat. 615,

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Ante, p. 137. Ante. r>. 137

68A Stat. 848.

(c) EXCEPTION TO REGISTRATION I N CASE OF VESSEI^S AND AIRCRAFT.—

Section 4222(b) (relating to exceptions to registration) is amended by adding at the end thereof the following new paragraph: "(5) SUPPLIES FOR VESSELS OR AIRCRAFT.—Subsection (a) shall not apply to a sale of an article for use by the purchaser as supplies for any vessel or aircraft if such purchaser complies with such regulations relating to the use of exemption certificates in lieu of registration as the Secretary or his delegate shall prescril>e to carry out the purpose of this paragraph." (d)

EFFECTIVE DATES.—

(1) The amendments made by subsections (a)(1), (b), and (c) shall apply with respect to articles sold on or after July 1, 1965. (2) The amendment made by subsection (a)(2) shall apply with respect to casinghead and natural gasoline sold or used on or after July 1, 1965, except that such amendment shall not apply to a sale or u ^ of casinghead or natural gasoline which was sold

^^ Stat. i284.

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Page:United States Statutes at Large Volume 79.djvu/200

 160

75^stat^*i23*^'

PUBLIC LAW 89-44-JUNE 21, 1965

PAYMENT OF TAX BY RETURN.—

(1) Section 4374 (relating to affixing of stamps) is amended by adding at the end thereof the following new sentence: "Notwithstanding the preceding sentence, the Secretary or his delegate may, by regulations, provide that the tax imposed by section 4371 shall be paid on the basis of a return." (2) The heading for section 4374 is amended to read as follows: (3) The table of sections for subchapter D of chapter 34 is amended by striking out the item relating to section 4374 and inserting in lieu thereof the following: "Sec, 4374. Payment of tax." (b)
 * SEC. 4374. PAYMENT OF TAX."

72 Stat. 1326.

TREATMENT AS UNINTERRUPTED INTERNATIONAL A I R TRANS-

PORTATION.—Section 4262(c)(3) (relating to definition of uninterrupted international air transportation) is amended by adding after subparagraph (B) the following new sentence: "For purposes of this paragraph, in the case of personnel of the United States A r m j, Air Force, Navy, Marine Corps, and Coast Guard traveling m uniform at their own expense when on official leave, furlough, or pass, the scheduled interval described in subparagraph (A) shall be deemed to be not more than 6 hours if a ticket for the subsequent portion of such transportation is purchased within 6 hours after the end of the earlier portion of such transportation and the purchaser accepts and utilizes the first accommodations actually available to him for such subsequent portion." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to amounts paid for transportation beginning on or after July 1, 1965. SEC. 804. POLICIES ISSUED BY FOREIGN INSURERS. (a)

72 Stat. 1301.

STAT.

by a producer or importer before such date if tax under section 4081 of the Code (as in effect prior to the amendment made by subsection (a)(1)) was imposed with respect to such sale. SEC. 803. CERTAIN TRANSPORTATION OF MEMBERS OF THE ARMED FORCES WHILE ON LEAVE. (a)

76 Stat. 117.

[79

TAX IMPOSED ON PREMIUMS PAID.—Section 4371

(relating to

tax on policies issued by foreign insurers) is amended by adding at the end thereof the following new sentence: "If the tax imposed by this section is paid on th^ basis of a return under regulations prescribed under section 4374, the tax under paragraphs (1), (2), and (3) shall be computed on the premium paid in lieu of the premium charged." (c) EFFECTIVE DATES.—The amendments made by subsection (a) shall take effect on July 1, 1965. The amendments made by subsection (b) shall apply with respect to policies, bonds, and contracts with respect to which the tax imposed by section 4371 of the Code is required to be paid on the basis of a return. SEC. 805. DISTILLED SPIRITS. (a) RErruRN OF DISTILLED SPIRITS TO BONDED PREMISES.—Section 5008(d)(2) (relating to the return of spirits to bonded premises) is amended by striking out "; and no claim shall be allowed in respect to any distilled spirits withdrawn from the bonded premises of a distilled spirits plant more than 6 months prior to the date of such return".

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