PERCENTAGE DEPLETION.

SEC. 319. PERCENTAGE DEPLETION. (a) Allowance of Percentage Depletion.—So much of paragraph (4) of section 114 (b) as precedes the last sentence of subparagraph (A) is hereby amended to read as follows: “(4) Percentage depletion for coal and metal mines and for certain other mines and natural mineral deposits.— “(A) In general.— The allowance for depletion under section 23 (m) in the case of the following mines and other natural deposits shall be— “(i) in the case of sand, gravel, slate, stone (including pumice and scoria), brick and tile clay, shale, oyster shell, clam shell, granite, marble, sodium chloride, and, if from brine wells, calcium chloride, magnesium chloride, and bromine, 5 per centum, “(ii) in the case of coal, asbestos, brucite, dolomite, magnesite, perlite, wollastonite, calcium carbonates, and magnesium carbonates, 10 per centum, “(iii) in the case of metal mines, aplite, bauxite, fluorspar, flake graphite, vermiculite, beryl, garnet, feldspar, mica, talc (including pyrophyllite), lepidolite, spodumene, barite, ball clay, sagger clay, china clay, phosphate rock, rock asphalt, trona, bentonite, gilsonite, thenardite, borax, fuller’s earth, tripoli, refractory and fire clay, quartzite, diatomaceous earth, metallurgical grade limestone, chemical grade limestone, and potash, 15 per centum, and “(iv) in the case of sulfur, 23 per centum, 65 Stat. 498 of the gross income from the property during the taxable year, excluding from such gross income an amount equal to any rents or royalties paid or incurred by the taxpayer in respect of the property.” (b) Technical Amendment.—So much of paragraph (2) of section 114 (b) as precedes “discovered by the taxpayer after February 28, 1913” is hereby amended to read as follows: “(2) Discovery value in the case of mines.—In the case of mines (except mines in respect of which percentage depletion is allowable under paragraph (4) of this subsection)”. (c) Effective Date.—The amendments made by this section shall be applicable only with respect to taxable years beginning after December 31, 1950.