AUTOMOBILES, TRUCKS, AND PARTS OR ACCESSORIES.

SEC. 481. AUTOMOBILES, TRUCKS, AND PARTS OR ACCESSORIES. (a) Increase in Tax on Trucks.—Section 3403 (a) (tax on trucks, busses, etc.) is hereby amended by striking out “5 per centum” and inserting in lieu thereof “8 per centum, except that on and after April 1, 1954, the rate shall be 5 per centum”. (b) Increase in Tax on Passenger Automobiles and Motorcycles.—Section 3403 (b) (tax on automobile chassis and bodies, etc.) is hereby amended to read as follows: “(b) Other Chassis and Bodies, Etc.—Other automobile chassis and bodies, chassis and bodies for trailers and semitrailers (other than house trailers) suitable for use in connection with passenger automobiles, and motorcycles (including in each case parts or accessories therefor sold on or in connection therewith or with the sale thereof), except tractors, 10 per centum, except that on and after April 1, 1954, the rate shall be 7 per centum. A sale of an automobile, trailer, or semitrailer shall, for the purposes of this subsection, be considered to be a sale of the chassis and or the body.” (c) Increase in Tax on Parts or Accessories.—Section 3403 (c) (tax on parts or accessories for automobiles, etc.) is hereby amended by striking out “5 per centum” and inserting in lieu thereof “8 per centum, except that on and after April 1, 1954, the rate shall be 5 per centum”. (d) Rebuilt Parts or Accessories.—Section 3403 (c) (tax on parts or accessories) is hereby amended by adding at the end thereof the following: “In determining the sale price of a rebuilt automobile part or accessory there shall be excluded from the price, in accordance with regulations prescribed by the Secretary, the value of a like part or accessory accepted in exchange.” (e) Technical Amendment.—Section 3403 (e) (relating to certain credits against the tax imposed by section 3403) is hereby amended by striking out “in the case of an article taxable under subsection (a), 5 per centum, and in the case of an article taxable under subsection (b), 7 per centum” and inserting in lieu thereof “in the case of an article taxable under subsection (a) or subsection (b), the applicable percentage rate of tax provided in such subsections”. (f) Parts or Accessories for Farm Equipment.—Section 3443 (a) (3) (A) is hereby amended by striking out the period at the end of clause (v) and inserting in lieu thereof a semicolon, and by inserting after clause (v) the following: “(vi) in the case of articles taxable under section 3403 (c) (other than spark plugs, storage batteries, leaf springs, coils, timers, and tire chains), used or resold for use as repair or replacement parts or accessories for farm equipment (other than equipment taxable under subsection (a) or (b) of section 3403);”. (g) Effective Date of Subsection (f).—The amendment made by subsection (f) shall be effective with respect to articles purchased (by 65 Stat. 533 the user thereof) on or after the first day of the first month which begins more than ten days after the date of the enactment of this Act. (h) Removal of Tax on Tires for Tots, Etc.—Paragraph (1) of section 3400 (a) (relating to tax on tires) is hereby amended by adding at the end thereof the following: “The tax imposed by this paragraph shall not apply to (A) tires which are not more than 20 inches in diameter and not more than one and three-fourths inches in cross-section, if such tires are of all-rubber construction (whether hollow center or solid) without fabric or metal reinforcement, or (B) tires of extruded tiring with internal wire fastening agent.”