INCREASE IN TAXES ON TIRES OF THE TYPE USED ON HIGHWAY VEHICLES; TAX ON TREAD RUBBER, ETC.

SEC. 204. INCREASE IN TAXES ON TIRES OF THE TYPE USED ON HIGHWAY VEHICLES; TAX ON TREAD RUBBER, ETC. (a) In General.— Section 4071 (relating to tax on tires and tubes) is amended to read as follows: “SEC. 4071. IMPOSITION OF TAX. “(a) Imposition and Rate of Tax.—There is hereby imposed upon the following articles, if wholly or in part of rubber, sold by the manufacturer, producer, or importer, a tax at the following rates: 70 Stat. 389 “(1) Tires of the type used on highway vehicles, 8 cents a pound. “(2) Other tires, 5 cents a pound. “(3) Inner tubes for tires, 9 cents a pound. “(4) Tread rubber, 3 cents a pound. “(b) Determination of Weight.—For purposes of this section, weight shall be based on total weight, except that in the case of tires such total weight shall be exclusive of metal rims or rim bases. Total weight of the articles shall be determined under regulations prescribed by the Secretary or his delegate. “(c) Rate Reduction.—On and after July 1, 1972— “(1) the tax imposed by paragraph (1) of subsection (a) shall be 5 cents a pound; and “(2) paragraph (4) of subsection (a) shall not apply.” (b) Tread Rubber Defined.—Section 4072 (defining the term “rubber”) is amended to read as follows: “SEC. 4072. DEFINITIONS. “(a) Rubber.—For purposes of this chapter, the term ‘rubber’ includes synthetic and substitute rubber. “(b) Tread Rubber.—For purposes of this chapter, the term ‘tread rubber’ means any material— “(1) which is commonly or commercially known as tread rubber or camelback; or “(2) which is a substitute for a material described in paragraph (1) and is of a type used in recapping or retreading tires. “(c) Tires of the Type Used on Highway Vehicles.—For purposes of this part, the term ‘tires of the type used on highway vehicles’ means tires of the type used on— “(1) motor vehicles which are highway vehicles, or “(2) vehicles of the type used in connection with motor vehicles which are highway vehicles.” (c) Exemption of Certain Tread Rubber From Tax.—Section 4073 (relating to exemptions) is amended by adding at the end thereof the following new subsection: “(c) Exemption From Tax on Tread Rubber in Certain Cases.—Under regulations prescribed by the Secretary or his delegate, the tax imposed by section 4071 (a) (4) shall not apply to tread rubber sold by the manufacturer, producer, or importer, to any person for use by such person otherwise than in the recapping or retreading of tires of the type used on highway vehicles.” (d) Technical Amendment.— The table of sections for part II of subchapter A of chapter 32 is amended by striking out “Sec. 4072. Definition of rubber.” and inserting in lieu thereof “Sec. 4072. Definitions.”