DOCUMENTARY STAMP TAXES.

SEC. 141. DOCUMENTARY STAMP TAXES. (a) Amendment of Chapter 34.—Chapter 34 (documentary stamp taxes) is amended to read as follows: “CHAPTER 34— DOCUMENTARY STAMP TAXES “Subchapter A. Issuance of capital stock and certificates of indebtedness by a corporation. “Subchapter B. Sales or transfers of capital stock and certificates of indebtedness of a corporation. “Subchapter C. Conveyances. “Subchapter D. Policies issued by foreign insurers. “Subchapter E. Miscellaneous provisions applicable to documentary stamp taxes. “Subchapter A— Issuance of Capital Stock and Certificates of Indebtedness by a Corporation “Part I. Issuance of capital stock and similar interests. “Part II. Issuance of certificates of indebtedness. “PART I— ISSUANCE OF CAPITAL STOCK AND SIMILAR INTERESTS “Sec. 4301. Imposition of tax. “Sec. 4302. Recapitalization. “Sec. 4303. Exemptions. “Sec. 4304. Affixing of stamps. “Sec. 4305. Cross references. “SEC. 4301. IMPOSITION OF TAX.“There is hereby imposed, on each original issue of shares or certificates of stock issued by a corporation (whether on organization or reorganization), a tax at the rate of 10 cents on each $100 (or major fraction thereof) of the actual value of the certificates (or of the shares where no certificates are issued). The tax imposed by this section shall be computed on the basis of all certificates (or shares) so issued by the corporation on each day. “SEC. 4302. RECAPITALIZATION.“In the case of a recapitalization, the tax imposed by section 4301 shall be. that proportion of the tax computed on the certificates (or on the shares where no certificates are issued) issued in the recapitalization that (1) the amount dedicated as capital for the first time by the recapitalization, whether by a transfer of earned surplus or otherwise, bears to (2) the total actual value of such certificates or shares issued in the recapitalization. “SEC. 4303. EXEMPTIONS. “(a) Common Trust Funds.—The tax imposed by section 4301 shall not apply to the issue of shares or certificates of a common trust fund, as defined in section 584. “(b) Pooled Investment Funds.—The tax imposed by section 4301 shall not apply to the issue of shares or certificates of a fund maintained by a bank exclusively for the collective investment and reinvestment of assets of qualified trusts (within the meaning of section 401, relating to qualified pension, profit-sharing, and stock bonus plans). 72 Stat. 1294 “(c) Installment Purchases of Certain Shares or Certificates.—The tax imposed by section 4301 shall not apply to shares or certificates issued by a corporation pursuant to an installment purchase agreement which provides that— “(1) the periodic payments by the purchaser will be applied (as received by the corporation) solely to the acquisition of shares or certificates in specified other corporations (and in specified percentages), and “(2) the corporation will transfer to the purchaser, on or before the termination of the agreement, all shares or certificates in other corporations acquired by it for the purchaser. For purposes of the preceding sentence, the term ‘purchaser’ includes a successor in interest of the purchaser. “(d) Other Exemptions.— “For other exemptions, see section 4382. “SEC. 4304. AFFIXING OF STAMPS.“The stamps representing the tax imposed by section 4301 shall be affixed to the stock books or corresponding records of the organization and not to the certificates issued. “SEC. 4305. CROSS REFERENCES. “For definitions, penalties, and other general and administrative provisions applicable to this part, see sections 4381 and 4384 and subtitle F. “PART II— ISSUANCE OF CERTIFICATES OF INDEBTEDNESS “Sec. 4311. Imposition of tax. “Sec. 4312. Renewals. “Sec. 4313. Bond as security for debt. “Sec. 4314. Exemptions. “Sec. 4315. Cross references. “SEC. 4311. IMPOSITION OF TAX.“There is hereby imposed, on ail certificates of indebtedness issued by a corporation, a tax at the rate of 11 cents on each $100 of face value or fraction thereof. “SEC. 4312. RENEWALS.“Every renewal of any certificate of indebtedness shall be taxed as a new issue. “SEC. 4313. BOND AS SECURITY FOR DEBT.“In the case where a bond conditioned for the repayment or payment of money is given in a penal sum greater than the debt secured, the tax imposed by section 4311 shall be based upon the amount secured. “SEC. 4314. EXEMPTIONS. “(a) Installment Purchase of Obligations.—The tax imposed by section 4311 shall not apply to any instrument under the terms of which the obligee is required to make payment therefor in installments and is not permitted to make in any year a payment of more than 20 percent of the cash amount to which entitled upon maturity of the instrument. “(b) Other Exemptions.— “For other exemptions, see section 4382. “SEC. 4315. CROSS REFERENCES. “For definitions, penalties, and other general and administrative provisions applicable to this part, see sections 4381 and 4384 and subtitle F. 72 Stat. 1295 “Subchapter B— Sales or Transfers of Capital Stock and Certificates of Indebtedness of a Corporation “Part I. Sales or transfers of capital stock and similar interests. “Part II. Sales or transfers of certificates of indebtedness. “Part III. Provisions common to sales or transfers of capital stock and certificates of indebtedness. “PART I— SALES OR TRANSFERS OF CAPITAL STOCK AND SIMILAR INTERESTS “Sec. 4321. Imposition of tax. “Sec. 4322. Exemptions. “Sec. 4323. Affixing of stamps. “Sec. 4324. Cross references. “SEC. 4321. IMPOSITION OF TAX.“There is hereby imposed, on each sale or transfer of shares or certificates of stock, or of rights to subscribe for or to receive such shares or certificates, issued by a corporation, a tax at the rate of 4 cents on each $100 (or major fraction thereof) of the actual value of the certificates (or of the shares where no certificates are sold or transferred). In no case shall the tax so imposed on any such sale or transfer be— “(1) more than 8 cents on each share, or “(2) less than 4 cents on the sale or transfer. “SEC. 4322. EXEMPTIONS. “(a) Exemptions for Certain Transfers.—The tax imposed by section 4321 shall not apply to any delivery or transfer of shares, certificates, or rights— “(1) Brokers.—To a broker or his registered nominee for sale of such shares, certificates, or rights; by a broker or his registered nominee to a customer for whom and upon whose order the broker has purchased same; or by a purchasing broker to his registered nominee to be held by such nominee for the same purpose as if held by the broker; or “(2) Nominees of corporations.—From a corporation to a registered nominee of such corporation, or from one such nominee to another such nominee, provided that in each instance such shares, certificates, or rights are to be held by the nominee for the same purpose as if retained by the corporation; or from such nominee to such corporation. “(b) Certain Odd-Lot Transactions.— “(1) Exemption.—The tax imposed by section 4321 shall not apply to any odd-lot sale by an odd-lot dealer if the shares, certificates, or rights are delivered or transferred to a broker pursuant to an order of a customer of such broker for such shares, certificates, or rights. “(2) Definitions.— For purposes of paragraph (1)— “(A) The term ‘odd-lot sale’ means an odd-lot transaction under the rules of the securities exchange of which the odd-lot dealer is a member. “(B) The term ‘odd-lot dealer’ means a person who is (i) a member of a securities exchange which is registered with the Securities and Exchange Commission as a national securities exchange, and (ii) registered under the rules of such exchange as an odd-lot dealer or as a specialist. 72 Stat. 1296 “(c) Other Exemptions.— “For other exemptions, see sections 4341, 4342, 4343, 4344, and 4382. “SEC. 4323. AFFIXING OF STAMPS. “(a) Books of the Corporation.—The stamps representing the tax imposed by section 4321 shall be affixed to the books of the corporation in case of a sale where the evidence of transfer is shown only by the books of the corporation. “(b) Certification as to Valve by Transferor or Transferee.—Where shares or certificates of stock, or of rights to subscribe for or to receive such shares or certificates, are presented for transfer and the tax thereon is paid by the use of adhesive stamps, such shares or certificates shall be accompanied by a certification signed by the transferor or his agent or the transferee or his agent as to the actual value of the shares or certificates so transferred and any corporation or transfer agent to whom such shares or certificates are presented shall be entitled to rely on such certification without further inquiry. “(c) Other Evidences of Sale or Transfer.— “For provisions applicable to the affixing of stamps in cases of sale or transfer shown otherwise than only by the books of the corporation, see section 4352. “SEC. 4324. CROSS REFERENCES. “For definitions, penalties, and other general and administrative provisions applicable to this part, see sections 4345, 4351, 4353, 4381, and 4384, and subtitle F. “PART II— SALES OR TRANSFERS OF CERTIFICATES OF INDEBTEDNESS “Sec. 4331. Imposition of tax. “Sec. 4332. Exemptions. “Sec. 4333. Cross references. “SEC. 4331. IMPOSITION OF TAX.“There is hereby imposed, on each sale or transfer of any certificates of indebtedness issued by a corporation, a tax at the rate of 5 cents on each $100 or fraction thereof of the face value. “SEC. 4332. EXEMPTIONS. “(a) Brokers.—The tax imposed by section 4331 shall not apply to any delivery or transfer to a broker for sale, nor upon any delivery or transfer by a broker to a customer for whom and upon whose order he has purchased the certificates of indebtedness. “(b) Installment Purchase of Obligations.—The tax imposed by section 4331 shall not apply to any instrument under the terms of which the obligee is required to make payment therefor in installments and is not permitted to make in any year a payment of more than 20 percent of the cash amount to which entitled upon maturity of the instrument. “(c) Other Exemptions.— “For other exemptions, see sections 4341, 4342, 4343, 4344, and 4382. “SEC. 4333. CROSS REFERENCES. “For definitions, penalties, and other general and administrative provisions applicable to this part, see sections 4345, 4381, and 4384; sections 4351 to 4353 inclusive; and subtitle F. 72 Stat. 1297 “PART III— PROVISIONS COMMON TO SALES OR TRANSFERS OF CAPITAL STOCK AND CERTIFICATES OF INDEBTEDNESS “Subpart A. Exemptions. “Subpart B. Miscellaneous provisions. “Subpart A— Exemptions “Sec. 4341. Transfers as security. “Sec. 4342. Fiduciaries and custodians. “Sec. 4343. Transfers by operation of law. “Sec. 4344. Certain other transfers. “Sec. 4345. Exemption certificates. “Sec. 4346. Cross references. “SEC. 4341. TRANSFERS AS SECURITY.“The taxes imposed by sections 4321 and 4331 shall not apply to any delivery or transfer of any of the instruments referred to in such sections— “(1) Collateral security.—To a lender as collateral security for money loaned thereon, if such collateral security is not actually sold, or by such lender as a return of such collateral security. “(2) Security for performance.—To a trustee or public officer made pursuant to Federal or State law as security for the performance of an obligation, or by such trustee or public officer as a return of such security. “SEC. 4342. FIDUCIARIES AND CUSTODIANS.“The taxes imposed by section 4321 and 4331 shall not apply to any delivery or transfer of any of the instruments referred to in such sections— “(1) Fiduciaries.—From a fiduciary to his nominee, or from one nominee of the fiduciary to another nominee, provided that in each instance such instruments are to be held by the nominee for the same purpose as if retained by the fiduciary; or from the nominee to such fiduciary; or “(2) Custodians.— “(A) From the owner to a custodian if under a written agreement between the parties such instruments are to be held or disposed of by such custodian for, and subject at all times to the instructions of, the owner; or from such custodian to such owner; or “(B) From a custodian as specified in subparagraph (A) to a registered nominee of such custodian, or from one such nominee to another such nominee, provided that in each instance such instruments are to be held by the nominee for the same purpose as if retained by the custodian; or from such nominee to such custodian. “SEC. 4343. TRANSFERS BY OPERATION OF LAW. “(a) Exempt Transfers.—The taxes imposed by sections 4321 and 4331 shall not apply to any delivery or transfer of any of the instruments referred to in such sections— “(1) Decedents.—From a decedent to his executor or administrator. “(2) Minors.—From a minor to his guardian, or from a guardian to his ward upon attaining majority. “(3) Incompetents.—From an incompetent to his committee or similar legal representative, or from a committee or similar legal representative to a former incompetent upon removal of disability. 72 Stat. 1298 “(4) Financial institutions.—From a bank, trust company, financial institution, insurance company, or other similar entity, or nominee, custodian, or trustee therefor, to a public officer or commission, or person designated by such officer or commission or by a court, in the taking over of its assets, in whole or part, under Federal or State law regulating or supervising such institutions, nor upon redelivery or retransfer by any such transferee or successor thereto. “(5) Bankrupts.—From a bankrupt or person in receivership due to insolvency to the trustee in bankruptcy or receiver, from such receiver to such trustee, or from such trustee to such receiver, nor upon redelivery or retransfer by any such transferee or successor thereto. “(6) Successors.—From a transferee under paragraphs (1) to (5), inclusive, to his successor acting in the same capacity, or from one such successor to another. “(7) Foreign governments and aliens.—From a foreign country or national thereof to the United States or any agency thereof, or to the government of any foreign country, directed pursuant to the authority vested in the President by section 5 (b) of the Trading With the Enemy Act, as amended by the First War Powers Act, 1941 (50 U. S. C. App. sec. 5). “(8) Trustees.—From trustees to surviving, substituted, succeeding, or additional trustees of the same trust. “(9) Survivors.—Upon the death of a joint tenant or tenant by the entireties, to the survivor or survivors. “(b) Nonexempt Transfers.—No delivery or transfer shall be exempt because effected by operation of law unless an exemption is otherwise specifically provided. “SEC. 4344. CERTAIN OTHER TRANSFERS. “(a) Loans.—The taxes imposed by sections 4321 and 4331 shall not apply to any delivery or transfer of any of the instruments referred to in such sections to a borrower as a loan of such instruments, or to the lender as a return of such loan. “(b) Worthless Stock and Obligations.—The taxes imposed by sections 4321 and 4331 shall not apply to any delivery or transfer of any of the instruments referred to in such sections by an executor or administrator to a legatee, heir, or distribute, if it is shown to the satisfaction of the Secretary or his delegate that the value of such instrument is not greater than the amount of the tax which would otherwise be imposed on such delivery or transfer. “(c) Transfers Between Certain Revocable Trusts.—The taxes imposed by sections 4321 and 4331 shall not apply to any delivery or transfer of any of the instruments referred to in such sections by one revocable trust to another revocable trust if— “(1) the grantor of both trusts is the same person, and “(2) at the time of such delivery or transfer, such grantor is treated under section 676 as the owner of both trusts. For purposes of the preceding sentence, if 2 or more grantors are treated under section 676 as owners in the same relative proportions of both trusts, such grantors shall be treated as the same person. “SEC. 4345. EXEMPTION CERTIFICATES.“Except as provided in regulations prescribed by the Secretary or his delegate, no exemption shall be granted under section 4322, 4332 (a), 4341. 4342, 4343 (a), or 4344 (a) or (c) unless the delivery or transfer is evidenced by a certificate setting forth such facts as the Secretary or his delegate may by regulations prescribe. “SEC. 4346. CROSS REFERENCES. “For other exemptions, see sections 4322, 4332, and 4382. 72 Stat. 1299 “Subpart B— Miscellaneous Provisions “Sec. 4351. Definitions. “Sec. 4352. Affixing of stamps. “Sec. 4353. Payment of tax through national securities exchanges without use of stamps. “Sec. 4354. Cross references. “SEC. 4351. DEFINITIONS. “(a) Registered Nominee.—For purposes of this subchapter, the term ‘registered nominee’ means any person registered in accordance with such regulations as the Secretary or his delegate shall prescribe. “(b) Sale or Transfer.—For purposes of this subchapter, the term ‘sale or transfer’ means any sale, agreement to sell, memorandum of sale or delivery, or transfer of legal title, whether or not shown by the books of the corporation or other organization (or by any assignment in blank, or by any delivery, or by any paper or agreement or memorandum or other evidence of transfer or sale), and whether or not the holder acquires a beneficial interest in the instruments. “SEC. 4352. AFFIXING OF STAMPS.“The stamps representing the taxes imposed by section 4321 and section 4331 shall be affixed to— “(1) Instrument.—The instrument where the change of ownership is by transfer of the instrument. “(2) Bill or memorandum of sale.—The bill or memorandum of sale in cases of an agreement to sell or where the transfer is by delivery of the instrument assigned in blank. Such bill or memorandum of sale shall be made and delivered by the seller to the buyer, and shall show the date thereof, the name of the seller, the amount of the sale, and the instrument to which it refers. “SEC. 4353. PAYMENT OF TAX THROUGH NATIONAL SECURITIES EXCHANGES WITHOUT USE OF STAMPS. “(a) General Rule.—Under regulations prescribed by the Secretary or his delegate, if a member of a securities exchange which is registered with the Securities and Exchange Commission as a national securities exchange appoints such exchange, or the clearinghouse for such exchange, as his agent for purposes of paying the taxes imposed by sections 4321 and 4331 in respect of his transactions, the taxes imposed by such sections in respect of such transactions may be paid through such agent without the use of stamps. “(b) Treatment as Stamp Tax.—For purposes of this title— “(1) any tax which is payable as provided under subsection (a) shall be treated as tax payable by stamp, and “(2) any amount of tax which is paid as provided under subsection (a) shall be treated as tax paid by stamp. “SEC. 4354. CROSS REFERENCES. “For penalties and other general and administrative provisions applicable to this subchapter, see section 4384 and subtitle F. “Subchapter C— Conveyances “Sec. 4361. Imposition of tax. “Sec. 4362. Exemptions. “Sec. 4363. Cross references. “SEC. 4361. IMPOSITION OF TAX.“There is hereby imposed, on each deed, instrument, or writing by which any lands, tenements, or other realty sold shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or their direction, when the consideration or value of the interest or property 72 Stat. 1300conveyed (exclusive of the value of any lien or encumbrance remaining thereon at the time of sale) exceeds $100, a tax at the rate of 55 cents for each $500 or fractional part thereof. “SEC. 4362. EXEMPTIONS. “(a) Security for Debt.—The tax imposed by section 4361 shall not apply to any instrument or writing given to secure a debt. “(b) State and Local Government Conveyances.—No State or Territory, or political subdivision thereof, or the District of Columbia, shall be liable for the tax imposed by section 4361 with respect to any deed, instrument, or writing to which it is a party, and affixing of stamps thereby shall not be deemed payment for the tax, which may be collected by assessment from any other party liable therefor. “(c) Other Exemptions.— “For other exemptions, see section 4382. “SEC. 4363. CROSS REFERENCES. “For penalties and other general and administrative provisions applicable to this subchapter, see section 4384 and subtitle F. “Subchapter D— Policies Issued by Foreign Insurers “Sec. 4371. Imposition of tax. “Sec. 4372. Definitions. “Sec. 4373. Exemptions. “Sec. 4374. Affixing of stamps. “Sec. 4375. Cross references. “SEC. 4371. IMPOSITION OF TAX.“There is hereby imposed, on each policy of insurance, indemnity bond, annuity contract, or policy of reinsurance issued by any foreign insurer or reinsurer, a tax at the following rates: “(1) Casualty insurance and indemnity bonds.—Four cents on each dollar, or fractional part thereof, of the premium charged on the policy of casualty insurance or the indemnity bond, if issued to or for, or in the name of, an insured as defined in section 4372 (d). “(2) Life insurance, sickness, and accident policies, and annuity contracts.—One cent on each dollar, or fractional part thereof, of the premium charged on the policy of life, sickness, or accident insurance, or annuity contract, unless the insurer is subject to tax under section 816. “(3) Reinsurance.—One cent on each dollar, or fractional part thereof, of the premium charged on the policy of reinsurance covering any of the contracts taxable under paragraph (1) or (2). “SEC. 4372. DEFINITIONS. “(a) Foreign Insurer or Reinsurer.—For purposes of this subchapter, the term ‘foreign insurer or reinsurer’ means an insurer or reinsurer who is a nonresident alien individual, a foreign partnership, or a foreign corporation. The term includes a nonresident alien individual, foreign partnership, or foreign corporation which shall become bound by an obligation of the nature of an indemnity bond. “(b) Policy of Casualty Insurance.—For purposes of section 4371 (1), the term ‘policy of casualty insurance’ means any policy (other than life) or other instrument by whatever name called whereby a contract of insurance is made, continued, or renewed. “(c) Indemnity Bond.—For purposes of this subchapter, the term ‘indemnity bond’ means any instrument by whatever name called whereby an obligation of the nature of an indemnity, fidelity, or surety bond is made, continued, or renewed. The term includes any bond for indemnifying any person who shall have become bound or 72 Stat. 1301 engaged as surety, and any bond for the due execution or performance of any contract, obligation, or requirement, or the duties of any office or position, and to account for money received by virtue thereof, where a premium is charged for the execution of such bond. “(d) Insured.—For purposes of section 4371 (1), the term ‘insured’ means— “(1) a domestic corporation or partnership, or an individual resident of the United States, against, or with respect to, hazards, risks, losses, or liabilities wholly or partly within the United States, or “(2) a foreign corporation, foreign partnership, or nonresident individual, engaged in a trade or business within the United States, against, or with respect to, hazards, risks, losses, or liabilities within the United States. “(e) Policy of Life, Sickness, or Accident Insurance, or Annuity Contract.—For purposes of section 4371 (2), the term ‘policy of life, sickness, or accident insurance, or annuity contract’ means any policy or other instrument by whatever name called whereby a contract of insurance or an annuity contract is made, continued, or renewed with respect to the life or hazards to the person of a citizen or resident of the United States. “(f) Policy of Reinsurance.—For purposes of section 4371 (3), the term ‘policy of reinsurance’ means any policy or other instrument by whatever name called whereby a contract of reinsurance is made, continued, or renewed against, or with respect to, any of the hazards, risks, losses, or liabilities covered by contracts taxable under paragraph (1) or (2) of section 4371. “SEC. 4373. EXEMPTIONS.“The tax imposed by section 4371 shall not apply to— “(1) Domestic agent.—Any policy, indemnity bond, or annuity contract signed or countersigned by an officer or agent of the insurer in a State, Territory, or District of the United States within which such insurer is authorized to do business. “(2) Indemnity bond.—Any indemnity bond required to be filed by any person to secure payment of any pension, allowance, allotment, relief, or insurance by the United States, or to secure a duplicate for, or the payment of, any bond, note, certificate of indebtedness, war-saving certificate, warrant, or check, issued by the United States. “SEC. 4374. AFFIXING OF STAMPS.“Any person to or for whom or in whose name any policy, indemnity bond, or annuity contract referred to in section 4371 is issued, or any solicitor or broker acting for or on behalf of such person in the procurement of any such instrument, shall affix the proper stamps to such instrument. “SEC. 4375. CROSS REFERENCES. “For penalties and other general and administrative provisions, see section 4384 and subtitle F. “Subchapter E— Miscellaneous Provisions Applicable to Documentary Stamp Taxes “Sec. 4381. Definitions. “Sec. 4382. Exemptions. “Sec. 4383. Certain changes in partnerships. “Sec. 4384. Liability for tax. 72 Stat. 1302 “SEC. 4381. DEFINITIONS. “(a) Certificates of Indebtedness.—For purposes of the taxes imposed by sections 4311 and 4331, the term ‘certificates of indebtedness’ means bonds, debentures, or certificates of indebtedness; and includes all instruments, however termed, issued by a corporation with interest coupons or in registered form, known generally as corporate securities. “(b) Corporation.—For purposes of the taxes imposed by this chapter, the term ‘corporation’ includes any investment trust or similar organization (or any person acting in behalf of such investment trust or similar organization) issuing, holding or dealing in shares or certificates of stock, or in certificates of indebtedness. For purposes of the tax imposed by section 4311, the term ‘corporation’ also includes any receiver, trustee in bankruptcy, assignee, or other person having custody of property of, or charge of the affairs of, the corporation. Nothing contained in this subsection shall be construed to limit the effect of the definition of the term ‘corporation’ provided in section 7701 (a) (3). “(c) Shares or Certificates of Stock.—For purposes of the taxes imposed by sections 4301 and 4321, the term ‘shares or certificates of stock’ includes shares or certificates of profits or of interest in property or accumulations. “SEC. 4382. EXEMPTIONS. “(a) Governments: Certain Associations.—The taxes imposed by this chapter shall not apply to— “(1) Government and state obligations.—Any certificate of indebtedness, note, or other instrument, issued by the United States, or by any foreign government, or by any State, Territory, or the District of Columbia, or local subdivision thereof, or municipal or other corporation exercising the taxing power. “(2) Domestic building and loan associations and mutual ditch or irrigation companies.—Shares or certificates of stock and certificates of indebtedness issued by domestic building and loan associations, savings and loan associations, cooperative banks, and homestead associations substantially all the business of which is confined to making loans to members, or by mutual ditch or irrigation companies. “(3) Farmers’, fruit growers’, or cooperative associations.—Shares or certificates of stock and certificates of indebtedness issued by any farmers’ or fruit growers’ or like associations organized and operated on a cooperative basis for the purposes, and subject to the conditions, prescribed in section 521. “(b) Certain Reorganizations, Etc.— The taxes imposed by sections 4301, 4311, 4321, 4331, and 4361 shall not apply to— “(1) Corporate and railroad reorganization.— The issuance, transfer, or exchange of securities, or the making, delivery, or filing of conveyances, to make effective any plan of reorganization or adjustment— “(A) confirmed under the Bankruptcy Act, as amended (11 U.S.C.), “(B) approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in section 77 (m) of the Bankruptcy Act, as amended (11 U. S. C. 205 (m)), “(C) approved in an equity receivership proceeding in a court involving a corporation, as defined in section 106 (3) of the Bankruptcy Act, as amended (11 U. S. C. 506), or “(D) whereby a mere change in identity, form, or place of organization is effected, 72 Stat. 1303 but only if the issuance, transfer, or exchange of securities, or the making, delivery, or filing of instruments of transfer or conveyances, occurs within 5 years from the date of such confirmation, approval, or change. “(2) Orders of the securities and exchange commission.— The issuance, transfer, or exchange of securities, or making or delivery of conveyances, to make effective any order of the Securities and Exchange Commission as defined in section 1083 (a); but only if— “(A) the order of the Securities and Exchange Commission in obedience to which such issuance, transfer, exchange, or conveyance is made recites that such issuance, transfer, exchange, or conveyance is necessary or appropriate to effectuate the provisions of section 11 (b) of the Public Utility Holding Company Act of 1935 (15 U. S. C. 79k (b)), “(B) such order specifies and itemizes the securities and other property which are ordered to be issued, transferred, exchanged, or conveyed, and “(C) such issuance, transfer, exchange, or conveyance is made in obedience to such order. “SEC. 4383. CERTAIN CHANGES IN PARTNERSHIPS. “(a) Continuing Partnerships.—In the case of any share, certificate, right, or realty held by a partnership, no tax shall be imposed under section 4321, 4331, or 4361 by reason of any transfer of an interest in a partnership or otherwise, if— “(1) such partnership (or another partnership) is considered as a continuing partnership (within the meaning of section 708), and “(2) such continuing partnership continues to hold the share, certificate, right, or realty concerned. “(b) Terminated Partnerships.—If there is a termination of any partnership (within the meaning of section 708) — “(1) for purposes of this chapter, such partnership shall be treated— “(A) as having transferred all shares, certificates, and rights held by such partnership at the time of such termination; find “(B) as having executed an instrument whereby there was conveyed, for fair market value (exclusive of the value of any lien or encumbrance remaining thereon), all realty held by such partnership at the time of such termination; but “(2) not more than one tax shall be imposed under section 4321, 4331, or 4361, as the case may be, by reason of such termination (and any transfer pursuant thereto) with respect to the shares, certificates, rights, or realty held by such partnership at the time of such termination. “SEC. 4384. LIABILITY FOR TAX.“The taxes imposed by this chapter shall be paid by any person who makes, signs, issues, or sells any of the documents and instruments subject to the taxes imposed by this chapter, or for whose use or benefit the same are made, signed, issued, or sold. The United States or any agency or instrumentality thereof shall not be liable for the tax with respect to an instrument to which it is a party, and affixing of stamps thereby shall not be deemed payment for the tax, which may be collected by assessment from any other party liable therefor.” 72 Stat. 1304 (b) Effective Date.—In applying section 4383 of the Internal Revenue Code of 1954 as amended by subsection (a) of this section, the determination of whether a partnership is considered as a continuing or terminated partnership (within the meaning of section 708 of such Code) shall be made by taking into account only changes in the partnership occurring on or after the effective date specified in section 1 (c) of this Act.