Pub. L. 86-346, tit. I, sec. 105

Sec. 105. (a) Section 3701 of the Revised Statutes (31 U.S.C., sec. 742) is amended by adding at the end thereof the following: “This exemption extends to every form of taxation that would require that either the obligations or the interest thereon, or both, be considered, directly or indirectly, in the computation of the tax, except nondiscriminatory franchise or other nonproperty taxes in lieu thereof imposed on corporations and except estate taxes or inheritance taxes.” (b) The following provisions of the Second Liberty Bond Act, as amended, relating to the tax-exempt status of obligations of the United States, are repealed, without changing the status of any outstanding obligation: (1) Subsections (b) and (d) of section 5 (31 U.S.C., sec. 754 (b)and(d)); (2) The second and third sentences of section 7 (31 U.S.C., sec. 747); (3) Subsection (b) of section 18 (31 U.S.C., sec. 753(b)); (4) The first sentence of subsection (d) of section 22 (31 U.S.C., sec. 757c(d)).