VALIDITY OF TAX LIENS AGAINST PURCHASERS OF MOTOR VEHICLES.

SEC. 236. VALIDITY OF TAX LIENS AGAINST PURCHASERS OF MOTOR VEHICLES. (a) Purchasers Without Actual Notice or Knowledge of Lien.—Section 6323 (relating to validity of liens for Federal taxes) is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection: “(d) Exception in Cake of Motor Vehicles.— “(1) Exception.—Even though notice of a lien provided in section 6321 has been filed in the manner prescribed in subsection (a) of this section, the lien shall not be valid with respect to a motor vehicle, as defined in paragraph (2) of this subsection, as against any purchaser of such motor vehicle for an adequate and full consideration in money or money’s worth if— “(A) at the time of the purchase the pure baser is without notice or knowledge of the existence of such lien, and “(B) before the purchaser obtains such notice or knowledge, he has acquired possession of such motor vehicle and has not thereafter relinquished possession of such motor vehicle to the seller or his agent. “(2) Definition of motor vehicle.—As used in this subsection, the term ‘motor vehicle’ means a self-propelled vehicle which is registered for highway use under the laws of any State or foreign country.” (b) Liens for Estate and Gift Taxes.—Section 6324 (relating to special lien for estate and gift taxes) is amended by adding at the end thereof the following new subsection: “(d) Exception in Case of Motor Vehicles.—The lien imposed by subsection (a) or (b) shall not be valid with respect to a motor vehicle, as defined in section 6323(d) (2), as against any purchaser of 78 Stat. 128such motor vehicle for an adequate and full consideration in money or money’s worth if— “(1) at the time of the purchase the purchaser is without notice or knowledge of the existence of such lien, and “(2) before the purchaser obtains such notice or knowledge, he has acquired possession of such motor vehicle and has not thereafter relinquished possession of such motor vehicle to the seller or his agent.” (c) Clerical Amendments.— (1) Section 6323(a) is amended by striking out “subsection (c)” and inserting in lieu thereof “subsections (c) and (d)”. (2) Section 6324 is amended by inserting after “subsection (c) (relating to transfers of securities)” in subsections (a) and (b) the following: “and subsection (d) (relating to purchases of motor vehicles)”, (d) Effective Dates.—The amendments made by this section shall apply only with respect to purchases made after the date of the enactment of this Act