AUTOMOBILES AND AUTOMOBILE PARTS.

SEC. 201. AUTOMOBILES AND AUTOMOBILE PARTS. (a) Passenger Automobiles, Etc.— Paragraph (2) of section 4061(a) (relating to imposition of tax) is amended to read as follows: “(2) (A) Articles enumerated in subparagraph (B) are taxable at whichever of the following rates is applicable: “10 percent for the period ending on the date of the enactment of the Excise Tax Reduction Act of 1965. “7 percent for the period beginning with the day after the date of the enactment of the Excise Tax Reduction Act of 1965 through December 31, 1965. “6 percent for the period January 1, 1966, through December 31, 1966. “4 percent for the period January 1, 1967, through December 31, 1967. “2 percent for the period January 1, 1968, through December 31, 1968. 79 Stat. 137 “1 percent for the period after December 31, 1968. “(B) The articles to which subparagraph (A) applies are: “Automobile chassis and bodies other than those taxable under paragraph (1). “Chassis and bodies for trailers and semitrailers (other than house trailers) suitable for use in connection with passenger automobiles. A sale of an automobile, or of a trailer or semitrailer suitable for use in connection with a passenger automobile, shall, for the purposes of this paragraph, be considered to be a sale of a chassis and of a body enumerated in this subparagraph.” (b) Parts and Accessories.— (1) Effective as provided by section 701(a)(1), subsection (b) of section 4061 (relating to imposition of tax on parts and accessories) is amended by striking out “and other than automobile radio and television receiving sets” and by striking out except that on and after July 1, 1965, the rate shall be 5 percent”. (2) Effective as provided by section 701(a)(2), subsection (b) of section 4061 is amended to read as follows: “(b) Parts and Accessories.— “(1) Except as provided in paragraph (2), there is hereby imposed upon parts or accessories (other than tires and inner tubes) for any of the articles enumerated in subsection (a)(1) sold by the manufacturer, producer, or importer a tax equivalent to 8 percent of the price for which so sold, except that on and after October 1, 1972, the rate shall be 5 percent. “(2) No tax shall be imposed under this subsection upon any part or accessory which is suitable for use (and ordinarily is used) on or in connection with, or as a component part of, any article enumerated in subsection (a)(2) or a house trailer.” (c) Technical Amendment.— The last sentence of paragraph (1) of section 4061(a) is amended by striking out “the chassis and of the body” and inserting in lieu thereof “a chassis and of a body enumerated in this paragraph”.