RATES OF TAX.

SEC. 201. RATES OF TAX. (a) Passenger Automobiles.— (1) In general.— Section 4061(a) (2) (A) (relating to tax on passenger automobiles, etc.) is amended to read as follows: “(A) Articles enumerated in subparagraph (B) are taxable at whichever of the following rates is applicable: “If the article is sold— The tax rate— Before January 1, 1973 7 percent. During 1973 6 percent. During 1974, 1975, 1976, or 1977 5 percent. During 1978 4 percent. During 1979 3 percent. During 1980 2 percent. During 1981 1 percent. The tax imposed by this subsection shall not apply with respect to articles enumerated in subparagraph (B) which are sold by the manufacturer, producer, or importer, after December 31, 1981.” (2) Conforming amendment.—Section 6412(a) (1) (relating to the floor stocks refunds on passenger automobiles, etc.) is amended by striking out “January 1, 1971, January 1, 1972, January 1, 1973, or January 1, 1974”, and inserting in lieu thereof “January 1 of 1973,1974,1978,1979,1980,1981, or 1982”. (b) Communications Services.— (1) Continuation of tax.—Section 4251(a) (2) (relating to tax on certain communications services) is amended by striking out the table, and inserting in lien thereof the following table: “Amounts paid pursuant to bills first rendered— Percent— Before January 1, 1973 10 During 1973 9 During 1974 8 During 1975 7 During 1976 6 During 1977 5 During 1978 4 During 1979 3 During 1980 2 During 1981 1 ”. (2) Conforming amendment.—Section 4251(b) (relating to termination of tax) is amended by striking out “January 1, 1974”, and inserting in lieu thereof “January 1, 1982”. (3) Repeal of subchapter b of chapter 33.—Section 105 (b)(3) of the Revenue and Expenditure Control Act of 1968 (82 Stat. 266) is amended to read as follows: “(3) Repeal of subchapter b of chapter 33.—Effective with respect to amounts paid pursuant to bills first rendered on or after January 1, 1982, subchapter B of chapter 33 (relating to the tax on communications) is repealed. For purposes of the preceding sentence, in the case of communications services rendered before November 1, 1981, for which a bill has not been rendered before January 1, 1982, a bill shall be treated as having been first rendered on December 31, 1981. Effective January 1, 1982, the table of subchapters for chapter 33 is amended by striking out the item relating to such subchapter B.”