CREDIT AGAINST TAX ON COIN-OPERATED GAMING DEVICES.

SEC. 402. CREDIT AGAINST TAX ON COIN-OPERATED GAMING DEVICES. (a) Allowance of Credit for State Taxes—Subchapter B of chapter 36 (relating to occupational tax on coin-operated devices) is amended by adding at the end thereof the following new section: “SEC. 4464. CREDIT FOR STATE-IMPOSED TAXES. “(a) In General.—There shall be allowed as a credit against the tax imposed by section 4461 with respect to any coin-operated gaming device for any year an amount equal to the amount of State tax paid for such year with respect to such device by the person liable for the tax imposed by section 4461, if such State tax (1) is paid under a law of the State in which the place or premises on which such device is maintained or used is located, and (2) is similar to the tax imposed by section 4461 (including a tax, other than a general personal property tax, imposed on such device). “(b) Limitations— “(1) Devices must be legal under state law—Credit shall be allowed under subsection (a) for a tax imposed by a State only if the maintenance of the coin-operated gaming device by the per-son liable for the tax imposed by section 4461 on the place or premises occupied by him does not violate any law of such State. 85 Stat. 535 “(2) Credit not to exceed so percent of tax—The credit under subsection (a) with respect to any coin-operated gaming device shall not exceed 80 percent of the tax imposed by section 4461 with respect to such device. “(c) Special Provisions for Payment of Tax—Under regulations prescribed by the Secretary or his delegate, a person who believes he will be entitled to a credit under subsection (a) with respect to any coin operated gaming device for any year shall, for purposes of this subtitle and subtitle F, satisfy his liability for the tax imposed by section 4461 with respect to such device for such year if— “(1) on or before the date prescribed by law for payment of the tax imposed by section 4461 with respect to such device for such year, he has paid the amount of such tax reduced by the amount of the credit which he estimates will be allowable under subsection (a) with respect to such device for such year, and “(2) on or before the last day of such year, pays the amount (if any) by which the credit for such year is less than the credit estimated under paragraph (1).” (b) Clerical Amendment—The table of sections for subchapter B of chapter 36 is amended by adding at the end thereof the following new item: “4464. Credit for State-imposed taxes.”. (c) Effective Date—The amendments made by subsections (a) and (b) shall apply on and after July 1, 1972.