AMENDMENTS OF SUBTITLE D; MISCELLANEOUS EXCISE TAXES.

SEC. 1904. AMENDMENTS OF SUBTITLE D; MISCELLANEOUS EXCISE TAXES. (a) In General.— (1) Amendments of chapter 31.— (A) So much of chapter 31 (relating to retailers excise taxes) as precedes section 4041 is amended to read as follows: “CHAPTER 31— SPECIAL FUELS “Sec. 4041. Imposition of tax.” (B) Section 4041(g) (relating to exemptions from fuel taxes) is amended to read as follows: “(g) Other Exemptions.— Under regulations prescribed by the Secretary, no tax shall be imposed under this section— “(1) on any liquid sold for use or used as supplies for vessels or aircraft (within the meaning of section 4221(d)(3)); “(2) with respect to the sale of any liquid for the exclusive use of any State, any political subdivision of a State, or the District of Columbia, or with respect to the use by any of the foregoing of any liquid as a fuel; 90 STAT. 1811 “(3) upon the sale of any liquid for export, or for shipment to a possession of the United States, and in due course so exported or shipped; and “(4) with respect to the sale of any liquid to a nonprofit educational organization for its exclusive use, or with respect to the use by a nonprofit educational organization of any liquid as a fuel. For purposes of paragraph (4), the term ‘nonprofit educational organization’ means an educational organization described in section 170(h)(1)(A)(ii) which is exempt from income tax under section 501(a). The term also includes a school operated as an activity of an organization described in section 501(c)(3) which is exempt from income tax under section 501(a), if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.” (C) Section 4041 (relating to tax on fuels) is amended by adding at the end thereof the following new subsection: “(i) Sales by United States, Etc.— The taxes imposed by this section shall apply with respect to liquids sold at retail by the United States, or by any agency or instrumentality of the United States, unless sales by such agency or instrumentality are by statute specifically exempted from such taxes.” (D) Chapter 31 is amended by striking out section 4042 (a cross reference) and subchapter F (special provisions applicable to retailers taxes). (2) Amendments of section 421a.— (A) Section 4216 (relating to definition of price) is amended by redesignating subsections (e), (f), and (g) as subsections (d), (e).and (f), respectively. (B) Paragraphs (3), (4). and (5) of section 4216(b) (relating to constructive sales price) are each amended by striking out “subsections (a) and (f)” each place it appears and inserting in lieu thereof “subsections (a) and (e)”. (3) Amendment of section 4217.— Section 4217(d) (relating to lease treated as sale) is amended by striking out paragraph (4) (relating to certain 1958 transitional rules). (4) Repeal of section 4223.— Section 4223 (relating to floor-stock taxes imposed before 1967) is repealed. (5) Amendment of section 4227.— Section 4227 (relating to cross references) is amended to read as follows: “SEC. 4227. CROSS REFERENCE. “For credit for taxes on tires and inner tubes, see section 6416(c).” (6) Amendment of section 4263.— Section 4253 (relating to exemptions from the tax on communications services) is amended by adding at the end thereof the following new subsections: “(i) State and Local Governmental Exemption.— Under regulations prescribed by the Secretary, no tax shall be imposed under section 4251 upon any payment received for services or facilities furnished to the government of any State, or any political subdivision thereof, or the District of Columbia. “(j) Exemption foe Nonprofit Educational Organizations.— Under regulations prescribed by the Secretary, no tax shall be imposed under section 4251 on any amount paid by a nonprofit educational organization for services or facilities furnished to such organization. For purposes of this subsection, the term ‘nonprofit educational organization’ means an educational organization described in section 90 STAT. 1812170(b)(1)(A)(ii) which is exempt from income tax under section 501(a). The term also includes a school operated as an activity of an organization described in section 501(c)(3) which is exempt from income tax under section 501(a), if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.” (7) Amendments of section 4201.— (A) Subsections (a) and (b) of section 4261 (relating to tax on transportation of persons by air) are each amended by striking out “which begins after June 30, 1970,”. (B) Section 4261(c) is amended by striking out “and begins after June 30, 1970”. (8) Amendment of section 4271.— Section 4271 (a) (relating to tax on transportation of property by air) is amended by striking out “which begins after June 30, 1970,”. (9) Repeal of section 4292.— Section 4292 (relating to State and local governmental exemption from the tax on communications services) is repealed. (10) Repeal of section 4284.— Section 4294 (relating to exemption of nonprofit educational organizations from the tax on communications services) is repealed. (11) Repeal of section 4295.— Section 4295 (across reference) is repealed. (12) Amendment of of after 34.— Chapter 34 (relating to documentary stamp taxes) is amended to read as follows: “CHAPTER 34— POLICIES ISSUED BY FOREIGN INSURERS “Sec. 4371. Imposition of tax. “Sec. 4372. Definitions. “Sec. 4373. Exemptions. “Sec. 4374. Liability for tax. “SEC. 4371. IMPOSITION OF TAX. “There is hereby imposed, on each policy of insurance, indemnity bond, annuity contract, or policy of reinsurance issued by any foreign insurer or reinsurer, a tax at the following rates: “(1) Casualty insurance and indemnity bonds.— 4 cents on each dollar, or fractional part thereof, of the premium paid on the policy of casualty insurance or the indemnity bond, if issued to or for, or in the name of, an insured as defined in section 4372(d); “(2) Life insurance, sickness and accident policies, and annuity contracts.— 1 cent on each dollar, or fractional part thereof, of the premium paid on the policy of life, sickness, or accident insurance, or annuity contract, unless the insurer is subject to tax under section 819; and “(3) Reinsurance.— 1 cent on each dollar, or fractional part thereof, of the premium paid on the policy of reinsurance covering any of the contracts taxable under paragraph (1) or (2). “SEC. 4372. DEFINITIONS. “(a) Foreign Insurer or Reinsurer.— For purposes of section 4371, the term ‘foreign insurer or reinsurer’ means an insurer or reinsurer who is a nonresident alien individual, or a foreign partnership, or a 90 STAT. 1813foreign corporation. The term includes a nonresident alien individual, foreign partnership, or foreign corporation which shall become bound by an obligation of the nature of an indemnity bond. The term does not include a foreign government, or municipal or other corporation exercising the taxing power. “(b) Policy of Casualty Insurance.— For purposes of section 4371(1), the term ‘policy of casualty insurance’ means any policy (other than li fe) or other instrument by whatever name called whereby a contract of insurance is made, continued, or renewed. “(c) Indemnity Bond.— For purposes of this chapter, the term ‘indemnity bond’ means any instrument by whatever name called whereby an obligation of the nature of an indemnity, fidelity, or surety bond is made, continued, or renewed. The term includes any bond for indemnifying any person who shall have become bound or engaged as surety, and any bond for the due execution or performance of any contract, obligation, or requirement, or the duties of any office or position, and to account for money received by virtue thereof, where a premium is charged for the execution of such bond. “(d) Insured.— For purposes of section 4371 (1), the term ‘insured’ means— “(1) a domestic corporation or partnership, or an individual resident of the United States, against, or with respect to, hazards, risks, losses, or liabilities wholly or partly within the United States, or “(2) a foreign corporation, foreign partnership, or nonresident individual, engaged in a trade or business within the United States, against, or with respect to, hazards, risks, losses, or liabilities within the United States. “(e) Policy of Life, Sickness, or Accident Insurance, or Annuity Contract.— For purposes of section 4371(2), the term ‘policy of life, sickness, or accident insurance, or annuity contract’ means any policy or other instrument by whatever name called whereby a contract of insurance Or an annuity contract is made, continued, or renewed with respect to the life or hazards to the person of a citizen or resident of the United States. “(f) Policy of Reinsurance.— For purposes of section 4371(3), the term ‘policy of reinsurance’ means any policy or other instrument by whatever name called whereby a contract or reinsurance is made, continued, or renewed against, or with respect to, any of the hazards, risks, losses, or liabilities covered by contracts taxable under paragraph (1) or (2) of section 4371. “SEC. 4373. EXEMPTIONS. “The tax imposed by section 4371 shall not apply to— “(1) Domestic agent.— Any policy, indemnity bond, or annuity contract signed or countersigned by an officer or agent of the insurer in a State, or in the District of Columbia, within which such insurer is authorized to do business; or “(2) Indemnity bond.— Any indemnity bond required to be filed by any person to secure payment of any pension, allowance, allotment, relief, or insurance by the United States, or to secure a duplicate for, or the payment of, any bond, note, certificate of indebtedness, war-saving certificate, warrant, or check, issued by the United States. “SEC. 4374. LIABILITY FOR TAX. “The tax imposed by this chapter shall be paid, on the basis of a return, by any person who makes, signs, issues, or sells any of the 90 STAT. 1814documents and instruments subject to the tax, or for whose use or benefit the same are made, signed, issued, or sold. The United States or any agency or instrumentality thereof shall not be liable for the tax,” (13) Amendment of section 4493.— (A) Section 4493(b)(1) (relating to certain persons engaged in foreign air commerce) is amended by striking out “beginning on or after July 1, 1970”. (B) Section 4493(b)(2) is amended by striking out the last sentence. (14) Amendment of chapter 37.— So much of chapter 37 as precedes section 4501 (relating to tax on sugar) is amended to read as follows: “CHAPTER 37— SUGAR “Sec. 4501. Imposition of tax. “Sec. 4502. Definitions, “Sec. 4503. Exemptions for sugar manufactured for home consumption.” (15) Repeal of sections 4591 through 4597.— Chapter 38 (relating to import taxes on oleomargarine) is repealed. (16) Repeal of sections 4801 through 4806.— Subchapter B of chapter 39 (relating to tax on white phosphorus matches) is repealed. (17) Repeal of sections 4811 through 4826.— Subchapter C of chapter 39 (relating to tax on unadulterated butter) is repealed. (18) Repeal of sections 4881 through 4886.— Subchapter E of chapter 39 (relating to tax on circulation other than of national banks) is repealed. (19) Amendment of section 4901.— Section 4901 (relating to payment of occupational taxes) is amended by striking out subsection (c). (20) Amendment of section 4905.— Section 4905(a) (relating to liability for occupational taxes in case of death or change of location) is amended by striking out “wife” and inserting in lieu thereof “spouse”. (21) Repeal of section 4911 through 4931.— (A) Chapter 41 (relating to interest equalization tax) is repealed. (B) The repeal made by subparagraph (A) shall apply with respect to acquisitions of stock and debt obligations made after June 30, 1974. (22) Amendments of section 4973.— (A) So much of section 4973(a) (relating to tax on excess contributions) as follows “of any individual,” in paragraph (3) thereof is amended to read as follows: “there is imposed for each taxable year a tax in an amount equal to 6 percent of the amount of the excess contributions to such individual’s accounts, annuities, or bonds (determined as of the close of the taxable year). The amount of such tax for any taxable year shall not exceed 6 percent of the value of the account, annuity, or bond (determined as of the close of the taxable year). in the case of an endowment contract described in section 408(b), the tax imposed by this section does not apply to any amount allocable to life, health, accident, or other insurance under such contract. The tax imposed by this subsection shall be paid by such individual.” 90 STAT. 1815 (B) Section 4973(c) is amended by striking out “subsection (a)(3)” and inserting in lieu thereof “subsection (a)(2)”. (b) Conforming and Clerical Amendments.— (1) Amendments conforming to amendment of chapter 31.— (A) Section 6416(a)(1) is amended by striking out “(retailers taxes)” and inserting in lieu thereof “(special fuels)”, (B) Section 6416 (e) is amended by striking out “subchapter E of”. (2) Amendment conforming to amendment of section 4216.— Section 6416(b)(1) is amended by striking out “section 4216(f)(2) and (3)” and inserting in lieu thereof “section 4216 (e)(2) and (3)” (3) Amendment conforming to the repeal of section 4226.— The table of sections for subchapter G of chapter 32 is amended by striking out the item relating to section 4226. (4) Amendment conforming to the repeal of sections 4292, 4294, and 4295.— The table of sections for subchaptet E of chapter 33 is amended by striking out the items relating to sections 4292, 4294, and 4295. (5) Amendments conforming to the amendment of chapter 34.— (A) Section 7270 is amended by striking out “the affixing of stamps on insurance policies, etc.” and inserting in lieu thereof “liability for tax on policies issued by foreign insurers”. (B) Section 6808 is amended by striking out paragraph (4). (6) Amendments conforming to the amendment of chapter 37.— (A) Section 7240 is amended by striking out “subchapter A of”. (B) Section 7655(a) is amended— (i) by striking out “Subchapter A of chapter 37” in paragraph (5) and inserting in lieu thereof “Chapter 37”, and (ii) by redesignating paragraph (5) as paragraph (3). (7) Amendments conforming to repeal of sections 4591 through 4597.— (A) Section 6808 is amended by striking out paragraph (7). (B) (i) Section 7234 (relating to violations of laws concerning oleomargarine or adulterated butter operations) is repealed. (ii) The table of sections for part II of subchapter A of chapter 75 is amended by striking out the item relating to section 7234. (C) (i) Section 7265 (relating to other offenses concerning oleomargarine or adulterated butter operations) is repealed. (ii) The table of sections for subchapter B of chapter 75 is amended by striking out the item relating to section 7265. (D) Section 7611(a), as redesignated by this Act, is amended by striking out paragraph (1). (E) The table of chapters for subtitle D is amended by striking out the item relating to chapter 38, 90 STAT. 1816 (8) Amendments conforming to repeal of sections 4801 through 4806.— (A) Section 4905(b) is amended to rend as follows: “(b) Registration.— “For registration in case of wagering, see section 1412.” (B) Section 6808 is amended by striking out paragraph (12). (C) Section 7012 is amended by striking out subsection (D) (i) Section 7239 (relating to violations of laws concerning white phosphorus matches) is repealed. (ii) The table of sections for part II of subchapter A of chapter 75 is amended by striking out the item relating to section 7239. (E) (i) Sections 7267 and 7274 (relating to offenses and penalties concerning white phosphorus matches) are each repealed. (ii) The table of sections for subchapter B of chapter 75 is amended by striking out the items relating to sections 7267 and 7274. (F) Section 7272(b) is amended by striking out “4804” (G) Section 7303 is amended by striking out paragraph (6) (H) (i) Part II of subchapter C of chapter 75 (relating to provisions common to forfeitures) is amended by striking out section 7328 (relating to confiscation of white phosphorus matches), and by redesignating section 7329 (relating to cross references) as section 7328. (ii) The table of sections for part II of subchapter C of chapter 75 is amended by striking out the last two items and inserting in lieu thereof the following: “Sec. 7328. Cross references.” (9) Amendments conforming to repeat, of sections 4811 through 4826.— (A) Section 6808 (relating to cross references) is amended by striking out paragraph (10). (B) (i) Section 7235 (relating to violations of laws concerning adulterated butter and process or renovated butter) is repealed. (ii) The table of sections for part II of subchapter A of chapter 75 is amended by striking out the item relating to section 7235. (C) (i) Section 7264 (relating to offenses concerning renovated or adulterated butter) is repealed. (ii) The table of sections for subchapter B of chapter 75 is amended by striking out the item relating to section 7264. (D) Section 7303 is amended by striking out paragraphs (3), (4), and (5), and by redesignating paragrapns (7) and (8) as paragraphs (2) and (3), respectively. (E) Section 7611(a), as redesignated by this Act, is amended by striking out paragraph (2) , and by redesignating paragraphs (5) and (6) as paragraphs (1) and (2), respectively. (10) Amendments conforming to the repeal of sections 4911 through 4931.— 90 STAT. 1817 (A) (i) (I) Section 263, as amended by this Act, is amended by striking out subsections (a)(3) and (d) (relating to the allowance of deductions for payment of interest equalization tax), and by redesignating subsections (e), (f), and (g) as subsections (d), (c),and (f), respectively. (II) Section 263(d), as redesignated by clause (i)(I) of this subparagraph, is amended by striking out “subsection (f)” and inserting in lieu thereof “subsection (e)”, (ii) Section 6011 (relating to requirement of return, statement, or list) is amended by striking out subsection (d) (relating to interest equalization tax returns, etc.), and by redesignating subsections (e) and (f) as subsections (c) and (d), respectively. (iii) (I) Section 6076 (relating to time for filing interest equalization tax returns) is repealed. (II) The table of sections for part V of subchapter A of chapter 61 is amended by sticking out the item relating to section 6076. (iv) Section 6611 (relating to interest on overpayments) is amended by striking out subsection (h) (relating to over-payments of interest equalization tax) and by redesignating subsection (i) as subsection (h). (v) Section 6651 (relating to failure to file tax return or to pay tax) is amended by striking out subsection (e) (relating to certain interest equalization tax returns). (vi) (I) Section 6680 (relating to failure to file interest equalization tax returns) is repealed. (II) The table of sections for subchapter B of chapter 68 is amended by striking out the item relating to section 6680. (vii) The amendments made by this subparagraph shall apply with respect to acquisitions of stock or debt obligations made after June 30, 1974, except that the repeal of paragraph (2) of section 6011(d) under clause (ii) shall apply with respect to loans and commitments made after such date. (B) Section 861(a)(1)(G) (relating to income from sources within the United States) is amended— (i) by striking out “section 4912(c)” and inserting in lieu thereof “subsection (c) of section 4912 (as in effect before July 1, 1974)”; and (ii) by striking out “section 4912(c)(2)” and inserting in lieu thereof “subsection (c)(2) of such section”. (C) The second sentence of section 1232(b)(2) (relating to the definition of the issue price of bonds and other evidences of indebtedness) is amended by striking out “section 4911” anrl inserting in lieu thereof “section 4911, as in effect before July 1, 1974”. (D) (i) Section 6681 (relating to false equalization tax certificates) is repealed. (ii) The table of sections for subchapter B of chapter 68 is amended by striking out the item relating to section 6681. (iii) The amendments made by this subparagraph shall apply with respect to actions occurring after June 30, 1974. (E) (i) Section. 6689 (relating to failure by certain foreign issuers and obligors to comply with United States investment equalization tax requirements) is repealed. (ii) The table of sections for subchapter B of chapter 68 is amended by striking out the item relating to section 6689. 90 STAT. 1818 (iii) The amendments made by this subparagraph shall apply with respect to stock or debt obligations issued after June 30, 1974. (F) (i) Section 7241 (relating to penalty for fraudulent equalization tax certificates) is repealed. (ii) The table of sections for part II of subchapter A of chapter 75 is amended by striking out the item relating to section 7241. (iii) The amendments made by this subparagraph shall apply with respect to statements and certificates executed after June 30, 1974. (G) The table of chapters for subtitle D is amended by striking out the item relating to chapter 41. (c) Amendment to Provision Referring to Territories.— Section 4482 (c)(1) is amended by striking out “, a Territory of the United States,”. (d) Effective Date.— Except as otherwise provided in this section, the amendments made by this section shall take effect on the first day of the first month which begins more than 90 days after the date of the enactment of this Act.