MODIFICATIONS TO CERTAIN LEVY EXEMPTION AMOUNTS.

Sec. 502. MODIFICATIONS TO CERTAIN LEVY EXEMPTION AMOUNTS. (a) Fuel, Etc.— Paragraph (2) of section 6334(a) (relating to fuel, provisions, furniture, and personal effects exempt from levy) is amended— (1) by striking “If the taxpayer is the head of a family, so” and inserting “So”, (2) by striking “his household” and inserting “the taxpayer’s household”, and (3) by striking “$1,650 ($1,550 in the case of levies issued during 1989)” and inserting “$2,500”. (b) Books, Etc.— Paragraph (3) of section 6334(a) (relating to books and tools of a trade, business, or profession) is amended by striking “$1,100 ($1,050 in the case of levies issued during 1989)” and inserting “$1,250”. (c) Inflation Adjustment.— Section 6334 (relating to property exempt from levy) is amended by adding at the end the following new subsection: “(f) Inflation Adjustment.— “(1) In general.— In the case of any calendar year beginning after 1997, each dollar amount referred to in paragraphs (2) and (3) of subsection (a) shall be increased by an amount equal to— “(A) such dollar amount, multiplied by “(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, by substituting ‘calendar year 1996’ for ‘calendar year 1992’ in subparagraph (B) thereof. “(2) Rounding.— If any dollar amount after being increased under paragraph (1) is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10.”. (d) Effective Date.— The amendments made by this section shall take effect with respect to levies issued after December 31, 1996.