INCREASE IN AMOUNT OF CERTAIN PROPERTY ON WHICH LIEN NOT VALID.

SEC. 3435. INCREASE IN AMOUNT OF CERTAIN PROPERTY ON WHICH LIEN NOT VALID. (a) Certain Property.— (1) In general.— Subsection (b) of section 6323 (relating to validity and priority against certain persons) is amended— (A) by striking “$250” in paragraph (4) (relating to personal property purchased in casual sale) and inserting “$1,000”; and (B) by striking “$1,000” in paragraph (7) (relating to residential property subject to a mechanic’s lien for certain repairs and improvements) and inserting “$5,000”. (2) Inflation adjustment.— Subsection (i) of section 6323 (relating to special rules) is amended by adding at the end the following new paragraph:112 STAT. 761 “(4) Cost-of-living adjustment.— In the case of notices of liens imposed by section 6321 which are filed in any calendar year after 1998, each of the dollar amounts under paragraph (4) or (7) of subsection (b) 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 the calendar year, determined by substituting “calendar year 1996’ for ‘calendar year 1992’ in subparagraph (B) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10.”. (b) Expansion of Treatment of Passbook Loans.— Paragraph (10) of section 6323(b) is amended— (1) by striking “Passbook loans” in the heading and inserting “Deposit-secured loans”; (2) by striking “, evidenced by a passbook,”; and (3) by striking all that follows “secured by such account” and inserting a period. (c) Effective Date.— The amendments made by this section shall take effect on the date of the enactment of this Act.