DETERMINATION OF PRICE WHERE TAX PAID BY MANUFACTURER.

SEC. 506. DETERMINATION OF PRICE WHERE TAX PAID BY MANUFACTURER. (a) In General.—Subsection (b) of section 4052 of the Internal Revenue Code of 1986 (defining price) is amended by adding at the end thereof the following new paragraph: “(4) Special rule where tax paid by manufacturer, producer, or importer.— “(A) In general.—In any case where the manufacturer, producer, or importer of any article (or a related person) is liable for tax imposed by this subchapter with respect to such article, the tax under this subchapter shall be computed on a price equal to the sum of— “(i) the price which would (but for this paragraph) be determined under this subchapter, plus “(ii) the product of the price referred to in clause (i) and the presumed markup percentage determined under paragraph (3)(B). “(B) Related person.—For purposes of this paragraph— “(i) In general.—Except as provided in clause (ii), the term ‘related person’ means any person who is a member of the same controlled group (within the meaning of section 5061(e)(3)) as the manufacturer, producer, or importer. “(ii) Exception for retail establishment.—To the extent provided in regulations prescribed by the Secretary, a person shall not be treated as a related person with respect to the sale of any article if such article is sold through a permanent retail establishment in the normal course of the trade or business of being a retailer.” (b) Effective Date.—The amendment made by this section shall apply with respect to articles sold by the manufacturer, producer, or importer on or after the 1st day of the 1st calendar quarter which begins more than 90 days after the date of the enactment of this Act. 101 STAT. 260