CHAPTER 32 - MANUFACTURERS EXCISE TAXES
Title 26 > CHAPTER 32
Sections (35)
[§§ 4061 to 4063 Repealed. Pub. L. 98–369, div. A, title VII, § 735(a)(1), July 18, 1984, 98 Stat. 980]
§ 4064 Gas guzzler tax
(a) Imposition of tax There is hereby imposed on the sale by the manufacturer of each automobile a tax determined in accordance with the following table: If the fuel economy of the model type in which the automobile falls is: The tax is: At least 22.5 $0 At least 21.5 but less than 22.5 1,000 At least 20.5 but less than 21.5 1,300 At least 19.5 but less than 20.5 1,700 At least 18.5 but less than 19.5 2,100 At least 17.5 but less than 18.5 2,600 At least 16.5 but less than 17.5 3,000 At least 15.5 but less than 16.5 3,700 At least 14.5 but less than 15.5 4,500 At least 13.5 but less than 14.5 5,400 At least 12.5 but less than 13.5 6,400 Less than 12.5 7,700.
(b) Definitions For purposes of this section— The term “automobile” means any 4-wheeled vehicle propelled by fuel— which is manufactured primarily for use on public streets, roads, and highways (except any vehicle operated exclusively on a rail or rails), and which is rated at 6,000 pounds unloaded gross vehicle weight or less. The term “automobile” does not include any vehicle which is treated as a nonpassenger automobile under the rules which were prescribed by the Secretary of Transportation for purposes of section 32901 of title 49 , United States Code, and which were in effect on the date of the enactment of this section. The term “automobile” does not include any vehicle sold for use and used— as an ambulance or combination ambulance-hearse, by the United States or by a State or local government for police or other law enforcement purposes, or for other emergency uses prescribed by the Secretary by regulations. The term “fuel economy” means the average number of miles traveled by an automobile per gallon of gasoline (or equivalent amount of other fuel) consumed, as determined by the EPA Administrator in accordance with procedures established under subsection (c). The term “model type” means a particular class of automobile as determined by regulation by the EPA Administrator. The term “model year”, with reference to any specific calendar year, means a manufacturer’s annual production period (as determined by the EPA Administrator) which includes January 1 of such calendar year. If a manufacturer has no annual production period, the term “model year” means the calendar year. The term “manufacturer” includes a producer or importer. For purposes of this section, subchapter G of this chapter, and section 6416(b)(3), the lengthening of an automobile by any person shall be treated as the manufacture of an automobile by such person. The term “EPA Administrator” means the Administrator of the Environmental Protection Agency. The term “fuel” means gasoline and diesel fuel. The Secretary (after consultation with the Secretary of Transportation) may, by regulation, include any product of petroleum or natural gas within the meaning of such term if he determines that such inclusion is consistent with the need of the Nation to conserve energy.
(c) Determination of fuel economy For purposes of this section— Fuel economy for any model type shall be measured in accordance with testing and calculation procedures established by the EPA Administrator by regulation. Procedures so established shall be the procedures utilized by the EPA Administrator for model year 1975 (weighted 55 percent urban cycle, and 45 percent highway cycle), or procedures which yield comparable results. Procedures under this subsection, to the extent practicable, shall require that fuel economy tests be conducted in conjunction with emissions tests conducted under section 206 of the Clean Air Act. The EPA Administrator shall report any measurements of fuel economy to the Secretary. The EPA Administrator shall by regulation determine that quantity of any other fuel which is the equivalent of one gallon of gasoline. Testing and calculation procedures applicable to a model year, and any amendment to such procedures (other than a technical or clerical amendment), shall be promulgated not less than 12 months before the model year to which such procedures apply.
§ 4071 Imposition of tax
(a) Imposition and rate of tax There is hereby imposed on taxable tires sold by the manufacturer, producer, or importer thereof a tax at the rate of 9.45 cents (4.725 cents in the case of a biasply tire or super single tire) for each 10 pounds so much of the maximum rated load capacity thereof as exceeds 3,500 pounds.
(b) Special rule for manufacturers who sell at retail Under regulations prescribed by the Secretary, if the manufacturer, producer, or importer of any tire delivers such tire to a retail store or retail outlet of such manufacturer, producer, or importer, he shall be liable for tax under subsection (a) in respect of such tire in the same manner as if it had been sold at the time it was delivered to such retail store or outlet. This subsection shall not apply to an article in respect to which tax has been imposed by subsection (a). Subsection (a) shall not apply to an article in respect of which tax has been imposed by this subsection.
(c) Tires on imported articles For the purposes of subsection (a), if an article imported into the United States is equipped with tires— the importer of the article shall be treated as the importer of the tires with which such article is equipped, and the sale of the article by the importer thereof shall be treated as the sale of the tires with which such article is equipped. This subsection shall not apply with respect to the sale of an automobile bus chassis or an automobile bus body.
(d) Termination On and after October 1, 2028 , the taxes imposed by subsection (a) shall not apply.
§ 4072 Definitions
(a) Taxable tire For purposes of this chapter, the term “taxable tire” means any tire of the type used on highway vehicles if wholly or in part made of rubber and if marked pursuant to Federal regulations for highway use.
(b) Rubber For purposes of this chapter, the term “rubber” includes synthetic and substitute rubber.
(c) Tires of the type used on highway vehicles For purposes of this part, the term “tires of the type used on highway vehicles” means tires of the type used on— motor vehicles which are highway vehicles, or vehicles of the type used in connection with motor vehicles which are highway vehicles. Such term shall not include tires of a type used exclusively on vehicles described in section 4053(8).
(d) Biasply For purposes of this part, the term “biasply tire” means a pneumatic tire on which the ply cords that extend to the beads are laid at alternate angles substantially less than 90 degrees to the centerline of the tread.
(e) Super single tire For purposes of this part, the term “super single tire” means a single tire greater than 13 inches in cross section width designed to replace 2 tires in a dual fitment. Such term shall not include any tire designed for steering.
§ 4073 Exemptions
The tax imposed by section 4071 shall not apply to tires sold for the exclusive use of the Department of Defense or the Coast Guard. ( Aug. 16, 1954, ch. 736 , 68A Stat. 482 ; June 29, 1956, ch. 462 , title II, § 204(c), 70 Stat. 389 ; Pub. L. 94–455, title XIX, § 1906(b)(13)(A) , Oct. 4, 1976 , 90 Stat. 1834 ; Pub. L. 98–369, div. A, title VII, § 735(c)(4) , July 18, 1984 , 98 Stat. 982 ; Pub. L. 108–357, title VIII, § 869(c) , Oct. 22, 2004 , 118 Stat. 1623 .)
§ 4081 Imposition of tax
(a) Tax imposed There is hereby imposed a tax at the rate specified in paragraph (2) on— the removal of a taxable fuel from any refinery, the removal of a taxable fuel from any terminal, the entry into the United States of any taxable fuel for consumption, use, or warehousing, and the sale of a taxable fuel to any person who is not registered under section 4101 unless there was a prior taxable removal or entry of such fuel under clause (i), (ii), or (iii). The tax imposed by this paragraph shall not apply to any removal or entry of a taxable fuel transferred in bulk by pipeline or vessel to a terminal or refinery if the person removing or entering the taxable fuel, the operator of such pipeline or vessel (except as provided in clause (ii)), and the operator of such terminal or refinery are registered under section 4101. For purposes of clause (i), a vessel operator is not required to be registered with respect to the entry of a taxable fuel transferred in bulk by a vessel described in section 4042(c)(1). The rate of the tax imposed by this section is— in the case of gasoline other than aviation gasoline, 18.3 cents per gallon, in the case of aviation gasoline, 19.3 cents per gallon, and in the case of diesel fuel or kerosene, 24.3 cents per gallon. The rates of tax specified in subparagraph (A) shall each be increased by 0.1 cent per gallon. The increase in tax under this subparagraph shall in this title be referred to as the Leaking Underground Storage Tank Trust Fund financing rate. In the case of kerosene which is removed from any refinery or terminal directly into the fuel tank of an aircraft for use in aviation, the rate of tax under subparagraph (A)(iii) shall be— in the case of use for commercial aviation by a person registered for such use under section 4101, 4.3 cents per gallon, and in the case of use for aviation not described in clause (i), 21.8 cents per gallon. In the case of diesel-water fuel emulsion at least 14 percent of which is water and with respect to which the emulsion additive is registered by a United States manufacturer with the Environmental Protection Agency pursuant to section 211 of the Clean Air Act (as in effect on March 31, 2003 ), subparagraph (A)(iii) shall be applied by substituting “19.7 cents” for “24.3 cents”. The preceding sentence shall not apply to the removal, sale, or use of diesel-water fuel emulsion unless the person so removing, selling, or using such fuel is registered under section 4101. For purposes of paragraph (2)(C), a refueler truck, tanker, or tank wagon shall be treated as part of a terminal if— such terminal is located within an airport, any kerosene which is loaded in such truck, tanker, or wagon at such terminal is for delivery only into aircraft at the airport in which such terminal is located, such truck, tanker, or wagon meets the requirements of subparagraph (B) with respect to such terminal, and except in the case of exigent circumstances identified by the Secretary in regulations, no vehicle registered for highway use is loaded with kerosene at such terminal. A refueler truck, tanker, or tank wagon meets the requirements of this subparagraph with respect to a terminal if such truck, tanker, or wagon— has storage tanks, hose, and coupling equipment designed and used for the purposes of fueling aircraft, is not registered for highway use, and is operated by— the terminal operator of such terminal, or a person that makes a daily accounting to such terminal operator of each delivery of fuel from such truck, tanker, or wagon. The Secretary shall require under section 4101(d) reporting by such terminal operator of— any information obtained under subparagraph (B)(iii)(II), and any similar information maintained by such terminal operator with respect to deliveries of fuel made by trucks, tankers, or wagons operated by such terminal operator. For purposes of paragraph (2)(C), in the case of any kerosene treated as removed from a terminal by reason of this paragraph— the rate of tax specified in paragraph (2)(C)(i) in the case of use described in such paragraph shall apply if such terminal is located within a secured area of an airport, and the rate of tax specified in paragraph (2)(C)(ii) shall apply in all other cases. For purposes of paragraph (2)(C)(i), the person who uses the fuel for commercial aviation shall pay the tax imposed under such paragraph. For purposes of the preceding sentence, fuel shall be treated as used when such fuel is removed into the fuel tank.
(b) Treatment of removal or subsequent sale by blender There is hereby imposed a tax at the rate determined under subsection (a) on taxable fuel removed or sold by the blender thereof. If— tax is imposed on the removal or sale of a taxable fuel by reason of paragraph (1), and the blender establishes the amount of the tax paid with respect to such fuel by reason of subsection (a), the amount of the tax so paid shall be allowed as a credit against the tax imposed by reason of paragraph (1).
(c) Later separation of fuel from diesel-water fuel emulsion If any person separates the taxable fuel from a diesel-water fuel emulsion on which tax was imposed under subsection (a) at a rate determined under subsection (a)(2)(D) (or with respect to which a credit or payment was allowed or made by reason of section 6427), such person shall be treated as the refiner of such taxable fuel. The amount of tax imposed on any removal of such fuel by such person shall be reduced by the amount of tax imposed (and not credited or refunded) on any prior removal or entry of such fuel.
(d) Termination The rates of tax specified in clauses (i) and (iii) of subsection (a)(2)(A) shall be 4.3 cents per gallon after September 30, 2028 . The rates of tax specified in subsection (a)(2)(A)(ii) and (a)(2)(C)(ii) shall be 4.3 cents per gallon— after December 31, 1996 , and before the date which is 7 days after the date of the enactment of the Airport and Airway Trust Fund Tax Reinstatement Act of 1997, and after September 30, 2028 . The Leaking Underground Storage Tank Trust Fund financing rate under subsection (a)(2) shall apply after September 30, 1997 , and before October 1, 2028 .
(e) Refunds in certain cases Under regulations prescribed by the Secretary, if any person who paid the tax imposed by this section with respect to any taxable fuel establishes to the satisfaction of the Secretary that a prior tax was paid (and not credited or refunded) with respect to such taxable fuel, then an amount equal to the tax paid by such person shall be allowed as a refund (without interest) to such person in the same manner as if it were an overpayment of tax imposed by this section.
§ 4082 Exemptions for diesel fuel and kerosene
(a) In general The tax imposed by section 4081 shall not apply to diesel fuel and kerosene— which the Secretary determines is destined for a nontaxable use, which is indelibly dyed by mechanical injection in accordance with regulations which the Secretary shall prescribe, and which meets such marking requirements (if any) as may be prescribed by the Secretary in regulations. Such regulations shall allow an individual choice of dye color approved by the Secretary or chosen from any list of approved dye colors that the Secretary may publish.
(b) Nontaxable use For purposes of this section, the term “nontaxable use” means— any use which is exempt from the tax imposed by section 4041(a)(1) other than by reason of a prior imposition of tax, any use in a train, and any use described in section 4041(a)(1)(C)(iii)(II). The term “nontaxable use” does not include the use of kerosene in an aircraft and such term shall not include any use described in section 6421(e)(2)(C).
(c) Exception to dyeing requirements Paragraph (2) of subsection (a) shall not apply with respect to any diesel fuel and kerosene— removed, entered, or sold in a State for ultimate sale or use in an area of such State during the period such area is exempted from the fuel dyeing requirements under subsection (i) of section 211 of the Clean Air Act (as in effect on the date of the enactment of this subsection) by the Administrator of the Environmental Protection Agency under paragraph (4) of such subsection (i) (as so in effect), and the use of which is certified pursuant to regulations issued by the Secretary.
(d) Additional exceptions to dyeing requirements for kerosene Subsection (a)(2) shall not apply to kerosene— received by pipeline or vessel for use by the person receiving the kerosene in the manufacture or production of any substance (other than gasoline, diesel fuel, or special fuels referred to in section 4041), or to the extent provided in regulations, removed or entered— for such a use by the person removing or entering the kerosene, or for resale by such person for such a use by the purchaser, but only if the person receiving, removing, or entering the kerosene and such purchaser (if any) are registered under section 4101 with respect to the tax imposed by section 4081. To the extent provided in regulations, subsection (a)(2) shall not apply to kerosene received by a wholesale distributor of kerosene if such distributor— is registered under section 4101 with respect to the tax imposed by section 4081 on kerosene, and sells kerosene exclusively to ultimate vendors described in section 6427( l )(5)(B) with respect to kerosene.
(e) Kerosene removed into an aircraft In the case of kerosene (other than kerosene with respect to which tax is imposed under section 4043) which is exempt from the tax imposed by section 4041(c) (other than by reason of a prior imposition of tax) and which is removed from any refinery or terminal directly into the fuel tank of an aircraft— the rate of tax under section 4081(a)(2)(A)(iii) shall be zero, and if such aircraft is employed in foreign trade or trade between the United States and any of its possessions, the increase in such rate under section 4081(a)(2)(B) shall be zero. For purposes of this subsection, any removal described in section 4081(a)(3)(A) shall be treated as a removal from a terminal but only if such terminal is located within a secure area of an airport.
(f) Exception for Leaking Underground Storage Tank Trust Fund financing rate Subsection (a) shall not apply to the tax imposed under section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate. Paragraph (1) shall not apply with respect to any fuel if the Secretary determines that such fuel is destined for export or for use by the purchaser as supplies for vessels (within the meaning of section 4221(d)(3)) employed in foreign trade or trade between the United States and any of its possessions.
(g) Regulations The Secretary shall prescribe such regulations as may be necessary to carry out this section, including regulations requiring the conspicuous labeling of retail diesel fuel and kerosene pumps and other delivery facilities to assure that persons are aware of which fuel is available only for nontaxable uses.
(h) Cross reference For tax on train and certain bus uses of fuel purchased tax-free, see subsections (a)(1) and (d)(3) of section 4041.
§ 4083 Definitions; special rule; administrative authority
(a) Taxable fuel For purposes of this subpart— The term “taxable fuel” means— gasoline, diesel fuel, and kerosene. The term “gasoline”— includes any gasoline blend, other than qualified methanol or ethanol fuel (as defined in section 4041(b)(2)(B)), partially exempt methanol or ethanol fuel (as defined in section 4041(m)(2)), or a denatured alcohol, and includes, to the extent prescribed in regulations— any gasoline blend stock, and any product commonly used as an additive in gasoline (other than alcohol). For purposes of subparagraph (B)(i), the term “gasoline blend stock” means any petroleum product component of gasoline. The term “diesel fuel” means— any liquid (other than gasoline) which is suitable for use as a fuel in a diesel-powered highway vehicle, or a diesel-powered train, transmix, and diesel fuel blend stocks identified by the Secretary. For purposes of subparagraph (A), the term “transmix” means a byproduct of refined products pipeline operations created by the mixing of different specification products during pipeline transportation.
(b) Commercial aviation For purposes of this subpart, the term “commercial aviation” means any use of an aircraft in a business of transporting persons or property for compensation or hire by air, unless properly allocable to any transportation exempt from the taxes imposed by sections 4261 and 4271 by reason of section 4281 or 4282 or by reason of subsection (h) or (i) of section 4261. Such term shall not include the use of any aircraft before October 1, 2028 , if tax is imposed under section 4043 with respect to the fuel consumed in such use or if no tax is imposed on such use under section 4043 by reason of subsection (c)(5) thereof.
(c) Certain uses defined as removal If any person uses taxable fuel (other than in the production of taxable fuels or special fuels referred to in section 4041), such use shall for the purposes of this chapter be considered a removal.
(d) Administrative authority In addition to the authority otherwise granted by this title, the Secretary may in administering compliance with this subpart, section 4041, and penalties and other administrative provisions related thereto— enter any place at which taxable fuel is produced or is stored (or may be stored) for purposes of— examining the equipment used to determine the amount or composition of such fuel and the equipment used to store such fuel, taking and removing samples of such fuel, and inspecting any books and records and any shipping papers pertaining to such fuel, and detain, for the purposes referred in subparagraph (A), any container which contains or may contain any taxable fuel. The Secretary may establish inspection sites for purposes of carrying out the Secretary’s authority under paragraph (1)(B). The penalty provided by section 7342 shall apply to any refusal to admit entry or other refusal to permit an action by the Secretary authorized by paragraph (1), except that section 7342 shall be applied by substituting “500” for each such refusal. For additional assessable penalty for the refusal to admit entry or other refusal to permit an action by the Secretary authorized by paragraph (1), see section 6717.
§ 4084 Cross references
For provisions to relieve farmers from excise tax in the case of gasoline used on the farm for farming purposes, see section 6420. For provisions to relieve purchasers of gasoline from excise tax in the case of gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes, see section 6421. For provisions to relieve purchasers from excise tax in the case of taxable fuel not used for taxable purposes, see section 6427. (Added Pub. L. 103–66, title XIII, § 13242(a) , Aug. 10, 1993 , 107 Stat. 518 .)
§ 4101 Registration and bond
(a) Registration Every person required by the Secretary to register under this section with respect to the tax imposed by section 4041(a) or 4081, every person producing or importing biodiesel (as defined in section 40A(d)(1)) or alcohol (as defined in section 6426(b)(4)(A)), every person producing or importing sustainable aviation fuel (as defined in section 40B), every person producing a fuel eligible for the clean fuel production credit (pursuant to section 45Z), and every person producing second generation biofuel (as defined in section 40(b)(6)(E)) shall register with the Secretary at such time, in such form and manner, and subject to such terms and conditions, as the Secretary may by regulations prescribe. A registration under this section may be used only in accordance with regulations prescribed under this section. The Secretary shall require registration by any person which— operates a terminal or refinery within a foreign trade zone or within a customs bonded storage facility, or holds an inventory position with respect to a taxable fuel in such a terminal. Every operator of a vessel required by the Secretary to register under this section shall display proof of registration through an identification device prescribed by the Secretary on each vessel used by such operator to transport any taxable fuel. The Secretary shall require registration by any person which— extends credit by credit card to any ultimate purchaser described in subparagraph (C) or (D) of section 6416(b)(2) for the purchase of taxable fuel upon which tax has been imposed under section 4041 or 4081, and does not collect the amount of such tax from such ultimate purchaser. Under regulations prescribed by the Secretary, a person (other than a corporation the stock of which is regularly traded on an established securities market) shall be required to reregister under this section if after a transaction (or series of related transactions) more than 50 percent of ownership interests in, or assets of, such person are held by persons other than persons (or persons related thereto) who held more than 50 percent of such interests or assets before the transaction (or series of related transactions).
(b) Bonds and liens Under regulations prescribed by the Secretary, the Secretary may require, as a condition of permitting any person to be registered under subsection (a), that such person— give a bond in such sum as the Secretary determines appropriate, and agree to the imposition of a lien— on such property (or rights to property) of such person used in the trade or business for which the registration is sought, or with the consent of such person, on any other property (or rights to property) of such person as the Secretary determines appropriate. Rules similar to the rules of section 6323 shall apply to the lien imposed pursuant to this paragraph. If a lien is imposed pursuant to paragraph (1), the Secretary shall issue a certificate of discharge or a release of such lien in connection with a transfer of the property if there is furnished to the Secretary (and accepted by him) a bond in such sum as the Secretary determines appropriate or the transferor agrees to the imposition of a substitute lien under paragraph (1)(B) in such sum as the Secretary determines appropriate. The Secretary shall respond to any request to discharge or release a lien imposed pursuant to paragraph (1) in connection with a transfer of property not later than 90 days after the date the request for such a discharge or release is made.
(c) Denial, revocation, or suspension of registration Rules similar to the rules of section 4222(c) shall apply to registration under this section.
(d) Information reporting The Secretary may require— information reporting by any person registered under this section, and information reporting by such other persons as the Secretary deems necessary to carry out this part. Any person who is required to report under this subsection and who has 25 or more reportable transactions in a month shall file such report in electronic format.
§ 4102 Inspection of records by local officers
Under regulations prescribed by the Secretary, records required to be kept with respect to taxes under this part shall be open to inspection by such officers of a State, or a political subdivision of any such State, as shall be charged with the enforcement or collection of any tax on any taxable fuel (as defined in section 4083). ( Aug. 16, 1954, ch. 736 , 68A Stat. 484 ; Pub. L. 94–455, title XII, § 1202(c)(1) , Oct. 4, 1976 , 90 Stat. 1686 ; Pub. L. 97–424, title V, § 515(b)(9) , Jan. 6, 1983 , 96 Stat. 2182 ; Pub. L. 103–66, title XIII, § 13242(d)(2) , Aug. 10, 1993 , 107 Stat. 522 .)
§ 4103 Certain additional persons liable for tax where willful failure to pay
In any case in which there is a willful failure to pay the tax imposed by section 4041(a)(1) or 4081, each person— who is an officer, employee, or agent of the taxpayer who is under a duty to assure the payment of such tax and who willfully fails to perform such duty, or who willfully causes the taxpayer to fail to pay such tax, shall be jointly and severally liable with the taxpayer for the tax to which such failure relates. (Added Pub. L. 101–508, title XI, § 11212(c) , Nov. 5, 1990 , 104 Stat. 1388–431 ; amended Pub. L. 103–66, title XIII, § 13242(d)(1) , Aug. 10, 1993 , 107 Stat. 522 ; Pub. L. 108–357, title VIII, § 853(d)(2)(F) , Oct. 22, 2004 , 118 Stat. 1613 .)
§ 4104 Information reporting for persons claiming certain tax benefits
(a) In general The Secretary shall require any person claiming tax benefits— under the provisions of sections 34, 40, and 40A, to file a return at the time such person claims such benefits (in such manner as the Secretary may prescribe), and under the provisions of section 4041(b)(2), 6426, or 6427(e) to file a quarterly return (in such manner as the Secretary may prescribe).
(b) Contents of return Any return filed under this section shall provide such information relating to such benefits and the coordination of such benefits as the Secretary may require to ensure the proper administration and use of such benefits.
(c) Enforcement With respect to any person described in subsection (a) and subject to registration requirements under this title, rules similar to rules of section 4222(c) shall apply with respect to any requirement under this section.
§ 4105 Two-party exchanges
(a) In general In a two-party exchange, the delivering person shall not be liable for the tax imposed under section 4081(a)(1)(A)(ii).
(b) Two-party exchange The term “two-party exchange” means a transaction, other than a sale, in which taxable fuel is transferred from a delivering person registered under section 4101 as a taxable fuel registrant to a receiving person who is so registered where all of the following occur: The transaction includes a transfer from the delivering person, who holds the inventory position for taxable fuel in the terminal as reflected in the records of the terminal operator. The exchange transaction occurs before or contemporaneous with completion of removal across the rack from the terminal by the receiving person. The terminal operator in its books and records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction to the Secretary. The transaction is the subject of a written contract.
§ 4121 Imposition of tax
(a) Tax imposed There is hereby imposed on coal from mines located in the United States sold by the producer, a tax equal to the rate per ton determined under subsection (b). The amount of the tax imposed by paragraph (1) with respect to a ton of coal shall not exceed the applicable percentage (determined under subsection (b)) of the price at which such ton of coal is sold by the producer.
(b) Determination of rates and limitation on tax For purposes of subsection (a)— the rate of tax on coal from underground mines shall be .55, and the applicable percentage shall be 4.4 percent.
(c) Tax not to apply to lignite The tax imposed by subsection (a) shall not apply in the case of lignite.
(d) Definitions For purposes of this subchapter— Coal shall be treated as produced from a surface mine if all of the geological matter above the coal being mined is removed before the coal is extracted from the earth. Coal extracted by auger shall be treated as coal from a surface mine. Coal shall be treated as produced from an underground mine if it is not produced from a surface mine. The term “United States” has the meaning given to it by paragraph (1) of section 638. The term “ton” means 2,000 pounds.
§ 4131 Imposition of tax
(a) General rule There is hereby imposed a tax on any taxable vaccine sold by the manufacturer, producer, or importer thereof.
(b) Amount of tax The amount of the tax imposed by subsection (a) shall be 75 cents per dose of any taxable vaccine. If any taxable vaccine is described in more than 1 subparagraph of section 4132(a)(1), the amount of the tax imposed by subsection (a) on such vaccine shall be the sum of the amounts for the vaccines which are so included.
(c) Application of section The tax imposed by this section shall apply— after December 31, 1987 , and before January 1, 1993 , and during periods after the date of the enactment of the Revenue Reconciliation Act of 1993.
§ 4132 Definitions and special rules
(a) Definitions relating to taxable vaccines For purposes of this subchapter— The term “taxable vaccine” means any of the following vaccines which are manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing: Any vaccine containing diphtheria toxoid. Any vaccine containing tetanus toxoid. Any vaccine containing pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens. Any vaccine against measles. Any vaccine against mumps. Any vaccine against rubella. Any vaccine containing polio virus. Any HIB vaccine. Any vaccine against hepatitis A. Any vaccine against hepatitis B. Any vaccine against chicken pox. Any vaccine against rotavirus gastroenteritis. Any conjugate vaccine against streptococcus pneumoniae. Any trivalent vaccine against influenza or any other vaccine against seasonal influenza. Any meningococcal vaccine. Any vaccine against the human papillomavirus. The term “vaccine” means any substance designed to be administered to a human being for the prevention of 1 or more diseases. The term “United States” has the meaning given such term by section 4612(a)(4). The term “importer” means the person entering the vaccine for consumption, use, or warehousing.
(b) Credit or refund where vaccine returned to manufacturer, etc., or destroyed Under regulations prescribed by the Secretary, whenever any vaccine on which tax was imposed by section 4131 is— returned (other than for resale) to the person who paid such tax, or destroyed, the Secretary shall abate such tax or allow a credit, or pay a refund (without interest), to such person equal to the tax paid under section 4131 with respect to such vaccine. Paragraph (1) shall apply to any returned or destroyed vaccine only with respect to claims filed within 6 months after the date the vaccine is returned or destroyed. No credit or refund shall be allowed or made under paragraph (1) with respect to any vaccine unless the person who paid the tax establishes that he— has repaid or agreed to repay the amount of the tax to the ultimate purchaser of the vaccine, or has obtained the written consent of such purchaser to the allowance of the credit or the making of the refund. No tax shall be imposed by section 4131 on the sale of any vaccine if tax was imposed by section 4131 on any prior sale of such vaccine and such tax is not abated, credited, or refunded.
(c) Other special rules Any manufacturer, producer, or importer of a vaccine which uses such vaccine before it is sold shall be liable for the tax imposed by section 4131 in the same manner as if such vaccine were sold by such manufacturer, producer, or importer. Section 4221(a)(2) shall not apply to any vaccine shipped to a possession of the United States. In the case of a fraction of a dose, the tax imposed by section 4131 shall be the same fraction of the amount of such tax imposed by a whole dose. The provisions of subsections (a)(3) and (b)(3) of section 7652 shall not apply to any tax imposed by section 4131.
§ 4161 Imposition of tax
(a) Sport fishing equipment There is hereby imposed on the sale of any article of sport fishing equipment by the manufacturer, producer, or importer a tax equal to 10 percent of the price for which so sold. The tax imposed by subparagraph (A) on any fishing rod or pole shall not exceed $10. In the case of an electric outboard motor, paragraph (1) shall be applied by substituting “3 percent” for “10 percent”. In the case of fishing tackle boxes, paragraph (1) shall be applied by substituting “3 percent” for “10 percent”. In the case of any sale by the manufacturer, producer, or importer of any article of sport fishing equipment, such article shall be treated as including any parts or accessories of such article sold on or in connection therewith or with the sale thereof.
(b) Bows and arrows, etc. There is hereby imposed on the sale by the manufacturer, producer, or importer of any bow which has a peak draw weight of 30 pounds or more, a tax equal to 11 percent of the price for which so sold. There is hereby imposed on the sale by the manufacturer, producer, or importer— of any part or accessory suitable for inclusion in or attachment to a bow described in subparagraph (A), and of any quiver, broadhead, or point suitable for use with an arrow described in paragraph (2), a tax equal to 11 percent of the price for which so sold. There is hereby imposed on the first sale by the manufacturer, producer, or importer of any shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow which after its assembly— measures 18 inches overall or more in length, or measures less than 18 inches overall in length but is suitable for use with a bow described in paragraph (1)(A), a tax equal to 39 cents per shaft. Subparagraph (A) shall not apply to any shaft consisting of all natural wood with no laminations or artificial means of enhancing the spine of such shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow which after its assembly— measures 5 ⁄ 16 of an inch or less in diameter, and is not suitable for use with a bow described in paragraph (1)(A). In the case of any calendar year beginning after 2005, the 39-cent amount specified in subparagraph (A) shall be increased by an amount equal to the product of— such amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting “2004” for “2016” in subparagraph (A)(ii) thereof. If any increase determined under clause (i) is not a multiple of 1 cent, such increase shall be rounded to the nearest multiple of 1 cent. No tax shall be imposed under this subsection with respect to any article taxable under subsection (a).
§ 4162 Definitions; treatment of certain resales
(a) Sport fishing equipment defined For purposes of this part, the term “sport fishing equipment” means— fishing rods and poles (and component parts therefor), fishing reels, fly fishing lines, and other fishing lines not over 130 pounds test, fishing spears, spear guns, and spear tips, items of terminal tackle, including— leaders, artificial lures, artificial baits, artificial flies, fishing hooks, bobbers, sinkers, snaps, drayles, and swivels, but not including natural bait or any item of terminal tackle designed for use and ordinarily used on fishing lines not described in paragraph (3), and the following items of fishing supplies and accessories— fish stringers, creels, tackle boxes, bags, baskets, and other containers designed to hold fish, portable bait containers, fishing vests, landing nets, gaff hooks, fishing hook disgorgers, and dressing for fishing lines and artificial flies, fishing tip-ups and tilts, fishing rod belts, fishing rodholders, fishing harnesses, fish fighting chairs, fishing outriggers, and fishing downriggers, and electric outboard boat motors.
(b) Treatment of certain resales If— the manufacturer, producer, or importer sells any article taxable under section 4161(a) to any person, the constructive sale price rules of section 4216(b) do not apply to such sale, and such person (or any other person) sells such article to a related person with respect to the manufacturer, producer, or importer, then such related person shall be liable for tax under section 4161 in the same manner as if such related person were the manufacturer of the article. If— tax is imposed on the sale of any article by reason of paragraph (1), and the related person establishes the amount of the tax which was paid on the sale described in paragraph (1)(A), the amount of the tax so paid shall be allowed as a credit against the tax imposed by reason of paragraph (1). For purposes of this subsection, the term “related person” has the meaning given such term by section 465(b)(3)(C). Except to the extent provided in regulations, rules similar to the rules of this subsection shall also apply in cases (not described in paragraph (1)) in which intermediaries or other devices are used for purposes of reducing the amount of the tax imposed by section 4161(a).
[§§ 4171 to 4173 Repealed. Pub. L. 89–44, title II, § 205(b), June 21, 1965, 79 Stat. 140]
§ 4181 Imposition of tax
There is hereby imposed upon the sale by the manufacturer, producer, or importer of the following articles a tax equivalent to the specified percent of the price for which so sold: Articles taxable at 10 percent— Pistols. Revolvers. Articles taxable at 11 percent— Firearms (other than pistols and revolvers). Shells, and cartridges. ( Aug. 16, 1954, ch. 736 , 68A Stat. 490 .)
§ 4182 Exemptions
(a) Machine guns and short barrelled firearms The tax imposed by section 4181 shall not apply to any firearm on which the tax provided by section 5811 has been paid. For purposes of the preceding sentence, any firearm described in section 5811(a)(2) shall be deemed to be a firearm on which the tax provided by section 5811 has been paid.
(b) Sales to defense department No firearms, pistols, revolvers, shells, and cartridges purchased with funds appropriated for the military department shall be subject to any tax imposed on the sale or transfer of such articles.
(c) Small manufacturers, etc. The tax imposed by section 4181 shall not apply to any pistol, revolver, or firearm described in such section if manufactured, produced, or imported by a person who manufactures, produces, and imports less than an aggregate of 50 of such articles during the calendar year. All persons treated as a single employer for purposes of subsection (a) or (b) of section 52 shall be treated as one person for purposes of paragraph (1).
(d) Records Notwithstanding the provisions of sections 922(b)(5) and 923(g) of title 18, United States Code, no person holding a Federal license under chapter 44 of title 18, United States Code, shall be required to record the name, address, or other information about the purchaser of shotgun ammunition, ammunition suitable for use only in rifles generally available in commerce, or component parts for the aforesaid types of ammunition.
[§ 4191 Repealed. Pub. L. 116–94, div. N, title I, § 501(a), Dec. 20, 2019, 133 Stat. 3118]
§ 4216 Definition of price
(a) Containers, packing and transportation charges. In determining, for the purposes of this chapter, the price for which an article is sold, there shall be included any charge for coverings and containers of whatever nature, and any charge incident to placing the article in condition packed ready for shipment, but there shall be excluded the amount of tax imposed by this chapter, whether or not stated as a separate charge. A transportation, delivery, insurance, installation, or other charge (not required by the foregoing sentence to be included) shall be excluded from the price only if the amount thereof is established to the satisfaction of the Secretary in accordance with the regulations.
(b) Constructive sale price If an article is— sold at retail, sold on consignment, or sold (otherwise than through an arm’s length transaction) at less than the fair market price, the tax under this chapter shall (if based on the price for which the article is sold) be computed on the price for which such articles are sold, in the ordinary course of trade, by manufacturers or producers thereof, as determined by the Secretary. In the case of an article sold at retail, the computation under the preceding sentence shall be on whichever of the following prices is the lower: (i) the price for which such article is sold, or (ii) the highest price for which such articles are sold to wholesale distributors, in the ordinary course of trade, by manufacturers or producers thereof, as determined by the Secretary. This paragraph shall not apply if paragraph (2) applies. If an article is sold at retail or to a retailer, and if— the manufacturer, producer, or importer of such article regularly sells such articles at retail or to retailers, as the case may be, the manufacturer, producer, or importer of such article regularly sells such articles to one or more wholesale distributors in arm’s length transactions and he establishes that his prices in such cases are determined without regard to any tax benefit under this paragraph, and the transaction is an arm’s length transaction, the tax under this chapter shall (if based on the price for which the article is sold) be computed on whichever of the following prices is the lower: (i) the price for which such article is sold, or (ii) the highest price for which such articles are sold by such manufacturer, producer, or importer to wholesale distributors (other than special dealers). Except as provided in paragraph (4), for purposes of paragraph (1), if— the manufacturer, producer, or importer of an article regularly sells such article to a distributor which is a member of the same affiliated group of corporations (as defined in section 1504(a)) as the manufacturer, producer, or importer, and such distributor regularly sells such article to one or more independent retailers, but does not regularly sell to wholesale distributors, the constructive sale price of such article shall be 90 percent of the lowest price for which such distributor regularly sells such article in arm’s-length transactions to such independent retailers. The price determined under this paragraph shall not be adjusted for any exclusion (except for the tax imposed on such article) or readjustments under subsections (a) and (e) and under section 6416(b)(1). If both this paragraph and paragraph (4) apply with respect to an article, the constructive sale price for such article shall be the lower of the constructive sale price determined under this paragraph or paragraph (4). For purposes of paragraph (1), if— the manufacturer, producer, or importer of an article regularly sells (except for tax-free sales) only to a distributor which is a member of the same affiliated group of corporations (as defined in section 1504(a)) as the manufacturer, producer, or importer, the distributor regularly sells (except for tax-free sales) such article only to retailers, and the normal method of sales for such articles within the industry by manufacturers, producers, or importers is to sell such articles in arm’s-length transactions to distributors, the constructive sale price for such article shall be the price at which such article is sold to retailers by the distributor, reduced by a percentage of such price equal to the percentage which (i) the difference between the price for which comparable articles are sold to wholesale distributors, in the ordinary course of trade, by manufacturers or producers thereof, and the price at which such wholesale distributors in arm’s-length transactions sell such comparable articles to retailers, is of (ii) the price at which such wholesale distributors in arm’s-length transactions sell such comparable articles to retailers. The price determined under this paragraph shall not be adjusted for any exclusion (except for the tax imposed on such article) or readjustment under subsections (a) and (e) and under section 6416(b)(1). For purposes of paragraphs (1) and (3), the lowest price shall be determined— without requiring that any given percentage of sales be made at that price, and without including any fixed amount to which the purchaser has a right as a result of contractual arrangements existing at the time of the sale.
(c) Partial payments In the case of— a lease (other than a lease to which section 4217(b) applies), a contract for the sale of an article wherein it is provided that the price shall be paid by installments and title to the article sold does not pass until a future date notwithstanding partial payment by installments, a conditional sale, or a chattel mortgage arrangement wherein it is provided that the sales price shall be paid in installments, there shall be paid upon each payment with respect to the article a percentage of such payment equal to the rate of tax in effect on the date such payment is due.
(d) Sales of installment accounts If installment accounts, with respect to payments on which tax is being computed as provided in subsection (c), are sold or otherwise disposed of, then subsection (c) shall not apply with respect to any subsequent payments on such accounts (other than subsequent payments on returned accounts with respect to which credit or refund is allowable by reason of section 6416(b)(5)), but instead— there shall be paid an amount equal to the difference between (A) the tax previously paid on the payments on such installment accounts, and (B) the total tax which would be payable if such installment accounts had not been sold or otherwise disposed of (computed as provided in subsection (c)); except that if any such sale is pursuant to the order of, or subject to the approval of, a court of competent jurisdiction in a bankruptcy or insolvency proceeding, the amount computed under paragraph (1) shall not exceed the sum of the amounts computed by multiplying (A) the proportionate share of the amount for which such accounts are sold which is allocable to each unpaid installment payment by (B) the rate of tax under this chapter in effect on the date such unpaid installment payment is or was due. The sum of the amounts payable under this subsection and subsection (c) in respect of the sale of any article shall not exceed the total tax.
(e) Exclusion of local advertising charge from sale price In determining, for purposes of this chapter, the price for which an article is sold, there shall be excluded a charge for local advertising (as defined in paragraph (4)) to the extent that such charge— does not exceed 5 percent of the price for which the article is sold (as determined under this section by excluding any charge for local advertising), is a separate charge made when the article is sold, and is intended to be refunded to the purchaser or any subsequent vendee in reimbursement of costs incurred for local advertising. In the case of any such charge (or portion thereof) which is not so refunded before the first day of the fifth calendar month following the calendar year during which the article was sold, the exclusion provided by the preceding sentence shall cease to apply as of such first day. In the case of articles upon the sale of which tax was imposed under the same section of this chapter— The sum of (i) the aggregate of the charges for local advertising excluded under paragraph (1), plus (ii) the aggregate of the readjustments for local advertising under section 6416(b)(1) (relating to credits or refunds for price readjustments), shall not exceed 5 percent of the aggregate of the prices (determined under this section by excluding all charges for local advertising) at which such articles were sold in sales on which tax was imposed by such section of this chapter. The preceding sentence shall be applied to each manufacturer, producer, and importer as of the close of each calendar quarter, taking into account the items specified in subparagraphs (A) and (B) for such calendar quarter and preceding calendar quarters in the same calendar year. Except to the extent provided by paragraphs (1) and (2), no charge or expenditure for advertising shall serve, for purposes of this section or section 6416(b)(1), as the basis for an exclusion from, or as a readjustment of, the price of any article. For purposes of this section and section 6416(b)(1), the term “local advertising” means only advertising which— is initiated or obtained by the purchaser or any subsequent vendee, names the article for which the price is determinable under this section and states the location at which such article may be purchased at retail, and is broadcast over a radio station or television station, appears in a newspaper or magazine, or is displayed by means of an outdoor advertising sign or poster.
§ 4217 Leases
(a) Lease considered as sale For purposes of this chapter, the lease of an article (including any renewal or any extension of a lease or any subsequent lease of such article) by the manufacturer, producer, or importer shall be considered a sale of such article.
(b) Limitation on tax In the case of any lease described in subsection (a) of an article taxable under this chapter, if the tax under this chapter is based on the price for which such articles are sold, there shall be paid on each lease payment with respect to such article a percentage of such payment equal to the rate of tax in effect on the date of such payment, until the total of the tax payments under such lease and any prior lease to which this subsection applies equals the total tax.
(c) Definition of total tax For purposes of this section, the term “total tax” means— except as provided in paragraph (2), the tax computed on the constructive sale price for such article which would be determined under section 4216(b) if such article were sold at retail on the date of the first lease to which subsection (b) applies; or if the first lease to which subsection (b) applies is not the first lease of the article, the tax computed on the fair market value of such article on the date of the first lease to which subsection (b) applies. Any such computation of tax shall be made at the applicable rate specified in this chapter in effect on the date of the first lease to which subsection (b) applies.
(d) Special rules Subsection (b) shall not apply to any lease of an article unless at the time of making the lease, or any prior lease of such article to which subsection (b) applies, the person making the lease or prior lease was also engaged in the business of selling in arm’s length transactions the same type and model of article. If the taxpayer sells an article before the total tax has become payable, then the tax payable on such sale shall be whichever of the following is the smaller: the difference between (i) the tax imposed on lease payments under leases of such article to which subsection (b) applies, and (ii) the total tax, or a tax computed, at the rate in effect on the date of the sale, on the price for which the article is sold. For purposes of subparagraph (B), if the sale is at arm’s length, section 4216(b) shall not apply. If the taxpayer sells an article after the total tax has become payable, no tax shall be imposed under this chapter on such sale.
(e) Leases of automobiles subject to gas guzzler tax In the case of the lease of an automobile the sale of which by the manufacturer would be taxable under section 4064, the foregoing provisions of this section shall not apply, but, for purposes of this chapter— the first lease of such automobile by the manufacturer shall be considered to be a sale, and any lease of such automobile by the manufacturer after the first lease of such automobile shall not be considered to be a sale. In the case of a lease described in paragraph (1)(A)— there shall be paid by the manufacturer on each lease payment that portion of the total gas guzzler tax which bears the same ratio to such total gas guzzler tax as such payment bears to the total amount to be paid under such lease, if such lease is canceled, or the automobile is sold or otherwise disposed of, before the total gas guzzler tax is payable, there shall be paid by the manufacturer on such cancellation, sale, or disposition the difference between the tax imposed under subparagraph (A) on the lease payments and the total gas guzzler tax, and if the automobile is sold or otherwise disposed of after the total gas guzzler tax is payable, no tax shall be imposed under section 4064 on such sale or disposition. For purposes of this subsection— The term “manufacturer” includes a producer or importer. The term “total gas guzzler tax” means the tax imposed by section 4064, computed at the rate in effect on the date of the first lease.
§ 4218 Use by manufacturer or importer considered sale
(a) General rule If any person manufactures, produces, or imports an article (other than a tire taxable under section 4071) and uses it (otherwise than as material in the manufacture or production of, or as a component part of, another article taxable under this chapter to be manufactured or produced by him), then he shall be liable for tax under this chapter in the same manner as if such article were sold by him. This subsection shall not apply in the case of gasoline used by any person, for nonfuel purposes, as a material in the manufacture or production of another article to be manufactured or produced by him. For the purpose of applying the first sentence of this subsection to coal taxable under section 4121, the words “(otherwise than as material in the manufacture or production of, or as a component part of, another article taxable under this chapter to be manufactured or produced by him)” shall be disregarded.
(b) Tires If any person manufactures, produces, or imports a tire taxable under section 4071, and sells it on or in connection with the sale of any article, or uses it, then he shall be liable for tax under this chapter in the same manner as if such article were sold by him.
(c) Computation of tax Except as provided in section 4223(b), in any case in which a person is made liable for tax by the preceding provisions of this section, the tax (if based on the price for which the article is sold) shall be computed on the price at which such or similar articles are sold, in the ordinary course of trade, by manufacturers, producers, or importers, thereof, as determined by the Secretary.
§ 4219 Application of tax in case of sales by other than manufacturer or importer
In case any person acquires from the manufacturer, producer, or importer of an article, by operation of law or as a result of any transaction not taxable under this chapter, the right to sell such article, the sale of such article by such person shall be taxable under this chapter as if made by the manufacturer, producer, or importer, and such person shall be liable for the tax. ( Aug. 16, 1954, ch. 736 , 68A Stat. 494 .)
[§§ 4220 to 4225 Repealed. Pub. L. 85–859, title I, § 119(a), Sept. 2, 1958, 72 Stat. 1282]
§ 4221 Certain tax-free sales
(a) General rule Under regulations prescribed by the Secretary, no tax shall be imposed under this chapter (other than under section 4121 or 4081) on the sale by the manufacturer (or under subchapter C of chapter 31 on the first retail sale) of an article— for use by the purchaser for further manufacture, or for resale by the purchaser to a second purchaser for use by such second purchaser in further manufacture, for export, or for resale by the purchaser to a second purchaser for export, for use by the purchaser as supplies for vessels or aircraft, to a State or local government for the exclusive use of a State or local government, to a nonprofit educational organization for its exclusive use, or to a qualified blood collector organization (as defined in section 7701(a)(49)) for such organization’s exclusive use in the collection, storage, or transportation of blood, but only if such exportation or use is to occur before any other use. Paragraphs (4), (5), and (6) shall not apply to the tax imposed by section 4064. In the case of taxes imposed by section 4051 or 4071, paragraphs (4) and (5) shall not apply on and after October 1, 2028 . In the case of the tax imposed by section 4131, paragraphs (3), (4), and (5) shall not apply and paragraph (2) shall apply only if the use of the exported vaccine meets such requirements as the Secretary may by regulations prescribe. In the case of taxes imposed by subchapter C or D, paragraph (6) shall not apply.
(b) Proof of resale for further manufacture; proof of export Where an article has been sold free of tax under subsection (a)— for resale by the purchaser to a second purchaser for use by such second purchaser in further manufacture, or for export, or for resale by the purchaser to a second purchaser for export, subsection (a) shall cease to apply in respect of such sale of such article unless, within the 6-month period which begins on the date of the sale by the manufacturer (or, if earlier, on the date of shipment by the manufacturer), the manufacturer receives proof that the article has been exported or resold for use in further manufacture.
(c) Manufacturer relieved from liability in certain cases In the case of any article sold free of tax under this section (other than a sale to which subsection (b) applies), and in the case of any article sold free of tax under section 4053(6), if the manufacturer in good faith accepts a certification by the purchaser that the article will be used in accordance with the applicable provisions of law, no tax shall thereafter be imposed under this chapter in respect of such sale by such manufacturer.
(d) Definitions For purposes of this section— The term “manufacturer” includes a producer or importer of an article, and, in the case of taxes imposed by subchapter C of chapter 31, includes the retailer with respect to the first retail sale. The term “export” includes shipment to a possession of the United States; and the term “exported” includes shipped to a possession of the United States. The term “supplies for vessels or aircraft” means fuel supplies, ships’ stores, sea stores, or legitimate equipment on vessels of war of the United States or of any foreign nation, vessels employed in the fisheries or in the whaling business, or vessels actually engaged in foreign trade or trade between the Atlantic and Pacific ports of the United States or between the United States and any of its possessions. For purposes of the preceding sentence, the term “vessels” includes civil aircraft employed in foreign trade or trade between the United States and any of its possessions, and the term “vessels of war of the United States or of any foreign nation” includes aircraft owned by the United States or by any foreign nation and constituting a part of the armed forces thereof. The term “State or local government” means any State, any political subdivision thereof, or the District of Columbia. The term “nonprofit educational organization” means an educational organization described in section 170(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. An article shall be treated as sold for use in further manufacture if— such article is sold for use by the purchaser as material in the manufacture or production of, or as a component part of, another article taxable under this chapter to be manufactured or produced by him; or in the case of gasoline taxable under section 4081, such gasoline is sold for use by the purchaser, for nonfuel purposes, as a material in the manufacture or production of another article to be manufactured or produced by him. The term “qualified bus” means— an intercity or local bus, and a school bus. The term “intercity or local bus” means any automobile bus which is used predominantly in furnishing (for compensation) passenger land transportation available to the general public if— such transportation is scheduled and along regular routes, or the seating capacity of such bus is at least 20 adults (not including the driver). The term “school bus” means any automobile bus substantially all the use of which is in transporting students and employees of schools. For purposes of the preceding sentence, the term “school” means an educational organization which 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 carried on.
(e) Special rules In the case of articles sold for use as supplies for aircraft, the privileges granted under subsection (a)(3) in respect of civil aircraft employed in foreign trade or trade between the United States and any of its possessions, in respect of aircraft registered in a foreign country, shall be allowed only if the Secretary of the Treasury has been advised by the Secretary of Commerce that he has found that such foreign country allows, or will allow, substantially reciprocal privileges in respect of aircraft registered in the United States. If the Secretary of the Treasury is advised by the Secretary of Commerce that he has found that a foreign country has discontinued or will discontinue the allowance of such privileges, the privileges granted under subsection (a)(3) shall not apply thereafter in respect of civil aircraft registered in that foreign country and employed in foreign trade or trade between the United States and any of its possessions. Under regulations prescribed by the Secretary, no tax shall be imposed under section 4071 on the sale by the manufacturer of a tire if— such tire is sold for use by the purchaser for sale on or in connection with the sale of another article manufactured or produced by such purchaser; and such other article is to be sold by such purchaser in a sale which either will satisfy the requirements of paragraph (2), (3), (4), or (5) of subsection (a) for a tax-free sale, or would satisfy such requirements but for the fact that such other article is not subject to tax under this chapter. Where a tire has been sold free of tax under this paragraph, this paragraph shall cease to apply unless, within the 6-month period which begins on the date of the sale by him (or, if earlier, on the date of the shipment by him), the manufacturer of such tire receives proof that the other article referred to in clause (ii) of subparagraph (A) has been sold in a manner which satisfies the requirements of such clause (ii) (including in the case of a sale for export, proof of export of such other article). Paragraph (1) of subsection (a) shall not apply with respect to the tax imposed under section 4071 on the sale of a tire. Under regulations prescribed by the Secretary, the tax imposed by section 4071 shall not apply in the case of tires sold for use by the purchaser on or in connection with a qualified bus.
§ 4222 Registration
(a) General rule Except as provided in subsection (b), section 4221 shall not apply with respect to the sale of any article unless the manufacturer, the first purchaser, and the second purchaser (if any) are all registered under this section. Registration under this section shall be made at such time, in such manner and form, and subject to such terms and conditions, as the Secretary may by regulations prescribe. A registration under this section may be used only in accordance with regulations prescribed under this section.
(b) Exceptions Subsection (a) shall not apply to any State or local government in connection with the purchase by it of any article if such State or local government complies with such regulations relating to the use of exemption certificates in lieu of registration as the Secretary shall prescribe to carry out the purpose of this paragraph. Subject to such regulations as the Secretary may prescribe for the purpose of this paragraph, the Secretary may relieve the purchaser or the second purchaser, or both, from the requirement of registering under this section. Subsection (a) shall apply to purchases and sales by the United States only to the extent provided by regulations prescribed by the Secretary. Subsection (a) shall not apply to a sale of an article for use by the purchaser as supplies for any vessel or aircraft if such purchaser complies with such regulations relating to the use of exemption certificates in lieu of registration as the Secretary shall prescribe to carry out the purpose of this paragraph.
(c) Denial, revocation, or suspension of registration Under regulations prescribed by the Secretary, the registration of any person under this section may be denied, revoked, or suspended if the Secretary determines— that such person has used such registration to avoid the payment of any tax imposed by this chapter, or to postpone or in any manner to interfere with the collection of any such tax, or that such denial, revocation, or suspension is necessary to protect the revenue. The denial, revocation, or suspension under this subsection shall be in addition to any penalty provided by law for any act or failure to act.
(d) Registration in the case of certain other exemptions The provisions of this section may be extended to, and made applicable with respect to, the exemptions provided by sections 4053(6), 4064(b)(1)(C), 4101, and 4182(b), and the exemptions authorized under section 4293 in respect of the taxes imposed by this chapter, to the extent provided by regulations prescribed by the Secretary.
(e) Definitions Terms used in this section which are defined in section 4221(d) shall have the meaning given to them by section 4221(d).
§ 4223 Special rules relating to further manufacture
(a) Purchasing manufacturer to be treated as the manufacturer For purposes of this chapter, a manufacturer or producer to whom an article is sold or resold free of tax under section 4221(a)(1) for use by him in further manufacture shall be treated as the manufacturer or producer of such article.
(b) Computation of tax If the manufacturer or producer referred to in subsection (a) incurs liability for tax under this chapter on his sale or use of an article referred to in subsection (a) and the tax is based on the price for which the article is sold, the article shall be treated as having been sold by him— at the price for which the article was sold by him (or, where the tax is on his use of the article, at the price referred to in section 4218(c)); or if he so elects and establishes such price to the satisfaction of the Secretary— at the price for which the article was sold to him; or at the price for which the article was sold by the person who (without regard to subsection (a)) is the manufacturer, producer, or importer of such article. For purposes of this subsection, the price for which the article was sold shall be determined as provided in section 4216. For purposes of paragraph (2) no adjustment or readjustment shall be made in such price by reason of any discount, rebate, allowance, return or repossession of a container or covering, or otherwise. An election under paragraph (2) shall be made in the return reporting the tax applicable to the sale or use of the article, and may not be revoked.
[§ 4224 Repealed. Pub. L. 89–44, title I, § 101(b)(5), June 21, 1965, 79 Stat. 136]
§ 4225 Exemption of articles manufactured or produced by Indians
No tax shall be imposed under this chapter on any article of native Indian handicraft manufactured or produced by Indians on Indian reservations, or in Indian schools, or by Indians under the jurisdiction of the United States Government in Alaska. (Added Pub. L. 85–859, title I, § 119(a) , Sept. 2, 1958 , 72 Stat. 1286 .)
[§ 4226 Repealed. Pub. L. 94–455, title XIX, § 1904(a)(4), Oct. 4, 1976, 90 Stat. 1811]
§ 4227 Cross reference
For exception for a sale to an Indian tribal government (or its subdivision) for the exclusive use of an Indian tribal government (or its subdivision), see section 7871. ( Aug. 16, 1954, ch. 736 , 68A Stat. 496 , § 4226; renumbered § 4227, June 29, 1956, ch. 462 , title II, § 207(a), 70 Stat. 391 ; amended Pub. L. 89–44, title II, § 208(f) , June 21, 1965 , 79 Stat. 141 ; Pub. L. 94–455, title XIX, § 1904(a)(5) , Oct. 4, 1976 , 90 Stat. 1811 ; Pub. L. 97–473, title II, § 202(b)(8) , Jan. 14, 1983 , 96 Stat. 2610 ; Pub. L. 98–369, div. A, title VII, § 735(c)(11) , July 18, 1984 , 98 Stat. 983 ; Pub. L. 99–514, title XVIII, § 1899A(49) , Oct. 22, 1986 , 100 Stat. 2961 .)