An Act to amend section 152(b) (3) of the Internal Revenue Code of 1954 for the purpose of including nationals of the United States within the definition of the term ""dependent"" in connection with deductions for personal exemptions
PL 92-580 (H.R.1467), enacted 10/27/1972

1276 
PUBLIC LAW 92-580-OCT. 27, 1972 
[86 STAT. 
Effective date. 
D.C. Council 
Chairman, compen-
sation. 
D.C. Code 1 
app. 
SEC. 2. The amendments made by section 1 of this Act shall apply 
only with respect to actions brought after the date of enactment of this 
Act. 
SEC. 3. On and after the date of the enactment of this Act, the 
Chairman of the District of Columbia Council shall receive compen-
sation at the rate of $20,000 per aiinum. 
Approved October 27, 1972. 
^ 
'i^MIXMrj 
Public Law 92-580 
ildii^ 
October 2 7, 1972 
A N A C T 
[H.R. 1467] 
rj[Q amend the Internal Revenue Code of 1954 with respect to personal exemp-
tions in the case of American Samoans, and for other purposes. 
Taxes. 
American Samo-
ans. 
68A Stat. 43; 
72 Stat. 1607. 
26 u s e 152. 
80 Stat. 1550. 
83 Stat. 675. 
Effective date. 
Estate tax, 
annuities. 
68A Stat. 384; 
80 Stat. 33. 
Effective date. 
72 Stat. 1672; 
83 Stat. 711. 
2 6 u s e 162 
note. 
Be it enacted hy the SenMe and House of Representatives 
of the 
United States of America in Congress OMserribled^ That (a) section 
152(b) (3) of the Internal Eevenue Code of 1954 (defining the term 
"dependent") is amended by striking out "citizen of the United States" 
each place it appears and inserting in lieu thereof "citizen or national 
of the United States". 
(b) Paragraph (3) of section 873(b) of such Code (relating to 
deductions in case of nonresidential alien individuals) is amended to 
read as follows: 
" (3) PERSONAL EXEMPTIOX.—The deduction for personal exemp-
tions allowed by section 151, except that only one exemption shall 
be allowed under section 151 unless the taxpayer is a resident of a 
contiguous country or is a national of the United States." 
(c) The amendments made by subsections (a) and (b) shall apply 
to taxable years beginning after December 31, 1971. 
SEC. 2. (a) Section 2039 of the Internal Revenue Code of 1954 
(relating to estate tax treatment of annuities) is amended by adding 
at the end thereof the following new subsection: 
"(d) EXEMPTION or CERTAIN ANNUITY INTERESTS CREATED BY COM-
MUNITY PROPERTY LAWS.—In the case of an employee on whose behalf 
contributions or payments were made by his employer or former 
employer under a trust or plan described in subsection (c) (1) or (2), 
or toward the purchase of a contract described in subsection (c) (3), 
which under subsection (c) are not considered as contributed by the 
employee, if the spouse of such employee predeceases him, then, not-
withstanding the provisions of this section or of any other provision 
of law, there shall be excluded from the gross estate of such spouse 
the value of any interest of such spouse in such trust or plan or such 
contract, to the extent such interest— 
"(1) is attributable to such contributions or payments, and 
"(2) arises solely by reason of such spouse's interest in com-
munity income under the community property laws of a State." 
(b) The amendment made by subsection (a) shall apply with 
respect to estates of decedents for which the period prescribed by 
the Internal Revenue Code of 1954 for filing of a claim for credit 
or refund of an overpayment of estate tax ends on or after the date 
of enactment of this Act. No interest shall be allowed or paid on 
any overpayment of estate tax resulting from the application of the 
amendment made by subsection (a) for any period prior to the 
expiration of the one hundred and eightieth day following the date 
of the enactment of this Act. 
SEC. 3. Section 97 of the Technical Amendments Act of 1958 is 
amended by striking out "January 1, 1971" and inserting in lieu 
thereof "January 1, 1973". 
37 use 301. 
86 STAT. ] 
PUBLIC LAW 92-581-OCT. 27, 1972 
1277 
SEC. 4. (a) Section 164:(b)(2) of the Internal Revenue Code of 
Motor vehiciesi. 
1954 (relating to general sales taxes) is amended by adding at the end 
26 use i*64. 
thereof the following new subparagraph: 
"(E) SPECIAL, ETOLE FOR MOTOR VEHICLES.—In the case of 
motor vehicles, if the rate of tax exceeds the general rate, 
such excess shall be disregarded and the general rate shall 
be treated as the rate of tax." 
(b) The amendment made by subsection (a) shall apply to taxable 
Effective date. 
years ending on or after January 1, 1971. 
Approved October 27, 1972. 
. „ 
Public Law 92-581 
AN A C T 
October 27, 1972 
To amend title 37, United States Code, to extend tlie autliority for special pay 
[H. R. 16925] 
for niiclear-iiualified naval submarine officers, authorize special pay for nuclear-
qualified naval surface officers, and provide special pay to certain nuclear-
trained and qualified enlisted members of the naval service who agree to 
reenlist, and for other purposes. 
Be it enacted hy the Senate ami House of Representatives 
of the 
United States of America in Congress assembled^ That chapter 5 of 
Nuciear-quaii-
title 37, L^nited States Code, is amended as follows: 
sonnei.^^ ^*' 
(1) The catchline of section 312 and the corresponding item in 
Special pay, 
the chapter analysis for that section are each amended by striking *''76"sta°t'!'46i; 
out "submarine". 
83 stat. 12. 
(2) Section 312 is amended— 
(A) by striking out clause (2) of subsection (a); 
(B) by striking out "in active submarine service" in clause 
(5) of subsection (a) and inserting in place thereof "on active 
duty in connection with supervision, operation, and mainte-
nance of naval nuclear propulsion plants"; 
(C) by striking out "submarine service" in subsection (c) 
and inserting in place thereof "duty in connection with super-
vision, operation, and maintenance of naval nuclear propul-
sion plants"; 
(D) by striking out "submarine" in subsection (d); and 
(E) by striking out "1973" in subsection (e) and inserting 
in place thereof "1975". 
(3) By adding the following new section: 
**§312a. Special 
pay: 
nuclear-trained 
and qualified 
enlisted 
members 
"(a) Under regulations prescribed by the Secretary of Defense, an 
enlisted member of the naval service who— 
" (1) is entitled to basic pay; 
"(2) is currently qualified for duty in connection with the 
supervision, operation, and maintenance of naval nuclear propul-
sion plants; and 
"(3) has completed at least six, but not more than ten, years 
of active duty and executes, when eligible, a reenlistment agree-
ment for not less than two years; 
may upon acceptance of the reenlistment agreement by the Secretary 
of the Navy or his designee, be paid a bonus not to exceed six months 
of the basic pay to which he was entitled at the time of his discharge 
or release, multiplied by the number of years or the monthly fractions 
thereof, of additional obligated service, not to exceed six years, or 
$15,000, whichever is the lesser amount.