An Act relating to the determination of gross income from the property for taxable years prior to 1961 in the case of certain clays and shale which were used in the manufacture of certain clay products
PL 87-312 (H.R.7057), enacted 09/26/1961

674 
PUBLIC LAW 87-312-SEPT. 26, 1961 
[75 S 
T A T . 
September 26, 1961 
[H. R. 7057] 
Public Law 87-312 
AN ACT 
Relating to the determination of gross income from the property for taxable 
years prior to 1961 in the case of certain clays and shale which were used in 
the manufacture of certain clay products. 
Income tax. 
Clay products. 
26 u s e 613. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled. That (a) ELECTION 
F
O
R PAST YEARS.—In the case of brick and tile clay, fire clay, or shale 
used by the mineowner or operator in the manufacture of building or 
paving brick, drainage and roofing tile, sewer pipe, flower pots, and 
kindred products (without regard to the applicable rate of percent-
age depletion), if an election is made under subsection (c), for the 
stff^29*1^*'^°^'^* purpose of applying section 613(c) of the Internal Revenue Code of 
1964 (and corresponding provision of the Internal Revenue Code of 
1939) for each of the taxable years with respect to which the election 
is effective— 
(1) gross income from the property shall be 50 per centum 
of the amount for which the manufactured products are sold 
during the taxable year except that with respect to such manu-
factured products, gross income from the property shall not ex-
ceed an amount equal to $12.50 multiplied by the number of short 
tons used in the manufactured products sold during the taxable 
year, and 
(2) for purposes of computing the 50 per centum limitation 
under section 613(a) of the Internal Revenue Code of 1954 (or 
the corresponding provision of the Internal Revenue Code of 
1939), the taxable income from the property (computed without 
allowance for depletion) shall be 50 per centum of the taxable 
income from the manufactured products sold during the taxable 
year (computed without allowance for depletion). 
(b) YEARS TO W H I C H APPLICABLE.—An election made under sub-
section (c) to have the provisions of this section apply shall be effective 
for all * axable years beginning before January 1, 1961, in respect of 
which— 
(1) the assessment of a deficiency, 
(2) the refund or credit of an overpayment, or 
(3) the commencement of a suit for recovery of a refund under 
section 7405 of the Internal Revenue Code of 1954, 
is not prevented on the date of the enactment of this Act by the 
operation of any law- or rule of law. 
Such election shall also be 
effective for any taxable year beginning before January 1, 1961, in 
respect of which an assessment of a deficiency has been made but not 
collected on or before the date of the enactment of this Act. 
(c) TIME AND MANNER OF ELECTION.—An election to have the pro-
visions of this section apply shall be made by the taxpayer on or 
before the sixtieth day after the date of publication in the Federal 
Register of final regulations issued under authority of subsection (f), 
and shall be made in such form and manner as the Secretary of the 
Treasury or his delegate shall prescribe by regulations. 
Such elec-
tion, if made, may not be revoked. 
(d) STATUTES OF LIMITATION.—Notwithstanding any other law, 
the period within which an assessment of a deficiencv attributable to 
the election under subsection (c) may be made witli respect to any 
taxable year for which such election is effective, and the period within 
which a claim for refund or credit of an overpayment attributable 
to the election under such subsection may be made with respect to 
any such taxable year, shall not expire prior to one year after the last 
day for making an election under subsection (c). 
An election by 
68A Stat. 874. 
26 u s e 7405. 
P u b l i c ation in 
F. R. 
75 S T AT. ] 
PUBLIC LAW 87-314-SEPT. 26, 1961 
675 
a taxpayer under subsection (c) shall be considered as a consent to 
the application of the provisions of this subsection. 
(e) TERMS; APPLICABILITY OF OTHER LAWS.—Except where other-
wise distinctly expressed or manifestly intended, terms used in this 
section shall have the same meaning as when used in the Internal 
Revenue Code of 1954 (or corresponding provisions of the Internal 
Revenue Code of 1939) and all provisions of law shall apply with 
respect to this section as if this section were a part of such Code (or 
corresponding provisions of the Internal Revenue Code of 1939). 
(f) REGULATIONS.—The Secretary of the Treasury or his delegate 
shall {prescribe such regulations as may be necessary to carry out the 
provisions of this section. 
Approved September 26, 1961. 
Public Law 87-313 
AN ACT 
To provide for the disposal of certain lands held for inclusion in the Cape 
Hatteras National Seashore Recreational Area, North Carolina, and for other 
purposes. 
Be it enacted hy the Seriate and House of Representatives 
of the 
United States of America in Congress assembled^ That the tract of 
Federal property comprising eight and one-tenth acres of land situated 
in Dare County, North Carolina, approximately^ two miles north of 
Kitty Hawk, which was transferred to the administrative jurisdiction 
of the Department of the Interior by the Act of June 3, 1948 (62 
Stat. 301; 16 U.S.C. 459a-4), to be administered as a part of the Cape 
Hatteras National Seashore Recreational Area, may be disposed of 
by the Administrator of General Services in accordance with the pro-
visions of the Federal Property and Administrative Services Act of 
1949, as amended. 
Approved September 26, 1961. 
September 26, 1961 
[H. R. 6729] 
Cape H a t t e r a s 
National Seashore 
t7ecreational Area, 
N. C. 
Land disposal. 
63 Stat. 377. 
40 u s e 471 note. 
Public Law 87-3U 
AN ACT 
To amend section 5011 of title 38, United States Code, to clarify the authority 
of the Veterans' Administration to use its revolving supply fund for the rejwiir 
and reclamation of personal property. 
September 26, 1961 
[H. R. 84 14] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 5011 
(a) of title 38, United States Code^ is amended by— 
(1) changing the parenthetical clause in the first sentence to 
read: " (including procurement of supplies, equipment, and per-
sonal services and the repair and reclamation of used, spent, or 
excess personal property)"; and 
(2) inserting in paragraph (3) immediately after the words 
"operation of the fund, including" the following: "property 
returned to the supply system when no longer required by activi-
ties to which it had been furnished,". 
Approved September 26, 1961. 
Veterans' Admin-
istration. 
Revolving supply 
fund. 
72 Stat. 1253.