An Act to remove the manufacturers excise tax from sales of certain component parts for use in other manufactured articles, and to confine to entertainment-type equipment the tax on radio and television apparatus, and for other purposes
PL 84-367 (H.R.7024), enacted 08/11/1955

69 
S T A T . ] 
PUBLIC LAW 367-AUG. 11, 1955 
689 
Public Law 367 
CHAPTER 805 
AN ACT 
To remove the manufacturers' excise tax from the sales of certain component 
parts for use in other manufactured articles, to confine to entertainment-type 
equipment the tax on radio and television apparatus, and for other purposes. 
August 11, 1955 
[H.R. 7024] 
Be it enacted hy the Semite and House of Representatives 
of the 
United States of AmeHca in Congress assembled, That chapters 32 
and 65 of the Internal Revenue Code of 1954 are amended as follows: 
(a) Section 4218 (a) (1) of the Internal Revenue Code of 1954 is 
amended by inserting after "section 4141" the following: "and other 
than an automobile part or accessory taxable under section 4061 (b), 
a refrigerator component taxable under section 4111, a radio or tele-
vision component taxable under section 4141, or a camera lens taxable 
under section 4l7l)". 
(b) Section 4218 (b) of the Internal Revenue Code of 1954 is 
amended to read as follows: 
•'(b) EXCEPTION.—This section shall not apply with respect to the 
use by the manufacturer, producer, or importer of an automobile part 
or accessory taxable under section 4061 (b), a refrigerator component 
taxable under section 4111, a radio or television component taxable 
under section 4141, or a camera lens taxable under section 4171, if such 
part, accessory, component, or lens is used by him as material in the 
manufacture or production of, or as a component part of, any article." 
(c) The first two sentences of section 4220 of the Internal Revenue 
Code of 1954 are amended to read as follows: 
"I nder regulations prescribed by the Secretary or his delegate, no 
tax under this chapter shall be imposed with respect to the sale of— 
"(1) any article (other than an automobile part or accessory 
taxable under section 4061 (b), a refrigerator component taxable 
under section 4111, a radio or television component taxable 
under section 4141, or a camera lens taxable under section 4171)— 
"(A) for use by the vendee as material in the manufacture 
or production of, or as a component part of, an article enu-
merated in this chapter; or 
"(B) for resale by the vendee for such use by his vendee, 
if such article is in due course so resold; or 
"(2) an automobile part or accessory taxable under section 
4061 (b), a refrigerator component taxable under section 4111, 
a radio or television component taxable under section 4141, or a 
camera lens taxable under section 4171— 
"(A) for use by the vendee as material in the manufac-
ture or production of, or as a component part of, any arti-
cle ; or 
"(B) for resale by the vendee for such use by his vendee, 
if such article is in due course so resold. 
For i)urposes of this chapter, the manufacturer or producer to whom 
an article is sold under paragraph (1) (A) or (2) (A) or resold under 
paragraph (1) (B) or (2) (B) shall be considered the manufacturer 
or producer of such article." 
(d) Section 4113 of the Internal Revenue Code of 1954 is hereby 
rej)ealed. 
(e) Section 4112 of the Internal Revenue Code of 1954 is amended— 
(A) by striking out the heading to such section and inserting 
in lieu thereof the following: 
"SEC. 4112. DEFINITION OF REFRIGERATOR COMPONENTS."; 
(B) 
by striking out "(a) 
REFRIGERATOR COMPONENTS.—"; and 
(C) by striking out subsection (b) thereof. 
M a n u f acturers' 
excise taxes. 
68A Stat. 493, 
791. 
26 u s e 4218. 
26 u s e 4220. 
Repeal. 
26 u s e 4113. 
26 u s e 4112. 
54402 O - 55 - 44 
690 
PUBLIC LAW 367-AUG- 11, 1955 
[69 STAT. 
(f) The table of sections to part I of subchapter B of chapter 82 
of the Internal Revenue Code of 1954 is amended— 
(A) by striking out "Definitions" and inserting in lieu thereof 
"Definition of refrigerator components" | and 
(B) by striking out "Sec. 4113. Exemptions for manufacturers.". 
26 use 4063. 
(g) Sectiou 4063 (b) of the Internal Revenue Code of 1954 is 
amended— 
(A) by striking out "or parts or accessories" in the first sen-
tence thereof; and 
(B) by striking out", or parts or accessories" in the second sen-
26 use 6416. 
(h) Section 6416 (b) (3) (A) of the Internal Revenue Code of 
1954 is amended by inserting after "section 4141" the following: "and 
other than an automobile part or accessory taxable under section 4061 
(b), a refrigerator component taxable under section 4111, a radio or 
television component taxable under section 4141, or a camera lens 
fo V
Q QIO TirinGr spc1"iori 41T1 
(i) Section 6416 (b) ^3) of the Internal Revenue Code of 1954 is 
amended by changing suoparagraph (B) thereof to read as follows: 
"(B) An automobile part or accessory taxable under section 
4061 (b), a refrigerator component taxable under section 
4111, a radio or television component taxable under section 
4141, or a camera lens taxable under section 4171. purchased 
by a manufacturer or producer and used by him as material 
in the manufacture of, production of, or as a component part 
of, any article." 
SEC. 2. RADIO AND TELEVISION RECEIVING SETS AND COMPONENT 
26 use 4141. 
PARTS.—(a) Section 4141 of the Internal Revenue Code of 1954 is 
amended by inserting at the end thereof a new sentence as follows: 
"Except in the case of radio and television components and phono-
graph records, the tax imposed by this section shall apply only to 
articles of the entertainment type.". 
li^vtc 
4 14 3, 
(b) Sections 4143 and 6416 (b) (2) (G) of the Internal Revenue 
6416. 
' Code of 1954 are hereby repealed. 
(c) The table of sections to part I of subchapter C of chapter 32 
of the Internal Revenue Code of 1954 is amended by striking out 
"Sec. 4143. Exemptions for sales to United States.". 
SEC, 3. EFFECTIVE DATE.—The amendments made by the first sec-
tion and section 2 of this Act shall take effect on the first day of the 
first month which begins more than ten days after the date of the 
enactment of this Act. Notwithstanding the preceding sentence— 
(1) the repeal of section 6416 (b) (2) (G) of the Internal Rev-
enue Code of 1954 shall apply only with respect to articles sold 
by the manufacturer, producer, or importer on or after the first 
day of the first month which begins more than 10 days after the 
date of the enactment of this Act, and 
(2) section 6416 (b) (3) (B) of the Internal Revenue Code of 
1954, as amended by subsection (i) of the first section of this Act, 
shall apply with respect to articles used on or after such first day 
by the manufacturer or producer as material in the manufacture 
of, production of, or as a component part of, another article. 
26 use 534. 
3J,(. 4 Subsection (e) of section 534 of the Internal Revenue Code 
of 1954 (relating to burden of proof in certain proceedings relating to 
imposition of accumulated earnings tax) is hereby amended to read 
as follows: 
"(e) 
APPLICATION OF SECTION.— 
"(1) Notwithstanding any other provision of law, this section 
shall apply with respect to taxable years to which this subchapter 
applies and (except as provided in paragraph (2)) to taxable 
69 
S T A T . ] 
PUBLIC LAW 368-AUG. 11, 1955 
691 
years to which the corresponding provisions of prior revenue 
laws apply. 
"(2) In the case of a notice of deficiency for a taxable year to 
which this subchapter does not apply, this section shall apply only 
in the case of proceedings tried on the merits after the date of 
the enactment of this paragraph." 
SEC. 5. Subsection (b) of section 534 of such Code (relating to noti-
fication by Secretary) is hereby amended by adding at the end thereof 
the following new sentence: "In the case of a notice of deficiency to 
which subsection (e) (2) applies and which is mailed on or before 
the 30th day after the date of the enactment of this sentence, the noti-
fication referred to in the preceding sentence may be mailed at any 
time on or before such 30th day." 
Approved August 11, 1955. 
Public Law 368 
CHAPTER 806 
AN ACT 
To amend section 303 of the Career Compensation Act of 1949, to autliorize 
travel and transportation allowances, and transportation of dependents and 
of baggage and household effects to the homes of their selection for certain 
members of the uniformed services, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 303 
(a) of the Career Compensation Act of 1949 (63 Stat. 813) is amended 
by inserting the following sentence immediately after the first sentence 
thereof: "Under uniform regulations prescribed by the Secretaries 
concerned, a member of the uniformed services who— 
"(1) is retired for physical disability or placed upon the 
temporary disability retired list; or 
"(2) is retired with pay for any other reason, or is discharged 
with severance pay, immediately following at least eight years of 
continuous active duty (no single break therein of more than 
ninety days); 
may select his home for the purposes of the travel and transportation 
allowances payable under this subsection." 
SEC. 2-. Section 303 (c) of the (>ireer Compensation Act of 1949 
(63 Stat. 814) is amended by inserting the following sentences at the 
end thereof: "Under uniform regulations prescribed by the Secretaries 
concerned, a member of the uniformed services who— 
"(1) is retired for physical disability or placed on the tempo-
rary disability retired list; or 
"(2) is retired with pay for any other reason, or is discharged 
with severance pay, immediately following at least eight years of 
continuous active duty (no single break therein of more than 
ninety days) ; 
is entitled to transportation for his dependents and for his baggage 
and household effects to the home selected for allowance purposes 
under subsection (a) of this section." 
SEC. 3. This Act shall be effective from April 1,1951. 
No additional 
amount may be paid to members of the uniformed services as a result 
of enactment of this amendatory Act unless travel to such selected 
home be performed on or prior to April 28, 1953, or within one year 
after such retirement, placement upon the temporary disability retired 
list, or discharge, whichever is later. 
Approved August 11, 1955. 
August 11, 1955 
[H.R. 6600] 
Uniformed serv-
ices. 
Travel and trans-
portation. 
37 u s e 253. 
Effective date.