An Act to establish a working capital fund for the Department of the Treasury
PL 91-614 (H.R.16199), enacted 12/31/1970

1836 
PUBLIC LAW 91-614-DEC. 31, 1970 
[84 STAT. 
Public Law 91-614 
December 31, 1970 
^'^ A C T 
[H.R. 16199] 
To establish a working capital fund for the Department of the Treasury; to 
amend the Internal Revenue Code of 1954 to accelerate the collection of estate 
and gift taxes, to continue excise taxes on passenger automobiles and com-
munications services; and for other purposes. 
Be it enacted hy the /Senate and House of Representatives 
of the 
Excise, Estate, 
United States of America in Congress assembled^ 
Tus^Sint Actf^f* 
SECTION 1. SHORT TITLE, ETC. 
^^^°* 
(a) SHORT TITLE.—This Act may be cited as the "Excise, Estate, 
and Gift Tax Adjustment Act of 1970". 
(b) Wherever in this Act an amendment is expressed in terms of 
an amendment to a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Internal 
68A Stat. 3. 
Kevenue Code of 1954, 
26 use 1. 
TITLE I—ESTATE AND GIFT TAXES 
SEC. 101. ESTATE TAX. 
(a) ALTERNATE VALUATION.—Section 2032 (relating to alternate 
valuation) is amended— 
(1) by striking out "1 year" each place it appears and 
inserting in lieu thereof "6 months", and 
(2) by striking out "1-year" and inserting in lieu thereof 
"6-month". 
(b) TIME FOR FILING ESTATE TAX RETURNS.—Section 6075(a) 
(relating to time for filing estate tax returns) is amended by striking 
out "15 months" and inserting in lieu thereof "9 months". 
(c) CERTAIN REQUESTS SUBJECT TO POWER or APPOINTMENT.—Sec-
70 Stat. 1075. 
tiou 2055(b) (2) (C) is amended by striking out "one year" and insert-
ing in lieu thereof "6 months". 
(d) DISCHARGE or FIDUCIARY FROM PERSONAL LIABILITY FOR ESTATE 
TAX.— 
68A Stat. 401. 
(1) Scctiou 2204 (relating to discharge of executor from per-
sonal liability) is amended— 
(A) by striking out "EXECUTOR" in the heading of 
such section and inserting in lieu thereof "FIDUCIARY"; 
(B) by striking out "If the executor" and inserting in lieu 
thereof "(a) GENERAL RULE.—If the executor"; 
(C) by amending the last sentence thereof to read as fol-
lows : "The executor, on payment of the amount of which he 
is notified (other than any amount the time for payment of 
Post, p. 1838. 
which is extended under section 6161, 6163, or 6166), and on 
7 2 Stat! 1681. 
fumishiug any bond which may be required for any amount 
for which the time for payment is extended, shall be dis-
charged from personal liability for any deficiency in tax 
thereafter found to be due and shall be entitled to a receipt or 
writing showing such discharge."; and 
(D) by adding at the end thereof the following new 
subsection: 
"(b) FIDUCIARY OTHER THAN THE EXECUTOR.—If a fiduciary (not 
including a fiduciary in respect of the estate of a nonresident decedent) 
other than the executor makes written application to the Secretary or 
his delegate for determination of the amount of any estate tax for 
which the fiduciary may be personally liable, and for discharge from 
personal liability therefor, the Secretary or his delegate upon the dis-
charge of the executor from personal liability under subsection (a), 
84 STAT. ] 
PUBLIC LAW 91-614-DEC. 31, 1970 
1837 
or upon the expiration of 6 months after the making of such applica-
tion by the fiduciary, if later, shall notify the fiduciary (1) of the 
amount of such tax for which it has been determined the fiduciary is 
liable, or (2) that it has been determined that the fiduciary is not liable 
for any such tax. Such application shall be accompanied by a copy of 
the instrument, if any, under which such fiduciary is acting, a descrip-
tion of the property held by the fiduciary, and such other information 
for purposes of carrying out the provisions of this section as the Sec-
retary or his delegate may require by regulations. On payment of the 
amount of such tax for which it has been determined the fiduciary is 
liable (other than any amount the time for payment of which has not 
been extended under section 6161, 6163, or 6166), and on furnishing 
y°^^^^^' ^^^^' 
any bond which may be required for any amount for which the time 
yl gtat! lesi. 
for payment has been extended, or on receipt by him of notification 
26 use eiei, 
of a determination that he is not liable for any such tax, the fiduciary ^^^^' ^^^^* 
shall be discharged from personal liability for any deficiency in such 
tax thereafter found to be due and shall be entitled to a receipt or writ-
ing evidencing such discharge." 
(2) Sections 6040(2), 6314(c) (2), 6324(a)(3), and 6504(9) 
y^%^Xf3^'''''' 
are each amended by striking out "executor" each place it ap- 
go stat. U32. 
pears in the heading and text of such sections and inserting in 
lieu thereof "fiduciary". 
(3) The table of sections for subchapter C of chapter 11 is 
amended by striking out 
"Sec. 2204. Discharge of executor from personal liability." 
and inserting in lieu thereof: 
"Sec. 2204. Discharge of fiduciary from personal liability." 
(e) DISCHARGE or EXECUTOR FROM PERSONAL LIABILITY FOR DECE-
DENT'S INCOME AND GIFT TAXES.— 
(1) Chapter 7,1 (relating to transferees and fiduciaries) is 
esAstat. 84i. 
amended by adding at the end thereof the following new section: 
"SEC. 6905. DISCHARGE 
OF 
EXECUTOR 
FROM 
PER-
SONAL LIABILITY FOR DECEDENT'S IN-
COME AND GIFT TAXES. 
"(a) DISCHARGE or LIABILITY.—In the case of liability of a dece-
dent for taxes imposed by subtitle A or by chapter 12, if the executor 
makes written application (filed after the return with respect to such 
taxes is made and filed in such manner and such form as may be 
prescribed by regulations of the Secretary or his delegate) for release 
from personal liability for such taxes, the Secretary or his delegate 
may notify the executor of the amount of such taxes. The executor, 
upon payment of the amount of which he is notified, or 1 year after 
receipt of the application if no notification is made by the Secretary 
or his delegate before such date, shall be discharged from personal 
liability for any deficiency in such tax thereafter found to be due 
and shall be entitled to a receipt or writing showing such discharge. 
"(b) DEFINITION or EXECUTOR.—For purposes of this section, the 
"Executor." 
term 'executor' means the executor or administrator of the decedent 
appointed, qualified, and acting within the United States. 
"(c) CROSS REFERENCE.— 
"For discharge of executor from personal liability for taxes 
imposed under chapter 11, see section 2204." 
(2) The table of sections for chapter 71 is amended by add-
ing at the end thereof the following: 
"Sec. 6905. Discharge of executor from personal liability for 
decedent's income and gift taxes." 
1838 
PUBLIC LAW 91-614-DEC. 31, 1970 
[84 STAT. 
(f) 
REDUCTION OF PERIOD FOR DISCHARGE OF EXECUTOR FROM PER-
SONAL LIABILITY.—Effective with respect to the estates of decedents 
1837^' ^' ^"^' 
^y^^g ^^^^ 
December 31, 1973, sections 2204 and 6905 are each 
amended by striking out "1 year" and inserting in lieu thereof "9 
months". 
68A Stat. 3^4; 
(^) HoLDiNG PERIOD OF PROPERTY.—Sectiou 1223 (relating to 
^^26*uscT22'3. 
holding period of property) is amended by redesignating paragraph 
(11) as paragraph (12) and by inserting after paragraph (10) the 
following new paragraph: 
"(11) In the case of a person acquiring property from a de-
cedent or to whom property passed from a decedent (within 
68A Stat. 296. 
^^g meaning of section 1014(b)), if— 
"(A) the basis of such property in the hands of such 
person is determined under section 1014, and 
"(B) such property is sold or otherwise disposed of by 
such person within 6 months after the decedent's death, 
then such person shall be considered to have held such property 
for more than 6 months." 
(h) EXTENSION OF TIME.—The first sentence of paragraph (1) of 
72 Stat. 1684. 
subsectiou (a) of section 6161 (relating to extension of time for pay-
ing tax) is amended by striking out "6 months" and inserting in lieu 
thereof "6 months (12 months in the case of estate tax)". 
(i) 
PLACE FOR FILING RETURNS.— 
80 Stat. 1107. 
^
3
L
^ Paragraph (3) of section 6091(b) (relating to place for 
filing returns or other documents) is amended to read as follows: 
"(3) 
ESTATE TAX RETURNS.— 
"(A) GENERAL RULE.—Except as provided in subpara-
graph (B), returns of estate tax required under section 6018 
shall be made to the Secretary or his delegate— 
"(i) in the internal revenue district in which was the 
domicile of the decedent at the time of his death, or 
"(ii) at a service center serving the internal revenue 
district referred to in clause (i), as the Secretary or his 
delegate may by regulations designate. 
"(B) EXCEPTION.—If the domicile of the decedent was not 
in an internal revenue district, or if he had no domicile, the 
80 Stat. 1574. 
estate tax return required under section 6018 shall be made 
at such place as the Secretary or his delegate may by regula-
tions designate." 
(2) Paragraph (4) of section 6091(b) is amended to read as 
follows: 
"(4) HAND-CARRIED 
RETURNS.—Notwithstanding 
paragraph 
(1), (2), or (3), a return to which paragraph (1) (A), (2) (A), 
or (3) (A) would apply, but for this paragraph, which is made 
to the Secretary or his delegate by hand-carrying shall, under 
regulations prescribed by the Secretary or his delegate, be made 
in the internal revenue district referred to in paragraph (1) (A) 
(i), (2) (A) (i), or (3) (A) (i), as the case may be." 
(j) EFFECTIVE DATE.—The amendments made by this section (other 
than subsection (f)) shall apply with respect to decedents dying after 
December 31,1970. 
SEC. 102. GIFT TAX. 
(a) 
AMENDMENTS TO SUBCHAPTER A OF CHAPTER 
12.— 
(1) 
SECTION 2501.— 
(A) Paragraph (1) of subsection (a) of section 2501 is 
amended to read as follows: 
" (1) GENERAL RULE.—For the first calendar quarter of calendar 
year 1971 and each calendar quarter thereafter a tax, computed 
84 STAT. ] 
PUBLIC LAW 91-614-DEC. 31, 1970 
1839 
as provided in section 2502, is hereby imposed on the transfer of 
property by gift during such calendar quarter by any individual, 
resident or nonresident." 
(B) Paragraph (4) of such subsection is amended by 
so stat. 1574. 
striking out "calendar year" and inserting in lieu thereof 
26 use 2501. 
"calendar quarter". 
(2) 
SECrriON2502.— 
68A Stat. 403.. 
(A) So much of subsection (a) of section 2502 as precedes 
the rate schedule is amended to read as follows: 
"(a) COMPUTATION OF TAX.—The tax imposed by section 2501 for 
Ante,p. isas. 
each calendar quarter shall be an amount equal to the excess of— 
"(1) a tax, computed in accordance with the rate schedule set 
forth in this subsection, on the aggregate sum of the taxable gifts 
for such calendar quarter and for each of the preceding calendar 
years and calendar quarters, over 
" (2) a tax, computed in accordance with such rate schedule, on 
the aggregate sum of the taxable gifts for each of the preceding 
calendar years and calendar quarters." 
(B) Subsections (b) and (c) of section 2502 are amended 
to read as follows: 
"(b) CALENDAR QUARTER,—Wherever used in this title in connec-
tion with the gift tax imposed by this chapter, the term 'calendar 
quarter' includes only the first calendar quarter of the calendar year 
1971 and succeeding calendar quarters. 
"(c) PRECEDING CALENDAR YEARS AND QUARTERS.—Wherever used 
in this title in connection with the gift tax imposed by this chapter— 
" (1) The term 'preceding calendar years' means calendar years 
1932 and 1970 and all calendar years intervening between cal-
endar year 1932 and calendar year 1970. The term 'calendar 
year 1932' includes only the portion of such year after June 6, 
1932. 
"(2) The term 'preceding calendar quarters' means the first 
calendar quarter of calendar year 1971 and all calendar quarters 
intervening between such calendar quarter and the calendar 
quarter for which the tax is being computed." 
(3) 
SECTION 2503.— 
(A) Subsection (a) of section 2503 is amended to read 
as follows: 
"(a) GENERAL DEFINITION.—The term 'taxable gifts' means, in the 
case of gifts made after December 31, 1970, the total amount of gifts 
made during the calendar quarter, less the deductions provided in sub-
chapter C (sec. 2521 and following). In the case of gifts made before 
January 1,1971, such term means the total amount of gifts made dur-
ing the calendar year, less the deductions provided in subchapter C," 
(B) The heading and first sentence of subsection (b) of 
section 2503 are amended to read as follows: 
"(b) EXCLUSIONS FROM GIFTS.—In computing taxable gifts for the 
calendar quarter, in the case of gifts (other than gifts of future inter-
ests in property) made to any person by the donor during the calendar 
year 1971 and subsequent calendar years, $3,000 of such gifts to such 
person less the aggregate of the amounts of such gifts to such person 
during all preceding calendar quarters of the calendar year shall not, 
for purposes of subsection (a), be included in the total amount of gifts 
made during such quarter." 
(4) 
SECTION 2504.— 
(A) Section 2504 is amended to read as follows: 
Post, p. 1841. 
1840 
PUBLIC LAW 91-614-DEC. 31, 1970 
[84 STAT. 
"SEC. 
2504. TAXABLE GIFTS FOR PRECEDING 
YEARS 
AND QUARTERS. 
"(a) I N GENERAL.—In computing taxable gifts for preceding 
calendar years or calendar quarters for the purpose of computing the 
tax for any calendar quarter, there shall be treated as gifts such 
transfers as were considered to be gifts under the gift tax laws 
applicable to the years or calendar quarters in which the transfers 
were made and there shall be allowed such deductions as were pro-
vided for under such laws; except that the specific exemption in the 
amount, if any, allowable under section 2521 shall be applied in all 
computations in respect of previous calendar years or calendar quar-
ters for the purpose of computing the tax for any calendar year or 
calendar quarter. 
"(b) 
EXCLUSIONS FROM G U T S FOR PRECEDING YEARS AND QUAR-
TERS.—In the case of gifts made to any person by the donor during 
preceding calendar years and calendar quarters, the amount excluded, 
if any, by the provisions of gift tax laws applicable to the years and 
calendar quarters in which the gifts were made shall not, for pur-
poses of subsection (a), be included in the total amount of the gifts 
made during such years and calendar quarters. 
"(c) 
VALUATION OF CERTAIN GIFTS FOR PRECEDING CALENDAR YEARS 
AND QUARTERS.—If the time has expired within which a tax may be 
assessed under this chapter or under corresponding provisions of prior 
laws on the transfer of property by gift made during a preceding cal-
Ante, p. 1839. 
eudar year or calendar quarter, as defined in section 2502(c), and if a 
tax under this chapter or under corresponding provisions of prior laws 
has been assessed or paid for such preceding calendar year or calendar 
quarter, the value of such gift made in such preceding calendar year 
or calendar quarter shall, for purposes of computing the tax under 
this chapter for any calendar quarter, be the value of such gift 
which was used in computing the tax for the last preceding calendar 
year or calendar quarter for which a tax under this chapter or under 
corresponding provisions of prior laws was assessed or paid. 
"(d) NET GIFTS.—The term 'net gifts' as used in corresponding pro-
visions of prior laws shall be read as 'taxable gifts' for purposes of this 
chapter." 
(B) The table of sections for subchapter A of chapter 
12 is amended by striking out the item relating to section 2504 
and inserting in lieu thereof the following: 
"Sac. 2504. Taxable gifts for preceding years and quarters." 
(b) 
AMENDMENTS TO SUBCHAPTER B OF CHAPTER 12.— 
26^sc 25'*!°^* 
(1) SECTION 2512.—Subsection (b) of section 2512 is amended 
by striking out "calendar year" and inserting in lieu thereof 
"calendar quarter". 
(2) SECTION 2513.— 
(A) Section 2513 is amended by striking out "calendar 
year" each place it appears and inserting in lieu thereof 
"calendar quarter". 
(B) Subparagraph (A) of subsection (b)(2) of section 
2513 is amended to read as follows: 
"(A) the consent may not be signified after the 15th day 
of the second month following the close of such calendar 
quarter, unless before such 15th day no return has been filed 
for such calendar quarter by either spouse, in which case the 
consent may not be signified after a return for such calendar 
quarter is filed by either spouse;". 
84 STAT. ] 
PUBLIC LAW 91-614-DEC. 31, 1970 
1841 
(C) Subparagraph (B) of subsection (b)(2) of section 
2513 is amended by striking out "such year" and inserting in 
esA stat. 406. 
lieu thereof "such calendar (quarter". 
26 use 2513. 
(D) Subsection (c) of section 2513 is amended by striking 
out "15th day of April following the close of such year" and 
inserting in lieu thereof "15th day of the second month fol-
lowing the close of such calendar quarter". 
(E) Subsection (d) of section 2513 is amended by striking 
out "such year" and inserting in lieu thereof "such calendar 
quarter". 
(3) SECTION 2515.—Subsection (c) of section 2515 is amended 
by striking out "calendar year" and inserting in lieu thereof 
"calendar quarter". 
(c) 
AMENDMENTS TO SUBCHAPTER C OF CHAPTER 12.— 
(1) SECTION 2521 .^Section 2521 is amended to read as follows: 
"SEC. 2521. SPECIFIC EXEMPTION. 
"In computing taxable gifts for a calendar quarter, there shall be 
allowed as a deduction in the case of a citizen or resident an exemption 
of $30,000, less the aggregate of the amounts claimed and allowed 
as a specific exemption in the computation of gift taxes for the 
calendar year 1932 and all calendar years and calendar quarters inter-
vening between that calendar year and the calendar quarter for which 
the tax is being computed under the laws applicable to such years or 
calendar quarters." 
(2) SECTION 2522.—Section 2522 is amended by striking out 
"year" each place it appears and inserting in lieu thereof 
"quarter". 
(3) SECTION 2523.—Subsection (a) of section 2523 is amended 
by striking out "year" each place it appears and inserting in lieu 
thereof "quarter". 
(d) 
MISCELLANEOUS AMENDMENTS.— 
(1) Paragraph (2) of subsection (d) of section 1015 (relating 
'^'^ ^*^*- ^^'*°' 
to increased basis for gift tax paid) is amended— 
(A) by striking out "calendar year" the first place it 
appears therein and inserting in lieu thereof "calendar quar-
ter (or calendar year if the gift was made before January 1, 
1971)", and 
(B) by striking out "calendar year" every other place it 
appears therein and inserting in lieu thereof "calendar quar-
ter or year". 
(2) 
SECTION 
2012. 
(A) Paragraph (1) of subsection (b) of section 2012 
(relating to credit for gift tax) and paragraph (1) of sub-
section (d) of such section are each amended by striking out 
"the year" and inserting in lieu thereof "the calendar quarter 
(or calendar year if the gift was made before January 1, 
1971)". 
(B) Subsection (d) of section 2012 is amended by striking 
out "such year" each place it appears therein and inserting 
in lieu thereof "such quarter or year". 
(3) Section 6019 (relating to gift tax returns) is amended 
to read as follows: 
"SEC. 6019. GIFT TAX RETURNS. 
"(a) I N GENERAL.—Any individual who in any calendar quarter 
makes any transfers by gift (other than transfers which under section 
2503(b) are not to be included in the total amount of gifts for such 
^"'«» P* I839. 
53 Stat. 561. 
26 u s e 2522. 
1842 
PUBLIC LAW 91-614-DEC. 31, 1970 
[84 STAT. 
quarter and other than qualified charitable transfers) shall make a 
return for such quarter with respect to the gift tax imposed by sub-
"(b) 
QUALIFIED CHARITABLE TRANSFERS.— 
"(1) RETURN REQUIREMENT.—A return shall be made of any 
qualified charitable transfer— 
"(A) for the first calendar quarter, in the calendar year 
in which the transfer is made, for which a return is required 
to be filed under subsection (a), or 
"(B) if no return is required to be filed under subpara-
graph (A), for the fourth calendar quarter in the calendar 
year in which such transfer is made. 
A return made pursuant to the provisions of this paragraph 
shall be deemed to be a return with respect to any transfer 
reported as a qualified charitable transfer for the calendar 
quarter in which such transfer was made. 
"(2) 
DEFINITION OF QUALIFIED CHARITABLE TRANSFER.—For 
purposes of this section, the term 'qualified charitable transfer' 
means a transfer by gift with respect to which a deduction is 
68A Stat. 410; 
allowable under section 2522 in an amount equal to the amount 
transferred. 
"(c) 
TENANCY BY THE ENTIRETY.— 
"For provisions relating to requirement of return in the case 
of election as to the treatment of gift by creation of tenancy 
by the entirety, see section 2515(c)." 
(4) Subsection (b) of section 6075 (relating to time for filing 
gift tax returns) is amended to read as follows: 
Ante, p. 1841. 
"(b) GiFT TAX REIXTRNS.—Retums made under section 6019 (relat-
ing to gift taxes) shall be filed on or before the 15th day of the second 
month following the close of the calendar quarter." 
(5) Paragraph (1) of subsection (c) of section 6212 (relating 
to notice of deficiency) is amended by striking out "calendar year" 
and inserting in lieu thereof "calendar quarter". 
(6) Subsection (b) of section 6214 (relating to determination 
by Tax Court) is amended to read as follows: 
"(b) 
JURISDICTION OVER OTHER YEARS AND QUARTERS.—The 
Tax 
Court in redetermining a deficiency of income tax for any taxable year 
or of gift tax for any calendar year or calendar quarter shall consider 
such facts with relation to the taxes for other years or calendar quarters 
as may be necessary correctly to redetermine the amount of such defi-
ciency, but in so doing shall have no jurisdiction to determine whether 
or not the tax for any other year or calendar quarter has been overpaid 
or underpaid." 
(7) Subsection (b) of section 6324 (relating to lien for gift 
tax) is amended by striking out "calendar year" and inserting 
in lieu thereof "period for which the return was filed". 
(8) Paragraph (2) of section 6501(e) (relating to limita-
tions on assessment and collection) is amended by striking out 
"during the year" and inserting in lieu thereof "during the 
period for which the return was filed". 
(9) Section 6512 (relating to limitations in case of petition 
to Tax Court) is amended by striking out "the same calendar 
year" each place it appears therein and inserting in lieu thereof 
"the same calendar year or calendar quarter". 
(e) EFFECTIVE DATE.—The amendments made by this section shall 
apply with respect to gifts made after December 31, 1970. 
80 Stati 113 2. 
84 STAT. ] 
PUBLIC LAW 91-614-DEC. 31, 1970 
1843 
TITLE II—CONTINUATION OF E X C I S E TAXES ON PAS-
SENGEE 
AUTOMOBILES 
AND 
COMMUNICATIONS 
SERVICES 
SEC. 201. RATES OF TAX. 
(a) 
PASSENGER AUTOMOBILES.— 
(1) I N GENERAL—Section 4061(a) (2) (A) (relating to tax on 
^3 use 4061. 
passenger automobiles, etc.) is amended to read as follows: 
"(A) Articles enumerated in subparagraph (B) are tax-
able at whichever of the following rates is applicable: 
"If the article is sold— 
The tax rate is— 
Before January 1, 1973 
7 percent. 
During 1973 
6 percent. 
During 1974, 1975, 1976, or 1977 
5 percent. 
During 1978 
4 percent. 
During 1979 
3 percent. 
During 1980 
2 percent. 
During 1981 
1 percent. 
The tax imposed by this subsection shall not apply with re-
spect to articles enumerated in subparagraph (B) which are 
sold by the manufacturer, producer, or importer, after De-
cember 31,1981." 
(2) CONFORMING AMENDMENT.—Section 6412(a)(1) 
(relat- 
79 stat. ui; 
ing to the floor stocks refunds on passenger automobiles, etc.) 
is amended by striking out "January 1, 1971, January 1, 1972, 
January 1,1973, or January 1,1974", and inserting in lieu thereof 
"January 1 of 1973,1974,1978,1979,1980,1981, or 1982". 
(b) 
COMMUNICATIONS SERVICES.— 
(1) CONTTNUATION OF TAX.—Section 4251(a)(2) (relating to 
tax on certain communications services) is amended by striking 
out the table and inserting in lieu thereof the following table: 
"Amounts paid pursuant to 
bills first rendered— 
Percent— 
Before January 1,1973— 
10 
During 1973 
9 
During 1974 
8 
During 1975 
7 
During 1976 
6 
During 1977 
5 
During 1978 
4 
During 1979 
3 
During 1980 
2 
During 1981 
1". 
(2) CONFORMING AMENDMENT.—Section 4251(b) (relating to 
termination of tax) is amended by striking out "January 1,1974", 
and inserting in lieu thereof "January 1,1982". 
(3) REPEIAL OF SUBCHAPTER B OF CHAPTER 33.—Section 105 
(b) (3) of the Revenue and Expenditure Control Act of 1968 
(82 Stat. 266) is amended to read as follows: 
26 use 4251 
"(3) REPEAL OF SUBCHAPTER B OF CHAPTER 33.—Effective with "°*^* 
respect to amounts paid pursuant to bills first rendered on or after 
January 1, 1982, subchapter B of chapter 33 (relating to the tax 
^^ s*^^- I'^s. 
on communications) is repealed. For purposes of the preceding 
sentence, in the case of communications services rendered before 
November 1, 1981, for which a bill has not been rendered before 
January 1, 1982, a bill shall be treated as having been first ren-
dered on December 31, 1981. Effective January 1, 1982, the table 
of subchapters for chapter 33 is amended by striking out the item 
relating to such subchapter B." 
47-348 O - 72 - 33 (Pt. 2) 
1844 
PUBLIC LAW 91-614-DEC. 31, 1970 
[84 STAT. 
TITLE III—TECHNICAL EXCISE TAX CHANGES 
SEC. 301. CONSTRUCTIVE SALE PRICE. 
72 Stat. 1279; 
( a ) DETERMINATION OF CONSTRUCTIVE S A L E P R I C E . — S e c t i o i l 4 2 1 6 ( b ) 
83 Stat. 725. 
(relating to constructive sale price) is amended by adding at the end 
26 use 4216. 
j i 
J! 3 
J
? n 
• 
^ 
tnereoi the lollowing new paragraphs: 
"(5) 
CONSTRUCTIVE SALE PRICE IN THE CASE OF AUTOMOBILES, 
TRUCKS, ETC.—In the case of articles the sale of which is taxable 
Ante, p. 1843. 
under section 4061(a) (relating to automobiles, trucks, etc.), for 
purposes of paragraph (1), if— 
"(A) the manufacturer, producer, or importer of the 
article regularly sells such article to a distributor which is 
a member of the same affiliated group of corporations (as 
68A Stat. 369. 
defined in section 1504(a)) as the manufacturer, producer, 
or importer, and 
"(B) such distributor regularly sells such article to one 
or more independent retailers, 
the constructive sale price of such article shall be 981/2 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 (f) and 
under section 6416 (b) (1). 
"(6) DEFINITION OF LOWEST PRICE.—For purposes of para-
graphs (1), (3), and (5), the lowest price shall be determined— 
"(A) without requiring that any given percentage of 
sales be made at that price, and 
"(B) without including any fixed amount to which the 
purchaser has a right as a result of contractual arrange-
ments existing at the time of the sale." 
(b) 
CONFORMING AMENDMENTS.— 
(1) The first sentence of paragraph (3) of section 4216(b) 
is amended by striking out "paragraph (4)" and inserting in 
lieu thereof "paragraphs (4) and (5)". 
(2) Paragraphs 
(3) 
and 
(4) 
of 
section 
4216(b) 
are 
amended— 
(A) by striking out "Fair market price" in the heading 
and inserting in lieu thereof "Constructive sale price"; 
(B) hj striking out "fair market price" each place it 
appears m the text and inserting in lieu thereof "construc-
tive sale price"; and 
(C) by striking out "paragraph (1) (C)" and inserting in 
lieu thereof "paragraph (1)". 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
apply with respect to articles sold after December 31, 1970; except 
that section 4216 (b)(6) of the Internal Revenue Code of 1954 (as 
added by subsection (a)) shall also apply to (1) the application of 
paragraph (1) of such section 4216(b) to articles sold after June 30, 
1962, and before January 1,1971, and (2) the application of paragraph 
(3) of such section 4216(b) to articles sold after December 31, 1969, 
and before January 1,1971. 
84 STAT. ] 
PUBLIC LAW 91-614-DEC. 31, 1970 
1845 
SEC. 302. CREDITS IN THE CASE OF CERTAIN 
FUR-
THER MANUFACTURING. 
(a) I N GENERAL.— 
_ 
^2 stat 
(1) Section 64:16(b) (3) (relating to tax-paid articles used for 
26 usc*64i6!* 
furtner manufacture) is amended— 
(A) by striking out "to a second manufacturer or producer, 
such tax shall be deemed to be an overpayment by such second 
manufacturer or producer if" and inserting in lieu thereof 
"and such article is sold to a subsequent manufacturer or pro-
ducer before being used, such tax shall be deemed to be an 
overpayment by such subsequent manufacturer or producer 
if"; and 
(B) by striking out "the second manufacturer" each place 
it a|>pears in subparagraphs (A), (B), (C), (E), and (F) 75^51^^126!' 
and inserting in lieu thereof "the subsequent manufacturer". 
(2) Section 6416(c) (relating to credit for tax paid on tires or 
79 stat. 154. 
inner tubes) is amended by striking out the last sentence thereof. 
(b) CONFORMING AMENDMENT.—Section 6416(b)(2) (relating to 
specified uses and resales) is amended by striking out subparagraph 
(E). 
(c) EFFECTIVE DATE.—The amendments made by subsections (a) 
and (b) of this section shall apply only with respect to claims for 
credit or refund filed after the date of the enactment of this Act, but 
only if the filing of the claim is not barred on the day after the date 
of the enactment of this Act by any law or rule of law. 
SEC. 303. CERTAIN CAMPER UNITS. 
(a) GENERAL RULE.—Section 4063(a) (1) (B) (relating to exemp- 
^9 stat. 157. 
tions for camper coaches, etc.) is amended by inserting "or camping 
accommodations" after "living quarters". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) of 
this section shall apply with respect to sales made on or after the 
date of the enactment of this Act. 
SEC. 304. NEW CAR LABELS TO SHOW RATE OF APPLI-
CABLE FEDERAL MANUFACTURERS EXCISE 
TAX. 
(a) GENERAL RULE.—In the case of any new automobile dis-
tributed in commerce after March 31, 1971, on the sale of which by 
the manufacturer, producer, or importer tax was imposed by sec-
tion 4061(a) of the Internal Revenue Code of 1954, any person re- 
^«'e»p- 1843. 
quired by section 3 of the Automobile Information Disclosure Act 
(15 U.S.C, sec. 1232) to affix a label to such new automobile shall 
^2 stat. 326. 
include in such label a clear, distinct, and legible - endorsement 
stating— 
(1) that Federal excise tax was imposed on such sale, and 
(2) the percentage rate at which such tax was imposed. 
(b) PENALTY.—Any person required by subsection (a) of this sec-
tion to endorse any label who willfully fails to endorse clearly, dis-
tinctly, and legibly such label as required by subsection (a), or who 
makes a false endorsement of such label, shall be fined not more than 
$1,000. Such failure or false endorsement with respect to each auto-
mobile shall constitute a separate offense. 
1846 
PUBLIC LAW 91-614-DEC. 31, 1970 
[84 STAT. 
SEC. 305. CHANGE IN TAX ON NON-TURBINE-POWERED 
AIRCRAFT. 
Ante, p. 243. 
(a) EXEMPTION OF FiRST 2,500 PouNDS.—Sectioii 4491(a) (2) (re-
lating to tax on use of civil aircraft) is amended by striking out 
clause (A) and inserting in lieu thereof "(A) in the case of an air-
craft (other than a turbine-engine-powered aircraft), 2 cents a 
pound for each pound of the maximum certificated takeoff weight in 
excess of 2,500 pounds, or". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect on July 1,1971. 
TITLE IV—TREASURY DEPARTMENT WORKING 
CAPITAL FUND 
SEC. 401. ESTABLISHMENT OF FUND. 
There is hereby established a working capital fund for the Depart-
ment of the Treasury, which shall be available, without fiscal year 
limitation, for expenses and equipment necessary for maintenance and 
operation of such administrative services as the Secretary of the 
Treasury, with the approval of the Director of the Office of Manage-
ment and Budget, determines may be performed more advantageously 
and more economically as central services. The capital of the fund 
shall not exceed $1,000,000 and shall consist of the amount of the 
fair and reasonable value of such supply inventories, equipment, and 
other assets and inventories on order, pertaining to the services to be 
carried on by the fund, as the Secretary of the Treasury may transfer 
to the fund, less the related liabilities and unpaid obligations, together 
with any appropriations made for the purpose of providing capital. 
The fund shall be reimbursed, or credited with advance payments, 
from applicable appropriations and funds of the Department of the 
Treasury, other Federal agencies, and other sources authorized by 
law, for supplies and services at rates which will recover the expense 
of operations, including accrual of annual leave and depreciation of 
plant and equipment of the fund. The fund shall also be credited with 
other receipts from sale or exchange of property or in payment for loss 
or damage to property held by the fund. There shall be transferred into 
the Treasury as miscellaneous receipts, as of the close of each fiscal 
year, earnings which the Secretary of the Treasury determines to be 
excess to the needs of the fund. There are hereby authorized to be 
appropriated such amounts as may be necessary to provide capital for 
the fund. 
TITLE V—CARRY FORWARD IN COMPUTING MINIMUM 
TAX ON TAX PREFERENCES 
SEC. 501. 7-YEAR CARRY FORWARD. 
83 Stat. 580. 
(a) I N GENERAL.—Sectiou 56 (relating to imposition of minimum 
tax for tax preferences) is amended— 
(1) by striking out paragraph (2) of subsection (a) and in-
serting in lieu thereof the following: 
"(2) the sum of— 
"(A) the taxes imposed by this chapter for the taxable 
year (computed without regard to this part and without 
78^'stat^79^'^^' 
regard to the taxes imposed by sections 531 and 541) reduced 
by the sum of the credits allowable under— 
" (i) section 33 (relating to foreign tax credit), 
" (ii) section 37 (relating to retirement income), and 
76 Stat. 962. 
"(iJi) scction 38 (relating to investment Credit); and 
84 STAT. ] 
PUBLIC LAW 91-615-DEC. 31, 1970 
1847 
" ; a n d 
"(B) the tax carry overs to the taxable year. 
(2) by adding at the end of such section the following new 
subsection: 
"(c) TAX CARRY OVERS.—If for any taxable year— 
"(1) the taxes imposed by this chapter (computed without 
regard to this part and without regard to the taxes imposed by 
sections 531 and 541) reduced by the sum of the credits allow-
able under— 
" (A) section 33 (relating to foreign tax credit), 
"(B) section 37 (relating to retirement income), and 
"(C) section 38 (relating to investment credit), exceed 
"(2) the sum of the items of tax preference in excess of 
$30,000, 
then the excess of the taxes described in paragraph (1) over the sum 
described in paragraph (2) shall be a tax carry over to each of the 7 
taxable years following such year. The entire amount of the excess for 
a taxable year shall be carried to the first of such 7 taxable years, and 
then to each of the other such taxable years to the extent that such 
excess is not used to reduce the amount subject to tax under subsection 
(a) for a prior taxable year to which excess may be carried." 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
shall apply to taxable years ending after December 31, 1969. In the 
case of a taxable year beginning in 1969 and ending in 1970, the 
excess referred to in section 56(c) of the Internal Revenue Code of 
1954 (as added by subsection (a)) shall be an amount equal to the 
excess determined under such section (without regard to the sentence) 
multiplied by a fraction— 
(1) the numerator of which is the number of days in the taxable 
year occuring after December 31, 1969, and 
(2) the denominator of which is the number of days in the 
entire taxable year. 
Approved December 31, 1970. 
68A Stat. 179. 
78 Stat. 79. 
26 u s e 531,541. 
76 Stat. 96 2. 
Public Law 91-615 
AN ACT 
To amend the Tariff Schedules of the United States to provide that imported 
articles which are exported and thereafter reimported to the United States 
for failure to meet sample or si)ecifieations shall, in certain instances, be 
entered free of duty upon such reimportation. 
December 31, 1970 
[H. R. 9183] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That schedule 8, part 
1, subpart A of the Tariff Schedules of the United States (19 U.S.C. 
1202) is amended by inserting after item 801.00 the following new 
item: 
801.10 
Articles, previously imported, with respect to which the duty 
was paid upon such previous importation if (1) exported 
within three years after the date of such previous importa-
tion, (2) reimported without having been advanced in value 
or impio/ed in condition by any process of manufacture or 
other means while abroad, (3) reimported for the reason that 
such articles do not conform to sample or specifications, and 
(4) reimported by or for the account of the person who im-
ported them into, and exported them from, the United 
States 
Free 
Free 
SEC. 2. The amendment made by the first section of this Act shall 
apply wnll respect to articles entered, or withdrawn from warehouse, 
for consumption on or after the date of enactment of this Act and 
which had not previously been so entered or withdrawn before such 
date. 
Approved December 31, 1970. 
Reimported 
articles. 
Duty free entry. 
77A Stat. 405.,