An Act to provide a 1-year extension of the existing corporate normal Tax rate and of certain excise Tax rates
PL 86-75 (H.R.7523), enacted 06/30/1959

73 S T A T . ] 
PUBLIC LAW 86-75-JUNE 30, 1959 
157 
(31 U.S.C., sec. 757b), is amended to read as follows: "The face 
amount of obligations issued under authority of this Act, and the face 
amount of obligfations guaranteed as to principal and interest by the 
United States (except such guaranteed obligations as may be held 
by the Secretary of the Treasury), shall not exceed in the aggregate 
$285,000,000,000 outstanding at anjr one time." 
SEC. 2. During the period beginning on July 1, 1959, and ending on 
June 30, 1960, the public debt limit set forth in the first sentence of 
section 21 of the Second Liberty Bond Act, as amended, shall be 
temporarily increased by $10,000,000,000. 
SEC. 3. This Act may be cited as the "Public Debt Act of 1959". 
Approved June 30, 1959. 
72 Stat. 1758. 
Short title. 
Public Law 86-75 
AN ACT 
To provide a one-year extension of tlie existing corporate normal-tax rate and 
of certain excise-tax rates, and for otlier purposes. 
June 30, 1959 
[H. R. 7523] 
sion Act of 1959. 
72 Stat. 259. 
26 u s e 11, 821. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
'^^^ K^*« Exten-
be cited as the "Tax Kate Extension Act of 1959". 
SEC. 2. ONE-YEAR EXTENSION OF CORPORATE NORMAL-TAX RATE. 
Section 11(b) (relating to corporate normal tax), section 821(a) 
(1)(A) (relating to mutual insurance companies other than inter-
insurers), and section 821(b)(1) (relating to interinsurers) of the 
Internal Revenue Code of 1954 are amended as follows: 
(1) by striking out "JULY i, 1959" each place it appears and 
inserting in lieu thereof "JULY 1, i96o"; 
(2) by striking out "July 1, 1959" each place it appears and 
inserting in lieu thereof "July 1,1960"; 
(3) by striking out "JUNE 30, 1959" each place it appears and 
inserting in lieu thereof "JUNE 30, 19eo"; 
(4) by striking out "June 30,1959" each place it appears and 
inserting in lieu thereof "June 30,1960". 
SEC. 3. ONE-YEAR EXTENSION OF CERTAIN EXCISE TAX RATES. 
(a) EXTENSION OF RATES.—The following provisions of the Internal 
Revenue Code of 1954 are amended by striking out "July 1, 1959" 
each place it aj)pears and inserting in lieu thereof "July 1,1960"— 
(1) section 4061 ^relating to motor vehicles); 
[2^ section 5001(a) (1) (relating to distilled spirits] ; 
3) section 5001(a) f3) (relating to imported perfumes con-
taining distilled spirits); 
(4) section 5022 (relating to cordials and liqueurs containing 
wine); 
(5) section 5041(b) ^relating to wines); 
(6) section 5051(a) (relating to beer); and 
(7) section 5701(c)(1) (relating to cigarettes). 
(b) TECHNICAL AMENDMENTS.—The following provisions of the 
Internal Revenue Code of 1954 are amended as follows: 
(1) Section 6063 (relating to floor stocks refunds on distilled 
spirits, wines, cordials, and beer) is amended by striking out 
'%July 1, 1959" each place it appears and inserting in lieu thereof 
"July 1,1960", and by striking out "October 1,1959" and inserting 
in lieu thereof "October 1,1960". 
26 u s e 4 0 6 1-
5071, passim. 
26 u s e 5063. 
68A Stat. 506. 
26 use 4261. 
158 
PUBLIC LAW 86-75-JUNE 30, 1959 
[73 S T A T . 
26 use 5707. 
(2) SubsectioHS (a) and (b) of section 5707 (relating to floor 
stocks refunds on cigarettes) are amended by striking out "July 
1,1959" each place it appears and inserting in lieu thereof "July 1, 
1960", and by striking out "October 1,1959" and inserting in lieu 
thereof "October 1, 1960". 
26 use 6412. 
(3) Section 6412(a)(1) (relating to floor stocks refunds on 
automobiles) is amended by striking out "July 1, 1959" each 
place it appears and inserting in lieu thereof "July 1, 1960", by 
striking out "October 1, 1959" and inserting in lieu thereof 
"October 1,1960", and by striking out "Noven3)er 10,1959" each 
place it appears and inserting in lieu thereof "November 10, 
1960". 
72 Stat. 260. 
Section 497 of the Revenue Act of 1951 (relating to refunds on articles 
from foreign trade zones), as amended, is amended by striking out 
"July 1, 1959" each place it appears and inserting in lieu thereof 
"July 1, I960". 
(c) APPLICATION.—For purposes of this section, references to pro-
26 us*c^lo^o 1- visions in chapter 51 of the Internal Revenue Code of 1954 are refer-
5692. 
ences to such provisions as contained in such chapter as amended by 
section 201 of the Excise Tax Technical Changes Act of 1958. 
SEC. 4. REDUCTION OF TAX ON TRANSPORTATION OF PERSONS, 
EFFECTIVE JULY 1, 1960. 
Section 4261 of the Internal Revenue Code of 1954 (relating to tax 
on transportation of persons) is amended by striking out "to 10 per-
cent of the amount so paid." each place it appears therein and inserting 
in lieu thereof the following: "to— 
"(1) 10 percent of the amount so paid before July 1, 1960; or 
"(2) 5 percent of the amount so paid on or after July 1,1960." 
SEC. 5. TERMINATION OF TAX ON GENERAL TELEPHONE SERVICE, 
EFFECTIVE JULY 1,1960. 
26ljsc 4251.' 
Section 4251 of the Internal Revenue Code of 1954 (relating to tax 
on communications) is amended— 
(1) by inserting "(a) I N GENERAL.—" at the beginning of the 
text of such section; and 
(2) by adding at the end thereof the following new subsection: 
"(b) TERMINATION OF TAX ON GENERAL TELEPHONE SERVICE.— 
"(1) I N GENERAL.—Effective as provided in paragraph (2), the 
tax imposed by this section on amounts paid for general telephone 
service shall cease to apply. 
"(2) EFFECTIVE DATE.— 
" (A) Subject to the provisions of subparagraph (B), para-
graph (1) shall apply with respect to amounts paid on or 
after July 1,1960, for services rendered on or after such date. 
"(B) Paragraph (1) shall not apply with respect to 
amounts paid pursuant to bills rendered before July 1, 1960. 
In the case of amounts paid pursuant to bills rendered on or 
after such date for services for which no previous bill was 
rendered, paragraph (1) shall apply except with respect to 
such services as were rendered more than 2 months before 
such date. Paragraph (1) shall not apply with respect to 
amounts paid for services rendered more than 2 months before 
such date." 
Approved June 30, 1959.