An Act to reduce excise taxes, and for other purposes
PL 83-324 (H.R.8224), enacted 03/31/1954

68 S T A T . ] 
PUBLIC LAW 324-MAR. 31, 1954 
'W'' 
Public Law 324 
CHAPTER 126 
AN ACT 
To reduce excise taxes, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That (a) SHORT 
TITLE.—This Act may be cited as the "Excise Tax Reduction Act of 
1954". 
(b) ACT AMENDATORY OF INTERNAL REVENUE CODE.—Except as other-
wise expressly provided, wherever in this Act an amendment or repeal 
is expressed in terms of an amendment to or repeal of a section, sub-
section, paragraph, or subparagraph, the reference shall be considered 
to be made to a provision of the Internal Revenue Code. 
TITLE I—RETAILERS' EXCISE TAXES 
SEC. 101. RETAILERS' EXCISE TAX ON LUGGAGE, ETC. 
Section 1651 (a) (relating to retailers' excise tax on luggage, etc.) 
is hereby amended by striking out "20 per centum" and inserting in 
lieu thereof "10 per centum". 
SEC. 102. RETAILERS' EXCISE TAXES ON JEWELRY, FURS, AND TOILET 
PREPARATIONS. 
For reduction in rate of retailers' excise taxes on jewelry, furs, and 
toilet preparations, see section 504 (a). 
SEC. 103. EFFECTIVE DATE OF TITLE I. 
For effective date of this title, see section 505 (a). 
TITLE II—TAXES ON ADMISSIONS AND DUES 
SEC. 201. TAX ON ADMISSIONS. 
(a) PERMANENT USE OR LEASE OF BOXES OR SEATS.—Section 1700 
(b) (1) (relating to tax on permanent use or lease of boxes or seats) 
is hereby amended by striking out "11 per centum" and inserting in 
lieu thereof "10 per centum". 
(b) SALES OUTSIDE Box OFFICE.—Section 1700 (c) (1) (relating 
to tax on sales outside box office) is hereby amended by striking out 
"11 per centum" and inserting in lieu thereof "10 per centum". 
(c) CABARETS, ROOF GARDENS, ETC.—The first sentence of section 
1700 (e) (1) (relating to tax on cabarets, roof gardens, etc.) is hereby 
amended to read as follows: "A tax equivalent to 20 per centum of all 
amounts paid for admission, refreshment, service, or merchandise, at 
any roof garden, cabaret, or other similar place furnishing a public 
performance for profit, by or for any patron or guest who is entitled 
to be present during any portion of such performance." 
(d) SINGLE OR SEASON TICKETS AND SUBSCRIPTIONS.—For reduction 
in rate of tax on admission by single or season ticket or subscription, 
see section 504 (a). 
(e) RATE TO APPLY TO MAJOR FRACTIONS.—Section 1700 (a) (1) 
(relating to rate of tax on single or season tickets and subscriptions) 
is hereby amended by striking out "fraction" and inserting in lieu 
thereof "major fraction". 
(f) EXEMPTION OF ADMISSIONS OF FIFTY CENTS OR LESS.—Section 
1700 (a) (1) (relating to rate of tax on single or season tickets and 
subscriptions) is hereby amended by striking out the second sentence 
thereof and inserting in lieu thereof the following: "No tax shall be 
imposed under this paragraph on the amount paid for admission— 
MarchSl, 1954 
[H. R. 8224] 
Excise Tax Re-
d u c t i o n A c t of 
1954. 
53 Stat., Pt. 1. 
Title 26. u s e . 
i t 
PUBUC LAW 324-MAR. 31, 1964 
[68 ST A T ' 
p% 
-f y 
" (A) if the amount paid for admission is 50 cents or less, or 
"(B) in the case of a season ticket or subscription, if the 
amount which would be charged to the holder or subscriber 
for a single admission is 50 cents or less." 
(g) ADMISSIONS TO CERTAIN RACE TRACKS.— 
(1) Section 1700 (a) (relating to rate of tax on single or season 
tickets and subscriptions) is hereby amended by adding at the 
end thereof the following: 
"(3) CERTAIN RACE TIL\CKS.—In lieu of the tax imposed under 
paragraph (1), a tax of 1 cent for each 5 cents or major fraction 
thereof of the amount paid for admission to any place (including 
admission by season ticket or subscription) if the principal amuse-
ment or recreation offered with respect to such admission is horse 
or dog racing at a race track. 
The tax imposed under this para-
graph shall be paid by the person paying for such admission." 
(2) Section 1700 (b) (relating to rate of tax on permanent use 
or lease of boxes or seats) is hereby amended— 
(A) by striking out "paragraph (1) of subsection (a)" and 
/ ,v, 
inserting in lieu thereof "paragraph (1) or (3) of subsection 
v|, ^ 
(a)";and 
(B) by inserting after "per centum" the following: "(20 
per centum if paragraph (3) of subsection (a) would other-
' • •' 
wise apply)". 
(3) Section 1700 (c) (relating to rate of tax on sales outside 
i ;^. box office) is hereby amended— 
(A) by striking out "paragraph (1) of subsection ( a ) " 
and inserting in lieu thereof "paragraph (1) or (3) of subsec-
tion (a)"; and 
(B) by inserting after "per centum" the following: "(20 
per centum if paragraph (3) of subsection (a) applies)". 
(4)^The last sentence of section 1700 (e) (1) (relating to tax 
on cabarets, roof gardens, etc.) is hereby amended by striking 
out "subsection (a) (1)" and inserting in lieu thereof "paragraph 
(1) or (3) of subsection (a)", 
(h) 
CERTAIN ATHLETIC GAMES FOR BENEFIT OF HOSPITALS FOR 
CRIPPLED CHILDREN.—Section 1701 (a) (2) (relating to nonexempt 
admissions) is hereby amended by striking out "between two ele-
mentary or secondary schools" and inserting in lieu thereof the follow-
ing: "between teams composed of students from elementary or 
secondary schools". 
(i) EXEMPTION OF SCHOOL OR COLLEGE ATHLETIC EVENTS.—Section 
1701 (a) (2) (relating to nonexempt admissions) is hereby amended 
by adding at the end thereof the following new sentence: "Clauses 
(A) and (B) shall not apply in the case of any athletic event between 
educational institutions held during the regular athletic season for 
such event, if the proceeds therefrom inure exclusively to the benefit 
of such institutions." 
(j) HISTORIC SITES, MUSEUMS, AND PLANETARIUMS.—Section 1701 
(e) (2) (relating to exemption from admissions tax of historic sites) 
is hereby amended to i-ead as follows: 
" (2) HISTORIC srrEs, MUSEUMS, AND PLANETARIUMS.—Any admis-
sion to an historic site, house, or shrine, to a museum of history, 
art, or science, to a planetarium, or to any exhibition in connection 
with any of the foregoing, operated— 
., 
"(A) by any State or political subdivision thereof or by 
the IJnited States or any agency or instrumentality thereof— 
if the proceeds therefrom inure exclusively to tlie benefit of 
the State, political subdivision. United States, agency, or 
„. 
. . instrumentality, or 
68 S T A T . ] 
P U B U C LAW 3 2 4 - M A R . 31, 1954 
39 
"(B) by any society or organization not organized for 
profit—if no part of the net earnings thereof inures to the 
benefit of any private stockholder or individual. 
For the purposes of subparagraph (A), the term'State'includes 
Alaska, Hawaii, and the District of Columbia." 
(k) CERTAIN AMATEUR THEATER 
PERFORMANCES.—Section 1701 
(relating to exemptions from the admissions tax) is hereby amended— 
(1) by striking out the period at the end of subsection (e) and 
inserting in lieu thereof "; or"; and 
(2) by adding at the end thereof a new subsection as follows: 
"(f) 
CERTAIN AMATEUR THEATER PERFORMANCES.—Any admission 
to an amateur performance presented and performed by a civic or 
community theater group or organization—if no part of the net earn-
ings thereof inures to the benefit of any private stockholder or 
individual." 
SEC. 202. TAX ON DUES. 
(a) DUES OR MEMBERSHIP FEES.—Section 1710 (a) (1) (relating 
to tax on dues or membership fees) is hereby amended by striking out 
"11 per centum" and inserting in lieu thereof "20 per centum". 
(b) INITIATION FEES.—Section 1710 (a) (2) (relating to tax on 
initiation fees) is hereby amended by striking out "11 per centum" 
and inserting in lieu thereof "20 per centum". 
SEC. 203. EFFECTIVE DATE OF TITLE 11. 
The amendments made by section 201 (other than subsection (b) 
thereof) shall apply only with respect to amounts paid for admissions 
on or after April 1,1954. In addition, such amendments shall apply— 
(1) in the case of any season ticket or subscription, only if all 
the admissions under such ticket or subscription can occur only 
on or after April 1,1954; and 
(2) in the case of the permanent use of a box or seat or a lease 
for the use of such box or seat, only if all the performances or 
exhibitions at which the box or seat is used or reserved by or for 
the lessee or holder can occur only on or after April 1, 1954. 
The amendment made by subsection (b) shall apply only with respect 
to amounts paid on or after April 1, 1954, for admissions on or after 
such date. 
TITLE III—MANUFACTURERS' EXCISE TAXES 
SEC. 301. EXCISE TAXES IMPOSED BY THE REVENUE ACT OF 1941. 
(a) TAX ON SPORTING GOODS.—Section 3406 (a) (1) (relating to 
manufacturers' excise tax on sporting goods) is hereby amended by 
striking out "15 per centum, except that on and after April 1, 1954, 
the rate shall be 10 per centum;". 
(b) TAX ON PHOTOGRAPHIC APPARATUS.—Section 3406 (a) (4) (re-
lating to manufacturers' excise tax on photographic apparatus) is 
hereby amended by striking out "20 per centum" and inserting in lieu 
thereof "10 per centum". 
(c) TAX ON ELECTRIC LIGHT BULBS AND TUBES.—Section 3406 (a) 
(10) (relating to manufacturers' excise tax on electric light bull^ and 
tubes) is hereby amended to read as follows: 
"(10) ELECTRIC LIGHT BULBS AND TUBES.—Electric light bulbs 
and tubes, not including articles taxable under any other provision 
of this subchapter, 10 per centum." 
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PUBLIC LAW 324-MAR. 31, 1954 
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SEC. 302. TAX ON MECHANICAL PENCILS, FOUNTAIN AND BALL-POINT 
PENS, AND MECHANICAL LIGHTERS FOR CIGARETTES, 
CIGARS, AND PIPES. 
Section 3408 (a) (relating to tax on mechanical pencils, fountain 
and ball-point pens, and mechanical lighters for cigarettes, cigars, and 
pipes) is hereby amended by striking out "16 per centum" and insert-
ing in lieu thereof "10 per centum". 
SEC. 303. TAX ON MATCHES. 
Section 3409 (a) (relating to manufacturers' excise tax on matches) 
is hereby amended by striking out "2 cents per 1,000 matches" and 
inserting in lieu thereof the following: "2 cents per 1,000 matches but 
not more than 10 per centum of the price for which so sold". 
SEC. 304. CUTTING OILS. 
Section 3413 (relating to tax on lubricating oils) is hereby 
amended— 
(a) by inserting after "6 cents a gallon" the following: " (except 
that, in the case of cutting oils, the tax shall not exceed 10 per 
centum of the price for which so sold)"; and 
(b) by adding at the end of such section a new sentence as fol-
lows: "For the purposes of this section, the term 'cutting oils' 
means oils used primarily in cutting and machining operations 
(including forging, drawing, rolling, shearing, punching, and 
stamping) on metals and known commercially as cutting oils." 
SEC. 305. REDUCTION OF TAX ON REFRIGERATORS AND QUICK-
FREEZE UNITS AND ON ELECTRIC, GAS, AND OIL HOUSE-
HOLD APPLIANCES. 
(a) REDUCTION OF TAX.—Section 3405 (relating to manufacturers' 
excise tax on refrigerators, quick-freeze units, and self-contained air-
conditioning units) is hereby amended by striking out "10 per centum" 
and inserting in lieu thereof the following: "5 per centum (10 per 
centum in the case of articles subject to tax under subsection (c))"; 
and section 3406 (a) (3) (relating to manufacturers' excise tax on 
electric, gas, and oil appliances) is hereby amended by striking out 
"10 per centum" and inserting in lieu thereof "5 per centum". 
(b) FLOOR STOCKS REFUND.—Subchapter A of chapter 29 (relating 
to manufacturers' excise taxes) is hereby amended by adding at the 
end thereof a new section as follows: 
"SEC. 3416. FLOOR STOCKS REFUND ON REFRIGERATORS, QUICK-
FREEZE UNITS, AND ELECTRIC, GAS, AND OIL HOUSE-
HOLD APPLIANCES. 
"(a) I N GENERAL.—Where before April 1, 1954, any article subject 
to the tax imposed by section 3405 (a), section 3405 (b), or section 
3406 (a) (3) has been sold by the manufacturer, producer, or importer, 
and on such date is held by a dealer and has not been used and is 
intended for sale, there shall be credited or refunded (without interest) 
to the manufacturer, producer, or importer an amount equal to the 
difference between the tax paid by such manufacturer, producer, or 
importer on his sale of the article and the tax made applicable to such 
article on and after April 1, 1954, if such manufacturer, producer, or 
importer— 
"(1) has paid such amount as reimbursement to the dealer 
who held such article on April 1,1954; and 
" (2) files claim for such credit or refund before August 1,1954. 
"(b) DEFINITION OF DEALER.—As used in this section, the term 
'dealer' includes a wholesaler, jobber, distributor, or retailer. For the 
purposes of this section, an article shall be considered as 'held by a 
dealer' if title thereto has passed to such dealer (whether or not deliv-
68 S T A T . ] 
PUBLIC LAW 324-MAR. 31, 1964 
41 
ery to him has been made), and if for purposes of consumption title to 
such article or possession thereof has not at any time been transferred 
to any person other than a dealer. 
"(c) LIMITATION ON ELIGIBILITY.—No person shall be entitled to 
credit or refund under this section unless he has in his possession such 
evidence of the inventories with respect to which he has made the reim-
bursements described in subsection (a) as may be required by regu-
lations prescribed under this section. 
"(d) PENALTIES AND ADMINISTRATIVE PROCEDURES.—All provisions 
of law, including penalties, applicable in respect of the taxes imposed 
under sections 3405 (a), 3405 (b), and 3406 (a) (3) shall, insofar as 
applicable and not inconsistent with this section, be applicable in 
respect of the credits and refunds provided for in this section to the 
same extent as if such credits or refunds constituted credits or refunds 
of such taxes." 
SEC. 306. EFFECTIVE DATE OF TITLE III. 
For effective date of this title, see section 505 (a). 
' 
TITLE IV—TAX ON COMMUNICATIONS 
SEC. 401. TAX ON TELEGRAPH, TELEPHONE, RADIO, AND CABLE 
FACILITIES. 
(a) TELEPHONE MESSAGES, ETC.—Section 3465 (a) (1) (A) (relating 
to tax on telephone messages, etc.) is hereby amended by striking out 
"20 per centum" and inserting in lieu thereof "10 per centum". 
(b) TELEGRAPH, CABLE, AND RADIO DISPATCHES.—Section 3465 (a) 
(1) (B) (relating to tax on telegraph, cable, and radio dispatches or 
messages) is hereby amended by striking out "15 per centum of the 
amount so paid, except that in the case of each international telegraph, 
cable, or radio dispatch or message the rate shall be 10 per centum" 
and inserting in lieu thereof the following: "10 per centum of the 
amount so paid". 
(c) LEASED WIRE SERVICE.—Section 3465 (a) (2) (A) (relating 
to tax on leased Avire service, etc.) is hereby amended by striking out 
"15 per centum" and inserting in lieu thereof "10 per centum". 
(d) WIRE AND EQUIPMENT SERVICE.—Section 3465 (a) (2) (B) 
(relating to tax on wire and equipment service) is hereby amended 
to read as follows: 
"(B) A tax equivalent to 8 per centum of the amount 
paid for any wire and equipment service (including stock 
quotation and information services, burglar alarm or fire 
alarm service, and all other similar services, but not includ-
ing service described in subparagraph (A))." 
(e) LOCAL TELEPHONE SERVICE.—For reduction in rate of tax on 
local telephone service, see section 504 (a). 
SEC. 402. EFFECTVE DATE OF TITLE IV. 
(a) I N GENERAL.—Subject to the provisions of subsection (b), the 
amendments made by section 401 shall apply with respect to amounts 
paid on or after April 1, 1954, for services rendered on or after such 
date. 
(b) AMOUNTS PAID PURSUANT TO BILLS RENDERED.—The amend-
ments made by section 401 shall not apply with respect to amounts 
paid pursuant to bills rendered before April 1, 1954. In the case of 
amounts paid pursuant to bills rendered on or after such date for 
services for which no previous bill was rendered, such amendments 
shall apply except with respect to such services as were rendered more 
than 2 months before such date. In the case of services rendered more 
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PUBLIC LAW 324-MAH. 31, 1964 
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than 2 months before such date the provisions of sections 1650 and 3465 
of the Internal Revenue Code in effect at the time such services were 
rendered shall apply to the amounts paid for such services, 
(c) TECHNICAL AMENDMENT.—Section 1658 is hereby repealed. 
TITLE V—MISCELLANEOUS TAXES 
SEC. 501. TAX ON SAFE DEPOSIT BOXES. 
Section 1850 (a) (relating to tax on the use of safe deposit boxes) 
is hereby amended by striking out "20 per centum" and inserting in 
lieu thereof "10 per centum". 
SEC. 502. TAX ON PISTOLS AND REVOLVERS. 
Section 2700 (a) (relating to tax on pistols and revolvers) is hereby 
amended by striking out "11 per centum" and inserting in lieu thereof 
"10 per centum". 
SEC. 
5
0
3
. 
TAX 
ON 
TRANSPORTATION 
OF 
PERSONS, 
ETC. 
For reduction in rate of taxes on the transportation of persons 
and on seats, berths, etc., see section 504 (a). 
. , . „,. ^ , 
SEC. 504. TECHNICAL AMENDMENTS. 
(a) TERMINATION OF TAX RATES UNDER SECTION 1650.—Section 
1650 (relating to war tax rates of certain miscellaneous taxes) is 
hereby amended by inserting after "beginning with the effective date 
58 Stat. 60. 
of ^jtle I I I of the Revenue Act of 1943" the following: "and end-
ing March 31, 1954,". 
(b) RATE REDUCTION DATE.—Section 1659 (relating to definition 
of "rate reduction date") is hereby amended to read as follows: 
"SEC. 1659. DEFINITION OF 'RATE REDUCTION DATE'. 
"For the purposes of this chapter the term 'rat€ reduction date^ 
means April 1,1954." 
(c) 
FLOOR STOCKS REFUNDS ON ELECTRIC LIGHT BULBS.—Section 
1657 (a) (relating to floor stocks refunds on electric light bulbs) is 
hereby amended (1) by striking out "the tax that would have been 
paid if section 1650 had not been applicable" and inserting in lieu 
thereof the following: "the tax that would have been paid if the 
applicable rate had been 10 per centum"; and (2) by striking out 
"prior to the expiration of three months after the rate reduction 
date" and inserting in lieu thereof the following: "prior to August 
1, 1954, based upon a request for reimbursement submitted by such 
person to the manufacturer or producer of such article prior to 
July 1, 1954". 
(d) Bow^LiNG ALLEYS AND BILLIARD AND POOL TABLES.—The first 
sentence of section 3268 (a) (relating to tax on bowling alleys, and 
billiard and pool tables) is hereby amended to read as follows: 
"Every person who operates a bowling alley, billiard room, or pool 
room shall pay a special tax of $20 per year for each bowling alley, 
billiard table, or pool table." 
SEC. 505. EFFECTIVE DATES. 
^ 
f
/ 
(a) The amendments made by title I, title III, and section 502, and 
the amendment made by section 504 (a) insofar as it affects the rates 
of the retailers' excise taxes imposed by sections 2400, 2401, and 2402 
of the Internal Revenue Code and the rate of the manufacturers' excise 
tax imposed by section 3406 (a) (10) of such Code, shall apply only 
with respect to articles sold on or after April 1,1954. For the purposes 
68 S T A T . ] 
PUBLIC LAW 324-MAR. 31, 1964 
48^ 
of the preceding sentence, an article shall not be considered sold before 
April 1, 1954, unless possession or right to possession passes to the 
purchaser before such date. In the case of— 
(1) a lease, 
(2) a contract for the sale of an article wherein it is provided 
that the price shall be paid by installments and title to the article 
sold does not pass until a future date notwithstanding partial 
payment by installments, 
(3) a conditional sale, or 
(4) a chattel mortgage arrangement wherein it is provided that 
the sales price shall be paid in installments, 
entered into before April 1, 1954, payments made on or after April 
1, 1954, shall, for purposes of this subsection, be considered as pay-
ments made with respect to articles sold on or after April 1,1954. 
(b) The amendment made by section 501 shall apply only with re-
spect to amounts paid on or after April 1,1954, 
(c) The amendment made by section 504 (a) shall apply— 
(1) insofar as it affects the rate of the tax imposed by section 
1700 (a) (1) of the Internal Kevenue Code, with respect to 
amounts paid for admissions on or after April 1, 1954, but, in 
the case of any season ticket or subscription, only if all the 
admissions under such ticket or subscription can occur only on 
or after April 1,1954; 
(2) insofar as it affects the rates of the taxes imposed by sub-
sections (b), (c), and (e) of section 1700 of the Internal Revenue 
Code, as though the rates listed under the heading "Old Rate" 
in the table in section 1650 of such Code were the rates established 
by the amendments made by title I I of this Act; 
(3) insofar as it affects the rates of the taxes imposed bv sub-
sections (a) (1) (A), (a) (2) (A), and (a) (2) (B) of section 
3465 of the Internal Revenue Code, as though the rates listed under 
the heading "Old Rate" in the table in section 1650 of such Code 
were the rates established by the amendments made by section 401 
of this Act; 
(4) insofar as it affects tlie rate of the tax imposed by section 
3465 (a) (3) of the Internal Revenue Code, as though such amend-
ment were an amendment made by section 401 of this Act; and 
( 
(5) insofar as it affects the rates of the taxes imposed by section 
3469 of the Internal Revenue Code, with respect to amounts paid 
for or in connection with transportation which begins on or after 
April 1,1954. 
SEC. 506. SPECIAL CREDIT OR REFUND OF TRANSPORTATION AND 
ADMISSIONS TAXES. 
Notwithstanding any other provision of law, in any case in which 
tax has been collected prior to April 1,1954, at the rate in effect (with-
out regard to the amendments made by this Act) prior to April 1, 
1954, for or in connection with the transportation of persons which 
begins on or after April 1, 1954, or for admissions (referred to in sec-
tion 201, other than subsections (b), (c), and (g) thereof, of this 
Act) on or after April 1, 1954, the person who collected the tax shall 
pay the same over to the United States; but credit or refund (without 
interest) of the tax collected in excess of that applicable (by reason 
of the amendments made by this Act) on or after April 1, 1954, shall 
be allowed to the person who collected the tax as if such credit or 
refund were a credit or refund under the applicable provision of the 
Internal Revenue Code, but only to the extent that, prior to the time 
such transportation has begun or prior to the event to which the right 
to admission relates, he has repaid the amount of such excess to the 
44 
PUBLIC LAW 3a4-MAR. 31, 1954 
[68 STAT. 
person from whom he collected the tax, or has obtained the consent 
of such person to the allowance of the credit or refund. 
For the pur-
pose of this Act, transportation shall not be considered to have begun 
on or after April 1, 1954, if any part of the transportation paid for 
(or for which payment has been obligated) commenced before 
April 1,1954. 
SEC. 507. SPECIAL FUELS. 
(a) EXEMPTION FROM MANUFACTURERS' EXCISE TAX.— 
(1) AMENDMENT OF SECTION 3412 (c).—Section 3412 (c) (2) 
(relating to manufacturers' excise tax on gasoline) is hereby 
amended to read as follows: 
"(2) the term 'gasoline' means all products commonly or com-
mercially known or sold as gasoline (including casinghead and 
natural gasoline)." 
(2) CREDITS AND REFUNDS.—Except in the case of any liquid 
with respect to which tax was paid under section 3412 as in effect 
prior to the effective date of this section, clause (iii) of section 
3443 (a) (3) (A) is hereby repealed, and clauses (iv), (v), (vi), 
and (vii) of section 3443 (a) (3) (A) are redesignated clauses 
(iii), (iv), (v), and (vi), respectively. 
(b) IMPOSITION OF RETAILERS' EXCISE TAX.—Section 2450 of the 
Internal Revenue Code is hereby amended to read as follows: 
"SEC. 2450. TAX. 
" (a) DIESEL FUEL.—There is hereby imposed a tax of 2 cents a gallon 
upon any liquid (other than any product taxable under section 3412) — 
" (1) sold by any person to an owner, lessee, or other operator of 
a diesel-powered highway vehicle, for use as a fuel in such vehicle; 
or 
" (2) used by any person as a fuel in a diesel-powered highway 
vehicle unless there was a taxable sale of such liquid under 
paragraph (1). 
"(b) SPECIAL MOTOR FUELS.—There is hereby imposed a tax of 2 
cents a gallon upon benzol, benzene, naphtha, liquefied petroleum gas, 
or any other liquid (other than kerosene, gas oil, or fuel oil, or any 
product taxable under section 3412 or subsection (a) of this section) — 
"(1) sold by any person to an owner, lessee, or other operator of 
a motor vehicle, motorboat, or airplane for use as a fuel for the 
propulsion of such motor vehicle, motorboat, or airplane; or 
" (2) used by any person as a fuel for the propulsion of a motor 
vehicle, motorboat, or airplane unless there was a taxable sale 
of such liquid under paragraph (1). 
"(c) RATE REDUCTTION.—On and after April 1, 1955, the taxes 
imposed by this section shall be 1 ^ cents a gallon in lieu of 2 cents a 
gallon." 
(c) TECHNICAL AMENDMENTS.— 
(1) CREDITS AND REFUNDS.—Section 2452 (a) (relating to credits 
and refunds) is hereby amended to read as follows: 
"(a) NONTAXABLE USE OR SALE BY VENDEE.—A credit against tax 
under this chapter, or a refund, may be allowed or made to a person in 
the amount of tax paid by him under this chapter with respect to 
his sale of any liquid to a vendee for use as fuel in a diesel-powered 
highway vehicle, or with respect to his sale of benzol, benzene, 
naphtha, liquefied petroleum gas, or any other liquid to a vendee for 
use as fuel for the propulsion of a motor vehicle, motorboat, or air-
plane, if such person establishes, in accordance with regulations pre-
scribed by the Secretary, that— 
68 S T A T . ] 
PUBLIC LAW 324-MAR. 31, 1954 
46 
"(1) either— 
"(A) the vendee used such liquid otherwise than as fuel in 
such a vehicle, motorboat, or airplane or resold such liquid; 
or 
"(B) such liquid was used or was resold for use for any of 
the purposes, but subject to the conditions, provided in section 
3451; and 
"(2) such person has repaid or agreed to repay the amount 
of such tax to such vendee, or has obtained the consent of the 
vendee to the allowance of the credit or refund. 
No interest shall be allowed with respect to any amount of tax credited 
or refunded under the provisions of this subsection." 
(2) TAX-FREE SALES.—Section 2453 (relating to tax-free sales) 
is hereby amended by striking out "as fuel in a diesel-powered 
highway vehicle" and inseiting in lieu thereof "covered by this 
chapter". 
(3) CERTAIN VESSELS.—Chapter 20 (relating to special fuels) 
is hereby amended by adding at the end thereof the following new 
section: 
"SEC. 2456. EXEMPTION OF SPECIAL MOTOR FUELS USED FOR CERTAIN 
VESSELS. 
"The exemption from tax under chapter 29 provided in section 3451 
shall also apply to the tax imposed under section 2450 (b)." 
(4) CLERICAL AMENDMENT.—The heading of chapter 20 is hereby 
amended to read as follows: 
"CHAPTER 20—SPECIAL FUELS** 
(d) ErFECTivE DATE.—^The amendments made by this section 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. However, the 
tax imposed under section 2450 (b) shall not apply to any liquid which 
has been sold by a producer or importer prior to the effective date of 
this section and which is taxable under section 3412 (relating to 
gasoline tax) as in effect prior to the effective date of this section. 
TITLE VI—ONE-YEAR EXTENSION OF CERTAIN 
EXCISE TAX RATES 
SEC. 
6
0
1
. 
ONE-YEAR 
EXTENSION 
OF 
CERTAIN 
EXCISE 
TAX 
RATES. 
(a) EXTENSION OF RATES.—The following provisions are hereby 
amended by striking out "April 1, 1954" each place it appears and 
inserting in lieu thereof "April 1,1955": 
(1) The second sentence of section 2800 (a) (1) (relating to 
distilled spirits generally). 
(2) The last sentence of section 2800 (a) (3) (relating to 
imported perfumes containing distilled spirits). 
^3) Section 3030 (a) (1) (A) (relating to tax on still wines). 
(4) Section 3030 (a) (2) (relating to tax on sparkling wines, 
liqueurs, and cordials). 
(5) The second sentence of section 3150 (a) (relating to tax 
on fermented malt liquors). 
(6) The second sentence of section 3412 (a) (relating to tax on 
gasoline). 
(7) Section 2000 (c) (2) (relating to tax on cigarettes). 
(8) Section 3403 (relating to tax on automobiles, etc.). 
(b) 
TECHNICAL AMENDMENTS.— 
46 
PUBLIC LAW 324-MAR. 31, 1954 
[68 ST A T . 
(1) Section 1656 (relating to floor stocks refunds on distilled 
spirits, wines and cordials, and fermented malt liquors) is hereby 
amended by striking out "April 1,1954" each place it appears and 
inserting in lieu thereof "April 1,1955", and by striking out "May 
* 
1, 1954" and inserting in lieu thereof "May 1, 1955". 
(2) Section 3412 (g) (relating to floor stocks refunds on gaso-
line) is hereby amended by striking out "April 1, 1954" each 
place it appears and inserting in lieu thereof "April 1,1955", and 
• 
by striking out "July 1,1954" and inserting in lieu thereof "July 
1,1955". 
(3) Section 2000 (g) (relating to floor stocks refunds on ciga-
rettes) is hereby amended by striking out "April 1, 1954" each 
place it appears and inserting in lieu thereof "April 1,1955", and 
by striking out "July 1, 1954" and inserting in lieu thereof "July 
1,1955". 
(4) Section 3250 (1) (5) (relating to drawback in the case of 
distilled spirits used in the manufacture of certain nonbeverage 
products) is hereby amended by striking out "March 31, 1954" 
and inserting in lieu thereof "March 31, 1955". 
2 6^us c ^20 0 0 
(^) Section 497 of the Revenue Act of 1951 (relating to refunds 
note. 
on articles from foreign trade zones) is hereby amended by 
striking out "April 1, 1954" each place it appears and inserting 
in lieu thereof "April 1, 1955". 
(c) FLOOR STOCKS REFUNDS ON AUTOMOBILES, ETC.—Section 3403 
(relating to tax on automobiles, etc.) is hereby amended by adding at 
the end thereof the following new subsection: 
"(f) 
FLOOR STOCKS REFUNDS.— 
"(1) "Where before April 1, 1955, any article subject to the tax 
imposed by subsection (a) or (b) has been sold by the manufac-
turer, producer, or importer, and is on such date held by a dealer 
and has not been used and is intended for sale, there shall be 
credited or refunded (without interest) to the manufacturer, 
producer, or importer an amount equal to tlie difference between 
the tax paid by such manufacturer, producer, or importer on liis 
sale of the article and the amount of tax made applicable to such 
article on and after April 1,1955. 
"(2) As used in this subsection, the term 'dealer' includes a 
wholesaler, jobber, distributor, or retailer. 
For the purposes of 
this subsection, an article shall be considered as 'held by a dealer' 
if title thereto has passed to such dealer (whether or not delivery 
to him has been made), and if for purposes of consumption title 
to such article or possession thereof has not at any time been 
transferred to any person other than a dealer. 
"(3) Under regulations prescribed by the Secretary, the refund 
provided by this subsection may be made to the dealer instead of 
the manufacturer, producer, or importer, if the manufacturer, 
producer, or importer waives any claim for the amount so to be 
refunded. 
"(4) When the credit or refund provided for in this subsection 
has been allowed to the manufacturer, producer, or importer, he 
shall remit to the dealer to whom was sold the article in respect 
of which the credit or refund was allowed so much of that amount 
of the tax corresponding to the credit or refund as was included in 
or added to the price paid or agreed to be paid by the dealer. 
"(5) No person shall be entitled to credit or refund under this 
subsection unless (A) he has in his possession such evidence of 
the inventories with respect to which the credit or refund is 
claimed as may be required by regulations prescribed under this 
68 S T A T . ] 
PUBUC LAW 325-APR- 1, 1954 
47 
subsection, and (B) claim for such credit or refund is filed with 
the Secretary before July 1,1955. 
"(6) All provisions of law, including penalties, applicable in 
respect of the tax imposed under subsections (a) and (b) shall, 
insofar as applicable and not inconsistent with this subsection, 
be applicable in respect of the credits and refunds provided for 
in this subsection." 
Approved March 31, 1954. 
Public Law 325 
CHAPTER 127 
AN ACT 
To provide for the establishment of a United States Air Force Academy, and 
for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Air Force Academy Act". 
SEC. 2. There is hereby established in the Department of the Air 
Force a United States Air Force Academy, hereinafter referred to as 
the "Academy", for the instruction and preparation for military 
service of selected persons who shall be known as Air Force cadets. 
SEC. 3. (a) The Secretary of the Air Force shall determine the 
location of the Academy within the United States in the following 
manner: 
(1) Tlie Secretary of the Air Force shall establish immediately a 
commission, and appoint five members thereof, to advise him in 
connection with the selection of a permanent location for the Academy. 
The commission shall make its report to the Secretary as soon as 
practicable. 
(2) The Secretary shall accept the unanimous decision for a per-
manent location by such commission. In the event such recommen-
dation is not unanimous, the commission by a majority vote shall 
submit to the Secretary three sites from which the Secretary shall 
select one as the permanent location. 
(b) Following the selection of a location for the Academy, the 
Secretary of the Air Force is authorized— 
(1) to acquire land from other Government agencies without 
reimbursement, with the consent of such agencies; 
(2) to acquire lands and rights pertaining thereto, or other 
interests therein, including the temporary use thereof, by donation, 
purchase, exchange of Government owned lands, or otherwise, 
without regard to section 601, Act of September 28,1951 (65 Stat. 
365;40U. S. C. 551); 
(3) to prepare plans, specifications, and designs, to make sur-
veys and to do all other preparatory work, by contract or other-
wise, as he deems necessary or advisable in connection with the 
construction, equipping and organization of the Academy at such 
location; and 
(4) to construct and equip temporary or permanent Public 
Works, including buildings, facilities, appurtenances, and utilities, 
at such location. 
SEC. 4. For the purpose of providing temporary facilities and ena-
bling early operation of the Academy, the Secretary of the Air Force 
is authorized to provide for the erection of the minimum additional 
number of temporary buildings and the modification of existing 
structures and facilities at an existing Air Force base and to provide 
for the proper functioning, equipping, maintaining, and repairing 
thereof; and to contract with civilian institutions for such operation 
or instruction as he may deem necessary. 
AprU 1, 1954 
[H. R. 5337] 
Air Force Acad-
emy Act. 
Location. 
Teii5>orary facil-
ities.