An Act to amend the Internal Revenue Code of 1954 to exempt bicycle tires and tubes from the manufacturer or production of new bicycles from the manufacturers excise tax on tires and tubes
PL 86-418 (H.R.8318), enacted 04/08/1960

88 
PUBLIC LAW 86-418-APR. 8, 1960 
[74 ST A T . 
April 8, 1960 
[H. R. 8318] 
Public Law 86-418 
AN ACT 
To amend the Internal Revenue Code of 1054 to exempt bicycle tires and tubes 
used in the manufacture or production of new bicycles from the manufacturers 
excise tax on tires and tubes. 
Taxes, 
Bicycle tires and 
tubes. 
72 Stat. 1283. 
36 u s e 4221. 
26 u s e 4071. 
26 u s e 4218. 
26 u s e 4223. 
26 u s e 6416. 
Be it enacted by the Senate and IIouHe of RemeHentatimH of the 
United States of America in ('ongre«ft aasembled^ That section 4221 (e) 
of the Internal ^Revenue C^ode of 1954 (special miles relating to certain 
tax-free sales) is amended by adding at the end thereof the following 
new paragraph: 
" (4) BICYCLE TIRES OR TUBES SOLD TO BICYCUJ MANUFACTURER.— 
"(A) I N GENERAL.—Under regulations prescribed by the 
Secretary or his delegate, no tax shall be imposed under sec-
tion 4071 on the sale of a bicycle tire (or an inner tube for 
such a tire) by the manufacturer thereof if such tire or tube 
is sold for use by the purchaser as material in the manu-
facture or production of, or as a component part of, a bicy-
cle (other than a rebuilt or reconditioned bicycle). 
"(B) BICYCLE TIRE DEFINED.—As used in this paragraph 
the term 'bicycle tire* means a tire, composed of loibber in 
combination with fabric or other reinforcing element, which 
is not more than 28 inches in outer diameter and not more 
than 21/4 inches in cross section and which is primarily de-
signed or adapted for use on bicycles. 
"(C) PROOF.—Where a bicycle tire or tube has been sold 
free of tax under this paragraph, this paragraph shall cease to 
apply unless, within tJie 6-month period whicn begins on the 
date of the sale by him (or, if earlier, on the date of ship-
ment by him), the manufacturer of such bicycle tire or tube 
receives proof that the tire or tube has been used in the man-
ner described in subparagraph (A)." 
SEC. 2. (a) Section 4218 of the Internal Revenue Code of 1954 (re-
lating to use by manufacturer or importer considered sale) is 
amended— 
(1) by striking out "subsection (b) or (c)" in subsection (a) 
and inserting in lieu thereof "subsection (b), (c), or (d)"; 
(2) by striking out "If any" in subsection (b) and inserting 
in lieu thereof "Except as provided in subsection (d), if any"; 
and 
(3) by redesignating subsection (d) as subsection (e) and 
inserting after subsection (c) the following new subsection: 
"(d) BICYCLE TIR^S AND TUBES.—If any person manufactures, pro-
duces, or imports a bicycle tire (as defined in section 4221(e) (4) (B)) 
or an inner tube for such a tire, and uses it (otherwise than as 
material in the manufacture or production of, or as a component part 
of, a bicycle, other than a rebuilt or reconditioned bicycle, to be 
manufactured or produced by him), then he shall be liable for tax 
under this chapter in the same manner as if such article were sold by 
him." 
(b) Section 4223(b)(1) of such Code (relating to computation of 
tax in the case of further manufacture) is amended by striking out 
"section 4218(d)" and inserting in lieu thereof "section 4218(e)"'. 
SEC. 3. (a) Paragraph (2) (E) of section 6416(b) of the Internal 
Revenue Code (relating to special cases in which taxpayments are con-
sidered overpayments) is amended by striking out "subparagraph 
(A) or (B)" and inserting in lieu thereof "subparagraph (A), (B), 
o r ( E ) " . 
74 
S T A T . ] 
PUBLIC LAW 86-419-APR. 9, 1960 
as 
(b) Paragraph (3) of such section 6416(b) is amended— 
(1) by striking out "subparagraph (B), (C), or (D)" in sub-
paragraph (A) and inserting in lieu thereof "subparagraph (B), 
(C), (D),or ( E ) " ; a n d 
(2) by striking out "or" at the end of subparagraph (C), by 
striking out the period at the end of subparagraph (D) and 
inserting in lieu thereof "; or", and by inserting after subpara-
graph ^D) the following new subparagraph: 
"(E) in the case of— 
"(i) a bicycle tire (as defined in section 4221(e)(4) 
"(u) an inner tube for such a tire, 
such article is used by the second manufacturer or producer as 
material in the manufacture or production of, or as a com-
ponent part of, a bicycle (other than a rebuilt or recondi-
tioned bicycle)." 
SEC. 4. The amendments made by this Act shall apply only with 
respect to bicycle tires and tubes sold by the manufacturer, producer, 
or importer thereof 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. 
Approved April 8, 1960. 
[For additional Public Law approved on April 8, 1960, see Public Law 
86-422 on page 41.] 
Effective date. 
Public Law 86-419 
AN ACT 
To amend section 334 of the Agricultural Adjustment Act of 1938, as amended, 
to provide that for certain purposes of this section, farms on which the farm 
marljeting excess of wheat is adjusted to zero because of underproduction 
shall be regarded as farms on which the entire amount of the farm marketing 
excess of wheat has been delivered to the Secretary or stored to avoid or 
postpone the payment of the penalty. 
April 9, I960 
[H. R. 4874] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 334 of 
the Agricultural Adjustment Act of 1938, as amended, is further 
amended by inserting a new subsection (d) between subsections (c) 
and (e) to read as follows: 
"(d) For the purposes of subsections (a), (b), and (c) of this 
section, any farm— 
"(1) to which a wheat marketing quota is applicable; and 
"(2) on which the acreage planted to wheat exceeds the farm 
wheat acreage allotment; and 
"(3) on which the marketing excess is zero 
shall be regarded as a farm on which the entire amount of the farm 
marketing excess has been delivered to the Secretary or stored in 
accordance with applicable regulations to avoid or postpone the pay-
ment of the penalty. 
This subsection shall be applicable in estab-
lishing the acreage seeded and diverted and the past acreage of wheat 
for 1959 and subsequent years in the apportionment of allotments 
beginning with the 1961 crop of wheat. 
For the purpose of clause 
(1) of this subsection, a farm with respect to which an exemption 
has been granted under section 335(f) for any year shall not be 
regarded as a farm to which a wheat marketing quota is applicable 
for such year, even though such exemption should become null and 
void because of a violation of the conditions of the exemption." 
Approved April 9, I960. 
Wheat. 
56 Stat. 52; 72 
iStat. 996. 
7 u s e 1334. 
7 u s e 1335.