An Act to amend the Internal Revenue Code of 1954 to make technical changes in certain excise tax laws, and for other purposes
PL 86-344 (H.R.8725), enacted 09/21/1959

73 
S T A T . ] 
PUBLIC LAW 86-344-SEPT. 21, 1959 
617 
SEC. 4. Notwithstanding the provisions of section 6 of the Act of 
March 23, 1906 (33 U.S.C. 496), this Act shall be null and void unless 
the actual construction of the bridge referred to in the first section of 
this Act is commenced within 3 years and completed within 5 years 
from the date of enactment of this Act. 
SEC. 5. The right to alter, amend, or repeal this Act is hereby 
expressly reserved. 
Approved September 21, 1959. 
Limitation. 
Public Law 86-344 
AN ACT 
To amend the Internal Revenue Code of 1954 to make technical changes in 
certain excise tax laws, and for other purposes. 
September 21, 1959 
[H. R. 8725] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ 
SECTION 1. EXEMPTION OF CORAL FROM JEWELRY, ETC., EXCISE 
TAX ON CERTAIN SEMIPRECIOUS STONES. 
(a) EXEMPTION.—Section 4001 of the Internal Revenue Code of 1954 
(relating to the imposition of tax in respect of jewelry and related 
items) is amended by striking out "Coral". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect on the first day of the first calendar month which 
begins more than 10 days after the date of the enactment of this Act. 
SEC. 2. NONPROFIT EDUCATIONAL ORGANIZATIONS. 
(a) EXEMPTION.—Section 4057 of the Internal Revenue Code of 
1954 (relating to the exemption from retailers excise taxes for non-
profit educational organizations) is amended— 
(1) by striking out "Under" and inserting in lieu thereof "(a) 
EXEMPTION.—Under"; 
(2) by striking out the second sentence thereof; and 
(3) by adding at the end thereof the following new subsection: 
"(b) DEFINITION.—For purposes of subsection (a), the term 'non-
profit educational organization' means an educational organization 
described in section 503(b) (2) which is exempt from income tax under 
section 501 (a). The term also includes a school operated as an activity 
of an organization described in section 501(c)(3) which is exempt 
from income tax under section 501(a), if such school normally main-
tains a regular faculty and curriculum and normally has a regularly 
enrolled body of pupils or students in attendance at the place where its 
educational activities are regularly carried on." 
(b) DEFINITION.—Section 4221 (d)(5) of the Internal Revenue Code 
of 1954 (relating to definitions in respect of certain tax-free sales) is 
amended by adding at the end thereof the following new sentence: 
"The term also includes a school operated as an activity of an organ-
ization described in section 501(c) (3) which is exempt from income 
tax under section 501 (a), if such school normally maintains a regular 
faculty and curriculum and normally has a regularly enrolled body of 
pupils or students in attendance at the place where its educational 
activities are regularly carried on." 
(c) ADMISSIONS TAX EXEMPTION.—Section 4233(a) (1) (A) (ii) 
of 
the Internal Revenue Code of 1954 (relating to admissions tax exemp-
tions) is amended by adding at the end thereof the following: "or a 
school operated as an activity of an organization described in section 
Excise tax laws, 
technical changes. 
72 Stat. 1275. 
26 use 4001. 
72 Stat. 1277. 
26 use 405 7. 
72 Stat. 1282. 
26 use 4221. 
68A Stat. 497. 
26 use 4233. 
618 
PUBLIC LAW 86-344-SEPT. 21, 1959 
[73 STAT. 
501(c)(3) which is exempt from income tax under section 501(a), 
if such school normally maintains a re,2:ular faculty and curriculum 
and normally has a regularly enrolled body of pupils or students in 
attendance at the place where its educational activities are regularly 
carried on;". 
(d) 
EXEMPTION FOR SERVICES AND FACILITIES TAXES.—Section 
26us1:*4294' 
4294(b) of the Internal Eevenue Code of 1954 (relating to exemp-
tion from certain facilities and services taxes) is amended by adding 
at the end thereof the following new sentence: "The term also 
includes a school operated as an activity of an organization described 
in section 501(c) (3) which is exempt from income tax under section 
501(a), if such school normally maintains a regul^ faculty and 
curriculum and normally lias a regularly enrolled body of pupils or 
students in attendance at the place where its educational activities 
are regularly carried on." 
(e) EFFECTIVE DATES.—The amendments made by subsections (a), 
(b), and (d) shall take effect as of January 1, 1959. The amendment 
made by subsection (c) shall take effect on the first day of the first 
calendar month which begins more than 10 days after the date of 
the enactment of this Act. 
SEC. 3. CERTAIN PAYMENTS FOR CAPITAL IMPROVEMENTS. 
26us%4243*; 
(ci) EXEMPTION FROM CLUB DUES TAX.—Sectiou 4243(b) of the 
Internal Revenue Code of 1954 (relating to assessments for capital 
improvements) is amended to read as follows: 
"(b) 
PAYMENTS FOR CAPITAL IMPROVEMENTS.—Notwithstanding 
any other provision of this part, there shall be exempted from the 
provisions of section 4241 any amount paid as dues or membership 
fees or as initiation fees— 
"(1) for the construction or reconstruction of any social, 
athletic, or sporting facility, or 
"(2) for the construction or reconstruction of any capital ad-
dition to, or capital improvement of, any such facility, or 
"(3) 
for 
furnishings 
or 
fixtures 
(including 
installation 
charges) for any such facility, to the extent that such furnishings 
or fixtures are required, by reason of the construction or recon-
struction described in paragraph (1) or (2), for the use of such 
facility upon completion of such construction or reconstruction; 
except that, in the case of any such amount which is not expended 
for such construction, reconstruction, furnishings or fixtures (includ-
ing installation charges) within 3 years after the date of payment of 
such amount, the exemption provided by this subsection shall cease 
to apply upon the expiration of such 3-year period, and the club or 
organization, rather than the person who made such payment, shall 
be liable for any tax imposed by section 4241 in respect of such pay-
ment, as if such payment had been made on the first day following 
the expiration of such 3-year period. 
26'^scf424V' 
(^) TECHNICAL. AMENDMENT.—Sectioiv 4241(b) of such Code (re-
lating to who pays club dues tax) is amended by striking out "The" 
and inserting in lieu thereof "Except as provided in section 4243 (b), 
the". 
(c) EFFECTIVE DATE.—The amendments made by subsections (a) 
and (b) shall apply only with respect to amounts paid on or after the 
first day of the first calendar month which begins more than 10 days 
after the date of the enactment of this Act for construction or recon-
struction of any social, athletic, or sporting facility (or for any capital 
addition to, or capital improvement of, any such facility) begun on or 
after January 1, 1959, or for furnishings or fixtures (including in-
stallation) required for the use of such facility upon the completion 
of such construction or reconstruction begun on or after such date. 
73 S T A T . ] 
PUBLIC LAW 86-344-SEPT. 21, 1959 
619 
SEC. 4. EXEMPTION FOR CERTAIN GENERAL TELEPHONE SERVICE. 
(a) EXEMPTION FROM TAX.—Section 4253(f) of the Internal Kev- 
J^ stat^.^1290. 
enue Code of 1954 (relating to exemptions in respect of special wire 
service in company business) is amended to read as follows: 
"(f) 
COMMON CARRIERS AND COMMUNICATIONS COMPANIES.—No tax 
shall be imposed under section 4251 on the amount paid for— 
" (1) any wire mileage service or wire and equipment service; or 
"(2) the use of any telephone or radio telephone line or chan-
nel which constitutes general telephone service (within the mean-
ing of section 4252(a)), but only if such line or channel connects 
stations between any two of which there would otherwise be a 
toll charge, 
to the extent that the amount so paid is for use by a common carrier, 
telephone or telegraph company, or radio broadcasting station or net-
work in the conduct of its business as such." 
(b) EFFECTIVE DATE.— 
(1) Subject to the provisions of paragraph (2), the amend-
ment made by subsection (a) shall apply with respect to amounts 
paid on or after January 1,1959, for services rendered on or after 
such date. 
(2) The amendment made by subsection (a) shall not apply 
with respect to amounts paid pursuant to bills rendered before 
January 1, 1959. In the case of amounts paid pursuant to bills 
rendered on or after such date for services for which no bill was 
rendered before such date, such amendment 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 than 2 
months before such date, the provisions of subchapter B of chap-
ter 33 of the Internal Revenue Code of 1954 in effect at the time 
esA stat^spa^ 
such services were rendered shall apply to the amounts paid for 4254. 
such services. 
SEC. 5. SALES OR TRANSFERS OF STOCK RIGHTS, ETC. 
(a) IMPOSITION OF TAX.—Section 4321 of the Internal Revenue Code 
esA stat. 5 is. 
of 1954 (relating to imposition of tax) is amended to read as follows: 
"SEC. 4321. IMPOSITION OF TAX. 
"There is hereby imposed on each sale or transfer of shares or cer-
tificates of stock, or of rights to subscribe for or to receive such shares 
or certificates, issued by a corporation, a tax at the rate of 4 cents on 
each $100 (or major fraction thereof) of the actual value of the cer-
tificates, of the shares where no certificates are sold or transferred, or 
of the rights, as the case may be. 
In no case shall the tax so imposed 
on any such sale or transfer be— 
" (1) more than 8 cents on each share, or 
" (2) less than 4 cents on the sale or transfer.'* 
(b) 
CERTIFICATION AS TO VALUE BY TRANSFEROR OR TRANSFEREE.— 
Section 4323(b) of the Internal Revenue Code of 1954 (relating to 
72 stat^ j296. 
the certification of value by a transferor or transferee) is amended 
to read as follows: 
"(b) 
CERTIFICATION AS TO VALUE BY TRANSFEROR OR TRANSFEREE.— 
Where shares or certificates of stock, or of rights to subscribe for or to 
receive such shares or certificates, are presented for transfer and the 
tax thereon is paid by the use of adhesive stamps, such shares, certifi-
cates, or rights shall be accompanied by a certification signed by the 
transferor or his agent or the transferee or his agent as to the actual 
value of the shares, certificates, or rights so transferred, and any cor-
poration or transfer agent to whom such shares, certificates, or rights 
are presented shall be entitled to rely on such certification without 
further inquiry." 
32716 O-60—42 
26 u s e 
4251-
26 u s e 4321. 
26 u s e 4323, 
620 
PUBLIC LAW 86-345-SEPT. 21, 1959 
[73 ST A T . 
68A Stat. 531. 
26 u s e 4461. 
72 Stat. 1304. 
26 u s e 4462. 
(c) EFFECTIVE DATE,—The amendments made by subsections (a) 
and (b) shall take effect on the first day of the first calendar month 
which begins more than 10 days after the date of the enactment of this 
Act. 
SEC. 6. COIN-OPERATED DEVICES COMMONLY KNOWN AS CLAW, 
CRANE, AND DIGGER MACHINES, ETC. 
,(a) EATE OF OCCUPATIONAL TAX.—Section 4461 of the Internal 
Revenue Code of 1954 (relating to occupational tax on coin-operated 
devices) is amended by inserting "(a) I N GENERAL.—" before "There'' 
at the beginning thereof, and by adding at the end of such section the 
following new subsection: 
"(b) REDUCED RATE.—In the case of a device which is defined in 
paragraph (2) of section 4462(a) and which is commonly known as 
a claw, crane, or digger machine, the tax imposed by subsection (a) 
shall be at the rate of $10 a year (in lieu of $250 a year) if— 
"(1) the charge for each operation of such device is not more 
than 10 cents, 
"(2) such device never dispenses a prize other than merchan-
dise of a maximum retail value of $1, and with respect to such 
device there is never a display or offer of any prize or merchan-
dise other than merchandise dispensed by such machine, 
"(3) such device is actuated by a crank and operates solely by 
means of a nonelectrical mechanism, and 
"(4) such device is not operated other than in connection with 
and as part of carnivals or county or State fairs." 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to periods after June 30, 1960. 
Approved September 21, 1959. 
Public Law 86-345 
AN 
AP.T 
September 21, 1959 
[H. R. 8911] 
To provide for the presentation by tlie United States of a statue of General 
George Washington to the people of Uruguay, and for other purposes. 
Uruguay. 
Presentation of 
Gen. George Wash-
ington statue. 
Appropriation. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the Secretary 
of State is authorized and requested to procure a bronze statue of 
General George Washington and present the same, on behalf of the 
people of the United States, to the people of Uruguay as an expres-
sion of appreciation for the gift by the people of Uruguay of a bronze 
statue of General Jose Gervasio Artigas to the United States. Such 
statue shall be prepared only after the design, plans, and specifica-
tions therefor have been submitted to and approved by the National 
Commission of Fine Arts. 
SEC. 2. There are authorized to be appropriated such sums as may 
be necessary to carry out the provisions of this Act, including pay-
ment of the cost of such statue, the design and construction of a suit-
able pedestal therefor, transportation, including insurance, and travel-
ing expenses of persons delegated by the Secretary of State to present 
such statue, on behalf of the people of the United States, to the people 
of Uruguay. 
Approved September 21, 1959.