Page:United States Statutes at Large Volume 100 Part 2.djvu/663

 PUBLIC LAW 99-499—OCT. 17, 1986

100 STAT. 1765

"(ii) such other person shall, for purposes of section 4661, be treated as the manufacturer, producer, or importer of such chemical.

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"(B)

REGISTRATION

REQUIREMENT.—Subparagraph

(A)

shall not apply to any inventory exchange unless— "(i) both parties are registered with the Secretary as manufacturers, producers, or importers of taxable chemicals, and "(ii) the person receiving the taxable chemical has, at such time as the Secretary may prescribe, notified the manufacturer, producer, or importer of such person's registration number and the internal revenue district in which such person is registered. "(C) INVENTORY EXCHANGE.—For purposes of this paragraph, the term 'inventory exchange' means any exchange in which 2 persons exchange property which is, in the hands of each person, property described in section 1221(1)."

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26 USC 4661. , ^'

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(g) SPECIAL RULES RELATING TO HYDROCARBON STREAMS (DONTAINING ORGANIC TAXABLE CHEMICALS.—Subsection (b) of section 4662 of

such Code (relating to exceptions; other special rules) is amended by adding after paragraph (9) the following new paragraph:

Ante, p. 1763.

"(10) HYDROCARBON STREAMS CONTAINING MIXTURES O F ORGANIC TAXABLE CHEMICALS.—

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"(A) IN GENERAL.—No tax shall be imposed under section 4661(a) on any organic taxable chemical while such chemical is part of an intermediate hydrocarbon stream containing a mixture of organic taxable chemicals. "(B) REMOVAL, ETC., TREATED AS USE.—For purposes of this part, if any organic taxable chemical on which no tax was imposed by reason of subparagraph (A) is isolated, extracted, or otherwise removed from, or ceases to be part of, an intermediate hydrocarbon stream— "(i) such isolation, extraction, removal, or cessation shall be treated as use by the person causing such event, and "(ii) such person shall be treated as the manufacturer of such chemical.

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"(C)

' -

REGISTRATION

REQUIREMENT.—Subparagraph

(A)

shall not apply to any sale of any intermediate hydrocarbon stream unless the registration requirements of clauses (i) and (ii) of subsection (c)(2)(B) are satisfied. "(D) ORGANIC TAXABLE CHEMICAL.—For purposes of this paragraph, the term 'organic taxable chemical' means any taxable chemical which is an organic substance."

(h) EFFECTIVE DATES.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall take effect on January 1, 1987. J

(2) REPEAL OF TAX ON XYLENE FOR PERIODS BEFORE OCTOBER i,

1985.— (A) REFUND OF TAX PREVIOUSLY IMPOSED.—

.t.ii..; ' •' ' '*

(i) IN GENERAL.—In the case of any tax imposed by section 4661 of the Internal Revenue Code of 1954 on the sale or use of xylene before October 1, 1985, such ^^^ (including interest, additions to tax, and additional amounts) shall not be assessed, and if assessed, the

26 USC 4661

note.

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