Page:United States Statutes at Large Volume 100 Part 2.djvu/666

 100 STAT. 1768

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PUBLIC LAW 99-499—OCT. 17, 1986

scribe) sufficient information to determine under paragraph (1) the amount of the tax imposed by subsection (a) on any taxable ^ substance, the amount of the tax imposed on such taxable ^j^ substance shall be 5 percent of the appraised value of such ' substance as of the time such substance was entered into the United States for consumption, use, or warehousing. "(3) AUTHORITY TO PRESCRIBE RATE IN LIEU OF PARAGRAPH (2)

RATE.—The Secretary may prescribe for each taxable substance a tax which, if prescribed, shall apply in lieu of the tax specified in paragraph (2) with respect to such substance. The tax prescribed by the Secretary shall be equal to the amount of tax which would be imposed by subsection (a) with respect to the taxable substance if such substance were produced using the predominant method of production of such substance. "(c) EXEMPTIONS FOR SUBSTANCES TAXED UNDER SECTIONS 4611

AND 4661.—No tax shall be imposed by this section on the sale or use of any substance if tax is imposed on such sale or use under section 4611 or 4661.

26 USC 4611, 4661.

"(d) TAX-FREE SALES, ETC. FOR SUBSTANCES USED AS CERTAIN FUELS OR IN THE PRODUCTION OF FERTILIZER OR ANIMAL FEED.—Rules

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26 USC 4672.

similar to the following rules shall apply for purposes of applying this section with respect to taxable substances used or sold for use as described in such rules: "(1) Paragraphs (2), (5), and (9) of section 4662(b) (relating to tax-free sales of chemicals used as fuel or in the production of fertilizer or animal feed). "(2) Paragraphs (2), (3), and (4) of section 4662(d) (relating to refund or credit of tax on certain chemicals used as fuel or in the production of fertilizer or animal feed). "(e) TERMINATION.—No tax shall be imposed under this section during any period during which no tax is imposed under section 4611(a). "SEC. 4672. DEFINITIONS AND SPECIAL RILES.

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"(a) TAXABLE SUBSTANCE.—For purposes of this subchapter— "(1) IN GENERAL.—The term 'taxable substance' means any substance which, at the time of sale or use by the importer, is listed as a taxable substance by the Secretary for purposes of this subchapter. "(2) DETERMINATION OF SUBSTANCES ON LIST.—A substance

shall be listed under paragraph (1) if— "(A) the substance is contained in the list under para'\j K graph (3), or J „, "(B) the Secretary determines, in consultation with the 'J',\ ^^ ^ ^ Administrator of the Environmental Protection Agency and the Commissioner of Customs, that taxable chemicals con> stitute more than 50 percent of the weight of the materials used to produce such substance (determined on the basis of the predominant method of production). "(3) I N I T I A L LIST OF TAXABLE S U B S T A N C E S. —

Cumene Styrene Ammonium nitrate Nickel oxide Isopropyl alcohol

Methylene chloride Polypropylene Propylene glycol Formaldehyde Acetone

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