Page:United States Statutes at Large Volume 101 Part 1.djvu/289

 PUBLIC LAW 100-17—APR. 2, 1987 R>iJ; V -^

101 STAT. 259

"(ii) an amount equal to the presumed markup percentage of the sum described in clause (i). "(B)

PRESUMED MARKUP PERCENTAGE.—For purposes of

subparagraph (A), the term 'presumed markup percentage' means the average markup percentage of retailers of arti' ' -'^' cles of the type involved, as determined by the Secretary. "(C) EXCEPTIONS UNDER REGULATIONS.—To the extent provided in regulations prescribed by the Secretary, subparagraph (A) shall not apply to specified types of leases where its application is not necessary to carry out the purposes of this subsection." (c) LONG-TERM LEASE DEFINED.—Section 4052 of such Code is 26 USC 4052. amended by adding at the end thereof the following new subsection: "(f) LONG-TERM LEASE.—For purposes of this section, the term 'long-term lease' means any lease with a term of 1 year or more. In determining a lease term for purposes of the preceding sentence, the rules of section 168(i)(3)(A) shall apply." 26 USC 168. (d) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 4052 apply with respect to articles sold by the manufacturer, producer, or "°*«importer on or after the first day of the first calendar quarter which begins more than 90 days after the date of the enactment of this Act. SEC. 506. DETERMINATION OF MANUFACTURER.

PRICE

WHERE

TAX

PAID

BY

(a) IN GENERAL.—Subsection (b) of section 4052 of the Internal Revenue Code of 1986 (defining price) is amended by adding at the end thereof the following new paragraph:

26 USC 4052.

"(4) SPECIAL RULE WHERE TAX PAID BY MANUFACTURER, PRODUCER, OR IMPORTER.—

s

^a..

"(A) IN GENERAL.—In any case where the manufacturer, producer, or importer of any article (or a related person) is liable for tax imposed by this subchapter with respect to such article, the tax under this subchapter shall be computed on a price equal to the sum of— "(i) the price which would (but for this paragraph) be determined under this subchapter, plus "(ii) the product of the price referred to in clause (i) and the presumed markup percentage determined under paragraph (3)(B). "(B) RELATED PERSON.—For purposes of this paragraph— "(i) IN GENERAL.—Except as provided in clause (ii), the term 'related person' means any person who is a member of the same controlled group (within the meaning of section 5061(e)(3)) as the manufacturer, producer, or importer.

-if

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26 USC 5061.

"(ii) EXCEPTION FOR RETAIL ESTABLISHMENT.—To the

extent provided in regulations prescribed by the Secretary, a person shall not be treated as a related person with respect to the sale of any article if such article is sold through a permanent retail establishment in the •' normal course of the trade or business of being a retailer." 0)) EFFECTIVE DATE.—The amendment made by this section shall 26 USC 4052 apply with respect to articles sold by the manufacturer, producer, or note. importer on or after the 1st day of the 1st calendar quarter which begins more than 90 days after the date of the enactment of this Act.

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