Page:United States Statutes at Large Volume 48 Part 1.djvu/739

 73d C ONGRESS. SESS. II. C H. 277. MAY 10, 1934 . 713 Columbia, or any political subdivision of a State or Territory, or C IN • COME TAX .N income accruing to the government of any possession of the United OF NET IN COME- States, or any political subdivision thereof. Contd . Whene ver any State, Territory, o r the Distric t of Columbia , or If under prior con- any political subdivision of a State or Territory, prior to September theereof s for operation 8, 1916, entered in good faith into a contract with any person, the object and purpose of which is to acquire, construct, operate, or maintain a public utility- (1) If by the terms of such contract the tax imposed by this p ortedwuton ocee ds title is to be paid out of the proceeds from the operation of such With State, etc. public utility, prior to any division of such proceeds between the per son and the S tate, Territo ry, political subdivision, or the District of Columbia, and if, but for the imposition of the tax imposed by this title, a part of such proceeds for the taxable year would accrue directly to or for the use of such State, Territory, political subdivision, or the District of Columbia, then a tax upon the net income from the operation of such public utility shall be levied, assessed, collected, and paid in the manner and at the rates prescribed in this title, but there shall be refunded to such State, Refunds. Territory, political subdivision, or the District of Columbia (under rules and regulations to be prescribed by the Commis- sioner with the approval of the Secretary) an amount which bea rs the same r elation to th e amount of th e tax as the amount which (but for the imposition of the tax imposed by this title) would have accrued directly to or for the use of such State, Territory, political subdivision, or the District of Columbia, bears to the amount of the net income from the operation of such public utility for such taxable year. accru (2) If by the terms of such contract no part of the proceeds inIf noe pact., the ing from the operation of the public utility for the taxable year income of persons tax- net would, irrespe ctive o f the tax imp osed by this title, accrue direct ly to or for the use of such State, Territory, political subdivision, or the District of Columbia, then the tax upon the net income of such person fr om the operat ion of such p ublic utility shall be levied, assess ed, collected, and paid in the manner an d at the rates prescribed in this title. (e ) BRIDGES TO BE ACQUIR ED BY S TATE OR POLIT ICAL SU BDIVISI ON. - Bridges t o be at- Whenever any State or political subdivision thereof, in pursuance of quire d by State, etc . a contract to which it is not a party entered into before the enact- ment of the Revenue Act of 1928, is to acquire a bridge- If b the terms of such contract the tax imposed b this proceeds, Levy on operation (1) y Y prior to divi- title is to be paid out of the proceeds from the operation of such sion thereof. bridge prior to any division of such proceeds, and if, but for the imposition of the tax imposed by this title, a part of such proceeds for the taxable year would accrue directly to or for the use of or would be ap plied for the benefit of s uch State or p olitical subdivision, then a tax upon the net income from the operation of such bridge shall be levied, assessed, collected, and paid in the manner and at the rates prescribed in this title, but there shall be refunded to such State or political subdivision (under rules and Refund to State, etc . regulations to be prescribed by the Commissioner with the approval of the Secretary) an amount which bears the same rela- tion to the amount of the tax as the a mount which (b ut for the imposition of the tax imposed by this title) would have accrued directly to or for the use of or would be applied for the benefit of such State or political subdivision, bears to the amount of the net income from the operation of such bridge for such taxable year. No such refund shall be made unless the entire amount of Restriction