Page:United States Statutes at Large Volume 49 Part 1.djvu/1735

 1690 74TH CONGRESS. SESS. II. CH. 690. JUNE 22, 1936 . sh all be le vied, asse ssed, col lected, a nd paid i n the man ner and Refund. at the rates prescribed in this title, but there shall be refunded to such State, Territory, political subdivision, or the District of Columbia (under rules and regulations to be prescribed by the Commissioner w ith the app ro val of the Sec re tar y) an amount which bears the same relation to the amount of the 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. If no part accruing to (2) If by the terms of such contract no part of the proceeds State, ate. from the operation of the public utility for the taxable year would, i rrespect ive of th e tax im posed by this ti tle, acc rue direc tly to or fo r the us e of such State, Territor y, polit ical sub division, or the District of Columbia, then the tax upon the net income of such person 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. Bridges to be so- (e) BRIDGES TO BE ACQUIRED BY STATE OR POLITICAL SUBDIVISION .- quired by State, etc. Whenever any State or political subdivision thereof, in pursuance of 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- Levy on operation (1) If by the terms of such contract the tax imposed by this proceeds before divi- sion made. title is to be paid out of the proceeds from the operation of such 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 applied for the benefit of such State or political subdi- vision, then a tax upon the net income from the operation of such bridge shall be levied, assessed, collected, and paid in the manner Refunds. and at the rates prescribed in this title, but there shall be refunded to such State or political subdivision (under rules and regulations to be prescribed by the Commissioner with the approval of the Secreta ry) an am ount whic h bears th e same re lation to the amou nt of the tax as the amount which (but for the imposition of the tax i mposed by this tit le) would have accr ued direc tly 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 Restriction. the operation of such bridge for such taxable year. No suc h refund shall be made unless the entire amount of the refund is to be applied in part payment for the acquisition of such bridge. If no part accruing to (2) If by the terms of such contract no part of the proceeds from State, etc' the operation of the bridge for the taxable year would, irrespective of the tax imposed by this title, accrue directly to or for the use of or be applied for the benefit of such State or political subdi- vision, then the 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. Dividends from (f) DIVIDEND FROM " CHINA TRADE ACT" CORPORATION .-In the "China Trade Act" corp oratio ns. case of a person, amounts distributed as dividends to or for his benefit by a corporation organized under the China Trade Act, 1922, if, at the time of such distribution, he is a resident of China, and the equitabl e right to the i ncome of the sha res of st ock of t he corpo ration is in good faith vested in him. S hipowners' mutual (g) SHIPOWNERS ' PROTECTI ON AND IND EMNITY ASSO CIATIONS. - - associations, receipts. The receipts of shipowners' mutual protection and indemnity asso- ciations not organized for profit, and no part of the net earnings of which inures to the benefit of any private shareholder
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