Page:United States Statutes at Large Volume 58 Part 1.djvu/82

 PUBLIC LAWS-CH. 63 - FEB. 25, 1944 55 Stat. 718. 26 U. S. C., Supp. n, § 2400-2411. Ante, p. 61; post,pp. 63, 64, 69. 55 Stat. 71; 53 Stat. 416. 26U..c., uBpp. m, § 2405, 3441 (c). Ante, p. 0. Ante, p.61. Ante, p. 60. Ante, p. 60. 53 Stat. 422. 26U. . C. 347. Ant, p. 6 bags, brief cases made of leather or imitation leather, and sales- men's sample and display cases. "(2) Purses, handbags, pocketbooks, wallets, billfolds, and card, pass, and key cases. "(3) Toilet cases and other cases, bags, and kits (without regard to size, shape, construction, or material from which made) for use in carrying toilet articles or articles of wearing apparel. (b) OTmER LAWS APPLCABLE. -Al l provisions of law (including penalties) applicable in respect of the taxes imposed by Chapter 19 shall be applicable in respect of the tax imposed by subsection (a). "SEC. 1652. LEASES, CONDITIONAL SALES, EXISTING CONTRACTS, ETC. "(a) CASES WHERE RATE OF TAX INcREasED. -In the application of section 2405 or 3441 (c) to the articles with respect to which the rate of tax is increased by this chapter, where the lease, contract of sale, conditional sale, or chattel mortgage was made, delivery there- under was made, and a part of the consideration was paid, before the effective date of Title III of the Revenue Act of 1943, the total tax referred to in such section shall be the tax at the rate in force on the day before such effective date. "(b) CASES WHERE NEW TAX IMPosED.- In the case of (1) a'lease, (2) a contract for the sale of an article wherein it is provided that the price shall be paid by installments and title to the article sold does not pass until a future date notwithstanding partial payment by installments, (3) a conditional sale, or (4) a chattel mortgage arrangement wherein it is provided that the sales price shall be paid in installments, no tax shall be imposed under section 1651 on the sale of any article if with respect to such article the lease, contract for sale, conditional sale, or chattel mortgage arrangement was made, delivery thereunder was made, and a part of the consideration was paid, before the effective date of Title III of the Revenue Act of 1943. "(c) EXITING CONTRATrs. - "(1) TAX PAYABLE BY VENDEE. - If (A) any person has, prior to the effective date of Title III of the Revenue Act of 1943, made a bona fide contract for the sale on or after such date, of any article with respect to the sale of which a tax is imposed by that Act or an existing rate of tax is increased by that Act, and (B) such contract does not permit the adding to the amount to be paid under such contract of the whole of such tax or increased rate of tax, then (unless the contract prohibits such addition) the vendee shall, in lieu of the vendor, pay so much of the tax as is not so permitted to be added to the contract price. "(2) TAX PAD TO VENDOR--Taxes payable by the vendee shall be paid to the vendor at the time the sale is consummated, and shall be collected and paid to the United States by the vendor in the same manner as provided in section 3467. In case of failure or refusal by the vendee to pay such taxes to the vendor the vendor shall report the facts to the Commissioner who shall cause collection of such taxes to be made from the vendee. 'SEC. 1653 ARTICLES CLASSIFIABLE UNDER MORE THAN ONE SECTION. "In the case of any article classifiable (a) under section 1651 and one or more sections of Chapter 19, or (b) under more than one section [58 STAT.

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