Page:United States Statutes at Large Volume 69.djvu/656

 614

26 USC 4217.

Effective date.

PUBLIC LAW 318-AUG. 9, 1955

Navy and Marine Corps. Retirement of temporary officers. 34 USC 410b.

ST A T.

which would be imposed upon the sale of such trailer or semitrailer, until the total of the tax payments under such lease and any prior lease equals the total tax. In any case where a trailer or semitrailer which has been leased is sold before the total tax has been paid, the tax payable on such sale shall be the difference between the tax paid on the lease payments and the total tax. For purposes of this paragraph, the term 'total tax' means the tax computed, at the rate in effect on the date of the initial lease, on the fair market value on the date of such lease. However, in the case where a trailer or semitrailer which has been leased is sold before the total tax has been paid, the total tax shall not exceed a tax computed, at the rate in effect on the date of the initial lease, on the amount received on such sale (determined without regard to section 4216(b)) plus the total of the payments received by the lessor under any lease of such trailer or semitrailer." SEC. 3. Section 4217 of the Internal Revenue Code of 1954 is amended by adding at the end thereof a new sentence as follows: "This section shall not apply to the lease of an article upon which the tax has been paid in the manner provided in section 4216(d)(1) or the total tax has been paid in the manner provided in section 4216(d)(2)." SEC. 4. The amendments made by subsection (a) shall take effect on the first day of the first month which begins more than,10 days after the date of the enactment of this Act. In the application of section 4216(d) of the Internal Revenue Code of 1954 (as added by this Act) to any article which has been leased before the effective date specified in the preceding sentence, under regulations prescribed by the Secretary of the Treasury or his delegate— (1) the fair market value of such article shall be the fair market value determined as of such effective date; (2) only payments under a lease received on or after such effective date shall be considered in determining when the total tax (a^ defined in such section 4216(d)) has been paid; (3) any lease existing on such effective date, or if there is none, the first lease entered into after such effective date, shall be considered an initial lease (except that fair market value shall be determined as provided in paragraph (1) of this sentence); and (4) any lease existing on such effective date shall be considered as having been entered into on such date. Approved August 9, 1955. Public Law 318

August 9, 1955 [H. R. 2112]

[69

C H A P T E R 678

AN ACT To amend the Ac-t of Febniavy 21, 15)40 (60 Stat. 2(5), to permit the retirement of temporary officers of the naval service after completion of more than twenty years of active service.

Be it enacted by the Senate and Hou^^e of RepreHentativeH of the United States of America in Congress assembled, That the Act of February 21, 1946 (60 Stat, 26), as amended, is further amended by— (a) inserting in section 6 after the word "thereof" where it first occurs a comma and the phrase "including any member of the naval service temporarily appointed to commissioned grade whose permanent status is enlisted,"'; (b) adding at the end of section 6 the following new sentence: "As used in this section 'active commissioned service' includes all active service performed under a temporary appointment to a

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