Page:United States Statutes at Large Volume 76.djvu/1032

 f84

PUBLIC LAW 87-834~OCT. 16, 1962

[76 STAT.

The term 'domestic building and loan association' also includes any association which, for the taxable year, would satisfy the requirements of the first sentence of this paragraph if '41 percent' were substituted for '36 percent' in subparagraph (E). Except in the case of the taxpayer's first taxable year beginning after the date of the enactment of the Revenue Act of 1962, the second sentence of this paragraph shall not apply to an association for the taxable year unless such association (i) was a domestic building and loan association within the meaning of the first sentence of this paragraph for the first taxable year preceding the taxable year, or (ii) was. a domestic building and loan association solely by reason of the second sentence of this paragraph for the first taxable year preceding the taxable year (but not for the second preceding taxable year). A t the election of the taxpayer, the percentages specified in this paragraph shall be applied on the basis of the average assets outstanding during the taxable year, in lieu of the close of the taxable year, computed under regulations prescribed by the Secretary or his delegate." (d) CLERICAL AMENDMENTS.—The table of sections for part II of 26 USC 591-S&4. subchapter H of chapter 1 is amended— (1) by striking out the third item and inserting in lieu thereof the following: "Sec. 593. Reserves for losses on loans." and (2) by adding at the end thereof the following: "Sec..595. Foreclosure on property securing loans." (e) REPEAL OF EXEMPTION FROM CERTAIN TAXES.— (1) AMENDMENT TO HOME OWNERS' LOAN ACT OF

48 Stat. 133; 65 Stat. 490.

26 USC 4382.

1933.—Section 5(h) of the Home Owners' Loan Act of 1933, as amended (12 U.S.C. sec. 1464(h)), is amended to read as follows: ^^(h) No State, county, municipal, or local taxing authority shall impose any tax on such associations or their franchise, capital, reserves, surplus, loans, or income greater than that imposed by such authority fm other similar local mutual or cooperative thrift and home financing. institutions." (2) CERTAIN DOCUMENTARY STAMP TAXES,

SectioU 4 3 8 2 (a)(2)

(relating to exemptions from documentary stamp taxes) is amended to read as follows:. " (2) DOMESTIC BUILDING AND LOAN ASSOCIATIONS AND MUTUAL

DITCH O IRRIGATION COMPANIES.—Shares or certificates of stock R issued by domestic building and loan associations and cooperative banks, to the extent such shares or certificates represent deposits or withdrawable accounts; or shares or certificates of stock and certificates of indebtedness issued by mutual ditch or irrigation companies." (f) DEDUCTION FOR DIVIDENDS OR INTEREST PAID ON DEPOSITS.—Sec-

tion 591 (relating to deduction for dividends paid on deposits) is amended— (1) by striking out "and domestic building and loan associations" and inserting in lieu thereof the following: "domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under Federal or State law"; and (2) by inserting after "dividends" the following: "or interest". (g) EFFECTIVE DATES.—

Ante, p. 981.

(1) The amendment made by subsection (a) shall apply to taxable years ending after December 31, 1962, except that section 593(f) of the Internal Revenue Code of 1954 shall apply to dis-

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