Page:United States Statutes at Large Volume 90 Part 2.djvu/343

 PUBLIC LAW Q4-455—OCT. 4, 1976 "(3) upon the sale of any liquid for export, or for shipment to a possession of the United States, and in due course so exported or shipped; and "(4) with respect to the sale of any liquid to a nonprofit educational organization for its exclusive use, or with respect to the use by a nonprofit educational organization of any liquid as a fuel. For purposes of paragraph (4), the term 'nonprofit educational organization' means an educational organization described in section 170(b) (l)(A) ( i i) which is exempt from income tax under section 501(a). The term also includes a school operated as an activity of an organization de:-;cribed in section 501(c)(3) which is exempt from income tax under section 501(a), if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on."' (C) Section 4041 (relating to tax on fuels) is amended by adding at the end thereof the following new subsection: "(i) SALES BY UNITED STATES, ETC.—The taxes imposed by this section shall apply with respect to liquids sold at retail by the United States, or by any agency or instrumentality of the United States, unless sales by such agency or instrumentality are by statute specifically exempted from such taxes." (D) Chapter 31 is amended by striking out section 4042 (a cross reference) and subchapter F (special provisions applicable to retailers taxes).

90 STAT. 1811

"Nonprofit educational organization."

26 USC 4041.

26 USC 4042, 4054-4058.

(2) AMENDMENTS or SECTION 4216.—

(A) Section 4216 (relating to definition of price) is amended by redesignating subsections (e), (f), and (g) as subsections (d), (e), and (f), respectively. (B) Paragraphs (3), (4), and (5) of section 4216(b) (relating to constructive sales price) are each amended by striking out "subsections (a) and (f) " each place it appears and inserting in lieu thereof "subsections (a) and (e)". (3) AMENDMENT OF SECTION 4217.—Section 4217(d) (relating to lease treated as sale) is amended by striking out paragraph (4) (relating to certain 1958 transitional rules). (4) REPEAL or SECTION 4226.—Section 4228 (relating to floorstock taxes imposed before 1967) is repealed. (5) AMENDMENT OF SECTION 4227.—Section 4227 (relating to cross references) is amended to read as follows: "SEC. 4227. CROSS REFERENCE. "For credit for taxes on tires and inner tubes, see section 6416(c).'* (6) AMENDMENT OF SECTION 42.-53.—Section 4253 (relating to exemptions from the tax on communications services) is amended by adding at the end thereof the following new subsections:

26 USC 4216.

26 USC 4217.

26 USC 4226. 26 USC 4227.

26 USC 4253.

" ( i j STATE AND LOCAL GOVERNMENTAL EXEMPTION.—Under regula-

tions prescribed by the Secretary, no tax shall be imposed under section 4251 upon any payment received for services or facilities furnished to the government of any State, or any political subdivision thereof, or the District of Columbia. "(j)

EXEMPTION FOR NONPROFIT EDUCATIONAL ORGANIZATIONS.—

Under regulations prescribed by the Secretary, no tax shall be imposed under section 4251 on any amount paid by a nonprofit educational organization for services or facilities furnished to such organization. For purposes of this subsection, the term 'nonprofit educational "Nonprofit organization' means an educational organization described in section educational

organization.

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