Page:United States Statutes at Large Volume 90 Part 2.djvu/453

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1921

considered property of a like kind as the property converted without regard to whether the taxpayer's interest in the replacement property is the same kind of interest the taxpayer held in the converted property. " (b) EFFECTIVE D A T E. — The amendment made by this section shall apply to taxable years beginning after December 31, 1970. SEC. 2128. TAX TREATMENT OF LARGE CIGARS. (a) IN GENERAL.—So much of section 5701(a) (relating to the manner of taxation and the rates of tax on cigars) as follows paragraph (1) is amended to read as follow: " (2) LARGE CIGARS.—On cigars weighing more than 3 pounds per thousand, a tax equal to 81/^ percent of the wholesale price, but not more than $20 per thousand. Cigars not exempt from tax under this chapter which are removed but not intended for sale shall be taxed at the same rate as similar cigars removed for sale." (b) DEFINITION OF WHOLESALE PRICE.—Section 5702 is amended by adding at the end thereof the following new subsection: " (m) WHOLESALE PRICE.—'Wholesale price' means the manufacturer's, or importer's, suggested delivered price at which the cigars are to be sold to retailers, inclusive of the tax imposed by this chapter or section 7652, but exclusive of any State or local taxes imposed on cigars as a commodity, and before any trade, cash, or other discounts, or any promotion, advertising, display, or similar allowances. W h e r e the manufacturer's or importer's suggested delivered price to retailers is not adequately supported by bona fide arm's length sales, or where the manufacturer or importer has no suggested delivered price to retailers, the wholesale price shall be the price for which cigars of comparable retail price are sold to retailers in the ordinary course of trade as determined by the Secretary." (c) RECORDKEEPING REQUIREMENT.—Section 5741 is amended to read as follows: "SEC. 5741. RECORDS TO BE MAINTAINED. " E v e r y manufacturer of tobacco products or cigarette papers and tubes, every importer, and every export warehouse proprietor shall keep such records in such manner as the Secretary shall by regulation prescribe. The records required under this section shall be available for inspection by any internal revenue officer during business hours." (d)

26 USC 1033 note. 26 USC 5701.

26 USC 5702.

,

26 USC 5741,

CLERICAL AMENDMENTS. —

(1) The heading of subchapter D of chapter 52 is amended to read as follows: "Subchapter D—Records of Manufacturers and Importers of Tobacco P r o d u c t s and Cigarette P a p e r s and Tubes, and Export Warehouse Proprietors". (2) The table of subchapters for chapter 52 is amended by striking out the item relating to subchapter D and inserting in lieu thereof the following: "SxjBCHAPTEE D. Records of manufacturers and importers of tobacco products and cigarette papers and tubes, and export warehouse proprietors." (e) EFFECTIVE D A T E. — The amendments made by this section shall take effect on the first month which begins more than 90 days after the date of the enactment of this Act.

26 USC 5701 note.

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