Page:United States Statutes at Large Volume 92 Part 3.djvu/189

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2821

amended by striking out "the sum of the normal tax rate and the surtax rate for the taxable year specified in section 11" and inserting in lieu thereof "the highest rate of tax specified in section 11(b)". (5) TAX ON UNRELATED BUSINESS INCOME OF CHARITABLE, ETC., ORGANIZATIONS.—

(A) IMPOSITION OF TAX.—Paragraph (1) of section 511(a) 26 USC 511. (relating to charitable, etc., organizations taxable at corporation rates) is amended by striking out "a normal tax and a surtax" and inserting in lieu thereof "a tax". (B) ORGANIZATIONS SUBJECT TO TAX.—Paragraph (2) of

section 511(a) is amended by striking out "taxes" each place it appears and inserting in lieu thereof "tax". (6) POLITICAL ORGANIZATIONS.—Paragraph (1) of section 527(b) 26 USC 527. (relating to tax imposed) is amended to read as follows: "(1) IN GENERAL.—A tax is hereby imposed for each taxable year on the political organization taxable income of every political organization. Such tax shall be computed by multiplying the political organization taxable income by the highest rate of tax specified in section 11(b)." ^^te, p. 2820. (7) HOMEOWNERS

ASSOCIATIONS.—Paragraph (1) of section

528(b) (relating to tax imposed) is amended to read as follows: 26 USC 528. "(1) IN GENERAL.—A tax is hereby imposed for each taxable year on the homeowners association taxable income of every homeowners association. Such tax shall be computed by multiplying the homeowners association taxable income by the highest rate of tax specified in section 11(b)." (8) LIFE INSURANCE COMPANIES.—Paragraph (1) of section 802(a) 26 USC 802. (relating to tax imposed) is amended by striking out "a normal tax and surtax" and inserting in lieu thereof "a tax". (9) MUTUAL INSURANCE COMPANIES.—

(A) IN GENERAL.—Subsection (a) of section 821 (relating to 26 USC 821. tax on mutual insurance companies to which part II applies) is amended to read as follows: "(a) IMPOSITION OF TAX.—

"(1) IN GENERAL.—A tax is hereby imposed for each taxable year on the mutual insurance company taxable income of every mutual insurance company (other than a life insurance company and other than a fire, flood, or marine insurance company subject to the tax imposed by section 831). Such tax shall be 26 USC 831. computed by multiplying the mutual insurance company taxable income by the rates provided in section 11(b). "(2) CAP ON TAX WHERE INCOME IS LESS THAN $12,000.—The tax imposed by paragraph (1) shall not exceed 34 percent of the amount by which the mutual insurance company taxable income exceeds $6,000." (B) SMALL COMPANIES.—Paragraph (1) of section 821(c) 26 USC 821. (relating to alternative tax for certain small companies) is amended to read as follows: "(1) IMPOSITION OF TAX.—

"(A) IN GENERAL.—There is hereby imposed for each taxable year on the income of every mutual insurance company to which this subsection applies a tax (which shall be in lieu of the tax imposed by subsection (a)). Such tax shall be computed by multiplying the taxable investment income by the rates provided in section 11(b).

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