Page:United States Statutes at Large Volume 92 Part 3.djvu/552

 92 STAT. 3184 Ante, p. 3180. 26 USC 4293.

PUBLIC LAW 95-618—NOV. 9, 1978 "Paragraphs (4) and (5) shall not apply to the tax imposed by section 4064." (2) UNITED STATES AXD POSSESSIONS.—Section 4293 (relating to exemption for United States and possessions) is amended by striking out "tax imposed by section 4121" and inserting in lieu thereof "taxes imposed by sections 4064 and 4121". (3) DENIAL OF REFUNDS FOR CERTAIN USES.—Paragraph (2) of

26 USC 6416.

section 6416(b) (relating to tax payments considered overpayments in the case of specified uses and resales) is amended by adding at the end thereof the following new sentence: "Subparagraphs (C) and (D) shall not apply in the case of any tax paid under section 4064". (d) PAYMENT OF TAX IN CASE OF LEASED AUTOMOBILES.—Section

26 USC 4217.

4217 (relating to leases) is amended by adding at the end thereof the following new subsection: "(e) LEASES OF AUTOMOBILES SUBJECT TO GAS GUZZLER TAX.—

Ante, p. 3180. 26 USC 4222.

(1) IN GENERAL.—In the case of the lease of an automobile the sale of which by the manufacturer would be taxable under section 4064, the foregoing provisions of this section shall not apply, but, for purposes of this chapter— "(A) the first lease of such automobile by the manufacturer shall be considered to be a sale, and "(B) any lease of such automobile by the manufacturer after the first lease of such automobile shall not be considered to be a sale. " (2) PAYMENT OF TAX.—In the case of a lease described in paragraph (1)(A) "(A) there shall be paid by the manufacturer on each lease payment that portion of the total gas guzzler tax which bears the same ratio to such total gas guzzler tax as such payment bears to the total amount to be paid under such lease, "(B) if such lease is canceled, or the automobile is sold or otherwise disposed of, before the total gas guzzler tax is payable, there shall be paid by the manufacturer on such cancellation, sale, or disposition the difference between the tax imposed under subparagraph (A) on the lease payments and the total gas guzzler tax, and "(C) if the automobile is sold or otherwise disposed of after the total gas guzzler tax is payable, no tax shall be imposed under section 4064 on such sale or disposition. "(3) DEFINITIONS.—For purposes of this subsection— " (A) MANUFACTURER.—The term 'manufacturer' includes a producer or importer. "(B) TOTAL GAS GUZZLER TAX.—The term 'total gas guzzler tax' means the tax imposed by section 4064, computed at the rate in effect on the date of the first lease." (e) AUTHORITY TO EXTEND REGISTRATION SYSTEM TO EXEMPTION OF EMERGENCY VEHICLES.—Subsection (d) of section 4222 (relating to

registration in the case of certain other exemptions) is amended by inserting "4064(b)(1)(C)," after "4063(b),". (f) CLERICAL AMENDMENT.—The table of sections for part I of subchapter A of chapter 32 is amended by adding at the end thereof the following new item: 26 USC 4064 note. 26 USC 4064.

"Sec. 4064. Gas guzzler tax." (g) EFFECTIVE DATE.—The amendments made by this section shall

apply with respect to 1980 and later model year automobiles (as defined in section 4064(b) of the Internal Revenue Code of 1954).

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