Page:United States Statutes at Large Volume 95.djvu/346

 95 STAT. 320

PUBLIC LAW 97-34—AUG. 13, 1981 power of appointment which may be exercised during any period after December 31, 1981, (B) such power of appointment is expressly defined in terms of, or by reference to, the amount of the gift tax exclusion under section 2503(b) of the Internal Revenue C!ode of 1954 (or the corresponding provision of prior law), (C) the instrument described in subparagraph (A) ha:s not been amended on or after the date which is 30 days after the date of the enactment of this Act, and (D) the State has not enacted a statute applicable to such gift under which such power of appointment is to be construed as being defined in terms of, or by reference to, the amount of the exclusion under such section 2503(b) after its amendment by subsection (a), then the amendment made by subsection (a) shall not apply to such gift. SEC. 442. TIME FOR PAYMENT OF GIFT TAXES.

26 USC 2501.

26 USC 2502.

(a) AMENDMENTS TO SUBCHAPTER A OF CHAPTER 12.— (1) SECTION 2501.—Subsection (a) of section 2501 (relating

to imposition of gift tax) is amended by striking out "calendar quarter" each place it appears and inserting in lieu thereof calendar year". (2) SECTION 2502.—Section 2502 (relating to rate of tax) is amended to read as follows: "SEC. 2502. RATE OP TAX. "(a) COMPUTATION OP TAX.—The tax imposed by section 2501 for

Ante, p. 300.

each calendar year shall be an amount equal to the excess of— "(1) a tentative tax, computed in accordance with the rate schedule set forth in section 2001(c), on the aggregate sum of the taxable gifts for such c^endar year and for each of the preceding calendar periods, over "(2) a tentative tax, computed in accordance with such rate schedule, on the aggregate sum of the taxable gifts for each of the preceding calendar periods. "(b) PRECEDING CALENDAR PERIOD.—Whenever used in this title in connection with the gift tax imposed by this chapter, the term 'preceding calendar period' means— "(1) calendar years 1932 and 1970 and all calendar years intervening between calendar year 1932 and calendar year 1970, "(2) the first calendar quarter of calendar year 1971 and all calendar quarters intervening between such calendar queirter and the first calendar quarter of calendar year 1982, and "(3) all calendar years after 1981 and before the calendar year for which the tax is being computed. For purposes of paragraph (1), the term 'calendar year 1932' includes only that portion of such year after June 6, 1932. "(c) TAX TO B E PAID BY DONOR.—The tax imposed by section 2501

26 USC 2503.

shall be paid by the donor." (3) SECTION 2503.— (A) Subsection (a) of section 2503 is amended to read as follows: "(a) GENERAL DEFINITION.—The term 'taxable gifts' means the total amount of gifts made during the calendar year, less the deductions provided in subchapter C (section 2522 and following)." (B) The first sentence of subsection (b) of section 2503 is amended to read as follows: "In the case of gifts (other than

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