Page:United States Statutes at Large Volume 98 Part 1.djvu/1057

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 1009

(b) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 6427 take effect on August 1, 1984. note-

Subtitle C—Temporary Reduction in Retail Tax on Certain Piggyback Trailers

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SEC. 921. TEMPORARY REDUCTION IN TAX. Section 4051 (relating to retail tax on heavy trucks and trailers) is 26 USC 4051. amended by redesignating subsection (d) as subsection (e) and insert,3 ing after subsection (c) the following new subsection: . ^.r "(d) TEMPORARY REDUCTION IN TRAILERS.—

TAX

ON CERTAIN PIGGYBACK

"(1) IN GENERAL.—In the case of piggyback trailers or semitrailers sold within the 1-year period beginning on the date of the enactment of the Tax Reform Act of 1984, subsection (a) Ante, p. 494. shall be applied by substituting *6 percent' for '12 percent'. "(2) PIGGYBACK TRAILERS OR SEMITRAILERS.—For purposes of this subsection, the term 'piggyback trailers or semitrailers' means any trailer or semitrailer— "(A) which is designed for use principally in connection with trailer-on-flatcar service by rail, and "(B)(i) both the seller and the purchaser of which are registered in a manner similar to registration under section 4222, and "(ii) with respect to which the purchaser certifies (at such . ».. time and in such form and manner as the Secretary pre> scribes by regulations) to the seller that such trailer or semitrailer— "(I) will be used, or resold for use, principally in connection with such service, or "(II) will be incorporated into an article which will be so used or resold. "(3) ADDITIONAL TAX WHERE NONQUALIFIED USE.—If any piggy-

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back trailer or semitrailer was subject to tax under subsection (a) at the 6 percent rate and such trailer or semitrailer is used or resold for use other than for a use described in paragraph (2)"(A) such use or resale shall be treated as a sale to which subsection (a) applies, "(B) the amount of the tax imposed under subsection (a) on such sale shall be equal to the amount of the tax which was imposed on the first retail sale, and "(C) the person so using or reselling such trailer or semitrailer shall be liable for the tax imposed by subsection (a)."

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