Page:United States Statutes at Large Volume 98 Part 1.djvu/988

 98 STAT. 940

PUBLIC LAW 98-369—JULY 18, 1984 O> PENALTY FOR FAILURE TO REPORT.—Any taxpayer failing to t)

provide the information required by subsection (a) shall be liable for a penalty equal to 25 percent of the excess of (1) the estate, gift, or generation-skipping tax that is payable assuming that such transfers are subject to tax, over (2) the tax payable assuming such transfers are not so subject. SEC. 643. TAX-EXEMPT STATUS OF OBLIGATIONS OF CERTAIN EDUCATIONAL ORGANIZATIONS.

(a) IN GENERAL.—For purposes of section 103 of the Internal Revenue Code of 1954, a qualified educational organization shall be treated as a State governmental unit, but only with respect to a trade or business carried on by such organization which is not an unrelated trade or business (determined by applying section 513(a) of such Code to such organization). (b) QUALIFIED EDUCATIONAL ORGANIZATION.—For purposes of subsection (a), the term "qualified educational organization" means a college or university created on February 22, 1855, by specific act of the legislature of the State within which such college or university is located. (c) EFFECTIVE DATE.—This section shall apply to obligations issued after December 31, 1953. SEC. 644. LOCAL FURNISHING OF ELECTRICITY OR GAS.

(a) GENERAL RULE.—For the purposes of section 1030t>)(4)(E), facilities for the local furnishing of electric energy also shall include a facility that is part of a system providing service to the general populace (i) if at least 97 percent (measured both by total number of metered customers and by their annual consumption on a kilowatt hour basis) of the retail customers of such system are located in two contiguous counties, and (ii) if the remainder of such customers are located in a portion of a third contiguous county which portion is located on a peninsula not directly connected by land to the rest of the county of which it is a part. (b) ELECTION TO ALLOCATE TO 1984 ONE-HALF OF STATE LIMIT FOR

1985, 1986, AND 1987.—Solely for purposes of issuing obligations described in subsection (a), the issuing authorities of a State may elect (at such time and in such manner as the Secretary of the Treasury shall by regulations prescribe) to use in 1984 one-half of the amount which would have been the State limit for the calendar years 1985, 1986, and 1987. SEC. 645. LOCAL FURNISHING WHERE FACILITY INITIALLY AUTHORIZED BY FEDERAL GOVERNMENT.

For the purpose of section 1030t))(4)(E), facilities for the local furnishing of electric energy also shall include a facility that is part of a system providing service to the general populace— (i) if the facility was initially authorized by the Federal Government in 1962; (ii) if the facility receives financing of at least 25 percent by an exempt person; (iii) if the electric energy generated by the facility is purchased by an electric cooperative qualified as a rural electric borrower under 7 U.S.C. section 901 et seq. and if; (iv) the facility is located in a noncontiguous State.

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