26 U.S.C. § 4162 — Definitions; treatment of certain resales

Page 2926 TITLE 26—INTERNAL REVENUE CODE § 4162 amendments made by section 208 [amending sections 4216, 4218, 4221, 4222, and 4227], insofar as they relate to the tax imposed by section 4061(b) (relating to auto- motive parts and accessories), section 4091 (relating to lubricating oil), or section 4131 (relating to electric light bulbs) of the Code, shall apply with respect to ar- ticles sold on or after January 1, 1966. The amendments made by section 207 [amending sections 4216 and 6416 of this title] (relating to partial payments; sales of in- stallment accounts) and 209(a) [amending section 6412 of this title] (relating to floor stocks refunds on pas- senger automobiles, etc.) shall take effect on the day after the date of the enactment of this Act [June 21, 1965]. The amendments made by section 210 [amending provisions set out as a note under section 120 of Title 23, Highways] (relating to Highway Trust Fund) shall take effect January 1, 1966. ‘‘(3) INSTALLMENT SALES, ETC.—For purposes of para- graphs (1) and (2), an article shall not be considered sold before the day after the date of the enactment of this Act [June 21, 1965] or before January 1, 1966, as the case may be, unless possession or right to possession passes to the purchaser before such day or such date. In the case of— ‘‘(A) a lease, ‘‘(B) a contract for the sale of an article where it is provided that the price shall be paid by installments and title to the article sold does not pass until a fu- ture date notwithstanding partial payment by in- stallments, ‘‘(C) a conditional sale, or ‘‘(D) a chattel mortgage arrangement wherein it is provided that the sale price shall be paid in install- ments, entered into before such day or such date, payments made on or after such day or such date with respect to the article leased or sold shall, for purposes of this sub- section, be considered as payments made with respect to an article sold on or after such day or such date, if the lessor or vendor establishes that the amount of payments payable on or after such day or such date with respect to such article has been reduced by an amount equal to the tax reduction applicable with re- spect to the lease or sale of such article. ‘‘(4) ELECTRIC LIGHT BULBS USED IN MANUFACTURE OF ARTICLES UPON WHICH TAX IS REPEALED.—For purposes of applying section 4218(a) of the Code with respect to the use of an electric light bulb or tube by the manufac- turer, producer, or importer thereof, and for purposes of applying section 4221(d)(6)(A) of the Code with re- spect to the sale of an electric light bulb or tube for use in further manufacture, an article which was taxable under chapter 32 of the Code on the date of the enact- ment of this Act [June 21, 1965] shall, during the period beginning with the day after the date of the enactment of this Act through December 31, 1965, be treated as an article taxable under such chapter.’’ CONSTRUCTION OF 2004 AMENDMENT Pub. L. 108–493, § 1(a), Dec. 23, 2004, 118 Stat. 3984, pro- vided that: ‘‘Subsection (b) of section 332 of the Amer- ican Jobs Creation Act of 2004 [Pub. L. 108–357], and the amendments made by such subsection [amending this section], are hereby repealed; and the Internal Revenue Code of 1986 shall be applied as if such subsection and amendments had never been enacted.’’ § 4162. Definitions; treatment of certain resales (a) Sport fishing equipment defined For purposes of this part, the term ‘‘sport fish- ing equipment’’ means— (1) fishing rods and poles (and component parts therefor), (2) fishing reels, (3) fly fishing lines, and other fishing lines not over 130 pounds test, (4) fishing spears, spear guns, and spear tips, (5) items of terminal tackle, including— (A) leaders, (B) artificial lures, (C) artificial baits, (D) artificial flies, (E) fishing hooks, (F) bobbers, (G) sinkers, (H) snaps, (I) drayles, and (J) swivels, but not including natural bait or any item of terminal tackle designed for use and ordi- narily used on fishing lines not described in paragraph (3), and (6) the following items of fishing supplies and accessories— (A) fish stringers, (B) creels, (C) tackle boxes, (D) bags, baskets, and other containers de- signed to hold fish, (E) portable bait containers, (F) fishing vests, (G) landing nets, (H) gaff hooks, (I) fishing hook disgorgers, and (J) dressing for fishing lines and artificial flies, (7) fishing tip-ups and tilts, (8) fishing rod belts, fishing rodholders, fish- ing harnesses, fish fighting chairs, fishing out- riggers, and fishing downriggers, and (9) electric outboard boat motors. (b) Treatment of certain resales (1) In general If— (A) the manufacturer, producer, or im- porter sells any article taxable under section 4161(a) to any person, (B) the constructive sale price rules of sec- tion 4216(b) do not apply to such sale, and (C) such person (or any other person) sells such article to a related person with respect to the manufacturer, producer, or importer, then such related person shall be liable for tax under section 4161 in the same manner as if such related person were the manufacturer of the article. (2) Credit for tax previously paid If— (A) tax is imposed on the sale of any arti- cle by reason of paragraph (1), and (B) the related person establishes the amount of the tax which was paid on the sale described in paragraph (1)(A), the amount of the tax so paid shall be allowed as a credit against the tax imposed by reason of paragraph (1). (3) Related person For purposes of this subsection, the term ‘‘related person’’ has the meaning given such term by section 465(b)(3)(C). (4) Regulations Except to the extent provided in regulations, rules similar to the rules of this subsection Page 2927 TITLE 26—INTERNAL REVENUE CODE § 4182 shall also apply in cases (not described in paragraph (1)) in which intermediaries or other devices are used for purposes of reducing the amount of the tax imposed by section 4161(a). (Added Pub. L. 98–369, div. A, title X, § 1015(b), July 18, 1984, 98 Stat. 1017; amended Pub. L. 99–514, title II, § 201(d)(7)(C), (12), title XVIII, § 1878(b), Oct. 22, 1986, 100 Stat. 2141, 2142, 2903; Pub. L. 108–357, title III, § 334(a), (b), Oct. 22, 2004, 118 Stat. 1478.) Editorial Notes AMENDMENTS 2004—Subsec. (a)(8) to (10). Pub. L. 108–357, § 334(a), in- serted ‘‘and’’ at end of par. (8), substituted a period for ‘‘, and’’ at end of par. (9), and struck out par. (10) which read as follows: ‘‘sonar devices suitable for finding fish.’’ Subsecs. (b), (c). Pub. L. 108–357, § 334(b), redesignated subsec. (c) as (b) and struck out heading and text of former subsec. (b). Text read as follows: ‘‘For purposes of this part, the term ‘sonar device suitable for finding fish’ shall not include any sonar device which is— ‘‘(1) a graph recorder, ‘‘(2) a digital type, ‘‘(3) a meter readout, or ‘‘(4) a combination graph recorder or combination meter readout.’’ 1986—Subsec. (a)(6)(I). Pub. L. 99–514, § 1878(b), amend- ed subpar. (I) generally, substituting ‘‘hook’’ for ‘‘hood’’. Subsec. (c)(3). Pub. L. 99–514, § 201(d)(7)(C), (12), made identical amendments, substituting ‘‘section 465(b)(3)(C)’’ for ‘‘section 168(e)(4)(D)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Pub. L. 108–357, title III, § 334(c), Oct. 22, 2004, 118 Stat. 1478, provided that: ‘‘The amendments made this sec- tion [amending this section] shall apply to articles sold by the manufacturer, producer, or importer after De- cember 31, 2004.’’ EFFECTIVE DATE OF 1986 AMENDMENT Amendment by section 201(d)(7)(C), (12) of Pub. L. 99–514 applicable to property placed in service after Dec. 31, 1986, in taxable years ending after such date, with exceptions, see sections 203 and 204 of Pub. L. 99–514, set out as a note under section 168 of this title. Amendment by section 201(d)(7)(C), (12) of Pub. L. 99–514 not applicable to any property placed in service before Jan. 1, 1994, if such property placed in service as part of specified rehabilitations, and not applicable to certain additional rehabilitations, see section 251(d)(2), (3) of Pub. L. 99–514, set out as a note under section 46 of this title. Amendment by section 1878(b) of Pub. L. 99–514 effec- tive, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title. EFFECTIVE DATE Pub. L. 98–369, div. A, title X, § 1015(e), July 18, 1984, 98 Stat. 1019, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section [enacting this section and amending sections 4161 and 6302 of this title] shall apply with respect to articles sold by the manufacturer, producer, or importer after September 30, 1984. ‘‘(2) TREATMENT OF CERTAIN RESALES.—Subsection (c) of section 4162 of the Internal Revenue Code of 1986 [for- merly I.R.C. 1954] (relating to treatment of certain re- sales), as added by this section, shall apply to sales by related persons (as defined in such subsection) after the date of the enactment of this Act [July 18, 1984].’’ PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title. [PART II—REPEALED] [§§ 4171 to 4173. Repealed. Pub. L. 89–44, title II, § 205(b), June 21, 1965, 79 Stat. 140] Section 4171, act Aug. 16, 1954, ch. 736, 68A Stat. 489, imposed a 10 percent tax on cameras, camera lenses, and unexposed photographic film on rolls and a 5 per- cent tax on electric motion or still picture projectors of the household type. Section 4172, act Aug. 16, 1954, ch. 736, 68A Stat. 490, defined certain vendees of unexposed films as manufac- turers for purposes of payment of the tax imposed by section 4171. Section 4173, act Aug. 16, 1954, ch. 736, 68A Stat. 490, granted exemptions for specified types of cameras, lenses of specified focal lengths, and certain types of film. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable with respect to articles sold on or after June 22, 1965, see section 701(a) of Pub. L. 84–44, set out as an Effective Date of 1965 Amendment note under section 4161 of this title. PART III—FIREARMS Sec. 4181. Imposition of tax. 4182. Exemptions. § 4181. Imposition of tax There is hereby imposed upon the sale by the manufacturer, producer, or importer of the fol- lowing articles a tax equivalent to the specified percent of the price for which so sold: Articles taxable at 10 percent— Pistols. Revolvers. Articles taxable at 11 percent— Firearms (other than pistols and revolvers). Shells, and cartridges. (Aug. 16, 1954, ch. 736, 68A Stat. 490.) § 4182. Exemptions (a) Machine guns and short barrelled firearms The tax imposed by section 4181 shall not apply to any firearm on which the tax provided by section 5811 has been paid. (b) Sales to defense department No firearms, pistols, revolvers, shells, and car- tridges purchased with funds appropriated for the military department shall be subject to any