Page:United States Statutes at Large Volume 65.djvu/570

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536

PUBLIC LAW 183—OCT. 20, 1951

[65 STAT.

(2) No person shall be entitled to credit or refund under paragraph (1) unless he has in his possession such evidence of the inventories with respect to which he has made the reimbursements described in paragraph (1) as the regulations under paragraph (1) shall prescribe. (3) All provisions of law, including penalties, applicable with 26u^scV406(a) respect to the tax imposed under section 3406(a)(4) of the (4). Internal Revenue Code shall, insofar as.applicable and not inconsistent with this subsection, be applicable in respect of the credits and refunds provided for in this subsection to the same extent as if such credits or refunds constituted credits or refunds of such taxes. SEC. 487. IMPOSITION OF TAX ON MECHANICAL PENCILS, FOUNTAIN AND BALL POINT PENS, AND MECHANICAL UGHTERS FOR aOARETTES, CIGARS, AND PIPES. Chapter 29 (relating to manufacturers' excise and import taxes) is ^u.*s o^§3407. hereby amended by adding after section 3407 the following new section: "SEC 3408. TAX ON MECHANICAL PENCILS, FOUNTAIN AND BALL POINT PENS, AND MECHANICAL LIGHTERS FOR CIGARETTES, CIGARS, AND PIPES. " (a) IMPOSITION OP TAX.—There shall be imposed on the following articles, sold by the manufacturer, producer, or importer, a tax equal to 15 per centum of the price for which so sold: Mechanical pencils, fountain pens, and ball point pens; mechanical lighters for cigarettes, cigars, and pipes. " (b) EXEMPTION I F ARTICLE TAXABLE AS JEWELRY.—No tax shall be imposed under this section on any article taxable under section 26u^s c^§2400 ^ ^ ^ (relating to jewelry tax)." If any article, on the sale of which tax has been paid under this section, is further manufactured or processed resulting in an article taxable under section 2400, the person who sells such article at retail shall, in the computation of the retailers' excise tax due on such sale, be entitled to a credit or refund in an amount equal to the tax paid under this section." SEC. 488. REPEAL OF TAX ON ELECTRICAL ENERGY. (a) REPEAL OF TAX.—Section 3411 (relating to tax on electrical energy for domestic or commercial consumption), and sections 3441 26u*8.*c:?ft4iii (^) ^^^ ^^^ (^) (related provisions), are hereby repealed. 3441(d), 3447(0).

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(b) EFFECTIVE D A T E.

(1) Except as provided in paragraph (2), the provisions of subsection (a) shall apply to electrical energy sold on or after the first day of the first month which begins more than ten days after the date of the enactment of this Act. (2) I n the case of electrical energy sold which is billed to the customer for a period beginning before the effective date specified in paragraph (1) and ending on or after such date, the provisions of subsection (a) shall apply to that portion of the amount billed for the electrical energy sold during such period which the number of days in such period on and after such effective date bears to the total number of days in such period. This section shall not apply to electrical energy sold before such effective date for which a bill was rendered prior to such date. SEC. 489. TAX ON GASOLINE. 26u!s*:c%'34i2(a). (a) INCREASE IN RATE.—Section 3412(a) is hereby amended by striking out " l l ^ cents" and inserting in lieu thereof "2 cents" and by adding at the end thereof the following new sentence: "On and