53 Stat. 260, 263. 26 U. S. C. §§ 23802390. SEC. 552. NEW RETAILERS' EXCISE TAXES. (a) IMPOSITION OF TAX.-The Internal Revenue Code is amended by adding after chapter 18 the following new chapter: "CHAPTER 19-RETAILERS' EXCISE TAXES "SEC. 2400. TAX ON JEWELRY, ETC. "There is hereby imposed upon the following articles sold at retail a tax equivalent to 10 per centum of the price for which so sold: All articles commonly or commercially known as jewelry, whether real or imitation; pearls, precious and semi-precious stones, and imitations thereof; articles made of, or ornamented, mounted or fitted with, precious metals or imitations thereof; watches and clocks and cases and movements therefor; gold, gold-plated, silver, silver-plated or sterling flatware or hollow ware; opera glasses; lorgnettes; marine glasses; field glasses; and binoculars. The tax imposed by this section shall not apply to any article used for religious purposes, to surgical instruments, or to frames or mountings for spectacles or eyeglasses, or to a fountain pen if the only parts of the pen which consist of precious metals are essential parts not used for ornamental purposes. "SEC. 2401. TAX ON FURS. "There is hereby imposed upon the following articles sold at retail a tax equivalent to 10 per centum of the price for which so sold: Articles made of fur on the hide or pelt, and articles of which such fur is the component material of chief value. "SEC. 2402. TAX ON TOILET PREPARATIONS. "(a) TAX.-There is hereby imposed upon the following articles sold at retail a tax equivalent to 10 per centum of the price for which so sold: Perfumes, essences, extracts, toilet waters, cosmetics, petroleum jellies, hair oils, pomades, hair dressings, hair restoratives, hair dyes, aromatic cachous, toilet powders, and any similar substance, article, or preparation, by whatsoever name known or distinguished; any of the above which are used or applied or intended to be used or applied for toilet purposes. "(b) BEAUTY PARLORS, ETC.-For the purposes of subsection (a) the sale of any article described in subsection (a) to any person operating a barber shop, beauty parlor, or similar establishment shall be considered a sale at retail; resale by such person shall be subject to tax as a sale at retail, but there shall be credited against the tax payable by such person with respect to such resale the amount of tax paid on the sale to such person. "SEC. 2403. RETURN AND PAYMENT OF RETAILERS' EXCISE TAXES. "(a) Every person who sells at retail any article taxable under this chapter shall make monthly returns under oath in duplicate and pay the taxes imposed by this chapter to the collector for the district in which is located his principal place of business or, if he has no principal place of business in the United States, then to the collector at Baltimore, Maryland. Such returns shall contain such information and be made at such times and in such manner as the Commissioner, with the approval of the Secretary, may by regulations prescribe. "(b) The tax shall, without assessment by the Commissioner or notice from the collector, be due and payable to the collector at the time so fixed for filing the return. If the tax is not paid when due, there shall be added as part of the tax interest at the rate of 6 per centum per annum from the time when the tax became due until paid. "(c) In determining, for the purposes of this chapter, the price for which an article is sold, there shall be included any charge for coverings and containers of whatever nature, and any charge incident to placing the article in condition packed ready for shipment, but there shall be excluded the amount of tax imposed by this chapter, whether or not stated as a separate charge. A transportation, delivery, insurance, installation, or other charge (not required by the foregoing sentence to be included) shall be excluded from the price only if the amount thereof is established to the satisfaction of the Commissioner, in accordance with the regulations. There shall also be excluded, if stated as a separate charge, the amount of any retail sales tax imposed by any State or Territory or political subdivision of the foregoing, or the District of Columbia, whether the liability for such tax is imposed on the vendor or the vendee. "SEC. 2404. DEFINITION OF SALE. "For the purposes of this chapter, the lease of an article shall be considered the sale of such article. "SEC. 2405. LEASES, CONDITIONAL SALES, ETC. "In the case of (a) a lease, (b) a contract for the sale of an article wherein it is provided that the price shall be paid by installments and title to the article sold does not pass until a future date notwithstanding partial payment by installments, or (c) a conditional sale, there shall be paid upon each payment with respect to the article that portion of the total tax which is proportionate to the portion of the total amount to be paid represented by such payment. No tax shall be imposed under this chapter on the sale of any article taxable under section 2400 or section 2401 if with respect to such article the lease, contract for sale, or conditional sale was made, delivery thereunder was made, and a part of the consideration was paid, before October 1, 1941. “SEC. 2406. TAX-FREE SALES. "Under regulations prescribed by the Commissioner with the approval of the Secretary, no tax under this chapter shall be imposed with respect to the sale of any article "(a) for the exclusive use of the United States, any State, Territory of the United States, or any political subdivision of the foregoing, or the District of Columbia; "(b) for export, or for shipment to a possession of the United States, and in due course so exported or shipped. "SEC. 2407. CREDITS AND REFUNDS. "(a) A credit against tax under this chapter, or a refund, may be allowed with respect to an article, when the price on which the tax was based is readjusted by reason of return or repossession of the article, or by a bona fide discount, rebate, or allowance, in the amount of that part of the tax proportionate to the part of the price which is refunded or credited. "(b) No overpayment of tax under this chapter shall be credited or refunded, in pursuance of a court decision or otherwise, unless the person who paid the tax establishes, in accordance with regulations prescribed by the Commissioner with the approval of the Secretary, (1) that he has not included the tax in the price of the article with Ante, p. 718. 53 Stat. 288. 26 U. S. C. § 2700. Ante, p. 707. 53 Stat. 410. 26 U. S. C. § 3401. 53 Stat. 416. 26 U. S. C. § 3440. 53 Stat. 409, 420. 26 U. S. C. §§ 34003452. respect to which it was imposed, or collected the amount of tax from the purchaser, or (2) that he has repaid the amount of the tax to the purchaser of the article, or unless he files with the Commissioner written consent of such purchaser to the allowance of the credit or refund. "SEC. 2408. APPLICABILITY OF ADMINISTRATIVE PROVISIONS. "All provisions of law (including penalties) applicable in respect of the taxes imposed by section 2700 shall, insofar as applicable and not inconsistent with this chapter, be applicable in respect of the taxes imposed by this chapter. “SEC. 2409. PENALTY FOR REPRESENTATION THAT TAX IS NOT PASSED ON. "Whoever in connection with the sale or lease, or offer for sale or lease, of any article taxable under this chapter, makes any statement, written or oral, in advertisement or otherwise, intended or calculated to lead any person to believe that the price of the article does not include the tax imposed by this chapter, shall on conviction thereof be punished by a fine of not more than $1,000. “SEC. 2410. RULES AND REGULATIONS. "The Commissioner, with the approval of the Secretary, shall prescribe and publish all needful rules and regulations for the enforcement of this chapter. "SEC. 2411. EFFECTIVE DATE. "This chapter shall be effective on and after October 1, 1941.” (b) TERMINATION OF MANUFACTURERS' TAX ON TOILET PREPARATIONS.-The tax imposed by section 3401 of the Internal Revenue Code shall not apply to articles sold on or after October 1, 1941. SEC. 553. ADMINISTRATIVE CHANGES IN MANUFACTURERS' EXCISE (a) LEASES.-Section 3440 of the Internal Revenue Code is amended to read as follows: "SEC. 3440. DEFINITION OF SALE. "For the purposes of this chapter the lease of an article (including any renewal or any extension of a lease or any subsequent lease of such article) by the manufacturer, producer, or importer shall be considered a taxable sale of such article." (b) EXISTING CONTRACTS.-Chapter 29 of the Internal Revenue Code is amended by adding at the end thereof the following new section: "SEC. 3453. EXISTING CONTRACTS. "(a) TAX PAYABLE BY VENDEE.-If (1) any person has, prior to the effective date of Part V of Title V of the Revenue Act of 1941, made a bona fide contract for the sale on or after such date, of any article with respect to the sale of which a tax is imposed by that Act or an existing rate of tax is increased by that Act, and (2) such contract does not permit the adding to the amount to be paid under such contract of the whole of such tax or increased rate of tax, then (unless the contract prohibits such addition) the vendee shall, in lieu of the vendor, pay so much of the tax as is not so permitted to be added to the contract price. "(b) TAX PAID TO VENDOR.-Taxes payable by the vendee shall be paid to the vendor at the time the sale is consummated, and shall be collected and paid to the United States by the vendor in the same manner as provided in section 3467. In case of failure or refusal by the vendee to pay such taxes to the vendor, the vendor shall report the facts to the Commissioner who shall cause collection of such taxes to be made from the vendee." 53 Stat. 422. 53 Stat. 417. (c) UNEXPOSED MOTION PICTURE FILMS.-Section 3443 (a) (3) (A) of the Internal Revenue Code (relating to credits or refunds of tax (a) (3) (A). to manufacturer) is amended by inserting at the end thereof the following new clause: "(v) in the case of unexposed motion picture films, used or resold for use in the making of news reel motion picture films." 53 Stat. 416, 417, 418. 26 U. S. C. §§ 3442, (1)-(2). Ante, p. 712. 53 Stat. 410; ante, p. 712. (d) CREDITS, AND TAX FREE SALES OF AUTOMOBILE RADIOS.-Section 3442, section 3443 (a) (1), and section 3444 (a) (1) and (2) of the 3443 (a) (1), 3444 (a) Internal Revenue Code (relating to tax in case of sale of tires to manufacturers of automobiles, etc., and credit on sale) are amended by striking out "tires or inner tubes" wherever appearing therein and inserting "tires, inner tubes, or automobile radios taxable under section 3404"; and by striking out "tire or inner tube" wherever appearing therein and inserting "tire, inner tube, or automobile radio taxable under section 3404". Section 3403 (e) of the Internal Revenue Code, as amended by this Act, is further amended by striking out "tires and inner tubes" where the phrase appears the first time and inserting "tires, inner tubes, or automobile radios"; paragraph (1) of subsection (e) of such section is amended by inserting before the semicolon "or, in the case of automobile radios, if such radios were taxable under section 3404"; paragraph (2) of subsection (e) of such section is amended by striking out "tires or inner tubes" wherever such phrase appears and inserting "tires, inner tubes, or automobile radios". SEC. 554. TRANSPORTATION OF PERSONS, ETC. (a) The heading of subchapter C is amended to read as follows: "SUBCHAPTER D-ADMINISTRATIVE PROVISIONS". (b) Chapter 30 of the Internal Revenue Code is amended by inserting after section 3468 the following new subchapter: "SUBCHAPTER C-TRANSPORTATION OF PERSONS "SEC. 3469. TAX ON TRANSPORTATION OF PERSONS, ETC. "(a) TRANSPORTATION.-There shall be imposed upon the amount paid within the United States, on or after October 10, 1941, for the transportation, on or after such effective date, of persons by rail, motor vehicle, water, or air, within or without the United States, a tax equal to 5 per centum of the amount so paid. Such tax shall apply to transportation by motor vehicles having a passenger seating capacity of less than ten adult passengers, including the driver, only when such vehicle is operated on an established line. "(b) EXEMPTION OF CERTAIN TRIPS.-The tax imposed by subsection (a) shall not apply to amounts paid for transportation which do not exceed 35 cents, to amounts paid for commutation or season tickets for single trips of less than thirty miles, or to amounts paid for commutation tickets for one month or less. "(c) SEATS, BERTHS, ETC.-There shall be imposed upon the amount paid within the United States for seating or sleeping accom 278941-42— PT. I—46 (e). 26 U. 8. C. § 3403 53 Stat. 421, 423. 26 U. S. C. §§ 34703474. 53 Stat. 423. 26 U. S. O. § 3468. modations in connection with transportation with respect to which a tax is imposed by subsection (a) a tax equivalent to 5 per centum of the amount so paid. "(d) RETURNS AND PAYMENT.-The taxes imposed by this section shall be paid by the person making the payment subject to the tax. Each person receiving any payment specified in subsection (a) or (c) shall collect the amount of the tax imposed from the person making such payment, and shall, on or before the last day of each month, make a return, under oath, for the preceding month, and pay the taxes so collected to the collector in the district in which his principal place of business is located, or if he has no principal place of business in the United States, to the collector at Baltimore, Maryland. Such returns shall contain such information and be made in such manner as the Commissioner with the approval of the Secretary may by regulations prescribe. "(e) EXTENSIONS OF TIME.-The Commissioner may extend the time for making returns and paying the taxes collected, under such rules and regulations as he shall prescribe with the approval of the Secretary, but no such extension shall be for more than ninety days. "(f) EXEMPTIONS.— "(1) GOVERNMENTAL EXEMPTION.-The tax imposed by this section shall not apply to the payment for transportation or facilities furnished to the United States, or to any State or Territory, or political subdivision thereof, or the District of Columbia. "(2) EXEMPTION OF MEMBERS OF MILITARY AND NAVAL SERVICE.— The tax imposed by this section shall not apply to the payment for transportation or facilities furnished under special tariffs providing for fares of not more than 114 cents per mile applicable to round trip tickets sold to personnel of the United States Army, Navy, Marine Corps, and Coast Guard traveling in uniform of the United States at their own expense when on official leave, furlough, or pass, including authorized cadets and midshipmen, issued on presentation of properly executed certificate." (c) STAMP TAX ON PASSAGE TICKETS NOT TO APPLY.-No tax shall be imposed under chapter 11 of the Internal Revenue Code on a ticket sold or issued for passage the amount paid for which is taxable under section 3469 of the Internal Revenue Code. (d) TECHNICAL AMENDMENTS.— (1) Section 55 (a) (2) of the Internal Revenue Code is amended by striking out "subchapters A and B of". (2) Section 3471 (a) and (c) are amended by inserting after "subchapter B" wherever occurring therein "or subchapter C". (3) Section 3472 of the Internal Revenue Code is amended by striking out "of subchapters A and B". SEC. 555. COIN-OPERATED AMUSEMENT AND GAMING DEVICES. Subchapter A of chapter 27 of the Internal Revenue Code is amended by adding at the end thereof the following new part: "Part IX-Coin-Operated Amusement and Gaming Devices "SEC. 3267. TAX ON COIN-OPERATED AMUSEMENT AND GAMING DEVICES. "(a) RATE.-Every person who maintains for use or permits the use of, on any place or premises occupied by him, a coin-operated amusement or gaming device shall pay a special tax as follows: "(1) $10 per year in the case of a device defined in clause (1) of subsection (b); "(2) $50 per year, in the case of a device defined in clause (2) of subsection (b); and |