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"(3) $10 or $50, as the case may be, for each additional device so maintained or the use of which is so permitted. If one such device is replaced by another, such other device shall not be considered an additional device.

"(b) DEFINITION.-As used in this part the term 'coin-operated amusement and gaming devices' means (1) so-called 'pin-ball' and other similar amusement machines, operated by means of the insertion of a coin, token, or similar object, and (2) so-called 'slot' machines which operate by means of insertion of a coin, token, or similar object and which, by application of the element of chance, may deliver, or entitle the person playing or operating the machine to receive, cash, premiums, merchandise, or tokens. The term does not include bona fide vending machines in which are not incorporated gaming or amusement features.

"(c) APPLICABILITY OF ADMINISTRATIVE PROVISIONS.-An operator of a place or premises who maintains for use or permits the use of any coin-operated device shall be considered, for the purposes of subchapter B, to be engaged in a trade or business in respect of each such device.

"(d) EFFECTIVE DATE OF TAX.-With respect to the year ending June 30, 1942, no tax shall be payable under this part for any period prior to October 1, 1941."

SEC. 556. BOWLING ALLEYS, ETC.

Subchapter A of chapter 27 of the Internal Revenue Code is amended by adding at the end thereof the following new part:

"Part X-Bowling Alleys, and Billiard and Pool Tables

"SEC. 3268. TAX ON BOWLING ALLEYS, AND BILLIARD AND POOL TABLES.

"(a) RATE.-Every person who operates a bowling alley, billiard room, or pool room shall pay a special tax of $10 per year for each bowling alley, billiard table, or pool table. Every building or place where bowls are thrown or where games of billiards or pool are played, except in private homes, shall be regarded as a bowling alley, billiard room, or pool room, respectively.

"(b) EFFECTIVE DATE OF TAX.-With respect to the year ending June 30, 1942, no tax shall be payable under this part for any period prior to October 1, 1941."

SEC. 557. USE OF MOTOR VEHICLES AND BOATS.

The Internal Revenue Code is amended by inserting after chapter 33 the following new chapter:

"CHAPTER 33A-USE OF MOTOR VEHICLES AND BOATS

"SEC. 3540. TAX ON USE OF MOTOR VEHICLES AND BOATS.

"(a) IMPOSITION OF TAX.-There shall be imposed upon the use of motor vehicles and boats a tax, with respect to each year in which such use occurs, at the following rates:

"(1) Motor vehicles-$5.

"(2) BOATS.

"Over-all length 16 feet or over but not over 28 feet, $5.
"Over-all length over 28 feet but not over 50 feet, $10.
"Over-all length over 50 feet but not over 100 feet, $40.
"Over-all length over 100 feet but not over 150 feet, $100.
"Over-all length over 150 feet but not over 200 feet, $150.
"Over-all length over 200 feet, $200.

53 Stat. 394. 26 U. S. C. §§ 32703282.

53 Stat. 380, 394. 26 U. S. C. §§ 32003266.

Ante, p. 722.

53 Stat. 430, 432. 26 U. S. C. §§ 35203528.

Effective date.

Such tax, in the case of a motor vehicle, shall be paid by the person in whose name the motor vehicle is, or is required to be, registered under the law of the State, Territory, or the District of Columbia in which such motor vehicle is, or is required to be, registered. Such tax, in the case of a boat, shall be paid by the owner of the boat. The tax imposed by this section shall not apply to any use before February 1, 1942, and use before such date shall not be considered to be use within the meaning of this section.

"(b) DEFINITIONS.-For the purposes of this section

"(1) The term 'year' means the year beginning July 1.

"(2) The term 'motor vehicle' means all motor vehicles of the kind chiefly used for highway transportation.

"(3) The term 'boat' means all boats propelled by machinery, sail, or both, measuring sixteen feet or more in over-all length, owned by a citizen or resident of the United States. Such term does not include boats used chiefly for trade, or commercial fishing, or boats used without profit by any benevolent, charitable, or religious organization exclusively for furnishing aid, comfort, or relief to seamen, or boats used by the sea scouts department of the Boy Scouts of America chiefly for training scouts in seamanship.

"(4) The term 'use' in the case of the use of a motor vehicle means use on the public highways.

"(c) PRORATION OF TAX.-If in any year the first use of the motor vehicle or boat is after July 31 the tax shall be reckoned proportionately from the first day of the month in which such use occurs to and including the 30th day of June following.

"(d) ONE PAYMENT PER YEAR.-If the tax imposed by this section is paid with respect to any motor vehicle or boat for any year no further tax shall be imposed for such year with respect to such motor vehicle or boat.

"(e) EVIDENCE OF TAX PAYMENT.-The payment of the tax imposed by this section shall be evidenced by such suitable stamp, sticker, or tag of such form, which shall be affixed to the motor vehicle or boat in such manner, as the Commissioner, with the approval of the Secretary, may by regulations prescribe.

"(f) MANNER OF COLLECTION.-The place, time, and manner of making payment of the tax, and of furnishing such stamp, sticker, or tag shall be such as may be provided in regulations prescribed by the Commissioner with the approval of the Secretary.

"(g) COOPERATION OF POST OFFICE DEPARTMENT.-The Commissioner shall furnish to the Postmaster General without prepayment a suitable quantity of stamps, stickers, or tags to be distributed to and kept on sale by postmasters in the United States. The Postmaster General may require each such postmaster to give additional or increased bond as postmaster for the value of the stamps, stickers, or tags furnished to him, and each such postmaster shall deposit the receipts from the sale of such stamps, stickers, or tags to the credit of and render accounts to the Postmaster General at such times and in such form as he may by regulations prescribe. The Postmaster General shall at least once monthly transfer all collections from this source to the Treasury as internal-revenue collections. The Postmaster General is authorized to cooperate to the fullest extent possible with the Commissioner in the sale of such stamps, stickers, or tags and in forwarding to the Commissioner or to the collector of internal revenue such blanks or forms as the Commissioner may determine Appropriation auth- necessary to the collection of the tax. There are authorized to be appropriated such sums as may be necessary to enable the Secretary

orized.

of the Treasury to advance from time to time to the Postmaster General such sums as the Postmaster General may show shall be required for the expenses of the Post Office Department in performing in the District of Columbia and elsewhere all services required by this section.

"(h) SALE OF STAMPS BY PRIVATE PERSONS.-If the Commissioner provides for the sale of stamps, stickers, or tags by persons not officers or employees of the United States he may require bond, with sufficient sureties, in a sum to be fixed by the Commissioner, conditioned for the faithful return, whenever required, of all quantities or amounts undisposed of, and for the payment for, all quantities or amounts sold or not remaining on hand. The Commissioner, with the approval of the Secretary, may from time to time make such regulations as he may find necessary to insure the safekeeping or prevention of illegal use of all such stamps, stickers, or tags.

"(i) PENALTIES FOR UNLAWFUL USE.-Any person liable for the tax under this section who uses or permits the use of the motor vehicle or boat before tax has been paid shall be guilty of a misdemeanor and upon conviction thereof shall be fined not more than $25 or imprisoned for not more than thirty days, or both. Any person who uses or operates a motor vehicle or boat at a time when the stamp, sticker, or tag does not appear on the motor vehicle or boat in the manner provided in the regulations prescribed under subsection (e) or (f) shall be guilty of a misdemeanor and upon conviction thereof shall be fined not more than $25.

"(j) EXEMPT USES.-The tax imposed by this section shall not apply to the use of a motor vehicle or boat by the United States, a State, Territory, the District of Columbia, or a political subdivision of any of the foregoing."

SEC. 558. EFFECTIVE DATE OF PART V.

This part shall take effect on October 1, 1941.

Part VI-Processing Tax on Certain Oils

SEC. 561. PAYMENT OF PROCEEDS OF PROCESSING TAX TO GUAM
AND AMERICAN SAMOA.

53 Stat. 264, 266.
26 U. S. C. §§ 2470-

(a) PAYMENT TO POSSESSIONS.-Chapter 21 of the Internal Revenue Code (relating to processing tax on oils) is amended by adding at 2482. the end thereof the following new section:

"SEC. 2483. All taxes collected under this chapter with respect to coconut oil wholly of the production of Guam or American Samoa or produced from materials wholly of the growth or production of Guam or American Samoa, shall be held as separate funds and paid to the Treasury of Guam or American Samoa, respectively. No part of the money from such funds shall be used, directly or indirectly, to pay a subsidy to the producers or processors of copra, coconut oil, or allied products, except that this sentence shall not be construed as prohibiting the use of such money, in accordance with regulations prescribed by the Commissioner with the approval of the Secretary, for the acquisition or construction of facilities for the better curing of copra or for bona fide loans to copra producers of Guam or American Samoa."

(b) EFFECTIVE DATE OF AMENDMENT.-The amendment made by this section shall be applicable only with respect to taxes collected after the date of enactment of this Act.

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TITLE VI-NONESSENTIAL FEDERAL

EXPENDITURES

SEC. 601. NONESSENTIAL FEDERAL EXPENDITURES.

(a) There is hereby established a committee to investigate Federal expenditures (hereinafter referred to as the "committee"), to be composed of (1) three members of the Senate Committee on Finance and three members of the Senate Committee on Appropriations, to be appointed by the President of the Senate; (2) three members of the House Committee on Ways and Means and three members of the House Committee on Appropriations, to be appointed by the Speaker of the House of Representatives; and (3) the Secretary of the Treasury, and the Director of the Bureau of the Budget. A vacancy in the committee shall not affect the power of the remaining members to execute the functions of the committee, and shall be filled in the same manner as the original selection. A majority of the committee shall constitute a quorum, and the powers conferred upon them by this section may be exercised by a majority vote.

(b) It shall be the duty of the committee to make a full and complete study and investigation of all expenditures of the Federal Government with a view to recommending the elimination or reduction of all such expenditures deemed by the committee to be nonessential. The committee shall report to the President and to the Congress the results of its study, together with its recommendations, at the earliest practicable date.

(c) The committee, or any duly authorized subcommittee thereof, is authorized to hold such hearings, to sit and act at such times and places, to employ such experts and such clerical and other assistants, to require by subpena or otherwise the attendance of such witnesses and the production of such books, papers, and documents, to administer such oaths, to take such testimony, and to make such expenditures, as it deems advisable. The provisions of sections 102 to 104, inclusive, of the Revised Statutes shall apply in case of any failure of any witness to comply with any subpena, or to testify when summoned under the authority of this section.

(d) The committee is authorized to utilize the services, information, facilities, and personnel of the departments and agencies of the Government.

(e) There is hereby authorized to be appropriated, the sum of $10,000, or so much thereof as may be necessary, to carry out the provisions of this section.

(f) All authority conferred by this section shall terminate upon the submission of the committee's final report.

SEC. 602. Section 1303 of the Revenue Act of 1918, as amended, is amended by striking out "President of the Senate" wherever it appears therein and inserting in lieu thereof "President pro tempore of the Senate".

TITLE VII-CREDIT AGAINST FEDERAL UNEM

PLOYMENT TAXES

SEC. 701. CREDIT AGAINST FEDERAL UNEMPLOYMENT TAXES.

(a) ALLOWANCE OF CREDIT AGAINST TAX FOR 1936, 1937, AND 1938.Against the tax imposed by section 901 of the Social Security Act for the calendar year 1936, 1937, or 1938, any taxpayer shall be allowed credit (if credit is not allowable under section 902 of such

Act) for the amount of contributions paid by him into an unemployment fund under a State law

(1) Before the sixtieth day after the date of the enactment of this Act, if such credit is claimed before the expiration of six months after such date of enactment;

(2) Without regard to the date of payment, with respect to wages paid after September 19, 1939;

(3) Without regard to the date of payment, if the assets of the taxpayer are, at any time during the fifty-nine-day period following such date of enactment, or were at any time during the period August 11, 1939, to October 8, 1939, inclusive, or the period October 9, 1940, to December 6, 1940, inclusive, in the custody or control of a receiver, trustee, or other fiduciary appointed by, or under the control of, a court of competent jurisdiction. The provisions of the Social Security Act in force prior to February 11, 1939 (except the provision limiting the credit to amounts paid before the date of filing returns), shall apply to allowance of credit under this subsection; except that the amount of credit against the tax for the calendar year 1936, 1937, or 1938, for contributions paid after December 6, 1940, shall not (unless the credit is allowable on account of paragraph (2) or (3)) exceed 90 per centum of the amount which would have been allowable as credit on account of such contributions had they been paid before the last day upon which the taxpayer was required under section 905 of such Act to file a return for such year. The terms used in this subsection shall have the same meaning as when used in title IX of such Act prior to February 11, 1939. The total credit allowable against the tax imposed by section 901 of such Act for the calendar year 1936, 1937, or 1938 shall not exceed 90 per centum of such tax.

Provisions applica

ble.

49 Stat. 641. 42 U. S. C. § 1105. 26 U. S. C. §§ 16041605, 1610.

49 Stat. 639. 42 U. S. C. §§ 11011110.

53 Stat. 183-188.
26 U. S. C. §§ 1600-

(b) ALLOWANCE OF CREDIT AGAINST TAX FOR 1939 AND 1940.Against the tax imposed by the Federal Unemployment Tax Act for the calendar year 1939 or 1940, any taxpayer shall be allowed credit 1611. (if credit is not allowable under section 1601 of such Act) for the amount of contributions paid by him into an unemployment fund under a State law

(1) Before the sixtieth day after the date of the enactment of this Act, if such credit is claimed before the expiration of six months after such date of enactment;

(2) Without regard to the date of payment, if the assets of the taxpayer are, at any time during the fifty-nine-day period following such date of enactment, or were at any time during the period from the last day upon which the taxpayer was required under section 1604 of the Federal Unemployment Tax Act to file a return of the tax against which credit is claimed to June 30 next following such last day, inclusive, or (in the case of credit against the tax for the calendar year 1939) the period October 9, 1940, to December 6, 1940, inclusive, in the custody or control of a receiver, trustee, or other fiduciary appointed by, or under the control of, a court of competent jurisdiction.

53 Stat. 183.
26 U. S. C. § 1601.

53 Stat. 186.
26 U. S. C. § 1604.

Provisions appli

cable.
53 Stat. 183, 1387,
1400.

26 U. S. C. §§ 1600

The provisions of the Federal Unemployment Tax Act (except section
1601 (a) (3)), including such provisions as modified by section 902
(e) of the Social Security Act Amendments of 1939, shall apply to
allowance of credit under this subsection. The amount of such credit 1611.
against the tax for the calendar year 1939 or 1940, in the case of
contributions paid after the last day upon which the taxpayer was
required under section 1604 of the Federal Unemployment Tax Act
to file a return for such year, shall not (unless the credit is allowable
on account of paragraph (2)) exceed 90 per centum of the amount

53 Stat. 186.
26 U. S. C. § 1604.

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