(1) an amount equal to the difference between (A) the tax previously paid on the payments on such installment accounts, and (B) the total tax; except that

(2) if any such sale is pursuant to the order of, or subject to the approval of, a court of competent jurisdiction in a bankruptcy or insolvency proceeding, the amount computed under paragraph (1) shall not exceed the amount computed by multiplying (A) the amount for which such accounts are sold, by (B) the rate of tax under this chapter which applied on the day on which the transaction giving rise to such installment accounts took place.

(c) LIMITATION.-The sum of the amounts payable under this section in respect to the sale of any article shall not exceed the total tax. SEC. 4054. APPLICATION OF TAXES TO SALES BY UNITED STATES,

ETC.

The taxes imposed by this chapter shall apply with respect to articles sold at retail by the United States, or by any agency or instrumentality of the United States, unless sales by such agency or instrumentality are by statute specifically exempted from such taxes.

SEC. 4055. STATE AND LOCAL GOVERNMENT EXEMPTION.

Under regulations prescribed by the Secretary or his delegate, no tax shall be imposed under this chapter with respect to the sale of any article for the exclusive use of any State, Territory of the United States, or any political subdivision of any of the foregoing, or the District of Columbia, or, in the case of the tax imposed by section 4041, with respect to the use by any of the foregoing of any liquid as a fuel.

SEC. 4056. EXEMPTION FOR EXPORTS.

Under regulations prescribed by the Secretary or his delegate, no tax shall be imposed under this chapter upon the sale of any article for export, or for shipment to a possession of the United States, and in due course so exported or shipped.

SEC. 4057. EXEMPTION FOR NONPROFIT EDUCATIONAL ORGANIZATIONS.

(a) EXEMPTION.-Under regulations prescribed by the Secretary or his delegate, no tax shall be imposed under this chapter with respect to the sale of any article to a nonprofit educational organization for its exclusive use, or, in the case of a tax imposed by section 4041, with respect to the use by a nonprofit educational organization of any liquid as a fuel.

(b) DEFINITION.-For purposes of subsection (a), the term "nonprofit educational organization" means an educational organization described in section 503 (b) (2) which is exempt from income tax under section 501 (a). The term also includes a school operated as an activity of an organization described in section 501 (c) (3) which is exempt from income tax under section 501 (a), if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.

SEC. 4058. CROSS REFERENCE.

(1) For exemption on sales to the United States in certain cases see section 4293.

(2) For administrative provisions of general application to the taxes imposed under this chapter, see subtitle F.

CHAPTER 32-MANUFACTURERS EXCISE TAXES

SUBCHAPTER A. Automotive and related items.
SUBCHAPTER B. Household type equipment, etc.
SUBCHAPTER C. Entertainment equipment.
SUBCHAPTER D. Recreational equipment.

SUBCHAPTER E. Other items.

SUBCHAPTER F. Special provisions applicable to manufacturers tax. Subchapter A-Automotive and Related Items

Part I. Motor vehicles.
Part II. Tires and tubes.

Part III. Petroleum products.

PART I-MOTOR VEHICLES

Sec. 4061. Imposition of tax.
Sec. 4062. Definitions.

Sec. 4063. Exemptions.

SEC. 4061. IMPOSITION OF TAX.

(a) AUTOMOBILES.-There is hereby imposed upon the following articles (including in each case parts or accessories therefor sold on or in connection therewith or with the sale thereof) sold by the manufacturer, producer, or importer a tax equivalent to the specified percent of the price for which so sold:

(1) Articles taxable at 10 percent, except that on and after July 1, 1972, the rate shall be 5 percent

Automobile truck chassis.

Automobile truck bodies.

Automobile bus chassis.

Automobile bus bodies.

Truck and bus trailer and semitrailer chassis.
Truck and bus trailer and semitrailer bodies.

Tractors of the kind chiefly used for highway transportation
in combination with a trailer or semitrailer.

A sale of an automobile truck, bus, truck or bus trailer or semitrailer shall, for the purposes of this paragraph, be considered to be a sale of the chassis and of the body.

(2) Articles taxable at 10 percent except that on and after July 1, 1961, the rate shall be 7 percent

Automobile chassis and bodies other than those taxable under paragraph (1).

Chassis and bodies for trailers and semitrailers (other than house trailers) suitable for use in connection with passenger automobiles.

A sale of an automobile, trailer, or semitrailer shall, for the purposes of this paragraph, be considered to be a sale of the chassis and of the body.

(b) PARTS AND ACCESSORIES.-There is hereby imposed upon parts or accessories (other than tires and inner tubes and other than automobile radio and television receiving sets) for any of the articles. enumerated in subsection (a) sold by the manufacturer, producer, or importer a tax equivalent to 8 percent of the price for which so sold, except that on and after July 1, 1961, the rate shall be 5 percent.

SEC. 4062. DEFINITIONS.

(a) CERTAIN ARTICLES CONSIDERED AS PARTS.-For the purposes of section 4061, spark plugs, storage batteries, leaf springs, coils, timers, and tire chains, which are suitable for use on or in connection with, or as component parts of, any of the articles enumerated in section 4061 (a), shall be considered parts or accessories for such articles, whether or not primarily adapted for such use.

(b) SALE PRICE OF REBUILT PARTS.-In determining the sale price of a rebuilt automobile part or accessory there shall be excluded from the price, in accordance with regulations prescribed by the Secretary or his delegate, the value of a like part or accessory accepted in exchange.

SEC. 4063. EXEMPTIONS.

(a) SPECIFIC ARTICLES EXEMPT FROM TAX ON AUTOMOBILES.The tax imposed under section 4061 (a) (2) shall not apply in the case of house trailers or tractors.

(b) SALES TO MANUFACTURERS.-Under regulations prescribed by the Secretary or his delegate, the tax under section 4061 shall not apply in the case of sales of bodies by the manufacturer, producer, or importer to a manufacturer or producer of automobile trucks or other automobiles to be sold by such vendee. For the purposes of section 4061, such vendee shall be considered the manufacturer or producer of such bodies.

PART II-TIRES AND TUBES

Sec. 4071. Imposition of tax.
Sec. 4072. Definitions.

Sec. 4073. Exemptions.

SEC. 4071. IMPOSITION OF TAX.

(a) IMPOSITION AND RATE OF TAX.-There is hereby imposed upon the following articles, if wholly or in part of rubber, sold by the manufacturer, producer, or importer, a tax at the following rates:

(1) Tires of the type used on highway vehicles, 8 cents a pound. (2) Other tires (other than laminated tires to which paragraph

(5) applies), 5 cents a pound.

(3) Inner tubes for tires, 9 cents a pound.

(4) Tread rubber, 3 cents a pound.

(5) Laminated tires (not of the type used on highway vehicles) which consist wholly of scrap rubber from used tire casings with an internal fastening agent, 1 cent a pound.

(b) DETERMINATION OF WEIGHT.-For purposes of this section, weight shall be based on total weight, except that in the case of tires such total weight shall be exclusive of metal rims or rim bases. Total weight of the articles shall be determined under regulations prescribed by the Secretary or his delegate.

(c) RATE REDUCTION.-On and after July 1, 1972

(1) the tax imposed by paragraph (1) of subsection (a) shall be 5 cents a pound; and

(2) paragraph (4) of subsection (a) shall not apply.

SEC. 4072. DEFINITIONS.

(a) RUBBER. For purposes of this chapter, the term "rubber" includes synthetic and substitute rubber.

(b) TREAD RUBBER.-For purposes of this chapter, the term "tread rubber" means any material

(1) which is commonly or commercially known as tread rubber or camelback; or

(2) which is a substitute for a material described in paragraph (1) and is of a type used in recapping or retreading tires.

(c) TIRES OF THE TYPE USED ON HIGHWAY VEHICLES.-For purposes of this part, the term "tires of the type used on highway vehicles" means tires of the type used on

(1) motor vehicles which are highway vehicles, or

(2) vehicles of the type used in connection with motor vehicles which are highway vehicles.

SEC. 4073. EXEMPTIONS.

(a) TIRES OF CERTAIN SIZES.-The tax imposed by section 4071 shall not apply to tires which are not more than 20 inches in diameter and not more than 1% inches in cross-section, if such tires are of allrubber construction (whether hollow center or solid) without fabric or metal reinforcement.

(b) TIRES WITH INTERNAL WIRE FASTENING.-The tax imposed by section 4071 shall not apply to tires of extruded tiring with an internal wire fastening agent.

(c) EXEMPTION FROM TAX ON TREAD RUBBER IN CERTAIN CASES.Under regulations prescribed by the Secretary or his delegate, the tax imposed by section 4071 (a) (4) shall not apply to tread rubber sold by the manufacturer, producer, or importer, to any person for use by such person otherwise than in the recapping or retreading of tires of the type used on highway vehicles.

PART III-PETROLEUM PRODUCTS

Subpart A. Gasoline.

Subpart B. Lubricating oil.

Subpart C. Special provisions applicable to petroleum products.

Subpart A-Gasoline

Sec. 4081. Imposition of tax.

Sec. 4082. Definitions.

Sec. 4083. Exemption of sales to producer.

Sec. 4084. Cross references.

SEC. 4081. IMPOSITION OF TAX.

(a) IN GENERAL.-There is hereby imposed on gasoline sold by the producer or importer thereof, or by any producer of gasoline, a tax of 3 cents a gallon.

(b) RATE REDUCTION. On and after July 1, 1972, the tax imposed by this section shall be 11⁄2 cents a gallon.

(c) TEMPORARY INCREASE IN TAX.-On and after October 1, 1959, and before July 1, 1961, the tax imposed by this section shall be 4 cents a gallon.

SEC. 4082. DEFINITIONS.

(a) PRODUCER.—As used in this subpart, the term "producer" includes a refiner, compounder, or blender, and a dealer selling gasoline exclusively to producers of gasoline. as well as a producer. Any person to whom gasoline is sold tax-free under this subpart shall be considered the producer of such gasoline.

(b) GASOLINE.-As used in this subpart, the term "gasoline" means all products commonly or commercially known or sold as gasoline (including casinghead and natural gasoline).

(c) CERTAIN USES DEFINED AS SALES.-If a producer or importer uses (otherwise than in the production of gasoline or of special motor fuels referred to in section 4041 (b)) gasoline sold to him free of tax, or produced or imported by him, such use shall for the purposes of this chapter be considered a sale.

(d) WHOLESALE DISTRIBUTOR.-As used in subsection (a), the term "wholesale distributor" includes any person who

(1) sells gasoline to producers, to retailers, or to users who purchase in bulk quantities for delivery into bulk storage tanks, and

(2) elects to register and give a bond with respect to the tax imposed by section 4081.

Such term does not include any person who (excluding the term "wholesale distributor" from subsection (a)) is a producer or importer.

SEC. 4083. EXEMPTION OF SALES TO PRODUCER.

Under regulations prescribed by the Secretary or his delegate the tax imposed by section 4081 shall not apply in the case of sales of gasoline to a producer of gasoline.

SEC. 4084. CROSS REFERENCES.

(1) For provisions to relieve farmers from excise tax in the case of gasoline used on the farm for farming purposes, see section 6420.

(2) For provisions to relieve purchasers of gasoline from excise tax in the case of gasoline used for certain nonhighway purposes or by local transit systems, see section 6421.

Subpart B-Lubricating Oil

Sec. 4091. Imposition of tax.

Sec. 4092. Definitions.

Sec. 4093. Exemption of sales to producer.

SEC. 4091. IMPOSITION OF TAX.

There is hereby imposed upon the following articles sold in the United States by the manufacturer or producer a tax at the following rates, to be paid by the manufacturer or producer:

(1) cutting oils, 3 cents a gallon; and

(2) other lubricating oils, 6 cents a gallon.

SEC. 4092. DEFINITIONS.

(a) CERTAIN VENDEES CONSIDERED AS MANUFACTURERS.-For purposes of this subpart, a vendee who has purchased lubricating oils free of tax under section 4093 shall be considered the manufacturer or producer of such lubricating oils.