Subchapter B-Occupational Tax on Coin-Operated Devices

Sec. 4461. Imposition of tax.

Sec. 4462. Definition of coin-operated amusement or gaming device.

Sec. 4463. Administrative provisions.

SEC. 4461. IMPOSITION OF TAX.

(a) IN GENERAL.-There shall be imposed a special tax to be paid by 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 at the following rates:

(1) $10 a year, in the case of a device defined in paragraph (1) of section 4462 (a);

(2) $250 a year, in the case of a device defined in paragraph (2) of section 4462 (a); and

(3) $10 or $250 a year, 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) REDUCED RATE.-In the case of a device which is defined in paragraph (2) of section 4462 (a) and which is commonly known as a claw, crane, or digger machine, the tax imposed by subsection (a) shall be at the rate of $10 a year (in lieu of $250 a year) if

(1) the charge for each operation of such device is not more than 10 cents,

(2) such device never dispenses a prize other than merchandise of a maximum retail value of $1, and with respect to such device there is never a display or offer of any prize or merchandise other than merchandise dispensed by such machine,

(3) such device is actuated by a crank and operates solely by means of a nonelectrical mechanism, and

(4) such device is not operated other than in connection with and as part of carnivals or county or State fairs.

SEC. 4462. DEFINITION OF COIN-OPERATED AMUSEMENT OR GAMING DEVICE.

(a) IN GENERAL.-For purposes of this subchapter, the term "coinoperated amusement or gaming device" means—

(1) any machine which is

(A) a music machine operated by means of the insertion of a coin, token, or similar object,

(B) a vending machine operated by means of the insertion of a one cent coin, which, when it dispenses a prize, never dispenses a prize of a retail value of, or entitles a person to receive a prize of a retail value of, more than 5 cents, and if the only prize dispensed is merchandise and not cash or tokens,

(C) an amusement machine operated by means of the insertion of a coin, token, or similar object, but not including any device defined in paragraph (2) of this subsection, or

(D) a machine which is similar to machines described in subparagraph (A), (B), or (C), and is operated without the insertion of a coin, token, or similar object; and

(2) any machine which is

(A) a so-called "slot" machine which operates by means of the 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, or

(B) a machine which is similar to machines described in subparagraph (A) and is operated without the insertion of a coin, token, or similar object.

(b) EXCLUSION.-The term "coin-operated amusement or gaming device" does not include bona fide vending machines in which are not incorporated gaming or amusement features.

SEC. 4463. ADMINISTRATIVE PROVISIONS.

(a) TRADE OR BUSINESS.-An operator of a place or premises who maintains for use or permits the use of any coin-operated device shall be considered, for purposes of chapter 40, to be engaged in a trade or business in respect of each such device.

(b) CROSS REFERENCE.

For penalties and other administrative provisions applicable to this subchapter, see chapter 40 and subtitle F.

Subchapter C-Occupational Tax on Bowling Alleys, Billiard and Pool Tables

Sec. 4471. Imposition of tax.
Sec. 4472. Definitions.

Sec. 4473. Exemptions.

Sec. 4474. Cross references.

SEC. 4471. IMPOSITION OF TAX.

There shall be imposed a special tax to be paid by every person who operates a bowling alley, billiard room, or pool room at the rate of $20 a year for each bowling alley, billiard table, or pool table.

SEC. 4472. DEFINITION.

For the purpose of section 4471 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.

SEC. 4473. EXEMPTIONS.

The tax imposed by section 4471 shall not apply with respect to-(1) HOSPITALS.-Any billiard table or pool table in a hospital if no charge is made for the use of such table; or

(2) ARMED FORCES.-Any bowling alley, billiard table, or pool table maintained exclusively for the use of members of the Armed Forces on any property owned, reserved, or used by, or otherwise acquired for the use of, the United States if no charge is made for their use; or

(3) CERTAIN ORGANIZATIONS.-Any bowling alley, billard table, or pool table operated

(A) by, and located on the premises of, an organization not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual, or

(B) by any agency or instrumentality of the United States,

if no charge is made for the use of such alley or table.

SEC. 4474. CROSS REFERENCES.

For penalties and administrative provisions applicable to this subchap. ter, see chapter 40 and subtitle F.

Subchapter D-Tax on Use of Certain Vehicles

Sec. 4481. Imposition of tax.
Sec. 4482. Definitions.

Sec. 4483. Exemptions.
Sec. 4484. Cross reference.

SEC. 4481. IMPOSITION of tax.

(a) IMPOSITION OF TAX.-A tax is hereby imposed on the use of any highway motor vehicle which (together with the semitrailers and trailers customarily used in connection with highway motor vehicles of the same type as such highway motor vehicle) has a taxable gross weight of more than 26,000 pounds, at the rate of $1.50 a year for each 1,000 pounds of taxable gross weight or fraction thereof.

(b) BY WHOM PAID.-The tax imposed by this section shall be paid by the person in whose name the highway motor vehicle is, or is required to be, registered under the law of the State in which such vehicle is, or is required to be, registered, or, in case the highway motor vehicle is owned by the United States, by the agency or instrumentality of the United States operating such vehicle.

(c) PRORATION OF TAX.-If in any year the first use of the highway motor vehicle 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 highway motor vehicle for any year, no further tax shall be imposed by this section for such year with respect to such vehicle.

(e) PERIOD TAX IN EFFECT.-The tax imposed by this section shall apply only to use after June 30, 1956, and before July 1, 1972.

SEC. 4482. DEFINITIONS.

(a) HIGHWAY MOTOR VEHICLE.-For purposes of this subchapter, the term "highway motor vehicle" means any motor vehicle which is a highway vehicle.

(b) TAXABLE GROSS WEIGHT.-For purposes of this subchapter, the term "taxable gross weight" when used with respect to any highway motor vehicle, means the sum of—

(1) the actual unloaded weight of

(A) such highway motor vehicle fully equipped for service, and (B) the semitrailers and trailers (fully equipped for service) customarily used in connection with highway motor vehicles of the same type as such highway motor vehicle, and

(2) the weight of the maximum load customarily carried on highway motor vehicles of the same type as such highway motor vehicle and on the semitrailers and trailers referred to in paragraph (1) (B). Taxable gross weight shall be determined under regulations prescribed by the Secretary or his delegate (which regulations may include formulas or other methods for determining the taxable gross weight of vehicles by classes, specifications, or otherwise).

(c) OTHER DEFINITIONS.-For purposes of this subchapter(1) STATE.-The term "State" means a State, a Territory of the United States, and the District of Columbia.

(2) YEAR. The term "year" means the one-year period beginning on July 1.

(3) USE.-The term "use" means use in the United States on the public highways.

SEC. 4483. EXEMPTIONS.

(a) STATE AND LOCAL GOVERNMENTAL EXEMPTION.-Under regulations prescribed by the Secretary or his delegate, no tax shall be imposed by section 4481 on the use of any highway motor vehicle by any State or any political subdivision of a State.

(b) EXEMPTION FOR UNITED STATES.-The Secretary may authorize exemption from the tax imposed by section 4481 as to the use by the United States of any particular highway motor vehicle, or class of highway motor vehicles, if he determines that the imposition of such tax with respect to such use will cause substantial burden or expense which can be avoided by granting tax exemption and that full benefit of such exemption, if granted, will accrue to the United States.

(c) CERTAIN TRANSIT-TYPE BUSES.-Under regulations prescribed by the Secretary or his delegate, no tax shall be imposed by section 4481 on the use of any bus which is of the transit type (rather than of the intercity type) by a person who, for the last 3 months of the preceding year (or for such other period as the Secretary or his delegate may by regulations prescribe for purposes of this subsection), met the 60-percent passenger fare revenue test set forth in section 6421 (b) (2) as applied to the period prescribed for purposes of this subsection.

SEC. 4484. CROSS REFERENCE.

For penalties and administrative provisions applicable to this subchapter, see subtitle F.