Internal Revenue Code:Sec. 4162. Definitions; treatment of certain resales

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle D - Miscellaneous Excise Taxes
       CHAPTER 32 - MANUFACTURERS EXCISE TAXES
        Subchapter D - Recreational Equipment
         PART I - SPORTING GOODS
       

Statute

    Sec. 4162. Definitions; treatment of certain resales
 
    (a) Sport fishing equipment defined
      For purposes of this part, the term ''sport fishing equipment''
    means -
        (1) fishing rods and poles (and component parts therefor),
        (2) fishing reels,
        (3) fly fishing lines, and other fishing lines not over 130
      pounds test,
        (4) fishing spears, spear guns, and spear tips,
        (5) items of terminal tackle, including -
          (A) leaders,
          (B) artificial lures,
          (C) artificial baits,
          (D) artificial flies,
          (E) fishing hooks,
          (F) bobbers,
          (G) sinkers,
          (H) snaps,
          (I) drayles, and
          (J) swivels,
      but not including natural bait or any item of terminal tackle
      designed for use and ordinarily used on fishing lines not
      described in paragraph (3), and
        (6) the following items of fishing supplies and accessories -
          (A) fish stringers,
          (B) creels,
          (C) tackle boxes,
          (D) bags, baskets, and other containers designed to hold
        fish,
          (E) portable bait containers,
          (F) fishing vests,
          (G) landing nets,
          (H) gaff hooks,
          (I) fishing hook disgorgers, and
          (J) dressing for fishing lines and artificial flies,
        (7) fishing tip-ups and tilts,
        (8) fishing rod belts, fishing rodholders, fishing harnesses,
      fish fighting chairs, fishing outriggers, and fishing
      downriggers, and
        (9) electric outboard boat motors.
    (b) Treatment of certain resales
      (1) In general
        If -
          (A) the manufacturer, producer, or importer sells any article
        taxable under section 4161(a) to any person,
          (B) the constructive sale price rules of section 4216(b) do
        not apply to such sale, and
          (C) such person (or any other person) sells such article to a
        related person with respect to the manufacturer, producer, or
        importer,
      then such related person shall be liable for tax under section
      4161 in the same manner as if such related person were the
      manufacturer of the article.
      (2) Credit for tax previously paid
        If -
          (A) tax is imposed on the sale of any article by reason of
        paragraph (1), and
          (B) the related person establishes the amount of the tax
        which was paid on the sale described in paragraph (1)(A),
      the amount of the tax so paid shall be allowed as a credit
      against the tax imposed by reason of paragraph (1).
      (3) Related person
        For purposes of this subsection, the term ''related person''
      has the meaning given such term by section 465(b)(3)(C).
      (4) Regulations
        Except to the extent provided in regulations, rules similar to
      the rules of this subsection shall also apply in cases (not
      described in paragraph (1)) in which intermediaries or other
      devices are used for purposes of reducing the amount of the tax
      imposed by section 4161(a).
 

Sources

    (Added Pub. L. 98-369, div.  A, title X, Sec. 1015(b), July 18,
    1984, 98 Stat. 1017; amended Pub. L. 99-514, title II, Sec.
    201(d)(7)(C), (12), title XVIII, Sec. 1878(b), Oct. 22, 1986, 100
    Stat. 2141, 2142, 2903.)
 

Miscellaneous

                                 AMENDMENTS
     2004 - Pub. L. 108-357, Sec. 334. Subsection (a) of section 4162
     (relating to sport fishing equipment) is amended by redesignating
     paragraph (3) as paragraph (4) and by inserting after paragraph (2)
     the new paragraph: (3) 3 percent rate of tax for tackle boxes.
     (b) Effective Date.--The <<NOTE: 26 USC 4162 note.>> amendments made 
     this section shall apply to articles sold by the manufacturer,
     producer, or importer after December 31, 2004.

      1986 - Subsec. (a)(6)(I). Pub. L. 99-514, Sec. 1878(b), amended
    subpar. (I) generally, substituting ''hook'' for ''hood''.
      Subsec. (c)(3). Pub. L. 99-514, Sec. 201(d)(7)(C), (12), made
    identical amendments, substituting ''section 465(b)(3)(C)'' for
    ''section 168(e)(4)(D)''.
                      EFFECTIVE DATE OF 1986 AMENDMENT
      Amendment by section 201(d)(7)(C), (12) of Pub. L. 99-514
    applicable to property placed in service after Dec. 31, 1986, in
    taxable years ending after such date, with exceptions, see sections
    203 and 204 of Pub. L. 99-514, set out as a note under section 168
    of this title.
      Amendment by section 201(d)(7)(C), (12) of Pub. L. 99-514 not
    applicable to any property placed in service before Jan. 1, 1994,
    if such property placed in service as part of specified
    rehabilitations, and not applicable to certain additional
    rehabilitations, see section 251(d)(2), (3) of Pub. L. 99-514, set
    out as a note under section 46 of this title.
      Amendment by section 1878(b) of Pub. L. 99-514 effective, except
    as otherwise provided, as if included in the provisions of the Tax
    Reform Act of 1984, Pub. L. 98-369, div.  A, to which such
    amendment relates, see section 1881 of Pub. L. 99-514, set out as a
    note under section 48 of this title.
                               EFFECTIVE DATE
      Section 1015(e) of Pub. L. 98-369, as amended by Pub. L. 99-514,
    Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
      ''(1) In general. - Except as provided in paragraph (2), the
    amendments made by this section (enacting this section and amending
    sections 4161 and 6302 of this title) shall apply with respect to
    articles sold by the manufacturer, producer, or importer after
    September 30, 1984.
      ''(2) Treatment of certain resales. - Subsection (c) of section
    4162 of the Internal Revenue Code of 1986 (formerly I.R.C. 1954)
    (relating to treatment of certain resales), as added by this
    section, shall apply to sales by related persons (as defined in
    such subsection) after the date of the enactment of this Act (July
    18, 1984).''
             PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title
    XVIII (Sec. 1800-1899A) of Pub. L. 99-514 require an amendment to
    any plan, such plan amendment shall not be required to be made
    before the first plan year beginning on or after Jan. 1, 1989, see
    section 1140 of Pub. L. 99-514, as amended, set out as a note under
    section 401 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 16 section 1826a.