Internal Revenue Code:Sec. 4402. Exemptions

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle D - Miscellaneous Excise Taxes
       CHAPTER 35 - TAXES ON WAGERING
        Subchapter A - Tax on Wagers
      

Statute

    Sec. 4402. Exemptions
 
      No tax shall be imposed by this subchapter -
      (1) Parimutuels
        On any wager placed with, or on any wager placed in a wagering
      pool conducted by, a parimutuel wagering enterprise licensed
      under State law,
      (2) Coin-operated devices
        On any wager placed in a coin-operated device (as defined in
      section 4462 as in effect for years beginning before July 1,
      1980), or on any amount paid, in lieu of inserting a coin, token,
      or similar object, to operate a device described in section
      4462(a)(2) (as so in effect), or
      (3) State-conducted lotteries, etc.
        On any wager placed in a sweepstakes, wagering pool, or lottery
      which is conducted by an agency of a State acting under authority
      of State law, but only if such wager is placed with the State
      agency conducting such sweepstakes, wagering pool, or lottery, or
      with its authorized employees or agents.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 525; Pub. L. 85-859, title I,
    Sec. 152(b), Sept. 2, 1958, 72 Stat. 1305; Pub. L. 89-44, title IV,
    Sec. 405(a), title VIII, Sec. 813(a), June 21, 1965, 79 Stat. 149,
    170; Pub. L. 94-455, title XII, Sec. 1208(a), Oct. 4, 1976, 90
    Stat. 1709; Pub. L. 95-600, title V, Sec. 521(c)(1), Nov. 6, 1978,
    92 Stat. 2884.)
 

References in Text

                             REFERENCES IN TEXT
      Section 4462, referred to in par. (2), was repealed by Pub. L.
    95-600, title V, Sec. 521(b), Nov. 6, 1978, 92 Stat. 2884.
 

Miscellaneous

                                 AMENDMENTS
      1978 - Par. (2). Pub. L. 95-600 substituted ''(as defined in
    section 4462 as in effect for years beginning before July 1,
    1980)'' for ''with respect to which an occupational tax is imposed
    by section 4461'' and ''(as so in effect), or'' for ''if an
    occupational tax is imposed with respect to such device by section
    4461, or''.
      1976 - Par. (3). Pub. L. 94-455, among other changes, substituted
    in heading ''State-conducted lotteries, etc.'' for
    ''State-conducted sweepstakes.'', and struck out provision that no
    tax be imposed on any wager placed in a sweepstakes, wagering pool,
    or lottery in which the ultimate winners are determined by the
    results of a horse race.
      1965 - Par. (2). Pub. L. 89-44, Sec. 405(a), substituted
    ''section 4462(a)(2),'' for ''section 4462(a)(2)(B),''.
      Par. (3). Pub. L. 89-44, Sec. 813(a), added par. (3).
      1958 - Par. (2). Pub. L. 85-859 inserted provisions exempting
    from the tax amounts paid to operate a device described in section
    4462(a)(2)(B), if an occupational tax is imposed with respect to
    such device by section 4461 of this title.
                      EFFECTIVE DATE OF 1978 AMENDMENT
      Pub. L. 95-600, title V, Sec. 521(d)(2), Nov. 6, 1978, 92 Stat.
    2885, provided that: ''The amendments made by subsections (b)
    (repealing sections 4461 to 4464 of this title) and (c) (amending
    this section and section 4901 of this title) shall apply with
    respect to years beginning after June 30, 1980.''
                      EFFECTIVE DATE OF 1976 AMENDMENT
      Section 1208(c)(1) of Pub. L. 94-455 provided that: ''The
    amendment made by subsection (a) (amending this section)) shall
    apply with respect to wagers placed after March 10, 1964''.
                      EFFECTIVE DATE OF 1965 AMENDMENT
      Section 701(c)(2) of Pub. L. 89-44 provided in part that: ''The
    amendments made by sections 403 (amending sections 4461 and 4462 of
    this title) (relating to occupational tax on coin-operated devices)
    and 404 (repealing sections 4471 to 4474) (relating to occupational
    tax on bowling alleys, billiard and pool tables), and by
    subsections (a) (amending this section), (b) (amending section 4901
    of this title) and (d) (amending section 4914 of this title) of
    section 405 (relating to technical and conforming changes) shall
    apply on and after July 1, 1965.''
      Section 813(b) of Pub. L. 89-44 provided that: ''The amendment
    made by subsection (a) (amending this section) shall apply with
    respect to wagers placed after March 10, 1964.''
                      EFFECTIVE DATE OF 1958 AMENDMENT
      Section 152(c) of Pub. L. 85-859, as amended by Pub. L. 99-514,
    Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ''The
    amendments made by subsections (a) and (b) (amending this section
    and section 4462 of this title) shall take effect on the effective
    date specified in section 1(c) of this Act (the first day of the
    first calendar quarter beginning more than 60 days after Sept. 2,
    1958). In the case of the year beginning July 1, 1958, where the
    trade or business on which the tax is imposed under section 4461 of
    the Internal Revenue Code of 1986 (formerly I.R.C. 1954) was
    commenced before such effective date, the tax imposed for such year
    solely by reason of the amendment made by subsection (a) -
        ''(1) shall be the amount reckoned proportionately from such
      effective date through June 30, 1959, and
        ''(2) shall be due on, and payable on or before, the last day
      of the month the first day of which is such effective date.''