
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC4162]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                 Subtitle D--Miscellaneous Excise Taxes
 
                 CHAPTER 32--MANUFACTURERS EXCISE TAXES
 
                  Subchapter D--Recreational Equipment
 
                         PART I--SPORTING GOODS
 
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,
        (9) electric outboard boat motors, and
        (10) sonar devices suitable for finding fish.

(b) Sonar device suitable for finding fish

    For purposes of this part, the term ``sonar device suitable for 
finding fish'' shall not include any sonar device which is--
        (1) a graph recorder,
        (2) a digital type,
        (3) a meter readout, or
        (4) a combination graph recorder or combination meter readout.

(c) 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).

(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.)


                               Amendments

    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 [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 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.

                  Section Referred to in Other Sections

    This section is referred to in title 16 section 1826a.
