[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1979 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1979

 To amend the Internal Revenue Code of 1986 to clarify the application 
             of the excise tax imposed on arrow components.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 27, 1999

  Mr. Barcia (for himself, Mr. Camp, Mr. Cunningham, Mr. Hunter, Mr. 
Tanner, Mr. Pickett, Mr. Tauzin, Mr. John, Mr. Istook, Mr. Thompson of 
  California, Mr. Sandlin, and Mr. Bilbray) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to clarify the application 
             of the excise tax imposed on arrow components.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Arrow Excise Tax Clarification Act 
of 1999''.

SEC. 2. CLARIFICATION OF EXCISE TAX IMPOSED ON ARROW COMPONENTS.

    (a) In General.--Paragraph (2) of section 4161(b) of the Internal 
Revenue Code of 1986 (relating to bows and arrows, etc.) is amended to 
read as follows:
            ``(2) Arrows.--
                    ``(A) Arrow components.--
                            ``(i) In general.--There is hereby imposed 
                        on the sale by the manufacturer, producer, or 
                        importer of any shaft, point, article used to 
                        attach a point to a shaft, nock, or vane of a 
                        type used in the manufacture of any taxable 
                        arrow a tax equal to 12.4 percent of the price 
                        for which so sold.
                            ``(ii) Reduced rate on certain hunting 
                        points.--Clause (i) shall be applied by 
                        substituting `11 percent' for `12.4 percent' in 
                        the case of a point which is designed primarily 
                        for use in hunting fish or large animals.
                    ``(B) Imported arrows.--There is hereby imposed on 
                the sale by the importer of any taxable arrow a tax 
                equal to 11 percent of the price for which so sold.
                    ``(C) Taxable arrow.--For purposes of this 
                paragraph, the term `taxable arrow' means any arrow 
                which--
                            ``(i) measures 18 inches overall or more in 
                        length, or
                            ``(ii) measures less than 18 inches overall 
                        in length but is suitable for use with a bow 
                        described in paragraph (1)(A).
                    ``(D) Tax-free sales of arrows by component 
                purchasers to governments and tax-exempt entities.--In 
                the case of the tax imposed by subparagraph (A), 
                paragraphs (4) and (5) of section 4221(a), and section 
                4221(b), shall be treated as also referring to a sale 
                of an article to a purchaser for resale by such 
                purchaser (either separately or as part of an arrow) to 
                a government or organization described in such 
                paragraphs for its exclusive use.''
    (b) Effective Date.--The amendment made by this section shall apply 
to articles sold by the manufacturer, producer, or importer after the 
close of the first calendar month ending more than 30 days after the 
date of the enactment of this Act.
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