[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1821 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1821

To amend the Internal Revenue Code of 1986 to reestablish the marketing 
   aspects of farmers' cooperatives in relation to adding value to a 
 farmer's product by feeding it to animals and selling the animals and 
   to grant a declaratory judgment remedy relating to the status and 
                classification of farmers' cooperatives.


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                    IN THE HOUSE OF REPRESENTATIVES

                              May 10, 2001

Mr. Thune (for himself and Mrs. Emerson) 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 reestablish the marketing 
   aspects of farmers' cooperatives in relation to adding value to a 
 farmer's product by feeding it to animals and selling the animals and 
   to grant a declaratory judgment remedy relating to the status and 
                classification of farmers' cooperatives.

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

SECTION 1. COOPERATIVE MARKETING INCLUDES VALUE-ADDED PROCESSING 
              THROUGH ANIMALS.

    (a) In General.--Section 1388 of the Internal Revenue Code of 1986 
(relating to definitions and special rules) is amended by adding at the 
end the following new subsection:
    ``(k) Cooperative Marketing Includes Value-Added Processing Through 
Animals.--For purposes of section 521 and this subchapter, the term 
`marketing the products of members and other producers' includes 
feeding the products of members and other producers to cattle, hogs, 
fish, chickens, or other animals and selling the animals (or animal 
products) which were fed such feed products.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 2. DECLARATORY JUDGMENT REMEDY RELATING TO STATUS AND 
              CLASSIFICATION OF FARMERS' COOPERATIVES.

    (a) In General.--Paragraph (1) of section 7428(a) of the Internal 
Revenue Code of 1986 (relating to creation of remedy) is amended by 
striking ``or'' at the end of subparagraph (B), and by inserting after 
subparagraph (C) the following new subparagraph:
                    ``(D) with respect to the initial qualification or 
                continuing qualification of an organization as a 
                cooperative described in section 521(b) which is exempt 
                from tax under section 521(a), or''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to pleadings filed with the United States Tax Court, the 
district court of the United States for the District of Columbia, or 
the United States Court of Federal Claims after the date of enactment 
of this Act but only with respect to determinations (or requests for 
determinations) made after January 1, 2001.
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