1.Modification of rate of
excise tax for certain wooden arrows
(a)
(1)Paragraph (2) of section
4061(b) of the Internal Revenue Code of 1986 (relating to arrows) is amended by
redesignating subparagraph (B) as subparagraph (C) and by inserting after
subparagraph (A) the following new subparagraph:
(B)There is hereby imposed on the first sale by the
manufacturer, producer, or importer of any wooden shaft (whether sold
separately or incorporated as part of a finished or unfinished product) of a
type used in the manufacture of any arrow which after its assembly—
(i)measures
5/16 of an inch or less in diameter,
(ii)measures 18
inches or more overall but less than 281/2 inches overall
in length, and
(iii)is not suitable
for use with a bow described in paragraph (1)(A),
a tax
equal to 5 cents per
shaft..
(2)Subparagraph (A) of section 4161(b)(2) of such Code is
amended by inserting (other than an arrow described in subparagraph
(B))
after the manufacture of any arrow
.
(b)
(1)Subparagraph (C) of section 4161(b)(2) of the Internal
Revenue Code of 1986, as redesignated by subsection (a)(1), is amended by
redesignating clause (ii) as clause (iii) and by inserting after clause (i) the
following new clause:
(ii)In the case of any calendar year beginning after 2007, the
5-cent amount specified in subparagraph (B) shall be increased by an amount
equal to the product of—
(I)such amount,
multiplied by
(II)the
cost-of-living adjustment determined under section 1(f)(3) for such calendar
year, determined by substituting 2006
for 1992
in
subparagraph (B)
thereof.
.
(2)Clause (iii) of section 4161(b)(2)(C) of such Code, as
redesignated by paragraph (1), is amended by striking clause (i)
and inserting clause (i) or (ii)
.
(c)The amendments made by this section shall apply to shafts
first sold after the date of enactment of this Act.