[Congressional Record (Bound Edition), Volume 145 (1999), Part 13]
[Senate]
[Pages 17919-17920]
[From the U.S. Government Publishing Office, www.gpo.gov]



                          AMENDMENTS SUBMITTED

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                      TAXPAYER REFUND ACT OF 1999

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                ABRAHAM (AND OTHERS) AMENDMENT NO. 1354

  (Ordered to lie on the table.)
  Mr. ABRAHAM (for himself, Mr. Fitzgerald, Mr. Moynihan, and Mr. 
Schumer) submitted an amendment intended to be proposed by them to the 
bill (S. 1429) to provide for reconciliation pursuant to section 104 of 
the concurrent resolution on the budget for fiscal year 2000; as 
follows:

       At the end of title XI, insert the following:

     SEC. __. NO FEDERAL INCOME TAX ON AMOUNTS RECEIVED BY 
                   HOLOCAUST VICTIMS OR THEIR HEIRS.

       (a) In General.--For purposes of the Internal Revenue Code 
     of 1986, gross income shall not include any amount received 
     by an individual (or any heir of the individual)--
       (1) from the Swiss Humanitarian Fund established by the 
     Government of Switzerland or from any similar fund 
     established by any foreign country, or
       (2) as a result of the settlement of the action entitled 
     ``In re Holocaust Victims' Asset Litigation'', (E.D. NY), 
     C.A. No. 96-4849, or as a result of any similar action.
       (b) Effective Date.--This section shall apply to any amount 
     received before, on, or after the date of the enactment of 
     this Act.
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                       ABRAHAM AMENDMENT NO. 1355

  (Ordered to lie on the table.)
  Mr. ABRAHAM submitted an amendment intended to be proposed by him to 
the bill, S. 1429, supra; as follows:

       At the appropriate place, insert the following:

     SEC. __. TAX EXEMPT TREATMENT OF CERTAIN BONDS ISSUED IN 
                   CONNECTION WITH DELINQUENT REAL PROPERTY TAXES.

       (a) In General.--Section 148 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (i) as 
     subsection (j) and by inserting after subsection (h) the 
     following new subsection:
       ``(i) Special Rule for Delinquent Tax Bonds.--
       ``(1) In general.--For purposes of this section, a bond 
     which meets the requirements of paragraph (2) shall not be 
     treated as an arbitrage bond.
       ``(2) Delinquent tax bond requirements.--A bond meets the 
     requirements of this paragraph if--
       ``(A) the bond is issued primarily to facilitate the 
     collection or receipt of delinquent real property taxes,
       ``(B) all sale proceeds of the issue of which the bond is a 
     part (other than sale proceeds, if any, to be used for costs 
     of issuance and the establishment of a reasonably required 
     reserve or replacement fund) are transferred, within 30 days 
     after the date of issue of the bond, to governmental units 
     that levy, collect, or receive real property taxes,
       ``(C)(i) the amount of the sale proceeds so transferred 
     does not exceed the amount of delinquent real property taxes 
     for the year (or the preceding year) certified by such units 
     to the issuer of the bond as uncollected, and
       ``(ii) such certification is made as of a specific date 
     which occurs during the 5-month period preceding the date of 
     the issuance of the bond,
       ``(D) the maturity date of the bond is not later than 3 
     months after the date of the issue,
       ``(E) the last maturity date of the issue of which the bond 
     is a part (including the last maturity date of any bonds 
     issued to refund that issue or to refund other bonds issued 
     to refund that issue) is not later than 26 months after the 
     date of issuance of the original bond, and
       ``(F) all delinquent real property taxes (and interest, 
     fees, and penalties attributable to such taxes) received by 
     such governmental units after the specific date referred to 
     in subparagraph (C) and before any maturity date of such 
     issue are used, within 3 months of receipt, for the payment 
     of principal, interest, or redemption price of the issue of 
     which the bond is a part (to the extent that such taxes, 
     interest, fees, and penalties do not exceed such principal, 
     interest, and redemption price, in the aggregate).''
       (b) Coordination With Hedge Bond Rules.--Section 149(g)(3) 
     of such Code is amended by adding at the end the following 
     new subparagraph:
       ``(D) Exception for delinquent tax bond.--For purposes of 
     this subsection, the term `hedge bond' shall not include any 
     bond that meets the requirements of section 148(i)(2).''
       (c) Coordination With Pooled Financial Bond Rules.--Section 
     149(f)(4)(B) of such Code is amended--
       (1) by striking ``or'' at the end of clause (i),
       (2) by striking the period at the end of clause (ii) and 
     inserting ``, or'', and
       (3) by adding at the end the following new clause:
       ``(iii) section 148(i) applies to such bond.''
       (d) Coordination With Private Activity Bond Rules.--
     Paragraph (2) of section 141(c) of such Code (relating to 
     private activity bond; qualified bond) is amended by striking 
     ``or'' at the end of subparagraph (A), by striking the period 
     at the end of subparagraph (B) and inserting ``, or'', and by 
     adding at the end the following new subparagraph:
       ``(C) is with respect to a bond which meets the 
     requirements of section 148(i)(2) (relating to delinquent tax 
     bonds).''

[[Page 17920]]

       (e) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act. For purposes of the preceding sentence, a bond 
     (or series of bonds) issued to refund a bond shall be treated 
     as being issued on the date of issuance of the refunded bond, 
     if the refunding bond meets the requirements of subclauses 
     (I), (II), and (III) of section 144(a)(12)(A)(ii) of the 
     Internal Revenue Code of 1986.

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