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72d CONGRESS . SESS. I. CH. 209. JUNE 6, 1932 . INCOME TAX amount which (but for the imposition of the tax imposed by this title) would hav e accrued direct ly to or for the use of such Stat e, Territory, political subdivision, or the District of Columbia, bears to the amount of the net income from the operation of such public utility for such taxable year . If no part scorning to
(2) If by the terms of such contract no part of the proceeds State, etc ., the net income of persons tax- from the operation of the public utility for the taxable year able, would, irrespective of the tax imposed by this title, accrue directly to or for the use of such State, Territory, political subdivision, or the District of Columbia, then the tax upon the net income of such per son from the 'op eration of such public ut ility sh all be levied, assessed, collected, and paid in the manner and at the rates prescribed in this title . Bridges to be so. (e) BRIDGE$ TO BE AcQunRED BY STATE OR POLITICAL SUBDIVISION, quired by State, etc. Whenever any State or political subdivision thereof, in pursuance of a contract to which it is not a party entered into before the enactment of the Revenue Act of 1928, is to acquire a bridge- Levy on operation
(1) If by the terms of such contract the tax imposed b this proceeds, prior to divi- sionthereof. title is to be paid out of the proceeds from the operation o such bridge prior to any division of such proceeds, and if, but for the imposition of the tax imposed by this title, a part of such proceeds for the taxable year would accrue directly to or for the use of or would be applied for the benefit of such State or political subdivision, then a tax upon the net income from the operation of such bridge shall be levied, assessed, collected, and paid in Refund to State, etc . the manner and at the rates prescribed in this title, but there shall be refunded to such State or olitical subdivision (under rules and regulations to be prescribed by the Commissioner with the approval of the Secretary) an amount which bears the same relation to the amount of the tax as the amount which (but for the imposition of the tax imposed by this title) would have accrued directly to or for the use of or would be applied for the benefit of such State or political subdivision, bears to the amount of the net income from the operation of such bridg e for such Restriction. taxable year . No suc h refund shall be ma de unless the entire amount of the refund is to be applied in part payment for the acquisition of such bridge . If no part accruing to
~(2) If by the t rms of such contract no part of the proceeds such State, etc ., the net income from opera- from the operatio, of the bridge for the taxable ,year would, tion ta xable . irrespective of the tax imposed osed by this title, accrue directly to or for the use of or be applied for the benefit of such State or political subdivision, then- the tax upon the net income from the operation of such bridge shall be levied, assessed, collected, and paid-in the manner and at the rates prescribed in this title . . Dividends from (f) DIVIDENDS FROM "CHINA TRADE ACT" CORPORATION . -- In t he "China Trade s.
Act" case of a person, amounts distributed as dividends to or for his benefit by a corporation organized under the China Trade Act, 1922 if, at the time of such distribution, he is a resident of China, and the equitable right to the income of the shares of stock of the corpo- ration is in good faith vested in him . S p oivners' mutual (~,) SHIPOWNERS' PROTECTION AND INDEMNITY ASSOCIATIONS .-The Receipts . receipts of shipowners' mutual protection and indemnity associations . not organized for profit, and no part of the net earnings of which inures to the benefit of any private shareholder ; but such corporations shall be subject as othe r person s to the tax upon their n et incom e from interest, d ividends, and re nts .
