55 STAT.] 77TH CONG. , 1ST SESS.-CH. 412-SEPT. 20 , 1941 "(b) TAX PAID TO VENDOR. - Taxes payable by the vendee shall be paid to the vendor at the time the sale is consummated, and shall be collected and paid to the United States by the vendor in the same manner as provided in section 3467. In case of failure or refusal by the vendee to pay such taxes to the vendor, the vendor shall report the facts to the Commissioner who shall cause collection of such taxes to be made from the vendee." (c) UNEXPOSED MOTION PICTURE FILMs.- Section 3443 (a) (3) (A) of the Internal Revenue Code (relating to credits or refunds of tax to manufacturer) is amended by inserting at the end thereof the following new clause: "(v) in the case of unexposed motion picture films, used or resold for use in the making of news reel motion picture films." (d) CREDITS, AND TAX FREE SALES OF AUTOMOBILE RADIOS. - Section 3442, section 3443 (a) (1), and section 3444 (a) (1) and (2) of the Internal Revenue Code (relating to tax in case of sale of tires to manufacturers of automobiles, etc., and credit on sale) are amended by striking out "tires or inner tubes" wherever appearing therein and inserting "tires, inner tubes, or automobile radios taxable under section 3404"; and by striking out "tire or inner tube" wherever appearing therein and inserting "tire, inner tube, or automobile radio taxable under section 3404". Section 3403 (e) of the Internal Revenue Code, as amended by this Act, is further amended by striking out "tires and inner tubes" where the phrase appears the first time and inserting "tires, inner tubes, or automobile radios"; paragraph (1) of subsec- tion (e) of such section is amended by inserting before the semicolon "or, in the case of automobile radios, if such radios were taxable under section 3404"; paragraph (2) of subsection (e) of such section is amended by striking out "tires or inner tubes" wherever such phrase appears and inserting "tires, inner tubes, or automobile radios". SEC. 554. TRANSPORTATION OF PERSONS, ETC. (a) The heading of subchapter C is amended to read as follows: "SUBCHAPTER D-ADMINISTRATIVE PROVISIONS". (b) Chapter 30 of the Ititerlil RevIenue ('ode is amilended by insert- ing after section 3468 the following new subchlilpter: "SUBCHAPTER C-TRANSPORTATION OF PERSONS "SEC. 3469. TAX ON TRANSPORTATION OF PERSONS, ETC. "(a) TRANSPORTATION.- There shall be imposed upon the amount paid within the United States, on or after October 10, 1941, for the transportation, on or after such effective date, of persons by rail, motor vehicle, water, or air, within or without the United States, a tax equal to 5 per centum of the amount so paid. Such tax shall apply to transportation by motor vehicles having a passenger seating capacity of less than ten adult passengers, including the driver, only when such vehicle is operated on an established line. "(b) EXEMPTION OF CERTAIN TRIPS.- The tax imposed by subsec- tion (a) shall not apply to amounts paid for transportation which do not exceed 35 cents, to amounts paid for commutation or season tickets for single trips of less than thirty miles, or to amounts paid for commutation tickets for one month or less. "(c) SEATS, BERTHS, ETC. - There shall be imposed upon the amount paid within the United States for seating or sleeping accom- 278941-42 -- PT. I ---6 721 53 Stat. 422 . 26 U. S. C. 3467. 53 Stat. 417. 26U.s.c. 13443 (a) (3) (A). 53 Stat. 416 , 417, 418. 26 U. S. C. A§3442, 3443 (a) (1), 3444 (a) (1)-(2). Ante, p. 712. 53 Stat. 410; ante, p. 712. 2U..C. c 3403 (e). 63 Stat. 421, 423. 26 ..C.C 3470- 3474. 53 Htat, 421. 26U.S. c 'I M.
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