Volume 65 · 41
Public Law 82–29
Allowing the consumer of gasoline to deduct, for income-tax purposes. State taxes on gasoline imposed on the wholesaler and passed on to the consumer.
Approved May 12, 1951
Statutory text
AN ACT
Allowing the consumer of gasoline to deduct, for income-tax purposes. State taxes on gasoline imposed on the wholesaler and passed on to the consumer.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That section 23 (c) (3) of the Internal Revenue Code (relating to deduction of retail sales taxes) is hereby amended to read as follows:
“(3) Gasoline and retail sales taxes.—
In the case of a tax imposed by any State, Territory, District, or possession of the United States, or any political subdivision thereof, upon persons engaged in selling tangible personal property at retail, or upon persons selling gasoline or other motor vehicle fuels either at wholesale or retail, which is measured by the gross sales price or the gross receipts from the sale or which is a stated sum per unit of such property sold, or upon persons engaged in furnishing services at retail, which is measured by the gross receipts for furnishing such services, if the amount of such tax is separately stated, then to the extent that the amount so stated is paid by the consumer (otherwise than in connection with the consumer’s trade or business) to his vendor such amount shall be allowed as a deduction in computing the net income of such consumer as if such amount constituted a tax imposed upon and paid by such consumer.”
Sec. 2.
The amendment made by this Act shall apply to taxable years beginning after December 31, 1950.
Approved May 12, 1951.