SEC. 613-Continued (d) (added 1958)—Continued Applicability: Taxable years beginning after December 31, 1953, and ending after August 16, 1954. (Id., § 1(c)(1), 72 Stat. 1606. See n. 36, p. 79 above). ANCILLARY PROVISIONS: Sept. 14, 1960, H.R. 12536, P.L. 86-781, § 4, 74 Stat. 1018: Amended P.L. 86-564, § 302 (c) (effective date for certain amendments to section. 613 of the Internal Revenue Code of 1954-see p. 310 above) to read as follows: "(c) EFFECTIVE DATE. "(1) IN GENERAL.-Except as provided in paragraph (2), the amendments made by subsections (a) [amending Sec. 613(b) (3), (5), (6) of the Internal Revenue Code of 1954] and (b) [amending Sec. 613(c) (2), (4), (5) of the Internal Revenue Code of 1954] shall be applicable only with respect to taxable years beginning after December 31, 1960. "(2) CALCIUM CARBONATES, ETC. "(A) ELECTION FOR PAST YEARS.-In the case of calcium carbonates or other minerals when used in making cement, if an election is made by the taxpayer under subparagraph (C)- "(i) the amendments made by subsection (b) shall apply to taxable years with respect to which such election is effective, and "(ii) provisions having the same effect as the amendments made by subsection (b) shall be deemed to be included in the Internal Revenue Code of 1939 and shall apply to taxable years with respect to which such election is effective in lieu of the corresponding provisions of such Code. "(B) YEARS TO WHICH APPLICABLE.-An election made under subparagraph (C) to have the provisions of this paragraph apply shall be effective for all taxable years beginning before January 1, 1961, in respect of which "(i) the assessment of a deficiency, "(ii) the refund or credit of an overpayment, or "(iii) the commencement of a suit for recovery of a refund under section 7405 of the Internal Revenue Code 1954, is not prevented on the date of the enactment of this paragraph by the operation of any law or rule of law. Such election shall also be effective for any taxable year beginning before January 1, 1961, in respect of which an assessment of a deficiency has been made but not collected on or before the date of the enactment of this paragraph. "(C) TIME AND MANNER OF ELECTION.-An election to have the provisions of this paragraph apply shall be made by the taxpayer on or before the 60th day after the date of publication in the Federal Register of final regulations issued under authority of subparagraph (F), and shall be made in such form and manner as the Secretary of the Treasury or his delegate shall prescribe by regulations. Such election, if made, may not be revoked. "(D) STATUTES OF LIMITATION. Notwithstanding any other law, the period within which an assessment of a deficiency attributable to the application of the amendments made by subsection (b) may be made with respect to any taxable year to which such amendments apply under an election made under subparagraph (C), and the period within which a claim for refund or credit of an overpayment attributable to the application of such amendments may be made with respect to any such taxable year, shall not expire prior to one year after the last day for making an election under subparagraph (C). An election by a taxpayer under subparagraph (C) shall be considered as a consent to the application of the provisions of this subparagraph. "(E) TERMS; APPLICABILITY OF OTHER LAWS.-Except where otherwise distinctly expressed or manifestly intended, terms used in this paragraph shall have the same meaning as when used in the Internal Revenue Code of 1954 SEC. 613-Continued ANCILLARY PROVISIONS (P.L. 86-781, § 4)-Continued (or corresponding provisions of the Internal Revenue Code of 1939) and all provisions of law shall apply with respect to this paragraph as if this paragraph were a part of such Code (or corresponding provisions of the Internal Revenue Code of 1939). "(F) REGULATIONS.-The Secretary of the Treasury or his delegate shall prescribe such regulations as may be necessary to carry out the provisions of this paragraph." Sept. 26, 1961, H.R. 7057, P.L. 87-312, 75 Stat. 674: "AN ACT "Relating to the determination of gross income from the property for taxable years prior to 1961 in the case of certain clays and shale which were used in the manufacture of certain clay products. "Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) ELECTION FOR PAST YEARS.-In the case of brick and tile clay, fire clay, or shale used by the mineowner or operator in the manufacture of building or paving brick, drainage and roofing tile, sewer pipe, flower pots, and kindred products (without regard to the applicable rate of percentage depletion), if an election is made under subsection (c), for the purpose of applying section 613(c) of the Internal Revenue Code of 1954 (and corresponding provisions of the Internal Revenue Code of 1939) for each of the taxable years with respect to which the election is effective "(1) gross income from the property shall be 50 per centum of the amount for which the manufactured products are sold during the taxable year except that with respect to such manufactured products, gross income from the property shall not exceed an amount equal to $12.50 multiplied by the number of short tons used in the manufactured products sold during the taxable year, and "(2) for purposes of computing the 50 per centum limitation under section 613(a) of the Internal Revenue Code of 1954 (or the corresponding provision of the Internal Revenue Code of 1939), the taxable income from the property (computed without allowance for depletion) shall be 50 per centum of the taxable income from the manufactured products sold during the taxable year (computed without allowance for depletion). "(b) YEARS TO WHICH APPLICABLE.-An election made under subsection (c) to have the provisions of this section apply shall be effective for all taxable years beginning before January 1, 1961, in respect of which "(1) the assessment of a deficiency, "(2) the refund or credit of an overpayment, or "(3) the commencement of a suit for recovery of a refund under section 7405 of the Internal Revenue Code of 1954. is not prevented on the date of the enactment of this Act by the operation of any law or rule of law. Such election shall also be effective for any taxable year beginning before January 1, 1961, in respect of which an assessment of a deficiency has been made but not collected on or before the date of the enactment of this Act. "(c) TIME AND MANNER OF ELECTION.-An election to have the provisions of this section apply shall be made by the taxpayer on or before the sixtieth day after the date of publication in the Federal Register of final regulations issued under authority of subsection (f), and shall be made in such form and manner as the Secretary of the Treasury or his delegate shall prescribe by regulations. Such election, if made, may not be revoked. "(d) STATUTES OF LIMITATION.-Notwithstanding any other law, the period within which an assessment of a deficiency attributable to the election under subsection (c) may be made with respect to any taxable year for which such election is effective, and the period within which a claim for refund or credit of an overpayment attributable to the election under such subsection may be made with respect to any such taxable year, shall not expire prior to one year after the last day for making SEC. 613-Continued ANCILLARY PROVISIONS (P.L. 87-312)—Continued an election under subsection (c). An election by a taxpayer under subsection (c) shall be considered as a consent to the application of the provisions of this subsection. "(e) TERMS; APPLICABILITY OF OTHER LAWS.-Except where otherwise distinctly expressed or manifestly intended, terms used in this section shall have the same meaning as when used in the Internal Revenue Code of 1954 (or corresponding provisions of the Internal Revenue Code of 1939) and all provisions of law shall apply with respect to this section as if this section were a part of such Code (or corresponding provisions of the Internal Revenue Code of 1939). "f) REGULATIONS.-The Secretary of the Treasury or his delegate shall prescribe such regulations as may be necessary to carry out the provisions of this section." Sept. 26, 1961, H.R. 2585, P.L. 87-321, § 2, 75 Stat. 683: “SEC. 2. ELECTION FOR QUARTZITE AND CLAY USED IN THE PRODUCTION OF REFRACTORY PRODUCTS. "(a) ELECTION FOR PAST YEAR.-If an election is made under subsection (c), in the case of quartzite and clay used by the mine owner or operator in the production of refractory products, for the purpose of applying section 613(c) of the Internal Revenue Code of 1954 (and corresponding provisions of the Internal Revenue Code of 1939) for each of the taxable years with respect to which the election is effective"(1) the term 'ordinary treatment processes' shall include crushing, grinding, and separating the mineral from waste, but shall not include any subsequent process; and "(2) the gross income from mining for each short ton of such quartzite or clay used in the production of all refratory products sold during the taxable year shall be equal to 87% percent of the lesser of "(A) the average lowest published or advertised price, or or at which, during the taxable year, the mine owner or operator offered to sell, sold, such quartzite or clay (in the form and condition of such products after the application of only the processes described in paragraph (1) and before transportation from the plant in which such processes were applied). For purposes of this paragraph, exceptional, unusual, or nominal sales or selling prices shall be disregarded. If the mine owner or operator makes no sales of, or makes only exceptional, unusual, or nominal sales of, such quartzite or clay after application of only the processes described in paragraph (1), then in lieu of the price provided for in subparagraph (A) or (B) there shall be used the average lowest recognized selling price for the taxable year for such quartzite or clay in the marketing area of the mine owner or operator published in a trade journal or other industry publication. "(b) YEARS TO WHICH APPLICABLE.-An election made under subsection (c) to have the provisions of this section apply shall be effective on and after January 1, 1951, for all taxable years beginning before January 1, 1961, in respect of which"(1) the assessment of a deficiency, "(2) the refund or credit of an overpayment, or "(3) the commencement of a suit for recovery of a refund under section 7405 of the Internal Revenue Code of 1954, is not prevented on the date of the enactment of this Act by the operation of any law or rule of law. Such election shall also be effective on and after January 1, 1951, for any taxable year beginning before January 1, 1961, in respect of which an assessment of a deficiency has been made but not collected on or before the date of the enactment of this Act. "(c) TIME AND MANNER OF ELECTION.-An election to have the provisions of this section apply shall be made by the taxpayer on or before the 60th day after the date of publication in the Federal Register of final regulations issued under authority of subsection (f), and shall be made in such form and manner as the Secretary of the Treasury or his delegate shall prescribe by regulations. Such election, if made, may not be revoked. 60-448-67-21 SEC. 613-Continued ANCILLARY PROVISIONS (P.L. 87-321, § 2)-Continued "(d) STATUTES OF LIMITATIONS.-Notwithstanding any other law, the period within which an assessement of a deficiency attributable to the election under subsection (c) may be made with respect to any taxable year for which such election is effective, and the period within which a claim for refund or credit of an overpayment attributable to the election under such subsection may be made with respect to any such taxable year, shall not expire prior to one year after the last day for making an election under subsection (c). An election by a taxpayer under subsection (c) shall be considered as a consent to the application of the provisions of this subsection. "(e) TERMS; APPLICABILITY OF OTHER LAWS.-Except where otherwise distinctly expressed or manifestly intended, terms used in this section shall have the same meaning as when used in the Internal Revenue Code of 1954 (or corresponding provisions of the Internal Revenue Code of 1939) and all provisions of law shall apply with respect to this section as if this section were a part of such Code (or corresponding provisions of the Internal Revenue Code of 1939). f) REGULATIONS.-The Secretary of the Treasury or his delegate shall prescribe such regulations as may be necessary to carry out the provisions of this section." SEC. 614. DEFINITION OF PROPERTY (68A Stat. 210): (b) (4) _ (added) Sept. 2, 1958, H.R. 8381, P.L. 85–866, § 37(a), 72 Stat. 1633: Amended Sec. 614(b) 185 (special rule as to operating mineral interests) by adding at the end thereof, after paragraph (3) (operating mineral interests defined), the following new paragraph (4): "(4) TERMINATION WITH RESPECT TO MINES.-Except in the case of oil and gas wells "(A) an election made under the provisions of this subsection shall not apply with respect to any taxable year beginning after December 31, 1957, and "(B) if a taxpayer makes an election under the provisions of subsection (c)(3)(B) for any operating mineral interest which constitutes part or all of an operating unit, an election made under the provisions of this subsection shall not apply with respect to 185 Subsection (b) of section 614 originally read as follows (68A Stat. 210): "(b) SPECIAL RULE AS TO OPERATING MINERAL INTERESTS. "(1) ELECTION TO AGGREGATE SEPARATE INTERESTS.—If a taxpayer owns two or more separate operating mineral interests which constitute part or all of an operating unit, he may elect (for all purposes of this subtitle)— "(A) to form one aggregation of, and to treat as one property, any two or more of such interests; and (B) to treat as a separate property each such interest which he does not elect to include within the aggregation referred to in subparagraph (A). For purposes of the preceding sentence, separate operating mineral interests which constitute part or all of an operating unit may be aggregated whether or not they are included in a single tract or parcel of land and whether or not they are included in contiguous tracts or parcels. A taxpayer may not elect to form more than one aggregation of operating mineral interests within any one operating unit. "(2) MANNER AND SCOPE OF ELECTION. The election provided by paragraph (1) shall be made, for each operating mineral interest in accordance with regulations prescribed by the Secretary or his delegate, not later than the time prescribed by law for filing the return (including extensions thereof) for whichever of the following taxable years is the later: The first taxable year beginning after December 31, 1953, or the first taxable year in which any expenditure for exploration, development, or operation in respect of the separate operating mineral interest is made by the taxpayer after the acquisition of such interest. Such an election shall be binding upon the taxpayer for all subsequent taxable years, escept that the Secretary or his delegate may consent to a different treatment of the interest with respect to which the election has been made. "(3) OPERATING MINERAL INTERESTS DEFINED.-For purposes of this subsection, the term 'operating mineral interest' includes only an interest in respect of which the costs of production of the mineral are required to be taken into account by the taxpayer for purposes of computing the 50 percent limitation provided for in section 613, or would be so required if the mine, well, or other natural deposit were in the production stage.' SEC. 614-Continued (b)(4) (added 1958)—Continued (b). any operating mineral interest which constitutes part or all of such operating unit for any taxable year for which the election under subsection (c) (3) (B) is effective." Applicability: Taxable years beginning after December 31, 1953, and ending after August 16, 1954. (Id., § 37(e), 72 Stat. 1638.) 186 Feb. 26, 1964, H.R. 8363, P.L. 88-272, § 226 (a), 78 Stat. 94-96: Amended Sec. 614(b) (as amended by P.L. 85-866, § 37(a)) to read as follows: "(b) SPECIAL RULES AS TO OPERATING MINERAL INTERESTS IN OIL AND GAS WELLS.-In the case of oil and gas wells "(1) IN GENERAL.-Except as otherwise provided in this subsection "(A) all of the taxpayer's operating mineral interests in a separate tract or parcel of land shall be combined and treated as one property, and "(B) the taxpayer may not combine an operating mineral interest in one tract or parcel of land with an operating mineral interest in another tract or parcel of land. "(2) ELECTION TO TREAT OPERATING MINERAL INTERESTS AS SEPARATE PROPERTIES.-If the taxpayer has more than one operating mineral interest in a single tract or parcel of land, he may elect to treat one or more of such operating mineral interests as separate properties. The taxpayer may not have more than one combination of operating mineral interests in a single tract or parcel of land. If the taxpayer makes the election provided in this paragraph with respect to any interest in a tract or parcel of land, each operating mineral interest which is discovered or acquired by the taxpayer in such tract or parcel of land after the taxable year for which the election is made shall be treated— "(A) if there is no combination of interests in such tract or parcel, as a separate property unless the taxpayer elects to combine it with another interest, or "(B) if there is a combination of interests in such tract or parcel, as part of such combination unless the taxpayer elects to treat it as a separate property. "(3) CERTAIN UNITIZATION OR POOLING ARRANGEMENTS. "(A) IN GENERAL.-Under regulations prescribed by the Secretary or his delegate, if one or more of the taxpayer's operating mineral interests participate, under a voluntary or compulsory unitization or pooling agreement, in a sing e 18 Subsection (e) of section 37 of P.L. 85-866 provided as follows: "(e) EFFECTIVE DATES.-The amendments made by subsections (a) [added par. (4) to Sec. 614(b)] and (c) [added subsec. (d) to Sec. 614] shall apply with respect to taxable years beginning after December 31, 1953, and ending after August 16, 1954. The amendments made by subsection (b) [inserted new subsec. (c) in Sec. 614] shall apply with respect to taxable years beginning after December 31, 1957, except that such amendments shall, at the election of the taxpayer made in conformity with such amendments, apply with respect to taxable years beginning after December 31, 1953, and ending after August 16, 1954. The amendment made by subsection (d) [amended first sentence of Sec. 614(e) (1)] shall apply with respect to taxable years beginning after December 31, 1957, except that with respect to any taxpayer such amendment shall, at the election of the taxpayer, apply with respect to taxable years beginning after December 31, 1953, and ending after August 16, 1954." |