Table IV-Continued EIGHTY-NINTH CONGRESS, FIRST SESSION (Jan. 4, 1965, to Oct. 23, 1965) 89-44-. 81 Committee on Interior and Insular Affairs. 82 Committee on Interior and Insular Affairs. 83 Committee on Education and Labor-with respect to H. R. 9460. 84 Committee on Labor and Public Welfare. 85 Committee on Interstate and Foreign Commerce. 86 Committee on Agriculture. III. Chapter 1, Subchapter Q, Part I (Readjustment Between Years With Respect to Income-Original) _ _ _ 1275 IV. Wage Bracket Withholding (Original). V. Chapter 32, Subchapter F, Sections 4220-4225 (Relating to Manufac- 1277 turers Tax-Repealed). VI. Chapter 33, Subchapter B-Communications (Original). VII. Chapter 34-Documentary Stamp Taxes (Original). VIII. Chapter 38-Import Taxes (Repealed Sections).. IX. Chapter 39, Subchapter F-Silver Bullion (Repealed) - - X. Chapter 51-Distilled Spirits, Wines, and Beer (Original). XI. Chapter 52-Tobacco, Cigars, Cigarettes, etc. (Original) XII. Highway Revenue Act of 1956.. XIII. State Taxation of Interstate Commerce-Study and Report... 1285 1287 1289 1295 1299 1301 1359 1367 1373 1261 APPENDIX I: CH. 1, SUBCH. L, PART I-TAX ON LIFE INSUR ANCE COMPANIES (ORIGINAL) (68A Stat. 255–259) PART I-LIFE INSURANCE COMPANIES1 Sec. 801. Definition of life insurance company. Sec. 802. Imposition of tax. Sec. 803. Other definitions and rules. Sec. 804. Reserve and other policy liability deduction. Sec. 805. Sec. 806. Adjustment for certain reserves. Sec. 807. Foreign life insurance companies. SEC. 801. DEFINITION OF LIFE INSURANCE COMPANY. For purposes of this subtitle, the term "life insurance company" means an insurance company which is engaged in the business of issuing life insurance and annuity contracts (either separately or combined with health and accident insurance), or noncancellable contracts of health and accident insurance, if its life insurance reserves (as defined in section 803(b)), plus unearned premiums and unpaid losses on noncancellable life, health, or accident policies not included in life insurance reserves, comprise more than 50 percent of its total reserves. For purposes of this section, the term "total reserves" means life insurance reserves, unearned premiums and unpaid losses not included in life insurance reserves, and all other insurance reserves required by law. A burial or funeral benefit insurance company engaged directly in the manufacture of funeral supplies or the performance of funeral services shall not be taxable under section 802 but shall be taxable under section 821 or section 831. SEC. 802. IMPOSITION OF TAX. (a) IN GENERAL.-Except as otherwise provided in subsection (b), there shall be imposed for each taxable year on the life insurance company taxable income of every life insurance company a tax consisting of a normal tax and a surtax computed as provided in section 11. For purposes of such tax, the term "life insurance company taxable income" means the taxable income (as defined in section 803(g)) minus the reserve and other policy liability deduction provided in section 804 and plus the amount of the adjustment for certain reserves provided in section 806. purposes of the surtax, such taxable income shall be computed without regard to the deduction provided in section 242 for partially tax-exempt interest. For (b) TAXABLE YEARS BEGINNING IN 1954.-In lieu of the tax imposed by subsection (a) there shall be imposed, for taxable years beginning in 1954, on the 1954 life insurance company taxable income (as defined in section 805) of every life insurance company a tax equal to the sum of the following: (1) 334 percent of the amount thereof not in excess of $200,000, plus (2) 61⁄2 percent of the amount thereof in excess of $200,000. SEC. 803. OTHER DEFINITIONS AND RULES (a) APPLICATION OF SECTION; GROSS INCOME. (1) APPLICATION.—The definitions and rules contained in this section shall apply only in the case of life insurance companies. (2) GROSS INCOME.-The term "gross income" means the gross amount of income received or accrued during the taxable year from interest, dividends, and rents. (b) LIFE INSURANCE RESERVES.-The term "life insurance reserves" means amounts which are computed or estimated on the basis of recognized mortality or morbidity tables and assumed rates of interest, and which are set aside to mature or liquidate, either by payment or reinsurance, future unaccrued claims arising from life insurance, annuity, and noncancellable health and accident insurance contracts (including life insurance or annuity contracts combined with noncancellable health and accident insurance) involving, at the time with respect to which the reserve is computed, life, health, or accident contingencies. Such life insurance reserves, except in the case of policies covering life, health, and accident insurance combined in one policy issued on the weekly premium payment plan, continuing for life and not subject to cancellation and except as hereinafter provided in the case of assessment life insurance, must also be required by law. In the case of an assessment life insurance company or association, the term "life insurance reserves" includes sums actually deposited by such company or association with State or Territorial officers pursuant to law as guaranty or reserve funds, and any funds maintained, under the charter or articles of incorporation or association (or bylaws approved by a State insurance commissioner) of such 1 Part I of Subchapter L of Chapter 1 of the Internal Revenue Code of 1954 was completely revised by P.L. 84-429 (March 13, 1956), § 2, 70 Stat. 36–49. See Appendix II, p. 1267 below. |