SERVICE PUBLISHES NEW SUPERFUND RATE FOR IMPORTED XYLENE PRODUCT.

Notice 92-11

AGENCY: Internal Revenue Service, Treasury.

ACTION: Notice.

SUMMARY: This notice amends the determination published in the Federal Register on June 13, 1990 (55 FR 24023) that added polyethylene terephthalate pellets to the list of taxable substances in section 4672(a)(3) of the Internal Revenue Code.

EFFECTIVE DATE: This amendment is effect as of January 1, 1992.

FOR FURTHER INFORMATION CONTACT: Ruth Hoffman, Office of Assistance Chief Counsel (Passthroughs and Special Industries), (202) 566-4475 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

On June 13, 1990, a Notice of Determination was published in the Federal Register (55 FR 24023), adding polyethylene terephthalate pellets to the list of taxable substances in section 4672(a)(3) of the Internal Revenue Code, effective as of April 1, 1990. The prescribed rate of tax was $6.30 per ton, based upon a conversion factor for ethylene of 0.1470 and a conversion factor for xylene of 0.5507. At that time the rate of tax imposed on xylene under section 4661(b) was $10.13 per ton.

          HTS number: 3907.60.00

On January 1, 1992, the rate of tax imposed on xylene under section 4661(b) deceased to $4.87 per ton. Accordingly, the rate of tax prescribed for imported polyethylene terephthalate pellets that are first sold or used after December 31, 1991, is $3.40 per ton.

                                   Dale D. Goode,