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Last Updated: January 8, 2012

-STATUTE

(a) Imposition of tax
      In the case of any person who issues a registration-required
    obligation which is not in registered form, there is hereby imposed
    on such person on the issuance of such obligation a tax in an
    amount equal to the product of - 
        (1) 1 percent of the principal amount of such obligation,
      multiplied by
        (2) the number of calendar years (or portions thereof) during
      the period beginning on the date of issuance of such obligation
      and ending on the date of maturity.
    (b) Definitions
      For purposes of this section - 
      (1) Registration-required obligation
        The term "registration-required obligation" has the same
      meaning as when used in section 163(f), except that such term
      shall not include any obligation required to be registered under
      section 149(a).
      (2) Registered form
        The term "registered form" has the same meaning as when used in
      section 163(f).

-SOURCE

(Added Pub. L. 97-248, title III, Sec. 310(b)(4)(A), Sept. 3, 1982,
    96 Stat. 598; amended Pub. L. 99-514, title XIII, Sec. 1301(j)(5),
    Oct. 22, 1986, 100 Stat. 2657; Pub. L. 111-147, title V, Sec.
    502(e), Mar. 18, 2010, 124 Stat. 108.)

-MISC1

AMENDMENTS                            
      1986 - Subsec. (b)(1). Pub. L. 99-514 substituted "section
    149(a)" for "section 103(j)".

                     EFFECTIVE DATE OF 2010 AMENDMENT                 
      Amendment by Pub. L. 111-147 applicable to obligations issued
    after the date which is 2 years after Mar. 18, 2010, see section
    502(f) of Pub. L. 111-147, set out as a note under section 149 of
    this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-514 applicable to bonds issued after Aug.
    15, 1986, except as otherwise provided, see sections 1311 to 1318
    of Pub. L. 99-514, set out as an Effective Date; Transitional Rules
    note under section 141 of this title.

                              EFFECTIVE DATE                          
      Section applicable to obligations issued after Dec. 31, 1982,
    with an exception for certain warrants, see section 310(d)(1), (3)
    of Pub. L. 97-248, set out as an Effective Date of 1982 Amendment
    note under section 103 of this title.

-STATAMEND

AMENDMENT OF SUBSECTION (B)(1)                  
      Pub. L. 111-147, title V, Sec. 502(e), (f), Mar. 18, 2010, 124
    Stat. 108, provided that, applicable to obligations issued after
    the date which is 2 years after Mar. 18, 2010, subsection (b)(1) of
    this section is amended to read as follows:
      (1) Registration-required obligation
        (A) In general
          The term "registration-required obligation" has the same
        meaning as when used in section 163(f), except that such term
        shall not include any obligation which - 
            (i) is required to be registered under section 149(a), or
            (ii) is described in subparagraph (B).
        (B) Certain obligations not included
          An obligation is described in this subparagraph if - 
            (i) there are arrangements reasonably designed to ensure
          that such obligation will be sold (or resold in connection
          with the original issue) only to a person who is not a United
          States person,
            (ii) interest on such obligation is payable only outside
          the United States and its possessions, and
            (iii) on the face of such obligation there is a statement
          that any United States person who holds such obligation will
          be subject to limitations under the United States income tax
          laws.