991
<PRE>[DOCID: f:h1448ih.txt]






107th CONGRESS
  1st Session
                                H. R. 1448

 To clarify the tax treatment of bonds and other obligations issued by 
                   the Government of American Samoa.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 4, 2001

 Mr. Faleomavaega introduced the following bill; which was referred to 
 the Committee on Ways and Means, and in addition to the Committees on 
the Judiciary and Resources, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To clarify the tax treatment of bonds and other obligations issued by 
                   the Government of American Samoa.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CLARIFICATION OF TAX TREATMENT OF BONDS AND OTHER 
              OBLIGATIONS ISSUED BY GOVERNMENT OF AMERICAN SAMOA.

    (a) Authority To Issue Certain Private Activity Bonds.--The 
Government of American Samoa may cause to be issued qualified bonds 
(within the meaning of section 141(e)(1) of the Internal Revenue Code 
of 1986).
    (b) Exemption of All Bonds From Income Taxation by State and Local 
Governments.--
            (1) In general.--The interest on any bond or other 
        obligation issued by or on behalf of the Government of American 
        Samoa shall be exempt from taxation by the Government of 
        American Samoa and the governments of any of the several 
        States, the District of Columbia, any territory or possession 
        of the United States, and any subdivision thereof.
            (2) Exemption applicable only to income taxes.--The 
        exemption provided by paragraph (1) shall not apply to gift, 
        estate, inheritance, legacy, succession, or other wealth 
        transfer taxes.
    (c) Conforming Repeal of Superseded Provision.--Section 202 of 
Public Law 98-454 (48 U.S.C. 1670) is repealed.
    (d) Effective Date.--This Act shall apply to obligations issued 
after the date of the enactment of this Act.
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