To amend the Internal Revenue Code of 1986 to provide capital gain treatment under section 631(b) of such Code for outright sales of timber by landowners.

May 1, 2003

Mr. SESSIONS introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the Internal Revenue Code of 1986 to provide capital gain treatment under section 631(b) of such Code for outright sales of timber by landowners.

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

SECTION 1. CAPITAL GAIN TREATMENT UNDER SECTION 631(b) TO APPLY TO OUTRIGHT SALES BY LANDOWNERS.

(a) IN GENERAL- The first sentence of section 631(b) of the Internal Revenue Code of 1986 (relating to disposal of timber with a retained economic interest) is amended by striking `retains an economic interest in such timber' and inserting `either retains an economic interest in such timber or makes an outright sale of such timber'.

(b) CONFORMING AMENDMENT- The third sentence of section 631(b) of such Code is amended by striking `The date of disposal' and inserting `In the case of disposal of timber with a retained economic interest, the date of disposal'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply to sales after the date of the enactment of this Act.

END