Part III. Administrative, Procedural, and Miscellaneous

requirements under the Excise Tax Procedural Regulations to limit the availability of the look-back quarter safe harbor in cases where a new excise tax is enacted or an expired excise tax is reinstated.

Section 40.6302(c)–1(c)(2) currently provides, generally, that a person can satisfy excise tax deposit obligations for a calendar quarter by depositing an amount equal to the person’s excise tax liability for the second preceding quarter (the look-back quarter). For this purpose, the tax liability for the look-back quarter must be computed at current rates, but the safe harbor does not specifically address the effect of the enactment of a new tax law or the reinstatement of an expired tax.

In 1996, the aviation excise taxes, which expired on December 31, 1995, were reinstated for the period from August 27 through December 31, 1996. Because the taxes were not in effect during the first and second quarters of 1996, airlines relying on the safe harbor have deposited very little of the air transportation taxes they collected in 1996. The Service believes such a delay is inconsistent with the overall policy and structure of the excise tax deposit rules. Accordingly, the Service will modify the look-back safe harbor to prevent similar delays with respect to future tax law changes.

The new regulations will provide that the safe harbor based on look-back quarter liability will not apply to deposits of a tax that was not in effect throughout the look-back quarter. The revised regulations will apply to liabilities attributable to tax law changes after February 10, 1997. Persons required to remit air transportation taxes for the first quarter of 1997 will satisfy their deposit obligation for amounts billed or tickets sold in December 1996 if they deposit their look-back quarter safe harbor amount in accordance with current regulations.

The principal author of this notice is Ruth Hoffman, Office of Assistant Chief Counsel (Passthroughs and Special Industries). For further information regarding this notice contact Ruth Hoffman on (202) 622–3130 (not a toll-free number).

Low-Income Housing Tax Credit—1997 Calendar Year Resident Population Estimates

Notice 97–14

This notice informs (1) state and local housing credit agencies that allocate low-income housing tax credits under § 42 of the Internal Revenue Code and (2) states and other issuers of taxexempt private activity bonds under § 141, of the proper population figures to be used for calculating the 1997 calendar year population-based component of the state housing credit ceiling (Credit Ceiling) under § 42(h)(3)(C)(i) and the 1997 calendar year volume cap (Volume Cap) under § 146.

The population figures both for the population-based component of the Credit Ceiling and for the Volume Cap are determined by reference to § 146(j). That section provides generally that determinations of population for any calendar year are made on the basis of the most recent census estimate of the resident population of a state (or issuing authority) released by the Bureau of the Census before the beginning of such calendar year.

The proper population figures for calculating the Credit Ceiling and the Volume Cap for the 1997 calendar year are the estimates of the resident population of states for July 1, 1996, released by the Bureau of the Census on December 30, 1996, in press release CB 96–224. For convenience, these estimates are reprinted below.

Resident Population Estimates

for July 1, 1996

State Population

Alabama 4,273,000 Alaska 607,000 Arizona 4,428,000 Arkansas 2,510,000

California 31,878,000 Colorado 3,823,000 Connecticut 3,274,000 Delaware 725,000 D.C. 543,000 Florida 14,400,000 Georgia 7,353,000 Hawaii 1,184,000 Idaho 1,189,000 Illinois 11,847,000

State Population

Indiana 5,841,000 Iowa 2,852,000 Kansas 2,572,000 Kentucky 3,884,000 Louisiana 4,351,000 Maine 1,243,000 Maryland 5,072,000 Massachusetts 6,092,000 Michigan 9,594,000 Minnesota 4,658,000 Mississippi 2,716,000 Missouri 5,359,000 Montana 879,000 Nebraska 1,652,000 Nevada 1,603,000 New Hampshire 1,162,000 New Jersey 7,988,000 New Mexico 1,713,000 New York 18,185,000 North Carolina 7,323,000 North Dakota 644,000

Ohio 11,173,000 Oklahoma 3,301,000 Oregon 3,204,000

Pennsylvania 12,056,000

Rhode Island 990,000

South Carolina 3,699,000 South Dakota 732,000

Tennessee 5,320,000 Texas 19,128,000

Utah 2,000,000

Vermont 589,000 Virginia 6,675,000

Washington 5,533,000 West Virginia 1,826,000 Wisconsin 5,160,000 Wyoming 481,000

The principal authors of this notice are Christopher J. Wilson of the Office of Assistant Chief Counsel (Passthroughs and Special Industries) and Timothy L. Jones of the Office of Assistant Chief Counsel (Financial Institutions and Products). For further information regarding this notice contact Mr. Wilson on (202) 622–3040 (not a tollfree call).

Deposits of Excise Taxes

Notice 97–15

The Internal Revenue Service will issue regulations amending the deposit

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