[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2139 Introduced in House (IH)]
106th CONGRESS
1st Session
H. R. 2139
To amend the Internal Revenue Code of 1986 to repeal the limitation of
the cover over of tax on distilled spirits, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 10, 1999
Mr. Crane (for himself, Mr. Rangel, Mr. Romero-Barcelo, Mrs.
Christensen, Mr. Hayworth, Mr. English, Mr. Foley, and Mr. Weller)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to repeal the limitation of
the cover over of tax on distilled spirits, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. REPEAL OF LIMITATION OF COVER OVER OF TAX ON DISTILLED
SPIRITS.
(a) In General.--Section 7652 of the Internal Revenue Code of 1986
(relating to limitation on cover over of tax on distilled spirits) is
amended by striking subsection (f) and by redesignating subsection (g)
as subsection (f).
(b) Conforming Amendments.--Section 7652(f) of such Code (as so
redesignated) is amended by striking ``subsection (f) of this section''
in paragraph (1)(B) and inserting ``section 5001(a)(1)''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to articles containing distilled spirits that are tax-
determined after September 30, 1999.
(2) Special rule.--
(A) In general.--For the 5-year period beginning
after September 30, 1999, the treasury of Puerto Rico
shall make a Conservation Trust Fund transfer within 30
days from the date of each cover over payment made
during such period to such treasury under section
7652(e) of the Internal Revenue Code of 1986.
(B) Conservation trust fund transfer.--
(i) In general.--For purposes of this
paragraph, the term ``Conservation Trust Fund
transfer'' means a transfer to the Puerto Rico
Conservation Trust Fund of an amount equal to
50 cents per proof gallon of the taxes imposed
under section 5001 or section 7652 of such Code
on distilled spirits that are covered over to
the treasury of Puerto Rico under section
7652(e) of such Code.
(ii) Treatment of transfer.--Each
Conservation Trust Fund transfer shall be
treated as principal for an endowment, the
income from which to be available for use by
the Puerto Rico Conservation Trust Fund for the
purposes for which the Trust Fund was
established.
(iii) Result of nontransfer.--
(I) In general.--Upon notification
by the Secretary of the Interior that a
Conservation Trust Fund transfer has
not been made by the treasury of Puerto
Rico during the period described in
subparagraph (A), the Secretary of the
Treasury shall, except as provided in
subclause (II), deduct and withhold
from the next cover over payment to be
made to the treasury of Puerto Rico
under section 7652(e) of such Code an
amount equal to the appropriate
Conservation Trust Fund transfer and
interest thereon at the underpayment
rate established under section 6621 of
such Code as of the due date of such
transfer. The Secretary of the Treasury
shall transfer such amount deducted and
withheld, and the interest thereon,
directly to the Puerto Rico
Conservation Trust Fund.
(II) Good cause exception.--If the
Secretary of the Interior finds, after
consultation with the Governor of
Puerto Rico, that the failure by the
treasury of Puerto Rico to make a
required transfer was for good cause,
and notifies the Secretary of the
Treasury of the finding of such good
cause before the due date of the next
cover over payment following the
notification of nontransfer, then the
Secretary of the Treasury shall not
deduct the amount of such nontransfer
from any cover over payment.
(C) Puerto rico conservation trust fund.--For
purposes of this paragraph, the term ``Puerto Rico
Conservation Trust Fund'' means the fund established
pursuant to a Memorandum of Understanding between the
United States Department of the Interior and the
Commonwealth of Puerto Rico, dated December 24, 1968.
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