[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 432 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 432

To amend the Internal Revenue Code of 1986 to increase the rate of tax 
 on wine and to dedicate the resulting increased revenues to programs 
           for the prevention and treatment of alcohol abuse.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 22, 1999

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

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to increase the rate of tax 
 on wine and to dedicate the resulting increased revenues to programs 
           for the prevention and treatment of alcohol abuse.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Alcohol Abuse Prevention and 
Treatment Trust Fund Act of 1999''.

SEC. 2. ALCOHOL ABUSE PREVENTION AND TREATMENT TRUST FUND.

    (a) General Rule.--Subchapter A of chapter 98 of the Internal 
Revenue Code of 1986 (relating to establishment of trust funds) is 
amended by adding at the end the following:

``SEC. 9511. ALCOHOL ABUSE PREVENTION AND TREATMENT TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Alcohol Abuse 
Prevention and Treatment Trust Fund' (in this section referred to as 
`Trust Fund'), consisting of such amounts as may be appropriated or 
credited to the Trust Fund as provided in this section or section 
9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Trust Fund amounts equivalent to the additional taxes received in 
the Treasury under chapter 51 by reason of the amendments made by 
section 3 of the Alcohol Abuse Prevention and Treatment Trust Fund Act 
of 1999 and the additional taxes received in the Treasury by reason of 
section 3(d) of such Act.
    ``(c) Expenditures From Trust Fund.--Amounts in the Trust Fund 
shall be available, as provided in appropriation Acts, for 
appropriation to the National Institute of Alcohol Abuse and Alcoholism 
and to the Substance Abuse and Mental Health Services Administration 
for programs for the prevention and treatment of alcoholism and for 
research on the causes, consequences, prevention, and treatment of the 
health problems related to alcohol use, including high blood pressure, 
stroke, heart disease, cancer (including breast cancer), and birth 
defects.''
    (b) Conforming Amendment.--The table of sections for subchapter A 
of chapter 98 of the Internal Revenue Code of 1986 is amended by adding 
at the end the following:

                              ``Sec. 9511. Alcohol Abuse Prevention and 
                                        Treatment Trust Fund.''

SEC. 3. INCREASE IN EXCISE TAXES ON WINE TO ALCOHOLIC EQUIVALENT OF 
              TAXES ON DISTILLED SPIRITS.

    (a) In General.--
            (1) Wines containing not more than 14 percent alcohol.--
        Paragraph (1) of section 5041(b) of the Internal Revenue Code 
        of 1986 (relating to rates of tax on wines) is amended by 
        striking ``$1.07'' and inserting ``$2.97''.
            (2) Wines containing more than 14 (but not more than 21) 
        percent alcohol.--Paragraph (2) of section 5041(b) of such Code 
        is amended by striking ``$1.57'' and inserting ``$4.86''.
            (3) Wines containing more than 21 (but not more than 24) 
        percent alcohol.--Paragraph (3) of section 5041(b) of such Code 
        is amended by striking ``$3.15'' and inserting ``$6.08''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1999.
    (c) Floor Stocks Taxes.--
            (1) Imposition of tax.--
                    (A) In general.--In the case of any tax-increased 
                article--
                            (i) on which tax was determined under part 
                        I of subchapter A of chapter 51 of the Internal 
                        Revenue Code of 1986 or section 7652 of such 
                        Code before October 1, 1999, and
                            (ii) which is held on such date for sale by 
                        any person,
                there shall be imposed a tax at the applicable rate on 
                each such article.
                    (B) Applicable rate.--For purposes of clause (i), 
                the applicable rate is--
                            (i) $1.90 per wine gallon in the case of 
                        wine described in paragraph (1) of section 
                        5041(b) of such Code,
                            (ii) $3.29 per wine gallon in the case of 
                        wine described in paragraph (2) of section 
                        5041(b) of such Code, and
                            (iii) $2.93 per wine gallon in the case of 
                        wine described in paragraph (3) of section 
                        5041(b) of such Code.
                In the case of a fraction of a gallon, the tax imposed 
                by subparagraph (A) shall be the same fraction of the 
                amount of such tax imposed on a whole gallon.
                    (C) Tax-increased article.--For purposes of this 
                subsection, the term ``tax-increased article'' means 
                wine described in paragraph (1), (2), or (3) of section 
                5041(b) of such Code.
            (2) Exception for certain small wholesale or retail 
        dealers.--No tax shall be imposed by paragraph (1) on tax-
        increased articles held on October 1, 1999, by any dealer if--
                    (A) the aggregate liquid volume of tax-increased 
                articles held by such dealer on such date does not 
                exceed 500 wine gallons, and
                    (B) such dealer submits to the Secretary (at the 
                time and in the manner required by the Secretary) such 
                information as the Secretary shall require for purposes 
                of this subparagraph.
            (3) Liability for tax and method of payment.--
                    (A) Liability for tax.--A person holding any tax-
                increased article on October 1, 1999, to which the tax 
                imposed by paragraph (1) applies shall be liable for 
                such tax.
                    (B) Method of payment.--The tax imposed by 
                paragraph (1) shall be paid in such manner as the 
                Secretary shall prescribe by regulations.
                    (C) Time for payment.--The tax imposed by paragraph 
                (1) shall be paid on or before March 31, 2000.
            (4) Controlled groups.--
                    (A) Corporations.--In the case of a controlled 
                group of corporations, the 500 wine gallon amount 
                specified in paragraph (2) shall be apportioned among 
                the dealers who are component members of such group in 
                such manner as the Secretary shall by regulations 
                prescribe. For purposes of the preceding sentence, the 
                term ``controlled group of corporations'' has the 
                meaning given to such term by subsection (a) of section 
                1563 of such Code; except that for such purposes the 
                phrase ``more than 50 percent'' shall be substituted 
                for the phrase ``at least 80 percent'' each place it 
                appears in such subsection.
                    (B) Nonincorporated dealers under common control.--
                Under regulations prescribed by the Secretary, 
                principles similar to the principles of subparagraph 
                (A) shall apply to a group of dealers under common 
                control where 1 or more of such dealers is not a 
                corporation.
            (5) Other laws applicable.--All provisions of law, 
        including penalties, applicable to the tax imposed by section 
        5041 of such Code with respect to any tax-increased article 
        shall, insofar as applicable and not inconsistent with the 
        provisions of this section, apply to the floor stocks taxes 
        imposed by paragraph (1) to the same extent as if such taxes 
        were imposed by such section 5041.
            (6) Definitions.--For purposes of this subsection--
                    (A) In general.--Terms used in this paragraph which 
                are also used in subchapter A of chapter 51 of such 
                Code shall have the respective meanings such terms have 
                in such subchapter.
                    (B) Person.--The term ``person'' includes any State 
                or political subdivision thereof, or any agency or 
                instrumentality of a State or political subdivision 
                thereof.
                    (C) Secretary.--The term ``Secretary'' means the 
                Secretary of the Treasury or his delegate.
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