[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2252 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 2252
To amend the Internal Revenue Code of 1986 to increase the taxes on
certain alcoholic beverages and to provide additional funds for alcohol
abuse prevention programs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 22, 2003
Ms. Norton introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on Energy
and Commerce, 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 amend the Internal Revenue Code of 1986 to increase the taxes on
certain alcoholic beverages and to provide additional funds for alcohol
abuse prevention programs.
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 Tax Equalization Act of
2003''.
SEC. 2. INCREASE IN EXCISE TAXES ON WINE AND BEER TO ALCOHOLIC
EQUIVALENT OF TAXES ON DISTILLED SPIRITS.
(a) Wine.--
(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) Beer.--
(1) In general.--Paragraph (1) of section 5051(a) of such
Code (relating to imposition and rate of tax on beer) is
amended by striking ``$18'' and inserting ``$37.67''.
(2) Small brewers.--Subparagraph (A) of section 5051(a)(2)
of such Code (relating to reduced rate for certain domestic
production) is amended by striking ``$7'' each place it appears
and inserting ``$26.67''.
(c) Effective Date.--The amendments made by this section shall take
effect on January 1, 2004.
(d) 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 January 1, 2004, 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,
(iii) $2.93 per wine gallon in the case of
wine described in paragraph (3) of section
5041(b) of such Code, and
(iv) $19.67 per barrel in the case of beer.
In the case of a fraction of a gallon or barrel, the
tax imposed by subparagraph (A) shall be the same
fraction of the amount of such tax imposed on a whole
gallon or barrel.
(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 and beer.
(2) Exception for certain small wholesale or retail
dealers.--No tax shall be imposed by paragraph (1) on tax-
increased articles held on January 1, 2004, 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 January 1, 2004, 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 June 30, 2004.
(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.--
(A) In general.--All provisions of law, including
penalties, applicable to the comparable excise tax 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 the comparable excise tax.
(B) Comparable excise tax.--For purposes of
subparagraph (A), the term ``comparable excise tax''
means--
(i) the tax imposed by section 5041 of such
Code in the case of wine, and
(ii) the tax imposed by section 5051 of
such Code in the case of beer.
(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.
SEC. 3. INDEXATION OF TAX RATES APPLICABLE TO ALCOHOLIC BEVERAGES.
(a) General Rule.--Subpart E of part I of subchapter A of chapter
51 of the Internal Revenue Code of 1986 is amended by inserting before
section 5061 the following new section:
``SEC. 5060. INDEXATION OF RATES.
``(a) General Rule.--Effective during each calendar year after
2004, each tax rate set forth in subsection (b) shall be increased by
an amount equal to--
``(1) such rate as in effect without regard to this
section, multiplied by
``(2) the cost-of-living adjustment for such calendar year
determined under section 1(f)(3) by substituting `calendar year
2003' for `calendar year 1992' in subparagraph (B) thereof.
Any increase determined under the preceding sentence shall be rounded
to the nearest multiple of 1 cent.
``(b) Tax Rates.--The tax rates set forth in this subsection are
the rates contained in the following provisions:
``(1) Paragraph (1) of section 5001(a).
``(2) Paragraphs (1), (2), (3), (4), and (5) of section
5041(b).
``(3) Paragraphs (1) and (2)(A) of section 5051(a).''
(b) Technical Amendment.--Paragraphs (1)(A) and (2) of section
5010(a) are each amended by striking ``$13.50'' and inserting ``the
rate in effect under section 5001(a)(1)''.
(c) Clerical Amendment.--The table of sections for subpart E of
part I of subchapter A of chapter 51 of such Code is amended by
inserting before the item relating to section 5061 the following new
item:
``Sec. 5060. Indexation of rates.''
SEC. 4. SUBSTANCE ABUSE PREVENTION 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 new section:
``SEC. 9511. SUBSTANCE ABUSE PREVENTION 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 `Substance Abuse
Prevention Trust Fund', consisting of such amounts as may be
appropriated or credited to such Trust Fund as provided in this section
or section 9602(b).
``(b) Transfers to Trust Fund.--There are hereby appropriated to
the Substance Abuse Prevention Trust Fund amounts equivalent to the
additional taxes received in the Treasury under chapter 51 by reason of
the amendments made by sections 2 and 3 of the Alcohol Tax Equalization
Act of 2003 and the additional taxes received in the Treasury by reason
of section 2(d) of such Act.
``(c) Expenditures From Trust Fund.--Amounts in the Substance Abuse
Prevention Trust Fund shall be available, as provided in appropriation
Acts, for appropriation to--
``(1) the Substance Abuse and Mental Health Services
Administration, and
``(2) the National Highway Traffic Safety Administration,
for alcohol abuse prevention programs.''
(b) Clerical Amendment.--The table of sections for subchapter A of
chapter 98 is amended by adding at the end the following new item:
``Sec. 9511. Substance abuse prevention
trust fund.''
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