[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 374 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 374

 To amend the Internal Revenue Code of 1986 to repeal the occupational 
          taxes relating to distilled spirits, wine, and beer.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 12, 2003

Mr. Baucus (for himself, Mr. Bunning, Mr. Enzi, Mr. Ensign, Mr. Crapo, 
 Mr. Burns, Mr. Johnson, Mr. Bayh, Mr. Cochran, Mr. Inhofe, Mr. Allen, 
Mr. Nickles, Mr. Warner, and Mr. Miller) 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 repeal the occupational 
          taxes relating to distilled spirits, wine, and beer.

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

SECTION 1. REPEAL OF OCCUPATIONAL TAXES RELATING TO DISTILLED SPIRITS, 
              WINE, AND BEER.

    (a) Repeal of Occupational Taxes.--
            (1) In general.--The following provisions of part II of 
        subchapter A of chapter 51 of the Internal Revenue Code of 1986 
        (relating to occupational taxes) are hereby repealed:
                    (A) Subpart A (relating to proprietors of distilled 
                spirits plants, bonded wine cellars, etc.).
                    (B) Subpart B (relating to brewer).
                    (C) Subpart D (relating to wholesale dealers) 
                (other than sections 5114 and 5116).
                    (D) Subpart E (relating to retail dealers) (other 
                than section 5124).
                    (E) Subpart G (relating to general provisions) 
                (other than sections 5142, 5143, 5145, and 5146).
            (2) Nonbeverage domestic drawback.--Section 5131 of such 
        Code is amended by striking ``, on payment of a special tax per 
        annum,''.
            (3) Industrial use of distilled spirits.--Section 5276 of 
        such Code is hereby repealed.
    (b) Conforming Amendments.--
            (1)(A) The heading for part II of subchapter A of chapter 
        51 of such Code and the table of subparts for such part are 
        amended to read as follows:

                  ``PART II--MISCELLANEOUS PROVISIONS

                              ``Subpart A. Manufacturers of stills.
                              ``Subpart B. Nonbeverage domestic 
                                        drawback claimants.
                              ``Subpart C. Recordkeeping by dealers.
                              ``Subpart D. Other provisions.''
            (B) The table of parts for such subchapter A is amended by 
        striking the item relating to part II and inserting the 
        following new item:

                              ``Part II. Miscellaneous provisions.''
            (2) Subpart C of part II of such subchapter (relating to 
        manufacturers of stills) is redesignated as subpart A.
            (3)(A) Subpart F of such part II (relating to nonbeverage 
        domestic drawback claimants) is redesignated as subpart B and 
        sections 5131 through 5134 are redesignated as sections 5111 
        through 5114, respectively.
            (B) The table of sections for such subpart B, as so 
        redesignated, is amended--
                    (i) by redesignating the items relating to sections 
                5131 through 5134 as relating to sections 5111 through 
                5114, respectively, and
                    (ii) by striking ``and rate of tax'' in the item 
                relating to section 5111, as so redesignated.
            (C) Section 5111 of such Code, as redesignated by 
        subparagraph (A), is amended--
                    (i) by striking ``and rate of tax'' in the section 
                heading,
                    (ii) by striking the subsection heading for 
                subsection (a), and
                    (iii) by striking subsection (b).
            (4) Part II of subchapter A of chapter 51 of such Code is 
        amended by adding after subpart B, as redesignated by paragraph 
        (3), the following new subpart:

                 ``Subpart C--Recordkeeping by Dealers

                              ``Sec. 5121. Recordkeeping by wholesale 
                                        dealers.
                              ``Sec. 5122. Recordkeeping by retail 
                                        dealers.
                              ``Sec. 5123. Preservation and inspection 
                                        of records, and entry of 
                                        premises for inspection.''
            (5)(A) Section 5114 of such Code (relating to records) is 
        moved to subpart C of such part II and inserted after the table 
        of sections for such subpart.
            (B) Section 5114 of such Code is amended--
                    (i) by striking the section heading and inserting 
                the following new heading:

``SEC. 5121. RECORDKEEPING BY WHOLESALE DEALERS.'',

                and
                    (ii) by redesignating subsection (c) as subsection 
                (d) and by inserting after subsection (b) the following 
                new subsection:
    ``(c) Wholesale Dealers.--For purposes of this part--
            ``(1) Wholesale dealer in liquors.--The term `wholesale 
        dealer in liquors' means any dealer (other than a wholesale 
        dealer in beer) who sells, or offers for sale, distilled 
        spirits, wines, or beer, to another dealer.
            ``(2) Wholesale dealer in beer.--The term `wholesale dealer 
        in beer' means any dealer who sells, or offers for sale, beer, 
        but not distilled spirits or wines, to another dealer.
            ``(3) Dealer.--The term `dealer' means any person who 
        sells, or offers for sale, any distilled spirits, wines, or 
        beer.
            ``(4) Presumption in case of sale of 20 wine gallons or 
        more.--The sale, or offer for sale, of distilled spirits, 
        wines, or beer, in quantities of 20 wine gallons or more to the 
        same person at the same time, shall be presumptive evidence 
        that the person making such sale, or offer for sale, is engaged 
        in or carrying on the business of a wholesale dealer in liquors 
        or a wholesale dealer in beer, as the case may be. Such 
        presumption may be overcome by evidence satisfactorily showing 
        that such sale, or offer for sale, was made to a person other 
        than a dealer.''
            (C) Paragraph (3) of section 5121(d) of such Code, as so 
        redesignated, is amended by striking ``section 5146'' and 
        inserting ``section 5123''.
            (6)(A) Section 5124 of such Code (relating to records) is 
        moved to subpart C of part II of subchapter A of chapter 51 of 
        such Code and inserted after section 5121.
            (B) Section 5124 of such Code is amended--
                    (i) by striking the section heading and inserting 
                the following new heading:

``SEC. 5122. RECORDKEEPING BY RETAIL DEALERS.'',

                    (ii) by striking ``section 5146'' in subsection (c) 
                and inserting ``section 5123'', and
                    (iii) by redesignating subsection (c) as subsection 
                (d) and inserting after subsection (b) the following 
                new subsection:
    ``(c) Retail Dealers.--For purposes of this section--
            ``(1) Retail dealer in liquors.--The term `retail dealer in 
        liquors' means any dealer (other than a retail dealer in beer) 
        who sells, or offers for sale, distilled spirits, wines, or 
        beer, to any person other than a dealer.
            ``(2) Retail dealer in beer.--The term `retail dealer in 
        beer' means any dealer who sells, or offers for sale, beer, but 
        not distilled spirits or wines, to any person other than a 
        dealer.
            ``(3) Dealer.--The term `dealer' has the meaning given such 
        term by section 5121(c)(3).''
            (7) Section 5146 of such Code is moved to subpart C of part 
        II of subchapter A of chapter 51 of such Code, inserted after 
        section 5122, and redesignated as section 5123.
            (8) Part II of subchapter A of chapter 51 of such Code is 
        amended by inserting after subpart C the following new subpart:

                     ``Subpart D--Other Provisions

                              ``Sec. 5131. Packaging distilled spirits 
                                        for industrial uses.
                              ``Sec. 5132. Prohibited purchases by 
                                        dealers.''
            (9) Section 5116 of such Code is moved to subpart D of part 
        II of subchapter A of chapter 51 of such Code, inserted after 
        the table of sections, redesignated as section 5131, and 
        amended by inserting ``(as defined in section 5121(c))'' after 
        ``dealer'' in subsection (a).
            (10) Subpart D of part II of subchapter A of chapter 51 of 
        such Code is amended by adding at the end thereof the following 
        new section:

``SEC. 5132. PROHIBITED PURCHASES BY DEALERS.

    ``(a) In General.--Except as provided in regulations prescribed by 
the Secretary, it shall be unlawful for a dealer to purchase distilled 
spirits from any person other than a wholesale dealer in liquors who is 
required to keep the records prescribed by section 5121.
    ``(b) Penalty and Forfeiture.--

                                ``For penalty and forfeiture provisions 
applicable to violations of subsection (a), see sections 5687 and 
7302.''

            (11) Subsection (b) of section 5002 of such Code is 
        amended--
                    (A) by striking ``section 5112(a)'' and inserting 
                ``section 5121(c)(3)'',
                    (B) by striking ``section 5112'' and inserting 
                ``section 5121(c)'',
                    (C) by striking ``section 5122'' and inserting 
                ``section 5122(c)''.
            (12) Subparagraph (A) of section 5010(c)(2) of such Code is 
        amended by striking ``section 5134'' and inserting ``section 
        5114''.
            (13) Subsection (d) of section 5052 of such Code is amended 
        to read as follows:
    ``(d) Brewer.--For purposes of this chapter, the term `brewer' 
means any person who brews beer or produces beer for sale. Such term 
shall not include any person who produces only beer exempt from tax 
under section 5053(e).''
            (14) The text of section 5182 of such Code is amended to 
        read as follows:
            ``For provisions requiring recordkeeping by wholesale 
        liquor dealers, see section 5112, and by retail liquor dealers, 
        see section 5122.''
            (15) Subsection (b) of section 5402 of such Code is amended 
        by striking ``section 5092'' and inserting ``section 5052(d)''.
            (16) Section 5671 of such Code is amended by striking ``or 
        5091''.
            (17)(A) Part V of subchapter J of chapter 51 of such Code 
        is hereby repealed.
            (B) The table of parts for such subchapter J is amended by 
        striking the item relating to part V.
            (18)(A) Sections 5142, 5143, and 5145 of such Code are 
        moved to subchapter D of chapter 52 of such Code, inserted 
        after section 5731, redesignated as sections 5732, 5733, and 
        5734, respectively, and amended by striking ``this part'' each 
        place it appears and inserting ``this subchapter''.
            (B) Section 5732 of such Code, as redesignated by 
        subparagraph (A), is amended by striking ``(except the tax 
        imposed by section 5131)'' each place it appears.
            (C) Subsection (c) of section 5733 of such Code, as 
        redesignated by subparagraph (A), is amended by striking 
        paragraph (2) and by redesignating paragraph (3) as paragraph 
        (2).
            (D) The table of sections for subchapter D of chapter 52 of 
        such Code is amended by adding at the end thereof the 
        following:

                              ``Sec. 5732. Payment of tax.
                              ``Sec. 5733. Provisions relating to 
                                        liability for occupational 
                                        taxes.
                              ``Sec. 5734. Application of State laws.''
            (E) Section 5731 of such Code is amended by striking 
        subsection (c) and by redesignating subsection (d) as 
        subsection (c).
            (19) Subsection (c) of section 6071 of such Code is amended 
        by striking ``section 5142'' and inserting ``section 5732''.
            (20) Paragraph (1) of section 7652(g) of such Code is 
        amended--
                    (A) by striking ``subpart F'' and inserting 
                ``subpart B'', and
                    (B) by striking ``section 5131(a)'' and inserting 
                ``section 5111(a)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, but shall not apply to 
taxes imposed for periods before such date.
                                 <all>