1.
Repeal of occupational taxes relating to distilled spirits,
wine, and beer
(a)
Repeal of occupational taxes
(1)
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(relating to occupational taxes) are hereby repealed: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hereby repealed.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)
(1)
(A)
The heading for part II of
subchapter A of chapter 51 of the Internal Revenue Code of 1986 and the table
of subparts for such part are amended to read as follows:
II
Subpart A. Manufacturers of
stills.
Subpart B. Nonbeverage
domestic drawback claimants.
Subpart C. Recordkeeping and
registration 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:
C
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:
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)
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)
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)
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:
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)
For purposes of this
section—
(1)
The term retail
dealer in liquors means any dealer (other than a retail dealer in beer
or a limited retail dealer) who sells, or offers for sale, distilled spirits,
wines, or beer, to any person other than a dealer.
(2)
The term retail
dealer in beer means any dealer (other than a limited retail dealer) who
sells, or offers for sale, beer, but not distilled spirits or wines, to any
person other than a dealer.
(3)
The term limited
retail dealer means any fraternal, civic, church, labor, charitable,
benevolent, or ex-servicemen’s organization making sales of distilled spirits,
wine or beer on the occasion of any kind of entertainment, dance, picnic,
bazaar, or festival held by it, or any person making sales of distilled
spirits, wine or beer to the members, guests, or patrons of bona fide fairs,
reunions, picnics, carnivals, or other similar outings, if such organization or
person is not otherwise engaged in business as a dealer.
(4)
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)
Subpart C of part II of
subchapter A of chapter 51 of such Code, as amended by paragraph (7), is
amended by adding at the end the following new section:
5124.
Every dealer who is subject
to the recordkeeping requirements under section 5121 or 5122 shall register
with the Secretary such dealer's name or style, place of residence, trade or
business, and the place where such trade or business is to be carried on. In
case of a firm or company, the names of the several persons constituting the
same, and the places of residence, shall be so registered.
.
(9)
Section 7012 of such Code is
amended by redesignating paragraphs (4) and (5) as paragraphs (5) and (6),
respectively, and by inserting after paragraph (3) the following new
paragraph:
(4)
For provisions relating to
registration by dealers in distilled spirits, wines, and beer, see section
5124.
.
(10)
Part II of subchapter A of
chapter 51 of such Code is amended by inserting after subpart C the following
new subpart:
D
Sec. 5131. Packaging
distilled spirits for industrial uses.
Sec. 5132. Prohibited
purchases by dealers.
.
(11)
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).
(12)
Subpart D of part II of
subchapter A of chapter 51 of such Code is amended by adding at the end the
following new section:
5132.
Prohibited purchases by dealers
(a)
Except as provided in
regulations prescribed by the Secretary, it shall be unlawful for a dealer to
purchase distilled spirits for resale from any person other than a wholesale
dealer in liquors who is required to keep the records prescribed by section
5121.
(b)
A limited retail dealer may
lawfully purchase distilled spirits for resale from a retail dealer in
liquors.
(c)
For penalty and forfeiture
provisions applicable to violations of subsection (a), see sections 5687 and
7302.
.
(13)
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)
.
(14)
Subparagraph (A) of section
5010(c)(2) of such Code is amended by striking section 5134
and
inserting section 5114
.
(15)
Subsection (d) of section
5052 of such Code is amended to read as follows:
(d)
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).
.
(16)
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.
.
(17)
Subsection (b) of section
5402 of such Code is amended by striking section 5092
and
inserting section 5052(d)
.
(18)
Section 5671 of such Code is
amended by striking or 5091
.
(19)
(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.
(20)
(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)
Paragraph (2) of section
5733(c) of such Code, as redesignated by subparagraph (A), is amended by
striking liquors
both places it appears and inserting
tobacco products and cigarette papers and tubes
.
(D)
The table of sections for
subchapter D of chapter 52 of such Code is amended by adding at the end 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).
(21)
Subsection (c) of section
6071 of such Code is amended by striking section 5142
and
inserting section 5732
.
(22)
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
.
(c)
The amendments made by this
section shall take effect on July 1, 2005, but shall not apply to taxes imposed
for periods before such date.