[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1799 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1799

To amend the Internal Revenue Code of 1986 to apply rate parity to the 
    excise tax on small cigars and small cigarettes, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 17, 2007

 Mrs. Lincoln 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 apply rate parity to the 
    excise tax on small cigars and small cigarettes, 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. RATE PARITY FOR SMALL CIGARS AND SMALL CIGARETTES.

    (a) In General.--Section 5701(a)(1) of the Internal Revenue Code of 
1986 is amended by striking ``$1.828 cents per thousand'' and all that 
follows and inserting ``$19.50 per thousand,''.
    (b) Floor Stocks Taxes.--
            (1) Imposition of tax.--On small cigars (within the meaning 
        of section 5701(a)(1) of the Internal Revenue Code of 1986) 
        manufactured in or imported into the United States which are 
        removed before the date of the enactment of this Act and held 
        on such date for sale by any person, there is hereby imposed a 
        tax in an amount equal to the excess of--
                    (A) the tax which would be imposed under section 
                5701 of the Internal Revenue Code of 1986 on the 
                article if the article had been removed on such date, 
                over
                    (B) the prior tax (if any) imposed under section 
                5701 of such Code on such article.
            (2) Liability for tax and method of payment.--
                    (A) Liability for tax.--A person holding small 
                cigars on the date of the enactment of this Act to 
                which any 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 of the Treasury shall prescribe by 
                regulations.
                    (C) Time for payment.--The tax imposed by paragraph 
                (1) shall be paid on or before the date which 90 days 
                after such date of enactment.
            (3) Articles in foreign trade zones.--Notwithstanding the 
        Act of June 18, 1934 (commonly known as the Foreign Trade Zone 
        Act, 48 Stat. 998, 19 U.S.C. 81a et seq.) or any other 
        provision of law, any article which is located in a foreign 
        trade zone on the date of the enactment of this Act, shall be 
        subject to the tax imposed by paragraph (1) if--
                    (A) internal revenue taxes have been determined, or 
                customs duties liquidated, with respect to such article 
                before such date pursuant to a request made under the 
                1st proviso of section 3(a) of such Act, or
                    (B) such article is held on such date under the 
                supervision of an officer of the United States Customs 
                and Border Protection of the Department of Homeland 
                Security pursuant to the 2d proviso of such section 
                3(a).
            (4) Controlled groups.--Rules similar to the rules of 
        section 5061(e)(3) of such Code shall apply for purposes of 
        this subsection.
            (5) Other laws applicable.--All provisions of law, 
        including penalties, applicable with respect to the taxes 
        imposed by section 5701 of such Code shall, insofar as 
        applicable and not inconsistent with the provisions of this 
        subsection, apply to the floor stocks taxes imposed by 
        paragraph (1), to the same extent as if such taxes were imposed 
        by such section 5701. The Secretary of the Treasury may treat 
        any person who bore the ultimate burden of the tax imposed by 
        paragraph (1) as the person to whom a credit or refund under 
        such provisions may be allowed or made.
    (c) Effective Date.--The amendments made by this section shall 
apply to articles removed (as defined in section 5702(j) of the 
Internal Revenue Code of 1986) on and after the date of the enactment 
of this Act.
                                 <all>