116 S3383 IS: To amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes. U.S. Senate 2021-12-14 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II117th CONGRESS1st SessionS. 3383IN THE SENATE OF THE UNITED STATESDecember 14, 2021Mr. Menendez (for himself and Mr. Cassidy) introduced the following bill; which was read twice and referred to the Committee on FinanceA BILLTo amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes.

1.

Cover over of certain distilled spirits taxes

(a)

Repeal of limitation on cover over of distilled spirits taxes to Puerto Rico and Virgin Islands

(1)

In general

Section 7652 of the Internal Revenue Code of 1986 is amended by striking subsection (f) and by redesignating subsections (g), (h) and (i) as subsections (f), (g), and (h) respectively.(2)

Effective date

The amendments made by this subsection shall apply to distilled spirits brought into the United States after December 31, 2021.(b)

Required transfer to Puerto Rico Conservation Trust Fund of portion of Puerto Rico rum cover over

(1)

In general

Section 7652(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:(4)

Required transfer to puerto rico conservation trust fund of portion of rum taxes covered over

(A)

In general

From any taxes collected on rum transported to the United States that are covered into the treasury of Puerto Rico under paragraph (3) at a rate equal to or greater than $10.50 per proof gallon, Puerto Rico shall transfer to the Puerto Rico Conservation Trust Fund an amount per proof gallon equal to or greater than 1/6 of the difference between $10.50 and the rate, not to exceed $13.25, at which such taxes are covered into such treasury. Puerto Rico’s obligations under this paragraph shall not modify or impair payment priorities established under Puerto Rico law and in effect on May 21, 2021.(B)

Puerto Rico conservation trust fund

For purposes of this section, the term Puerto Rico Conservation Trust Fund means the fund established pursuant to a Memorandum of Understanding between the United States Department of the Interior and the Commonwealth of Puerto Rico, dated December 24, 1968..(2)

Cover over determined without regard to certain rate reductions

Section 7652(h) of such Code, as redesignated by subsections (a), is amended by inserting (a)(4), after (a)(3),.(3)

Effective date

The amendments made by this subsection shall apply to distilled spirits brought into the United States after December 31, 2021.(c)

Cover over determined without regard to certain rate reductions

Notwithstanding section 107(a)(3) of division EE of Public Law 116–260, the amendments made by section 107(a)(2) of division EE such Public Law shall apply to distilled spirits brought into the United States and removed after December 31, 2017.