[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 702 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 702
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
April 5, 2005
Mr. Baucus (for himself, Mr. Bunning, Mr. Johnson, Mr. Talent, and Mr.
Craig) 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(relating to occupational taxes) are hereby repealed: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such Code is hereby repealed.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 the Internal Revenue Code of 1986 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 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:
``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
or a limited retail dealer) 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 (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) Limited retail dealer.--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) 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) 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:
``SEC. 5124. REGISTRATION BY DEALERS.
``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:
``Subpart D--Other Provisions
``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:
``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 for resale from any person other than a wholesale dealer in
liquors who is required to keep the records prescribed by section 5121.
``(b) Limited Retail Dealers.--A limited retail dealer may lawfully
purchase distilled spirits for resale from a retail dealer in liquors.
``(c) Penalty and Forfeiture.--
``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) 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).''.
(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) Effective Date.--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.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S3206)
Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S3206-3207)
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