Internal Revenue Code:Sec. 5001. Imposition, rate, and attachment of tax
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Contents |
Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart A - Distilled Spirits
Statute
Sec. 5001. Imposition, rate, and attachment of tax
(a) Rate of tax
(1) General
There is hereby imposed on all distilled spirits produced in or
imported into the United States a tax at the rate of $13.50 on
each proof gallon and a proportionate tax at the like rate on all
fractional parts of a proof gallon.
(2) Products containing distilled spirits
All products of distillation, by whatever name known, which
contain distilled spirits, on which the tax imposed by law has
not been paid, and any alcoholic ingredient added to such
products, shall be considered and taxed as distilled spirits.
(3) Wines containing more than 24 percent alcohol by volume
Wines containing more than 24 percent of alcohol by volume
shall be taxed as distilled spirits.
(4) Distilled spirits withdrawn free of tax
Any person who removes, sells, transports, or uses distilled
spirits, withdrawn free of tax under section 5214(a) or section
7510, in violation of laws or regulations now or hereafter in
force pertaining thereto, and all such distilled spirits shall be
subject to all provisions of law relating to distilled spirits
subject to tax, including those requiring payment of the tax
thereon; and the person so removing, selling, transporting, or
using the distilled spirits shall be required to pay such tax.
(5) Denatured distilled spirits or articles
Any person who produces, withdraws, sells, transports, or uses
denatured distilled spirits or articles in violation of laws or
regulations now or hereafter in force pertaining thereto, and all
such denatured distilled spirits or articles shall be subject to
all provisions of law pertaining to distilled spirits that are
not denatured, including those requiring the payment of tax
thereon; and the person so producing, withdrawing, selling,
transporting, or using the denatured distilled spirits or
articles shall be required to pay such tax.
(6) Fruit-flavor concentrates
If any volatile fruit-flavor concentrate (or any fruit mash or
juice from which such concentrate is produced) containing
one-half of 1 percent or more of alcohol by volume, which is
manufactured free from tax under section 5511, is sold,
transported, or used by any person in violation of the provisions
of this chapter or regulations promulgated thereunder, such
person and such concentrate, mash, or juice shall be subject to
all provisions of this chapter pertaining to distilled spirits
and wines, including those requiring the payment of tax thereon;
and the person so selling, transporting, or using such
concentrate, mash, or juice shall be required to pay such tax.
(7) Imported liqueurs and cordials
Imported liqueurs and cordials, or similar compounds,
containing distilled spirits, shall be taxed as distilled
spirits.
(8) Imported distilled spirits withdrawn for beverage purposes
There is hereby imposed on all imported distilled spirits
withdrawn from customs custody under section 5232 without payment
of the internal revenue tax, and thereafter withdrawn from bonded
premises for beverage purposes, an additional tax equal to the
duty which would have been paid had such spirits been imported
for beverage purposes, less the duty previously paid thereon.
(9) Alcoholic compounds from Puerto Rico
Except as provided in section 5314, upon bay rum, or any
article containing distilled spirits, brought from Puerto Rico
into the United States for consumption or sale there is hereby
imposed a tax on the spirits contained therein at the rate
imposed on distilled spirits produced in the United States.
(b) Time of attachment on distilled spirits
The tax shall attach to distilled spirits as soon as this
substance is in existence as such, whether it be subsequently
separated as pure or impure spirits, or be immediately, or at any
subsequent time, transferred into any other substance, either in
the process of original production or by any subsequent process.
(c) Cross reference
For provisions relating to the tax on shipments to the United
States of taxable articles from Puerto Rico and the Virgin
Islands, see section 7652.
Sources
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1314; amended Pub. L. 86-75, Sec. 3(a)(2), (3), June 30, 1959, 73
Stat. 157; Pub. L. 86-564, title II, Sec. 202(a)(4), (5), June 30,
1960, 74 Stat. 290; Pub. L. 87-72, Sec. 3(a)(4), (5), June 30,
1961, 75 Stat. 193; Pub. L. 87-508, Sec. 3(a)(3), (4), June 28,
1962, 76 Stat. 114; Pub. L. 88-52, Sec. 3(a)(4), (5), June 29,
1963, 77 Stat. 72; Pub. L. 88-348, Sec. 2(a)(4), (5), June 30,
1964, 78 Stat. 237; Pub. L. 89-44, title V, Sec. 501(a), June 21,
1965, 79 Stat. 150; Pub. L. 96-39, title VIII, Sec. 802, 805(d),
July 26, 1979, 93 Stat. 273, 278; Pub. L. 98-369, div. A, title I,
Sec. 27(a)(1), July 18, 1984, 98 Stat. 507; Pub. L. 101-508, title
XI, Sec. 11201(a)(1), Nov. 5, 1990, 104 Stat. 1388-415; Pub. L.
103-465, title I, Sec. 136(a), Dec. 8, 1994, 108 Stat. 4841.)
Miscellaneous
PRIOR PROVISIONS
A prior section 5001, acts Aug. 16, 1954, ch. 736, 68A Stat. 595;
Mar. 30, 1955, ch. 18, Sec. 3(a)(4), (5), 69 Stat. 14; Mar. 29,
1956, ch. 115, Sec. 3(a)(4), (5), 70 Stat. 66; Mar. 29, 1957, Pub.
L. 85-12, Sec. 3(a)(2), (3), 71 Stat. 9; June 30, 1958, Pub. L.
85-475, Sec. 3(a)(2), (3), 72 Stat. 259, consisted of provisions
similar to those comprising this section, prior to the general
revision of this chapter by Pub. L. 85-859. See section 5061(d) of
this title.
AMENDMENTS
1994 - Subsec. (a)(3) to (10). Pub. L. 103-465 redesignated pars.
(4) to (10) as (3) to (9), respectively, and struck out former par.
(3), ''Imported perfumes containing distilled spirits'', which read
as follows: ''There is hereby imposed on all perfumes imported into
the United States containing distilled spirits a tax of $13.50 per
wine gallon, and a proportionate tax at a like rate on all
fractional parts of such wine gallon.''
1990 - Subsec. (a)(1), (3). Pub. L. 101-508 substituted
''$13.50'' for ''$12.50''.
1984 - Subsec. (a)(1), (3). Pub. L. 98-369 substituted ''$12.50''
for ''$10.50''.
1979 - Subsec. (a)(1). Pub. L. 96-39, Sec. 802, struck out ''in
bond or'' after ''distilled spirits'' and ''or wine gallon when
below proof'' after ''each proof gallon'' and substituted ''a tax''
for ''an internal revenue tax'' and ''proof gallon'' for ''such
proof or wine gallon''.
Subsec. (a)(2). Pub. L. 96-39, Sec. 805(d), inserted '', and any
alcoholic ingredient added to such products'' after ''has not been
paid''.
1965 - Subsec. (a)(1). Pub. L. 89-44 struck out last sentence
which provided that the rate of tax imposed by par. (1) would be $9
on and after July 1, 1965.
Subsec. (a)(3). Pub. L. 89-44 struck out last sentence which
provided that the rate of tax imposed by par. (3) would be $9 on
and after July 1, 1965.
1964 - Subsec. (a)(1). Pub. L. 88-348 substituted ''July 1,
1965'' for ''July 1, 1964''.
Subsec. (a)(3). Pub. L. 88-348 substituted ''July 1, 1965'' for
''July 1, 1964''.
1963 - Subsec. (a)(1). Pub. L. 88-52, Sec. 3(a)(4), substituted
''July 1, 1964'' for ''July 1, 1963''.
Subsec. (a)(3). Pub. L. 88-52, Sec. 3(a)(5), substituted ''July
1, 1964'' for ''July 1, 1963''.
1962 - Subsec. (a)(1). Pub. L. 87-508, Sec. 3(a)(3), substituted
''July 1, 1963'' for ''July 1, 1962''.
Subsec. (a)(3). Pub. L. 87-508, Sec. 3(a)(4), substituted ''July
1, 1963'' for ''July 1, 1962''.
1961 - Subsec. (a)(1). Pub. L. 87-72, Sec. 3(a)(4), substituted
''July 1, 1962'' for ''July 1, 1961''.
Subsec. (a)(3). Pub. L. 87-72, Sec. 3(a)(5), substituted ''July
1, 1962'' for ''July 1, 1961''.
1960 - Subsec. (a)(1). Pub. L. 86-564, Sec. 202(a)(4),
substituted ''July 1, 1961'' for ''July 1, 1960''.
Subsec. (a)(3). Pub. L. 86-564, Sec. 202(a)(5), substituted
''July 1, 1961'' for ''July 1, 1960''.
1959 - Subsec. (a)(1). Pub. L. 86-75, Sec. 3(a)(2), substituted
''July 1, 1960'' for ''July 1, 1959''.
Subsec. (a)(3). Pub. L. 86-75, Sec. 3(a)(3), substituted ''July
1, 1960'' for ''July 1, 1959''.
EFFECTIVE DATE OF 1994 AMENDMENT
Section 136(d) of Pub. L. 103-465 provided that: ''The amendments
made by this section (amending this section and sections 5002,
5005, 5007, 5061, 5131, 5132, 5134, and 7652 of this title) shall
take effect on January 1, 1995.''
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11201(d) of Pub. L. 101-508 provided that: ''The
amendments made by this section (amending this section and sections
5010, 5041, 5051, and 5061 of this title) shall take effect on
January 1, 1991.''
EFFECTIVE DATE OF 1984 AMENDMENT
Section 27(d) of Pub. L. 98-369 provided that:
''(1) In general. - Except as provided in paragraph (2), the
amendments made by this section (amending this section and section
5010 of this title and enacting provisions set out as a note under
this section) shall take effect on October 1, 1985.
''(2) Electronic transfer provisions. - The amendments made by
subsection (c) (amending sections 5061 and 5703 of this title)
shall apply to taxes required to be paid on or after September 30,
1984.''
EFFECTIVE DATE OF 1979 AMENDMENT
Section 810 of title VIII of Pub. L. 96-39 provided that: ''The
amendments made by this title (amending this section and sections
5002 to 5008, 5043, 5061, 5064, 5066, 5116, 5171 to 5173, 5175 to
5178, 5180, 5181, 5201 to 5205, 5207, 5211 to 5215, 5221 to 5223,
5231, 5232, 5235, 5241, 5273, 5291, 5301, 5352, 5361 to 5363, 5365,
5381, 5391, 5551, 5601, 5604, 5610, 5612, 5615, 5663, 5681, 5682,
and 5691 of this title, repealing sections 5009, 5021 to 5026, 5081
to 5084, 5174, 5233, 5234, 5251, 5252, 5364, and 5521 to 5523 of
this title, and enacting provisions set out as notes under sections
1, 5061, 5171, and 5173 of this title) shall take effect on January
1, 1980.''
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 applicable on and after July 1, 1965,
see section 701(d) of Pub. L. 89-44, set out as a note under
section 5701 of this title.
EFFECTIVE DATE
Section 210(a)(1) of Pub. L. 85-859 provided that: ''The
amendments made by sections 201 and 205 (amending this chapter and
repealing acts Mar. 3, 1877, 114, 19 Stat. 393, and Oct. 18, 1888,
ch. 1194, 25 Stat. 560) shall take effect on July 1, 1959, except
that any provision having the effect of a provision contained in
such amendments may be made effective at an earlier date by the
promulgation of regulations by the Secretary or his delegate to
effectuate such provision, in which case the effective date shall
be that prescribed in such regulations. The amendments made by
paragraphs (17) and (18) of section 204 (amending section 7652 of
this title) shall take effect on July 1, 1959. Except as provided
in section 206(f), all other provisions of this title (enacting
sections 5849, 5854, 5855, and 7608 of this title, amending chapter
52 of this title and sections 5801, 5811, 5814, 5821, 5843, 5848,
5851, 6071, 6207, 6422, 7214, 7272, 7301, 7324 to 7326, 7609, and
7655 of this title, and repealing former section 5854 of this
title) shall take effect on the day following the date of the
enactment of this Act (Sept. 2, 1958).''
SHORT TITLE
Section 1(a) of Pub. L. 85-859 provided that: ''This Act (see
Tables for classification) may be cited as the 'Excise Tax
Technical Changes Act of 1958'.''
SAVINGS PROVISION
Section 210(b) of title II of Pub. L. 85-859, as amended by Pub.
L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''The amendment of any provision of the Internal Revenue Code of
1986 (formerly I.R.C. 1954) by this title (enacting sections 5849,
5854, 5855, and 7608 of this title, amending this chapter, chapter
52 of this title and sections 5801, 5811, 5814, 5821, 5843, 5848,
5851, 6071, 6207, 6422, 7214, 7272, 7301, 7324 to 7326, 7609, 7652,
and 7655 of this title, and enacting provisions set out as notes
under this section and sections 5006, 5025, 5064, 5175, 5304, and
5601 of this title) shall not affect any act done or any right
accruing or accrued, or any suit or proceeding had or commenced in
any civil cause before such amendment; but all rights and
liabilities under such code prior to such amendment shall continue,
and may be enforced in the same manner, as if such amendment had
not been made.''
REFERENCES TO OTHER PROVISIONS OF LAW
Section 210(d) of title II of Pub. L. 85-859 provided that: ''For
the purpose of applying any provision of this title (see Savings
Provision note above) to any occurrence on or after the effective
date of such provision, any reference in this title to another
provision thereof shall also be deemed to be a reference to the
corresponding provision of prior law, when consistent with the
purpose of the provision to be applied.''
REPEAL OF ACTS MAR. 3, 1877 AND OCT. 18, 1888
Section 205 of Pub. L. 85-859 repealed acts March 3, 1877, ch.
114, 19 Stat. 393 and Oct. 18, 1888, ch. 1194, 25 Stat. 560, which
related to production and warehousing of fruit brandy, and are
covered by this chapter. For effective date of repeal, see section
210(a)(1) of Pub. L. 85-859, set out as an Effective Date note
above.
FLOOR STOCKS TAXES ON DISTILLED SPIRITS, WINE, AND BEER
Section 11201(e) of Pub. L. 101-508 provided that:
''(1) Imposition of tax. -
''(A) In general. - In the case of any tax-increased article -
''(i) on which tax was determined under part I of subchapter
A of chapter 51 of the Internal Revenue Code of 1986 or section
7652 of such Code before January 1, 1991, and
''(ii) which is held on such date for sale by any person,
there shall be imposed a tax at the applicable rate on each such
article.
''(B) Applicable rate. - For purposes of subparagraph (A), the
applicable rate is -
''(i) $1 per proof gallon in the case of distilled spirits,
''(ii) $0.90 per wine gallon in the case of wine described in
paragraph (1), (2), (3), or (5) of section 5041(b) of such
Code, and
''(iii) $9 per barrel in the case of beer.
In the case of a fraction of a gallon or barrel, the tax imposed
by subparagraph (A) shall be the same fraction as the amount of
such tax imposed on a whole gallon or barrel.
''(C) Tax-increased article. - For purposes of this subsection,
the term 'tax-increased article' means distilled spirits, wine
described in paragraph (1), (2), (3), or (5) of section 5041(b)
of such Code, and beer.
''(2) Exception for small domestic producers. -
''(A) In the case of wine held by the producer thereof on
January 1, 1991, if a credit would have been allowable under
section 5041(c) of such Code (as added by this section) on such
wine had the amendments made by subsection (b) (amending sections
5041 and 5061 of this title) applied to all wine removed during
1990 and had the wine so held been removed for consumption on
December 31, 1990, the tax imposed by paragraph (1) on such wine
shall be reduced by the credit which would have been so
allowable.
''(B) In the case of beer held by the producer thereof on
January 1, 1991, if the rate of the tax imposed by section 5051
of such Code would have been determined under subsection (a)(2)
thereof had the beer so held been removed for consumption on
December 31, 1990, the tax imposed by paragraph (1) on such beer
shall not apply.
''(C) For purposes of this paragraph, an article shall not be
treated as held by the producer if title thereto had at any time
been transferred to any other person.
''(3) Exception for certain small wholesale or retail dealers. -
No tax shall be imposed by paragraph (1) on tax- increased articles
held on January 1, 1991, by any dealer if -
''(A) the aggregate liquid volume of tax-increased articles
held by such dealer on such date does not exceed 500 wine
gallons, and
''(B) such dealer submits to the Secretary (at the time and in
the manner required by the Secretary) such information as the
Secretary shall require for purposes of this paragraph.
''(4) Credit against tax. - Each dealer shall be allowed as a
credit against the taxes imposed by paragraph (1) an amount equal
to -
''(A) $240 to the extent such taxes are attributable to
distilled spirits,
''(B) $270 to the extent such taxes are attributable to wine,
and
''(C) $87 to the extent such taxes are attributable to beer.
Such credit shall not exceed the amount of taxes imposed by
paragraph (1) with respect to distilled spirits, wine, or beer, as
the case may be, for which the dealer is liable.
''(5) Liability for tax and method of payment. -
''(A) Liability for tax. - A person holding any tax-increased
article on January 1, 1991, to which the 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 shall prescribe by
regulations.
''(C) Time for payment. - The tax imposed by paragraph (1)
shall be paid on or before June 30, 1991.
''(6) Controlled groups. -
''(A) Corporations. - In the case of a controlled group -
''(i) the 500 wine gallon amount specified in paragraph (3),
and
''(ii) the $240, $270, and $87 amounts specified in paragraph
(4),
shall be apportioned among the dealers who are component members
of such group in such manner as the Secretary shall by
regulations prescribe. For purposes of the preceding sentence,
the term 'controlled group' has the meaning given to such term by
subsection (a) of section 1563 of such Code; except that for such
purposes the phrase 'more than 50 percent' shall be substituted
for the phrase 'at least 80 percent' each place it appears in
such subsection.
''(B) Nonincorporated dealers under common control. - Under
regulations prescribed by the Secretary, principles similar to
the principles of subparagraph (A) shall apply to a group of
dealers under common control where 1 or more of such dealers is
not a corporation.
''(7) Other laws applicable. -
''(A) In general. - All provisions of law, including penalties,
applicable to the comparable excise tax with respect to any
tax-increased article 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 the comparable excise tax.
''(B) Comparable excise tax. - For purposes of subparagraph
(A), the term 'comparable excise tax' means -
''(i) the tax imposed by section 5001 of such Code in the
case of distilled spirits,
''(ii) the tax imposed by section 5041 of such Code in the
case of wine, and
''(iii) the tax imposed by section 5051 of such Code in the
case of beer.
''(8) Definitions. - For purposes of this subsection -
''(A) In general. - Terms used in this subsection which are
also used in subchapter A of chapter 51 of such Code shall have
the respective meanings such terms have in such part.
''(B) Person. - The term 'person' includes any State or
political subdivision thereof, or any agency or instrumentality
of a State or political subdivision thereof.
''(C) Secretary. - The term 'Secretary' means the Secretary of
the Treasury or his delegate.
''(9) Treatment of imported perfumes containing distilled
spirits. - For purposes of this subsection, any article described
in section 5001(a)(3) of such Code shall be treated as distilled
spirits; except that the tax imposed by paragraph (1) shall be
imposed on a wine gallon basis in lieu of a proof gallon basis. To
the extent provided by regulations prescribed by the Secretary, the
preceding sentence shall not apply to any article held on January
1, 1991, on the premises of a retail establishment.''
FLOOR STOCKS TAX TREATMENT OF ARTICLES IN FOREIGN TRADE ZONES
Section 11218 of Pub. L. 101-508 provided that: ''Notwithstanding
the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) or any other
provision of law, any article which is located in a foreign trade
zone on the effective date of any increase in tax under the
amendments made by this part or part I (part I (Sec. 11201-11203)
or part II (Sec. 11211-11218) of subtitle B of title XI of Pub. L.
101-508, see Tables for classification) shall be subject to floor
stocks taxes imposed by such parts if -
''(1) 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 (19 U.S.C. 81c(a)), or
''(2) such article is held on such date under the supervision
of a customs officer pursuant to the 2d proviso of such section
3(a).''
FLOOR STOCKS TAXES ON DISTILLED SPIRITS
Section 27(b) of Pub. L. 98-369, as amended by Pub. L. 99-514,
Sec. 2, title XVIII, Sec. 1801(c)(3), Oct. 22, 1986, 100 Stat.
2095, 2786, provided that:
''(1) Imposition of tax. - On distilled spirits on which tax was
imposed under section 5001 or 7652 of the Internal Revenue Code of
1986 (formerly I.R.C. 1954) before October 1, 1985, and which were
held on such date for sale by any person, there shall be imposed a
tax at the rate of $2.00 for each proof gallon and a proportionate
tax at the like rate on all fractional parts of a proof gallon.
''(2) Exception for certain small wholesale or retail dealers. -
No tax shall be imposed by paragraph (1) on distilled spirits held
on October 1, 1985, by any dealer if -
''(A) the aggregate liquid volume of distilled spirits held by
such dealer on such date does not exceed 500 wine gallons, and
''(B) such dealer submits to the Secretary (at the time and in
the manner required by the Secretary) such information as the
Secretary shall require for purposes of this paragraph.
''(3) Credit against tax. - Each dealer shall be allowed as a
credit against the taxes imposed by paragraph (1) an amount equal
to $800. Such credit shall not exceed the amount of taxes imposed
by paragraph (1) for which the dealer is liable.
''(4) Liability for tax and method of payment. -
''(A) Liability for tax. - A person holding distilled spirits
on October 1, 1985, to which the 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 shall by
regulations prescribe.
''(C) Time for payment. -
''(i) In general. - Except as provided in clause (ii), the
tax imposed by paragraph (1) shall be paid on or before April
1, 1986.
''(ii) Installment payment of tax in case of small or
middle-sized dealers. - In the case of any small or
middle-sized dealer, the tax imposed by paragraph (1) may be
paid in 3 equal installments due as follows:
''(I) The first installment shall be paid on or before
April 1, 1986.
''(II) The second installment shall be paid on or before
July 1, 1986.
''(III) The third installment shall be paid on or before
October 1, 1986.
If the taxpayer does not pay any installment under this clause on
or before the date prescribed for its payment, the whole of the
unpaid tax shall be paid upon notice and demand from the
Secretary.
''(iii) Small or middle-sized dealer. - For purposes of
clause (ii), the term 'small or middle-sized dealer' means any
dealer if the aggregate gross sales receipts of such dealer for
its most recent taxable year ending before October 1, 1985,
does not exceed $500,000.
''(5) Controlled groups. -
''(A) Controlled groups of corporations. - In the case of a
controlled group -
''(i) the 500 wine gallon amount specified in paragraph (2),
''(ii) the $800 amount specified in paragraph (3), and
''(iii) the $500,000 amount specified in paragraph
(4)(C)(iii),
shall be apportioned among the dealers who are component members
of such group in such manner as the Secretary shall by
regulations prescribe. For purposes of the preceding sentence,
the term 'controlled group' has the meaning given to such term by
subsection (a) of section 1563 of the Internal Revenue Code of
1986; except that for such purposes the phrase 'more than 50
percent' shall be substituted for the phrase 'at least 80
percent' each place it appears in such subsection.
''(B) Nonincorporated dealers under common control. - Under
regulations prescribed by the Secretary, principles similar to
the principles of subparagraph (A) shall apply to a group of
dealers under common control where 1 or more of such dealers is
not a corporation.
''(6) Other laws applicable. - All provisions of law, including
penalties, applicable with respect to the taxes imposed by section
5001 of the Internal Revenue Code of 1986 shall, insofar as
applicable and not inconsistent with the provisions of this
subsection, apply in respect of the taxes imposed by paragraph (1)
to the same extent as if such taxes were imposed by such section
5001.
''(7) Definitions and special rules. - For purposes of this
subsection -
''(A) Dealer. - The term 'dealer' means -
''(i) any wholesale dealer in liquors (as defined in section
5112(b) of the Internal Revenue Code of 1986), and
''(ii) any retail dealer in liquors (as defined in section
5122(a) of such Code).
''(B) Distilled spirits. - The term 'distilled spirits' has the
meaning given such term by section 5002(a)(8) of the Internal
Revenue Code of 1986.
''(C) Person. - The term 'person' includes any State or
political subdivision thereof, or any agency or instrumentality
of a State or political subdivision thereof.
''(D) Secretary. - The term 'Secretary' means the Secretary of
the Treasury or his delegate.
''(E) Treatment of imported perfumes containing distilled
spirits. - Any article described in section 5001(a)(3) of such
Code shall be treated as distilled spirits; except that the tax
imposed by paragraph (1) shall be imposed on a wine gallon basis
in lieu of a proof gallon basis. To the extent provided in
regulations prescribed by the Secretary, the preceding sentence
shall not apply to any article held on October 1, 1985, on the
premises of a retail establishment.
''(F) Treatment of distilled spirits in foreign trade zones. -
Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C.
81a) or any other provision of law, distilled spirits which are
located in a foreign trade zone on October 1, 1985, shall be
subject to the tax imposed by paragraph (1) and shall be treated
for purposes of this subsection as held on such date for sale if
-
''(i) internal revenue taxes have been determined, or customs
duties liquidated, with respect to such distilled spirits
before such date pursuant to a request made under the first
proviso of section 3(a) of such Act (19 U.S.C. 81c(a)), or
''(ii) such distilled spirits are held on such date under the
supervision of customs pursuant to the second proviso of such
section 3(a).
Under regulations prescribed by the Secretary, provisions similar
to sections 5062 and 5064 of such Code shall apply to distilled
spirits with respect to which tax is imposed by paragraph (1) by
reason of this subparagraph.''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5004, 5005, 5007, 5008,
5010, 5061, 5066, 5215, 5273, 5314, 5391, 5512, 7652 of this title.
