Internal Revenue Code:Sec. 5113. Exemptions

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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 II - OCCUPATIONAL TAX
          Subpart D - Wholesale Dealers
        

Statute

    Sec. 5113. Exemptions
 
    (a) Sales by proprietors of controlled premises
      No proprietor of a distilled spirits plant, bonded wine cellar,
    taxpaid wine bottling house, or brewery, shall be required to pay
    special tax under section 5111 or section 5121 on account of the
    sale at his principal business office as designated in writing to
    the Secretary, or at his distilled spirits plant, bonded wine
    cellar, taxpaid wine bottling house, or brewery, as the case may
    be, of distilled spirits, wines, or beer, which, at the time of
    sale, are stored at his distilled spirits plant, bonded wine
    cellar, taxpaid wine bottling house, or brewery, as the case may
    be, or had been removed from such premises to a taxpaid storeroom
    operated in connection therewith and are stored therein.  However,
    on such proprietor shall have more than one place of sale, as to
    each distilled spirits plant, bonded wine cellar, taxpaid wine
    bottling house, or brewery, that shall be exempt from special taxes
    by reason of the sale of distilled spirits, wines, or beer stored
    at such premises (or removed therefrom and stored as provided in
    this section), by reason of this subsection.
    (b) Sales by liquor stores operated by States, political
        subdivisions, etc.
      No liquor store engaged in the business of selling to persons
    other than dealers, which is operated by a State, by a political
    subdivision of a State or by the District of Columbia, shall be
    required to pay any special tax imposed under section 5111, by
    reason of selling distilled spirits, wines, or beer to dealers
    qualified to do business as such in such State, subdivision, or
    District, if such State, political subdivision, or District has
    paid the applicable special tax imposed under section 5121, and if
    such State, political subdivision, or District has paid special tax
    under section 5111 at its principal place of business.
    (c) Casual sales
      (1) Sales by creditors, fiduciaries, and officers of court
        No person shall be deemed to be a dealer by reason of the sale
      of distilled spirits, wines, or beer which have been received by
      him as security for or in payment of a debt, or as an executor,
      administrator, or other fiduciary, or which have been levied on
      by any officer under order or process of any court or magistrate,
      if such distilled spirits, wines, or beer are sold by such person
      in one parcel only or at public auction in parcels of not less
      than 20 wine gallons.
      (2) Sales by retiring partners or representatives of deceased
          partners to incoming or remaining partners
        No person shall be deemed to be a dealer by reason of a sale of
      distilled spirits, wines, or beer made by such person as a
      retiring partner or the representative of a deceased partner to
      the incoming, remaining, or surviving partner or partners of a
      firm.
      (3) Return of liquors for credit, refund, or exchange
        No person shall be deemed to be a dealer by reason of the bona
      fide return of distilled spirits, wines, or beer to the dealer
      from whom purchased (or to the successor of the vendor's business
      or line of merchandise) for credit, refund, or exchange, and the
      giving of such credit, refund, or exchange shall not be deemed to
      be a purchase within the meaning of section 5117.
    (d) Dealers making sales on purchaser dealer's premises
      (1) Wholesale dealers in liquors
        No wholesale dealer in liquors who has paid the special tax as
      such dealer shall again be required to pay special tax as such
      dealer on account of sales of wines or beer to wholesale or
      retail dealers in liquors, or to limited retail dealers, or of
      beer to wholesale or retail dealers in beer, consummated at the
      purchaser's place of business.
      (2) Wholesale dealers in beer
        No wholesale dealer in beer who has paid the special tax as
      such a dealer shall again be required to pay special tax as such
      dealer on account of sales of beer to wholesale or retail dealers
      in liquors or beer, or to limited retail dealers, consummated at
      the purchaser's place of business.
    (e) Sales by retail dealers in liquidation
      No retail dealer in liquors or retail dealer in beer, selling in
    liquidation his entire stock of liquors in one parcel or in parcels
    embracing not less than his entire stock of distilled spirits, of
    wines, or of beer to any other dealer, shall be deemed to be a
    wholesale dealer in liquors or a wholesale dealer in beer, as the
    case may be, by reason of such sale or sales.
    (f) Sales to limited retail dealers
      (1) Retail dealers in liquors
        No retail dealer in liquors who has paid special tax as such
      dealer under section 5121(a) shall be required to pay special tax
      under section 5111 on account of the sale at his place of
      business of distilled spirits, wines, or beer to limited retail
      dealers as defined in section 5122(c).
      (2) Retail dealers in beer
        No retail dealer in beer who has paid special tax as such
      dealer under section 5121(b) shall be required to pay special tax
      under section 5111 on account of the sale at his place of
      business of beer to limited retail dealers as defined in section
      5122(c).
    (g) Coordination of taxes under section 5111
      No tax shall be imposed by section 5111(a) with respect to a
    person's activities at any place during a year if such person has
    paid the tax imposed by section 5111(b) with respect to such place
    for such year.
 

Sources

    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1340; amended Pub. L. 87-863, Sec. 4(b), Oct. 23, 1962, 76 Stat.
    1142; Pub. L. 94-455, title XIX, Sec. 1905(a)(7), 1906(b)(13)(A),
    Oct. 4, 1976, 90 Stat. 1819, 1834; Pub. L. 100-647, title II, Sec.
    2004(t)(2), (4), Nov. 10, 1988, 102 Stat. 3609, 3610.)
 

Miscellaneous

                              PRIOR PROVISIONS
      A prior section 5113, act Aug. 16, 1954, ch. 736, 68A Stat. 619,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Provisions similar to those comprising subsecs. (a), (d), and (e)
    of this section were contained in prior sections 5123(a), (b)(3),
    (c), 5144(c), and 5306, act Aug. 16, 1954, ch. 736, 68A Stat. 621,
    624, 657, prior to the general revision of this chapter by Pub. L.
    85-859.
                                 AMENDMENTS
      1988 - Subsec. (a). Pub. L. 100-647, Sec. 2004(t)(2), substituted
    ''controlled premises'' for ''distilled spirits plants, bonded wine
    cellars, or breweries'' in heading and inserted ''taxpaid wine
    bottling house,'' after ''bonded wine cellar,'' wherever appearing
    in text.
      Subsec. (g). Pub. L. 100-647, Sec. 2004(t)(4), added subsec. (g).
      1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
    out ''or his delegate'' after ''Secretary''.
      Subsec. (f)(1). Pub. L. 94-455, Sec. 1905(a)(7), inserted
    reference to distilled spirits.
      1962 - Subsec. (b). Pub. L. 87-863 substituted ''if such State,
    political subdivision, or district'' for ''if such liquor store''
    before ''has paid the'', and struck out reference to Territories
    wherever appearing.
                      EFFECTIVE DATE OF 1988 AMENDMENT
      Amendment by Pub. L. 100-647 effective, except as otherwise
    provided, as if included in the provisions of the Revenue Act of
    1987, Pub. L. 100-203, title X, to which such amendment relates,
    see section 2004(u) of Pub. L. 100-647, set out as a note under
    section 56 of this title.
                      EFFECTIVE DATE OF 1976 AMENDMENT
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1905(d) of Pub. L. 94-455, set out as a note under section 5005 of
    this title.
                      EFFECTIVE DATE OF 1962 AMENDMENT
      Section 4(c) of Pub. L. 87-863 provided that: ''The amendments
    made by subsections (a) and (b) of this section (amending this
    section and section 5123 of this title) shall take effect on July
    1, 1962.''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 5093, 5123, 5681 of this
    title.