Internal Revenue Code:Sec. 5123. Exemptions

From TaxAlmanac

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 E - Retail Dealers
        

Statute

    Sec. 5123. Exemptions
 
    (a) Wholesale dealers
      (1) Wholesale dealers in liquors
        No special tax shall be imposed under section 5121(a) or (b) on
      any dealer by reason of the selling, or selling, or offering for
      sale, of distilled spirits, wines, or beer at any location where
      such dealer is required to pay special tax under section 5111(a).
      (2) Wholesale dealers in beer
        No special tax shall be imposed under section 5121(b) on any
      dealer by reason of the selling, or offering for sale, of beer at
      any location where such dealer is required to pay special tax
      under section 5111(b).
    (b) Business conducted in more than one location
      (1) Retail dealers at large
        Any retail dealer in liquors or retailer dealer in beer whose
      business is such as to require him to travel from place to place
      in different States of the United States may, under regulations
      prescribed by the Secretary, procure a special tax stamp ''At
      Large'' covering his activities throughout the United States with
      the payment of but one special tax as a retail dealer in liquors
      or as a retail dealer in beer, as the case may be.
      (2) Dealers on trains, aircraft, and boats
        Nothing contained in this chapter shall prevent the issue,
      under such regulations as the Secretary may prescribe, of special
      tax stamps to -
          (A) persons carrying on the business of retail dealers in
        liquors, or retail dealers in beer, on trains, aircraft, boats
        or other vessels, engaged in the business of carrying
        passengers; or
          (B) persons carrying on the business of retail dealers in
        liquors or retail dealers in beer on boats or other vessels
        operated by them, when such persons operate from a fixed
        address in a port or harbor and supply exclusively boats or
        other vessels, or persons thereon, at such port or harbor.
      (3) Liquor stores operated by States, political subdivisions,
          etc.
        A State, a political subdivision of a State, or the District of
      Columbia shall not be required to pay more than one special tax
      as a retail dealer in liquors under section 5121(a) regardless of
      the number of locations at which such State, political
      subdivision, or District carries on business as a retail dealer
      in liquors.
    (c) Coordination of taxes under section 5121
      No tax shall be imposed by section 5121(a) with respect to a
    person's activities at any place during a year if such person has
    paid the tax imposed by section 5121(b) with respect to such place
    for such year.
    (d) Cross references
          (1) For exemption of proprietors of distilled spirits plants,
        bonded wine cellars, and breweries from special tax as dealers,
        see section 5113(a).
          (2) For provisions relating to sales by creditors,
        fiduciaries, and officers of courts, see section 5113(c)(1).
          (3) For provisions relating to sales by retiring partners or
        representatives of deceased partners to incoming or remaining
        partners, see section 5113(c)(2).
          (4) For provisions relating to return of liquors for credit,
        refund, or exchange, see section 5113(c)(3).
          (5) For provisions relating to sales by retail dealers in
        liquidation, see section 5113(e).
 

Sources

    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1344; amended Pub. L. 87-863, Sec. 4(a), Oct. 23, 1962, 76 Stat.
    1142; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
    90 Stat. 1834; Pub. L. 100-647, title II, Sec. 2004(t)(3), Nov. 10,
    1988, 102 Stat. 3610.)
 

Miscellaneous

                              PRIOR PROVISIONS
      A prior section 5123, act Aug. 16, 1954, ch. 736, 68A Stat. 621,
    consisted of provisions similar to those comprising this section,
    prior to the general revision of this chapter by Pub. L. 85-859.
      Former section 5123(a), (b)(3), and (c) related to ''exemptions
    of brewers selling in eighth-barrel packages'', ''dealers making
    sales on purchaser dealers' premises'' and ''sales by retail
    dealers in liquidation''.  See section 5113(a), (d)(1), (2) and
    (e), respectively, of this title.
                                 AMENDMENTS
      1988 - Subsecs. (c), (d). Pub. L. 100-647 added subsec. (c) and
    redesignated former subsec. (c) as (d).
      1976 - Subsec. (b)(1), (2). Pub. L. 94-455 struck out ''or his
    delegate'' after ''Secretary''.
      1962 - Subsec. (b)(3). Pub. L. 87-863 added par. (3).
                      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 1962 AMENDMENT
      Amendment by Pub. L. 87-863 effective July 1, 1962, see section
    4(c) of Pub. L. 87-863, set out as a note under section 5113 of
    this title.