S. 702Senate109th Congress (2005-2007)In Committee

A bill to amend the Internal Revenue Code of 1986 to repeal the occupational taxes relating to distilled spirits, wine, and beer.

Sponsored by Max BaucusSen. Max Baucus (D-MT)
Introduced April 5, 2005

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S3206-3207)

April 5, 2005

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SenateIntro Referral

Introduced in Senate

April 5, 2005

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S3206)

April 5, 2005

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S3206-3207)

April 5, 2005

Floor Debate

12 members

What members said about S. 702 on the floor

6 Republicans6 Democrats
Conrad R. Burns
Sen. Conrad R. BurnsR-MT · Apr 5, 2005

Mr. President, I rise today to introduce a bill to amend the Elementary and Secondary Education Act with regard to the transfer of students from certain schools. The No Child Left Behind Act of 2001…

Daniel K. Akaka
Sen. Daniel K. AkakaD-HI · Apr 5, 2005

Mr. President, I rise today to introduce a bill to re- authorize a critical program for our energy future. It is widely believed that the U.S. must diversify its energy portfolio and explore new…

Paul S. Sarbanes
Sen. Paul S. SarbanesD-MD · Apr 5, 2005

Mr. President, today I am introducing legislation to establish an Interagency Council on Meeting the Housing and Service Needs of Seniors, which will help the Federal Government work with its…

Christopher J. Dodd
Sen. Christopher J. DoddD-CT · Apr 5, 2005

Mr. President, I rise today to join Senator Alexander in reintroducing the Prematurity Research Expansion and Education for Mothers Who Deliver Infants Early (PREEMIE) Act--legislation intended to…

Lisa Murkowski
Sen. Lisa MurkowskiR-AK · Apr 5, 2005

Mr. President, I am proud to come to the floor today to introduce legislation of vital importance to our Nation. Enactment of the Methane Hydrate Research and Development Reauthorization Act of 2005…

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Gordon H. Smith
Sen. Gordon H. SmithR-OR · Apr 5, 2005

Mr. President, I rise today to introduce the Long Term Care Quality and Consumer Information Improvement Act of 2005. Medicare spending for skilled nursing facilities grew rapidly during the late…

Mike DeWine
Sen. Mike DeWineR-OH · Apr 5, 2005

Mr. President, today I rise with my colleague, Senator Jack Reed, to reintroduce the Services for Ending Long-Term Homelessness Act. I would like to thank Senator Reed for his support in introducing…

Max Baucus
Sen. Max BaucusD-MT · Apr 5, 2005

Mr. President, it is with great pleasure that I join my colleagues Senators Bunning, Johnson and Talent today in introducing legislation that will repeal the special occupational tax on taxpayers who…

Max Baucus
Sen. Max BaucusD-MT · Apr 5, 2005

Mr. President, it is with great pleasure that I join my colleagues Senators Bunning, Johnson and Talent today in introducing legislation that will repeal the special occupational tax on taxpayers who…

Barack Obama
Sen. Barack ObamaD-IL · Apr 5, 2005

Mr. President, I rise today to introduce the Higher Education Opportunity Through Pell Grant Expansion Act of 2005, or HOPE Act. Right now, in schools, playgrounds, and backyards across America,…

Lamar Alexander
Sen. Lamar AlexanderR-TN · Apr 5, 2005

Mr. President, today I am reintroducing the Prematurity Research Expansion and Education for Mothers who deliver Infants Early Act, or PREEMIE Act. This bipartisan bill expands research into the…

Jack Reed
Sen. Jack ReedD-RI · Apr 5, 2005

Mr. President, I join with my colleagues, Senators DeWine, Dodd and Burr to introduce the Services for Ending Long-Term Homelessness Act, (SELHA). It is estimated that two to three million Americans…

Norm Coleman
Sen. Norm ColemanR-MN · Apr 5, 2005

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in SenateIssued April 5, 2005

II

109th CONGRESS

1st Session

S. 702

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.

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:

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:

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:

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:

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:

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:

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:

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.