← Back to Bills
S. 3101Senate116th Congress (2019-2021)In Committee

A bill to amend the Internal Revenue Code of 1986 to repeal the limitation on the cover over of distilled spirits taxes to Puerto Rico and the Virgin Islands and to transfer a portion of such cover over to the Puerto Rico Conservation Trust Fund.

Sponsored by Robert MenendezSen. Robert Menendez (D-NJ)
Introduced December 18, 2019

AI-Generated Summary

Updated April 14, 2026 at 10:10 AM UTC

The bill changes the tax rules for distilled spirits imported into the United States from Puerto Rico and the Virgin Islands. It removes the existing cap that limits how much of the distilled‑spirits tax can be “covered over” (i.e., transferred) to the local treasury, and it directs a portion of the rum tax that is covered over to be sent to the Puerto Rico Conservation Trust Fund. The changes apply to spirits brought in after December 31, 2018 and affect the U.S. Treasury, Puerto Rico’s treasury, and the Conservation Trust Fund.

Key Provisions

  • Repeals the limitation on the amount of distilled‑spirits tax that can be covered over to Puerto Rico and the Virgin Islands by deleting the relevant subsection of the tax code.
  • Renumbers the remaining subsections for consistency.
  • Sets the repeal to take effect for spirits imported after December 31, 2018.
  • Adds a new rule requiring the Treasury to transfer $0.46 per proof gallon of rum tax that would otherwise be covered over to the Puerto Rico Conservation Trust Fund.
  • Treats the transferred amount as if it had been covered over to Puerto Rico’s treasury for all other purposes.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

December 18, 2019

View full timeline
SenateIntro Referral

Introduced in Senate

December 18, 2019

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

December 18, 2019

Bill Text

Latest available legislative text

Reading Mode
Latest
Raw Text PDF XML
Introduced in SenateIssued December 18, 2019

II

116th CONGRESS

1st Session

S. 3101

IN THE SENATE OF THE UNITED STATES

December 18, 2019

Mr. Menendez (for himself and Mr. Crapo) 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 limitation on the cover over of distilled spirits taxes to Puerto Rico and the Virgin Islands and to transfer a portion of such cover over to the Puerto Rico Conservation Trust Fund.

1.

Repeal of limitation on cover over of distilled spirits taxes to Puerto Rico and the Virgin Islands

(a)

In general

Section 7652 of the Internal Revenue Code of 1986 is amended by striking subsection (f) and by redesignating subsections (g) and (h) as subsections (f) and (g), respectively.

(b)

Effective date

The amendments made by this section shall apply to distilled spirits brought into the United States after December 31, 2018.

2.

Transfer to Puerto Rico Conservation Trust Fund of portion of Puerto Rico rum cover over

(a)

In general

Section 7652(e) of the Internal Revenue Code of 1986 is amended by redesignating paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6), respectively, and by inserting after paragraph (2) the following new paragraph:

(2)

Transfer to Puerto Rico Conservation Trust Fund of portion of rum cover over

(A)

In general

From any amount otherwise required to be covered over to the treasury of Puerto Rico under this section with respect to taxes collected on rum under section 5001(a)(1) or subsection (a), the Secretary of the Treasury shall transfer to the Puerto Rico Conservation Trust Fund an amount equal to $0.46 per proof gallon of rum to which such cover over is attributable. Any amount transferred under the preceding sentence shall be treated for purposes of this section (other than this paragraph) as having been covered over to the treasury of Puerto Rico.

(B)

Puerto Rico Conservation Trust Fund

For purposes of this section, the term Puerto Rico Conservation Trust Fund means the fund established pursuant to a Memorandum of Understanding between the United States Department of the Interior and the Commonwealth of Puerto Rico, dated December 24, 1968.

.

(b)

Effective date

The amendments made by this section shall apply to rum brought into the United States after December 31, 2018.