II 

117TH CONGRESS 

1ST SESSION S. 3383 

To amend the Internal Revenue Code of 1986 to modify the cover over 

of certain distilled spirits taxes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 14, 2021 

Mr. MENENDEZ (for himself and Mr. CASSIDY) 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 modify 

the cover over of certain distilled spirits taxes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. COVER OVER OF CERTAIN DISTILLED SPIRITS 

4 TAXES. 

5 (a) REPEAL OF LIMITATION ON COVER OVER OF

6 DISTILLED SPIRITS TAXES TO PUERTO RICO AND VIRGIN

7 ISLANDS.— 

8 (1) IN GENERAL.—Section 7652 of the Internal 

9 Revenue Code of 1986 is amended by striking subVerDate Sep 11 2014 03:17 Dec 16, 2021 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3383.IS S3383

kjohnson on DSK79L0C42PROD with BILLS
2 

•S 3383 IS

1 section (f) and by redesignating subsections (g), (h) 

2 and (i) as subsections (f), (g), and (h) respectively. 

3 (2) EFFECTIVE DATE.—The amendments made 

4 by this subsection shall apply to distilled spirits 

5 brought into the United States after December 31, 

6 2021. 

7 (b) REQUIRED TRANSFER TO PUERTO RICO CON8 SERVATION TRUST FUND OF PORTION OF PUERTO RICO

9 RUM COVER OVER.— 

10 (1) IN GENERAL.—Section 7652(a) of the In11 ternal Revenue Code of 1986 is amended by adding 

12 at the end the following new paragraph: 

13 ‘‘(4) REQUIRED TRANSFER TO PUERTO RICO

14 CONSERVATION TRUST FUND OF PORTION OF RUM

15 TAXES COVERED OVER.— 

16 ‘‘(A) IN GENERAL.—From any taxes col17 lected on rum transported to the United States 

18 that are covered into the treasury of Puerto 

19 Rico under paragraph (3) at a rate equal to or 

20 greater than $10.50 per proof gallon, Puerto 

21 Rico shall transfer to the Puerto Rico Con22 servation Trust Fund an amount per proof gallon equal to or greater than 1 23 ⁄6 of the difference 

24 between $10.50 and the rate, not to exceed 

25 $13.25, at which such taxes are covered into 


kjohnson on DSK79L0C42PROD with BILLS
3 

•S 3383 IS

1 such treasury. Puerto Rico’s obligations under 

2 this paragraph shall not modify or impair pay3 ment priorities established under Puerto Rico 

4 law and in effect on May 21, 2021. 

5 ‘‘(B) PUERTO RICO CONSERVATION TRUST

6 FUND.—For purposes of this section, the term 

7 ‘Puerto Rico Conservation Trust Fund’ means 

8 the fund established pursuant to a Memo9 randum of Understanding between the United 

10 States Department of the Interior and the 

11 Commonwealth of Puerto Rico, dated December 

12 24, 1968.’’. 

13 (2) COVER OVER DETERMINED WITHOUT RE14 GARD TO CERTAIN RATE REDUCTIONS.—Section 

15 7652(h) of such Code, as redesignated by sub16 sections (a), is amended by inserting ‘‘(a)(4),’’ after 

17 ‘‘(a)(3),’’. 

18 (3) EFFECTIVE DATE.—The amendments made 

19 by this subsection shall apply to distilled spirits 

20 brought into the United States after December 31, 

21 2021. 

22 (c) COVER OVER DETERMINED WITHOUT REGARD

23 TO CERTAIN RATE REDUCTIONS.—Notwithstanding sec24 tion 107(a)(3) of division EE of Public Law 116–260, the 

25 amendments made by section 107(a)(2) of division EE 


kjohnson on DSK79L0C42PROD with BILLS
4 

•S 3383 IS

1 such Public Law shall apply to distilled spirits brought 

2 into the United States and removed after December 31, 

3 2017. 

Æ 


kjohnson on DSK79L0C42PROD with BILLS