I
107TH CONGRESS
1ST SESSION
H. R. 984
To amend the Internal Revenue Code of 1986 to repeal the occupational
taxes relating to distilled spirits, wine, and beer.
IN THE HOUSE OF REPRESENTATIVES
MARCH 13, 2001
Mr. CAMP
(for himself, Mr. MATSUI, Mr. FOLEY, Mr. TOWNS, Mr.
CHAMBLISS, Mr. SAM JOHNSON of Texas, Mr. MANZULLO, Mr. THOMP-
SON of California, Mr. MCINNIS, Mr. SESSIONS, Ms. DUNN, Mr. WAT-
KINS, Mr. SHIMKUS, Mr. RANGEL, Mr. COLLINS, Mr. CRAMER, Mr. CAN-
NON, Mr. LEWIS of Georgia, Mrs. THURMAN, Mr. REYNOLDS, Mr. AKIN,
Mr. RYAN of Wisconsin, and Mr. GRAHAM) introduced the following bill;
which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to repeal
the occupational taxes relating to distilled spirits, wine,
and beer.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 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taxes) are hereby repealed: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 deal-
ers) (other than sections 5114 and 5116).
(D) Subpart E (relating to retail dealers)
(other than section 5124).
(E) Subpart G (relating to general provi-
sions) (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Section 5276 of such Code is hereby repealed.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 such Code and the table of subparts
for such part are amended to read as follows:
‘‘PART II—MISCELLANEOUS PROVISIONS
‘‘Subpart A. Manufacturers of stills.
‘‘Subpart B. Nonbeverage domestic drawback claimants.
‘‘Subpart C. Recordkeeping 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 redes-
ignated 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 sec-
tions 5111 through 5114, respectively, and
(ii) by striking ‘‘and rate of tax’’ in the
item relating to section 5111, as so redesig-
nated.
(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:
‘‘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 in-
serting the following new heading:
‘‘SEC. 5121. RECORDKEEPING BY WHOLESALE DEALERS.’’,
and
(ii) by redesignating subsection (c) as sub-
section (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 an-
other 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 spir-
its, 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 en-
gaged 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 sub-
chapter 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 in-
serting the following new heading:
‘‘SEC. 5122. RECORDKEEPING BY RETAIL DEALERS.’’,
(ii) by striking ‘‘section 5146’’ in sub-
section (c) and inserting ‘‘section 5123’’, and
(iii) by redesignating subsection (c) as sub-
section (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) 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 ‘re-
tail dealer in beer’ means any dealer who sells, or of-
fers for sale, beer, but not distilled spirits or wines,
to any person other than a dealer.
than a wholesale dealer in liquors who is required to keep
the records prescribed by section 5121.
‘‘(b) PENALTY AND FORFEITURE.—
‘‘For penalty and forfeiture provisions applicable
to violations of subsection (a), see sections 5687 and
7302.’’
(11) Subsection (b) of section 5002 of such
Code is amended—
(A) by striking ‘‘section 5112(a)’’ and in-
serting ‘‘section 5121(c)(3)’’,
(B) by striking ‘‘section 5112’’ and insert-
ing ‘‘section 5121(c)’’,
(C) by striking ‘‘section 5122’’ and insert-
ing ‘‘section 5122(c)’’.
(12) Subparagraph (A) of section 5010(c)(2) of
such Code is amended by striking ‘‘section 5134’’
and inserting ‘‘section 5114’’.
(13) 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 pro-
duces beer for sale. Such term shall not include any person
who produces only beer exempt from tax under section
5053(e).’’
(14) 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 re-
tail liquor dealers, see section 5122.’’
(15) Subsection (b) of section 5402 of such
Code is amended by striking ‘‘section 5092’’ and in-
serting ‘‘section 5052(d)’’.
(16) Section 5671 of such Code is amended by
striking ‘‘or 5091’’.
(17)(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.
(18)(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 ap-
pears and inserting ‘‘this subchapter’’.
(B) Section 5732 of such Code, as redesignated
by subparagraph (A), is amended by striking ‘‘(ex-
cept the tax imposed by section 5131)’’ each place
it appears.
(C) Subsection (c) of section 5733 of such
Code, as redesignated by subparagraph (A), is
amended by striking paragraph (2) and by redesig-
nating paragraph (3) as paragraph (2).
(D) The table of sections for subchapter D of
chapter 52 of such Code is amended by adding at
the end thereof 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 sub-
section (d) as subsection (c).
(19) Subsection (c) of section 6071 of such
Code is amended by striking ‘‘section 5142’’ and in-
serting ‘‘section 5732’’.
(20) 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 in-
serting ‘‘section 5111(a)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act, but shall not apply to taxes imposed for peri-
ods before such date.
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