during 1991 or 1992)’’ and inserting ‘‘$33.50 per
thousand’’, and
(2) in paragraph (2), by striking ‘‘$25.20 per
thousand ($21 per thousand on cigarettes removed
during 1991 or 1992)’’ and inserting ‘‘$70.35 per
thousand’’.
(b) CIGARS.—Section 5701(a) of the Internal Reve-
nue Code of 1986 is amended—
(1) in paragraph (1), by striking ‘‘$1.125 cents
per thousand (93.75 cents per thousand on cigars
removed during 1991 or 1992)’’ and inserting
‘‘$3.141 cents per thousand’’, and
(2) by striking ‘‘equal to’’ and all that follows
in paragraph (2) and inserting ‘‘equal to 35.59 per-
cent of the price for which sold but not more than
$83.75 per thousand.’’
(c) CIGARETTE PAPERS.—Section 5701(c) of the In-
ternal Revenue Code of 1986 is amended by striking ‘‘0.75
cent (0.625 cent on cigarette papers removed during 1991
or 1992)’’ and inserting ‘‘2.09 cents’’.
(d) CIGARETTE TUBES.—Section 5701(d) of the In-
ternal Revenue Code of 1986 is amended by striking ‘‘1.5
cents (1.25 cents on cigarette tubes removed during 1991
or 1992)’’ and inserting ‘‘4.18 cents’’.
(e) SMOKELESS TOBACCO.—Section 5701(e) of the
Internal Revenue Code of 1986 is amended—
(1) in paragraph (1), by striking ‘‘36 cents (30
cents on snuff removed during 1991 or 1992)’’ and
inserting ‘‘$1.00’’, and
(2) by striking ‘‘12 cents (10 cents on chewing
tobacco removed during 1991 or 1992)’’ in para-
graph (2) and inserting ‘‘33.5 cents’’.
(f) PIPE TOBACCO.—Section 5701(f) of the Internal
Revenue Code of 1986 is amended by striking ‘‘67.5 cents
(56.25 cents on pipe tobacco removed during 1991 or
1992)’’ and inserting ‘‘$1.88’’.
(g) EFFECTIVE DATE.—The amendments made by
this section shall apply to articles removed (as defined in
section 5702(k) of the Internal Revenue Code of 1986)
after September 30, 1997.
(h) FLOOR STOCKS TAXES.—
(1) IMPOSITION OF TAX.—On tobacco products
and cigarette papers and tubes manufactured in or
imported into the United States which are removed
before October 1, 1997, and held on such date for
sale by any person, there is hereby imposed a tax in
an amount equal to the excess of—
(A) the tax which would be imposed under
section 5701 of the Internal Revenue Code of
1986 on the article if the article had been re-
moved on such date, over
(B) the prior tax (if any) imposed under
section 5701 or 7652 of such Code on such ar-
ticle.
(2) AUTHORITY TO EXEMPT CIGARETTES HELD
IN VENDING MACHINES.—To the extent provided in
regulations prescribed by the Secretary, no tax shall
be imposed by paragraph (1) on cigarettes held for
retail sale on October 1, 1997, by any person in any
vending machine. If the Secretary provides such a
benefit with respect to any person, the Secretary
may reduce the $500 amount in paragraph (3) with
respect to such person.
(3) CREDIT AGAINST TAX.—Each person shall
be allowed as a credit against the taxes imposed by
paragraph (1) an amount equal to $500. Such credit
shall not exceed the amount of taxes imposed by
paragraph (1) on October 1, 1997, for which such
person is liable.
(4) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.—
(A) LIABILITY FOR TAX.—A person hold-
ing cigarettes on October 1, 1997, to which any
tax imposed by paragraph (1) applies shall be
liable for such tax.
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such
manner as the Secretary shall prescribe by reg-
ulations.
(C) TIME
FOR
PAYMENT.—The tax im-
posed by paragraph (1) shall be paid on or be-
fore January 1, 1998.
(5) ARTICLES
IN
FOREIGN
TRADE
ZONES.—
Notwithstanding the Act of June 18, 1934 (48 Stat.
998, 19 U.S.C. 81a) and any other provision of law,
any article which is located in a foreign trade zone
on October 1, 1997, shall be subject to the tax im-
posed by paragraph (1) if—
(A) internal revenue taxes have been deter-
mined, or customs duties liquidated, with re-
spect to such article before such date pursuant
to a request made under the 1st proviso of sec-
tion 3(a) of such Act, or
(B) such article is held on such date under
the supervision of a customs officer pursuant to
the 2d proviso of such section 3(a).
(6) DEFINITIONS.—For purposes of this sub-
section—
(A) IN GENERAL.—Terms used in this sub-
section which are also used in section 5702 of
the Internal Revenue Code of 1986 shall have
the respective meanings such terms have in
such section, as amended by this Act.
(B) SECRETARY.—The term ‘‘Secretary’’
means the Secretary of the Treasury or the
Secretary’s delegate.
(7) CONTROLLED
GROUPS.—Rules similar to
the rules of section 5061(e)(3) of such Code shall
apply for purposes of this subsection.
(8) OTHER LAWS APPLICABLE.—All provisions
of law, including penalties, applicable with respect to
the taxes imposed by section 5701 of such Code
shall, insofar as applicable and not inconsistent with
the provisions of this subsection, apply to the floor
stocks taxes imposed by paragraph (1), to the same
extent as if such taxes were imposed by such section
5701. The Secretary may treat any person who bore
the ultimate burden of the tax imposed by para-
graph (1) as the person to whom a credit or refund
under such provisions may be allowed or made.
Æ