I 
108TH CONGRESS 
1ST SESSION 
H. R. 786
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 
FEBRUARY 13, 2003
Mr. CAMP (for himself, Mr. MATSUI, Mr. AKIN, Mr. BACA, Mr. BACHUS, Mr. 
BLUNT, Mr. BOEHNER, Mr. BONILLA, Mrs. BONO, Mr. BURGESS, Mr. 
CANNON, Mrs. CAPITO, Mr. CARDOZA, Mr. CARSON of Oklahoma, Mr. 
COLE, Mr. CRAMER, Mr. CRANE, Mr. CUNNINGHAM, Mr. DOOLITTLE, 
Ms. DUNN, Mrs. EMERSON, Mr. ENGLISH, Mr. FOLEY, Mr. FOSSELLA, 
Mr. GORDON, Mr. GRAVES, Mr. GREEN of Wisconsin, Ms. HARRIS, Mr. 
HASTINGS of Washington, Mr. HAYWORTH, Mr. HINCHEY, Mr. HOEK-
STRA, Mr. ISAKSON, Mr. JOHN, Mr. KELLER, Mr. LEWIS of Kentucky, 
Mr. MANZULLO, Mrs. MILLER of Michigan, Mr. NEY, Mr. OTTER, Mr. 
POMBO, Mr. QUINN, Mr. RADANOVICH, Mr. RANGEL, Mr. REYNOLDS, 
Mr. ROGERS of Michigan, Mr. SANDLIN, Mr. SCHROCK, Mr. SESSIONS, 
Mr. SHIMKUS, Mr. SHUSTER, Mr. SIMMONS, Mr. SIMPSON, Mr. SUL-
LIVAN, Mr. TANCREDO, Mr. THOMPSON of California, Mr. TOWNS, Mr. 
WELLER, Mr. WILSON of South Carolina, and Mr. MCHUGH) 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,
(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 sec-
tion—
‘‘(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