Title: 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.
Policy area: Taxation

Summary:
This bill repeals the limitation on the amount of distilled spirits excise taxes covered over (paid) to the treasuries of the Virgin Islands and Puerto Rico. The bill also requires the Department of the Treasury to transfer a portion of the amount required to be covered over to Puerto Rico to the Puerto Rico Conservation Trust Fund.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3101 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 3101

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.


_______________________________________________________________________


                   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.

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

SECTION 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.

SEC. 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.
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