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.

Bill: 116-s-3101
Sponsor: full_name: Sen. Menendez, Robert [D-NJ]
Introduced: 2019-12-18
Policy area: Taxation
Subjects: Alcoholic beverages

Caribbean area

Intergovernmental relations

Puerto Rico

Sales and excise taxes

State and local finance

U.S. territories and protectorates

Virgin Islands

Wilderness and natural areas, wildlife refuges, wild rivers, habitats

Wildlife conservation and habitat protection
Latest action: action_date: 2019-12-18
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2019-12-18
action_desc: Introduced in Senate
text: <p>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. </p>

tv_txt: II 116th CONGRESS 1st Session S. 3101 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.

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. 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.