Page:United States Statutes at Large Volume 104 Part 2.djvu/825

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PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-417 rates provided in this paragraph from benefiting any person who produces more than 2,000,000 barrels of beer during a calendar year." (d) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 5001 take effect on January 1, 1991. note, (e) FLOOR STOCKS TAXES.— 26 USC 500i (1) IMPOSITION OF TAX. — note. (A) IN GENERAL. — In the case of any tax-increased article— (i) on which tax was determined under part I of subchapter A of chapter 51 of the Internal Revenue Code of 1986 or section 7652 of such Code before January 1, 1991, and (ii) which is held on such date for sale by any person, there shall be imposed a tax at the applicable rate on each such article. (B) APPLICABLE RATE.—For purposes of subparagraph (A), the applicable rate is— (i) $1 per proof gallon in the case of distilled spirits, (ii) $0.90 per wine gallon in the case of wine described in paragraph (1), (2), (3), or (5) of section 5041(b) of such Code, and (iii) $9 per barrel in the case of beer. In the case of a fraction of a gsillon or barrel, the tax „ imposed by subparagraph (A) shall be the same fraction as the amount of such tax imposed on a whole gallon or barrel. (C) TAX-INCREASED ARTICLE. —For purposes of this subsection, the term "tax-increased article" means distilled spirits, wine described in paragraph (1), (2), (3), or (5) of section 5041(b) of such Code, and beer. (2) EXCEPTION FOR SMALL DOMESTIC PRODUCERS. — (A) In the case of wine held by the producer thereof on January 1, 1991, if a credit would have been allowable under section 5041(c) of such Code (as added by this section) on such wine had the amendments made by subsection (b) applied to all wine removed during 1990 and had the wine so held been removed for consumption on December 31, 1990, the tax imposed by paragraph (1) on such wine shall be reduced by the credit which would have been so allowable. (B) In the case of beer held by the producer thereof on January 1, 1991, if the rate of the tax imposed by section 5051 of such Code would have been determined under subsection (a)(2) thereof had the beer so held been removed for consumption on December 31, 1990, the tax imposed by paragraph (1) on such beer shall not apply. (C) For purposes of this paragraph, an article shall not be treated as held by the producer if title thereto had at any time been transferred to any other person. (3) EXCEPTION FOR CERTAIN SMALL WHOLESALE OR RETAIL DEALERS.— No tax shall be imposed by paragraph (1) on taxincreased articles held on January 1, 1991, by any dealer if^ (A) the aggregate liquid volume of tax-increased articles held by such dealer on such date does not exceed 500 wine gallons, and (B) such dealer submits to the Secretary (at the time and in the manner required by the Secretary) such information