Ill STAT. 876 PUBLIC LAW 105-34—AUG. 5, 1997 "(I) in the case of fuel none of the alcohol in which consists of ethanol, 9.15 cents per gallon, and "(II) in any other case, 11.3 cents per gallon, and "(ii) after September 30, 1999— "(I) in the case of fiiel none of the alcohol in which consists of ethanol, 2.15 cents per gallon, and "(II) in any other case, 4.3 cents per gallon, and". 26 USC 4041 (c) EFFECTIVE DATE. — The amendments made by this section note. shall take effect on October 1, 1997. SEC. 908. MODIFICATION OF TAX TREATMENT OF HARD CIDER. (a) HARD CIDER CONTAINING LESS THAN 7 PERCENT ALCOHOL TAXED AS WINE.— Subsection (b) of section 5041 (relating to imposition and rate of tax) is amended by striking "and" at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting "; and", and by adding at the end the following new paragraph: "(6) On hard cider derived primarily from apples or apple concentrate and water, containing no other fruit product, and containing at least one-half of 1 percent and less than 7 percent alcohol by volume, 22.6 cents per wine gallon.". (b) APPLICATION OF SMALL PRODUCER CREDIT.— Paragraph (1) of section 5041(c) (relating to credit for small domestic producers) is amended by adding at the end the following new sentence: "In the case of wine described in subsection (b)(6), the preceding sentence shall be applied by substituting '5.6 cents' for *90 cents*., 26 USC 5041 (c) EFFECTIVE DATE.—The amendments made by this section note. shall take effect on October 1, 1997. SEC. 909. STUDY OF FEASIBILITY OF MOVING COIXECTION POINT FOR DISTILLED SPIRITS EXCISE TAX. (a) IN GENERAL. —The Secretary of the Treasury or his delegate shall conduct a study of options for changing the event on which the tax imposed by section 5001 of the Internal Revenue Code of 1986 is determined. One such option which shall be studied is determining such tax on removal from registered wholesale warehouses. In studying each such option, such Secretary shall focus on administrative issues including— (1) tax compliance, (2) the number of taxpayers required to pay the tax, (3) the types of financial responsibility requirements that might be required, and (4) special rec^uirements regarding segregation of non-taxpaid distilled spirii;s from other products. Such study shall review the effects of each such option on the Department of the Treasury (including staffing and other demands on budgetary resources) and the change in the period between the time such tax is currently p£dd and the time such tax would be p£dd under each such option. (b) REPORT. — The report of such study shall be submitted to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not later than March 31, 1998.
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