72 S T A T. ]
PUBLIC LAW 8 5 - 8 5 9 - S E P T. 2, 1958
"SEC. 5041. IMPOSITION AND RATE OF TAX. " (a) IMPOSITION.—There is hereby imposed on all wines (including imitation, substandard, or artificial wine, and compounds sold as wine) having not in excess of 24 percent of alcohol by volume, in bond in, produced in, or imported into, the United States, taxes at the rates shown in subsection (b), such taxes to be determined as of the time of removal for consumption or sale. All wines containing more than 24 percent of alcohol by volume shall be classed as distilled spirits and taxed accordingly. Still wines shall include those wines containing not more than 0.256 gram of carbon dioxide per hundred milliliters of wine; except that the Secretary or his delegate may by regulations prescribe such tolerances to this maximum limitation as may be reasonably necessary in good commercial practice. "(b)
RATESOFTAX.—
"(1) On still wines containing not more than 14 percent of alcohol by volume, 17 cents per wine gallon, except that on and after July 1, 1959, the rate shall be 15 cents per wine gallon; "(2) On still wines containing more than 14 percent and not exceeding 21 percent of alcohol by volume, 67 cents per wine gallon, except that on and after July 1, 1959, the rate shall be 60 cents a wine gallon; "(.3) On still wines containing more than 21 percent and not exceeding 24 percent of alcohol by volume, $2.25 per wine gallon, except that on and after July 1, 1959, the rate shall be $2.00 per wine gallon; "(4) On champagne and other sparkling wines, $3.40 per wine gallon, except that on and after July 1, 1959, the rate shall be $3.00 per wine gallon; and "(5) On artificially carbonated wines, $2.40 per wine gallon, except that on and after July 1, 1959, the rate shall be $2.00 per wine gallon. "(c) W I N E (TALLON.—For the purpose of this chapter, the term 'wine gallon' means a United States gallon of liquid measure equivalent to the volume of 231 cubic inches. On lesser quantities the tax shall be paid proportionately (fractions of less than one-tenth gallon being converted to the nearest one-tenth gallon, and five-hundredths gallon being converted to the next full one-tenth gallon). " (d) ILLEGALLY PRODUCED WINE.—Notwithstanding subsection (a), any wine produced in the United States at any place other than the bonded premises provided for in this chapter shall (except as provided in section 5042 in the case of tax-free production) be subject to tax at the rate prescribed in subsection (b) at the time of production and whether or not removed for consumption or sale. "SEC. 5042. EXEMPTION FROM TAX. "(a)
TAX-FREE PRODUCTION.—
"(1) CIDER.—Subject to regulations prescribed by the Secretary or his delegate, the noneffervescent product of the normal alcoholic fermentation of apple juice only, which is produced at a place other than a bonded wine cellar and without the use of preservative methods or materials, and which is sold or offered for sale as cider and not as wine or as a substitute for wine, shall not be subject to tax as wine nor to the provisions of subchapter F. "(2) FAMILY WINE.—Subject to regulations prescribed by the Secretary or his delegate, the duly registered head of any family may, without payment of tax, produce for family use and not for sale an amount of wine not exceeding 200 gallons per annum. "(3) EXPERIMENTAL WINE.—Subject to regulations prescribed by the Secretary or his delegate, any scientific university, college
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