OCCUPATIONAL TAXES RELATING TO ALCOHOL, TOBACCO, AND FIREARMS.

SEC. 10512. OCCUPATIONAL TAXES RELATING TO ALCOHOL, TOBACCO, AND FIREARMS. (a) Occupational Taxes on Distilled Spirits Plants, Bonded Wine Cellars, Breweries, Etc.— (1) Distilled spirits plants, bonded wine cellars, etc.— (A) In general.— Part II of subchapter A of chapter 51 (relating to distilled spirits, wines, and beer) is amended by inserting before subpart B the following new subpart: “Subpart A— Proprietors of Distilled Spirits Plants, Bonded Wine Cellars, Etc. “Sec. 5081. Imposition and rate of tax. “SEC. 5081. IMPOSITION AND RATE OF TAX. “(a) General Rule.— Every proprietor of— “(1) a distilled spirits plant, “(2) a bonded wine cellar, “(3) a bonded wine warehouse, or “(4) a taxpaid wine bottling house, shall pay a tax of $1,000 per year in respect of each such premises. “(b) Reduced Rates for Small Proprietors.— “(1) In general.— Subsection (a) shall be applied by substituting ‘$500’ for ‘$1,000’ with respect to any taxpayer the gross receipts of which (for the most recent taxable year ending before the 1st day of the taxable period to which the tax imposed by subsection (a) relates) are less than $500,000. “(2) Controlled group rules.— All persons treated as 1 tax-payer under section 5061(e)(3) shall be treated as 1 taxpayer for purposes of paragraph (1). “(3) Certain rules to apply.— For purposes of paragraph (1), rules similar to the rules of subparagraphs (B) and (C) of section 448(c)(3) shall apply.” (B) Technical amendments.— 101 STAT. 1330–448 (i) Subsection (a) of section 5691 is amended by striking out “the business of a brewer, wholesale dealer in liquors, retail dealer in liquors, wholesale dealer in beer, retail dealer in beer, or limited retail dealer,” and inserting in lieu thereof “a business subject to a special tax imposed by part II of subchapter A or section 5276 (relating to occupational taxes)” (ii) The section heading of section 5691 is amended by striking out “RELATING TO LIQUORS”. (iii) The table of sections for part V of subchapter J of chapter 51 is amended by striking out “relating to liquors” in the item relating to section 5691. (C) Clerical amendment.— The table of subparts for part II of subchapter A of chapter 51 is amended by inserting before the item relating to subpart B the following new item: “Subpart A. Proprietors of distilled spirits plants, bonded wine cellars, etc.” (2) Breweries.— Section 5091 (relating to imposition and rate of tax on brewers) is amended to read as follows: “SEC. 5091. IMPOSITION AND RATE OF TAX. “(a) General Rule.— Every brewer shall pay a tax of $1,000 per year in respect of each brewery. “(b) Reduced Rates for Small Brewers.— Rules similar to the rules of section 5081(b) shall apply for purposes of subsection (a).” (b) Wholesale Dealers in Liquors and Beer.— (1) Liquors.— Subsection (a) of section 5111 (relating to imposition and rate of tax on wholesale dealers) is amended by striking out “$255” and inserting in lieu thereof “$500”. (2) Beer.— Subsection (b) of section 5111 is amended by striking out “$123” and inserting in lieu thereof “$500”. (c) Retail Dealers in Liquors and Beer.— (1) Liquors.— Subsection (a) of section 5121 (relating to imposition and rate of tax on retail dealers) is amended by striking out “$54” and inserting in lieu thereof “$250”. (2) Beer.— Subsection (b) of section 5121 is amended by striking out “$24” and inserting in lieu thereof “$250”. (3) Repeal of tax on limited retail dealers.— Subsection (c) of section 5121 is hereby repealed. (d) Tax on Nonbeverage Domestic Drawback.— Subsection (b) of section 5131 (relating to eligibility and rate of tax) is amended to read as follows: “(b) Rate of Tax.— The special tax imposed by subsection (a) shall be $500 per year.” (e) Tax on Industrial Use of Distilled Spirits.— (1) In general.— Subchapter D of chapter 51 (relating to industrial use of distilled spirits) is amended by adding at the end thereof the following new section: “SEC. 5276. OCCUPATIONAL TAX. “(a) General Rule.— A permit issued under section 5271 shall not be valid with respect to acts conducted at any place unless the person holding such permit pays a special tax of $250 with respect to such place. 101 STAT. 1330–449 “(b) Certain Occupational Tax Rules To Apply.— Rules similar to the rules of subpart G of part II of subchapter A shall apply for purposes of this section.” (2) Clerical amendment.— The table of sections for such subchapter is amended by adding at the end thereof the following new item: “Sec. 5276. Occupational tax.” (f) Tobacco.— (1) In general.— Chapter 52 (relating to cigars, cigarettes, smokeless tobacco and cigarette papers and tubes) is amended by redesignating subchapters D, E, and F as subchapters E, F, and G, respectively, and by inserting after subchapter C the following new subchapter: “Subchapter D— Occupational Tax “Sec. 5731. Imposition and rate of tax. “SEC. 5731. IMPOSITION AND RATE OF TAX. “(a) General Rule.— Every person engaged in business as— “(1) a manufacturer of tobacco products, “(2) a manufacturer of cigarette papers and tubes, or “(3) an export warehouse proprietor, shall pay a tax of $1,000 per year in respect of each premises at which such business is carried on. “(b) Reduced Rates for Small Proprietors.— “(1) In general.— Subsection (a) shall be applied by substituting ‘$500’ for ‘$1,000’ with respect to any taxpayer the gross receipts of which (for the most recent taxable year ending before the 1st day of the taxable period to which the tax imposed by subsection (a) relates) are less than $500,000. “(2) Controlled group rules.— All persons treated as 1 tax-payer under section 5061(e)(3) shall be treated as 1 taxpayer for purposes of paragraph (1). “(3) Certain rules to apply.— For purposes of paragraph (1), rules similar to the rules of subparagraphs (B) and (C) of section 448(c)(3) shall apply. “(c) Certain Occupational Tax Rules To Apply.— Rules similar to the rules of subpart G of part II of subchapter A of chapter 51 shall apply for purposes of this section. “(d) Penalty for Failure to Register.— Any person engaged in a business referred to in subsection (a) who willfully fails to pay the tax imposed by subsection (a) shall be fined not more than $5,000, or imprisoned not more than 2 years, or both, for each such offense.” (2) Clerical amendment.— The table of subchapters for chapter 52 is amended by redesignating the items relating to subchapters D, E, and F as items relating to subchapters E, F, and G, respectively, and by inserting after the item relating to subchapter C the following new item: “Subchapter D. Occupational tax.” (g) Firearms.— (1) In general.— Section 5801 (relating to occupational taxes) is amended to read as follows: 101 STAT. 1330–450 “SEC. 5801. IMPOSITION OF TAX. “(a) General Rule.— On 1st engaging in business and thereafter on or before July 1 of each year, every importer, manufacturer, and dealer in firearms shall pay a special (occupational) tax for each place of business at the following rates: “(1) Importers and manufacturers: $1,000 a year or fraction thereof. “(2) Dealers: $500 a year or fraction thereof. “(b) Reduced Rates of Tax for Small Importers and Manufacturers.— “(1) In general.— Paragraph (1) of subsection (a) shall be applied by substituting ‘$500’ for ‘$1,000’ with respect to any taxpayer the gross receipts of which (for the most recent taxable year ending before the 1st day of the taxable period to which the tax imposed by subsection (a) relates) are less than $500,000. “(2) Controlled group rules.— All persons treated as 1 tax-payer under section 5061(e)(3) shall be treated as 1 taxpayer for purposes of paragraph (1). “(3) Certain rules to apply.— For purposes of paragraph (1), rules similar to the rules of subparagraphs (B) and (C) of section 448(c)(3) shall apply.” (2) Clerical amendment.— The table of sections for part I of subchapter A of chapter 53 is amended by striking out the item relating to section 5801 and inserting in lieu thereof the following new item: “Sec. 5801. Imposition of tax.” (h) Effective Date.— (1) In general.— The amendments made by this section shall take effect on January 1, 1988. (2) All taxpayers treated as commencing in business on january 1, 1988.— (A) In general.— Any person engaged on January 1, 1988, in any trade or business which is subject to an occupational tax shall be treated for purposes of such tax as having 1st engaged in such trade or business on such date. (B) Limitation on amount of tax.— In the case of a taxpayer who paid an occupational tax in respect of any premises for any taxable period which began before January 1, 1988, and includes such date, the amount of the occupational tax imposed by reason of subparagraph (A) in respect of such premises shall not exceed an amount equal to ½ the excess (if any) of— (i) the rate of such tax as in effect on January 1, 1988, over (ii) the rate of such tax as in effect on December 31, 1987. (C) Occupational tax.— For purposes of this paragraph, the term “occupational tax” means any tax imposed under part II of subchapter A of chapter 51, section 5276, section 5731, or section 5801 of the Internal Revenue Code of 1986 (as amended by this section). (D) Due date of tax.— The amount of any tax required to be paid by reason of this paragraph shall be due on April 1, 1988.