Taxes on Wines HEARINGS BEFORE A SUBCOMMITTEE OF THE SEVENTY-FOURTH CONGRESS SECOND SESSION ON H. R. 191 RELATING TO TAXES ON WINES AND H. R. 9185 AN ACT TO INSURE THE COLLECTION OF THE REVENUE ON INTOXICATING LIQUOR, TO PROVIDE FOR THE MORE EFFICIENT AND ECONOMICAL ADMINISTRATION AND ENFORCEMENT OF THE LAWS RELATING ΤΟ THE TAXATION OF INTOXICATING Cont Juft, Doc, Curtes, Michael, New York City, representing the National Retail 270 Davis, Manuel, Washington, D. C., representing the National As o- 273 Doran, Dr. J. M., Washington, D. C., representing the Distilled 265 Howe, H. E., chairman, industrial-alcohol committee, American Kochenderfer, W. M., Washington, D. C., submitting statement on behalf of H. P. Somerville, of the legislative committee, American Lourie, Harry L., representing the National Association of Alcoholic Beverage Importers, brief submitted by.. McGovern, James P., representing the Industrial Alcohol Institute, Murphy, Hon. Louis, United States Senator from the State of Iowa.. 199 207 LIQUOR TAX ADMINISTRATION ACT TAXES ON WINES FRIDAY, MARCH 6, 1936 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON FINANCE, Washington, D. C. The subcommittee met, pursuant to call, at 10:30 a. m., in room 310 Senate Office Building, Senator William H. King presiding. Present: Senators King (chairman), Barkley, Bailey, Clark, and Capper. Also present: C. M. Hester, O. Norman Forrest, and Stewart Berkshire, of the Treasury Department. Senator KING. The committee will be in order. The amendment proposed by Senator Copeland will be inserted in the record at this point. (c) Title II of the Liquor Taxing Act of 1934 is amended to read as follows: "SEC. 201. (a) There shall be levied, collected, and paid upon all distilled spirits sold at retail a tax of $2 on each proof-gallon or wine-gallon when below proof and a proportionate tax at a like rate on all fractional parts of such proof- or wine-gallon. "(b) No tax shall be imposed upon any distiller or importer under paragraph (4) of subdivision (a) of section 600, as amended, of the Revenue Act of 1918, in respect to any distilled spirits taxable under this section. "SEC. 202. The internal-revenue tax imposed by the preceding section upon distilled spirits shall be collected from retailers, who shall affix to every bottle or other container of distilled spirits at the time of its first retail sale or retail transfer unopened in a container for on or off-premise consumption, and to every bottle or other container of distilled spirits out of which any part of the contents is removed for the purpose of retail sale, transfer, or use on or off the premises, before such container is opened, a stamp or stamps indelibly canceled, denoting the quantity of distilled spirits contained therein and evidencing payment of all internal-revenue taxes imposed on such spirits, and in the case of imported spirits, of all customs duties imposed thereon. "SEC. 203. Any licensed retailer possessing or coming into possession of distilled spirits upon which all internal-revenue taxes and customs duties imposed by law shall have been paid, shall be entitled to purchase such stamps as are necessary for stamping the containers of distilled spirits in the manner required by the preceding section. Stamps for this purpose may be purchased by such retailer only from the collector of internal revenue for the revenue district in which such retailer's place or places of business for retail sales shall be located. Such retailer shall present satisfactory proof to such collector of internal revenue that such tax and customs duties on such distilled spirits have been paid. Such stamps shall be sold by the collector to such retailer at a price of 1 cent for each stamp, except that in case of stamps for containers of less than onehalf pint, the price shall be one-fourth of 1 cent for each stamp. "SEC. 204. No person shall manufacture, distill, rectify, import, transfer, or sell at wholesale or at retail any distilled spirits unless such person shall have furnished a surety-company bond given by a company, companies, or syndicate of companies approved by the Commissioner of Internal Revenue and guaran193 |