SEC. 190.122. RECEIVING TANKS.-Where rectified products are produced by redistillation, such as gin or cordials, or where spirits are redistilled, or where vodka is produced, the rectifier must provide a requisite number of receiving tanks. Each tank shall be constructed of metal or other suitable material and equipped with a suitable device whereby the contents can be accurately determined. Manheads, inlets, and outlets of such tanks must be provided with facilities for locking with Government locks. Each tank shall have plainly and legibly painted thereon words indicating its use, as "Gin Receiving Tank," "Cordial Receiving Tank," "Heads and Tails Receiving Tank," "Vodka Receiving Tank," etc., followed by its serial number and capacity in gallons. Receiving (53 Stat. 300 as amended, 318, 375; tanks must be located in the rectifying room. 26 U. S. C. 2801, 2829, 3176.) SUBPART Y-RECTIFICATION * TAX-EXEMPT VODKA SEC. 190.468a. PRODUCTION.-Vodka may be produced exempt from the recti fication tax in accordance with the procedure prescribed by section 190.468b Vodka so produced must be run into a receiving tank from which it must be promptly (a) drawn into metal, porcelain or glass containers or paraffin-lined containers, gauged, stamped, and removed to the finished products room or (b) transferred to a bottling tank, gauged, and bottled and removed to the finished products room or conveyed by pipeline to a contiguous tax-paid bottling house or rectifying plant for bottling. (See sections 190.615 to 190.672.) (53 Stat. 208 as amended, 300 as amended, 375; 26 U. S. C. 2800, 2801, 3176.) SEC. 190.468b. METHODS OF PRODUCTION.-Vodka may be produced, exempt from the rectification tax, from pure spirits which are reduced to not more than 110° of proof and not less than 80° of proof and which, after such reduction in proof, are so treated by one of the following methods as to be without distinctive character, aroma, or taste: (a) By causing the spirits to flow continuously through a tank or a series of tanks containing at least 11⁄2 pounds of charcoal for each gallon of spirits contained therein at any one time so that the spirits are in intimate contact with the charcoal for a period of not less than 8 hours, not less than 10 percent of the charcoal being replaced by new charcoal at the expiration of each 40 hours of operation, at a rate which will replace at least 6 pounds of charcoal for every 100 gallons of spirits treated; (b) By keeping the spirits in constant movement by mechanical means in contact for not less than 8 hours with at least 6 pounds of new charcoal for every 100 gallons of spirits; (c) By purifying or refining the spirits by any other method which the Deputy Commissioner finds will result in a product equally without distinctive character, aroma, or taste, and which method has been approved by him. (53 Stat. 298 as amended, 300 as amended, 375; 26 U. S. C. 2800, 2801, 3176.) SEC. 190.468C. DEFINITION OF PURE SPIRIT.-The term "pure spirit" as used in section 190.468b is held to mean alcohol or neutral spirits, distilled at or above 190° of proof (whether or not such proof is subsequently reduced), and free from impurities. (53 Stat. 300 as amended, 375; 26 U. S. C. 2801, 3176.) (3 Stat. SEC. 190.468d. MIXING WITH OTHER SPIRITS OR MATERIALS PROHIBITED.—Vodka produced in accordance with section 190.468b, under exemption from the rectification tax cannot be mixed with other spirits or treated by the addition or abstraction of any substance or material other than pure water after production, nor can any substance or material other than pure water and that specified in section 190.468b be added to the spirits prior to or during production. 298 as amended, 300 as amended, 375, 391; 26 U. S. C. 2800, 2801, 3176, 3254,) SEC. 190.468e. REDUCTION AND FILTERING.-Vodka exempt from the rectification tax may be reduced with water in the receiving or bottling tanks and may be filtered when necessary to remove materials held in suspension. The subsequent use of filters or filter-aids which change the composition and character of the vodka will subject the product to the rectification tax. Whether such subsequent filtering changes the composition of the vodka is a question of fact determinable by chemical analysis of samples of the vodka before and after filtration. (53 Stat. 298 as amended, 300 as amended, 375, 391; 26 U. S. C. 2800, 2801, 3176, 3254.) TAXABLE VODKA SEC. 190.468f. PRODUCTION.-Vodka produced at a rectifying plant in any manner or by any means, other than that specified in section 190.468b, is subject to the rectification tax. (53 Stat. 298 as amended, 300 as amended, 375, 391; 26 U. S. C. 2800, 2801, 3176, 3254.) SEC. 190.468g. TREATMENT OF VODKA.-The treatment of vodka, after its production in accordance with section 190.468b, with any materials or process which changes its composition, subjects the product to the rectification tax. Such treatment includes the flavoring of vodka in any manner, and the manipulation of vodka by a physical or chemical process, such as redistillation, filtration, or treatment with activated carbon or other materials, which changes its composition or character. (53 Stat. 298 as amended, 300 as amended, 375, 391; 26 U. S. C. 2800, 2801, 3176, 3254.) 3. The purpose of these amendments is to give effect to the Public Law 355, Eighty-second Congress, which amends section 2800(a)(5) of the Internal Revenue Code, to relieve from the rectification tax of 30 cents a proof gallon imposed by that section vodka produced by rectifiers by treating pure spirits in the same manner as such spirits are authorized to be treated in producing vodka at registered distilleries. 4. Because the amendments made by this Treasury Decision merely conform Regulations 15 to the amendment of the Internal Revenue Code, it is found that it is unnecessary to issue this Treasury Decision with notice and public procedure thereon under section 4(a) of the Administrative Procedure Act, approved June 11, 1946 (5 U. S. C. 1001 et seq.), or subject to the effective date limitation of section 4(c) of that Act. 5. This Treasury Decision shall be effective July 1, 1952, and shall apply only to vodka produced on or after such date. This Treasury Decision is issued under the authority contained in 53 Stat. 298 as amended, 300 as amended, 318, 375, 391; 26 U. S. C. 2800, 2801, 2829, 3176, 3254.) Approved June 17, 1952. THOMAS J. LYNCH, JOHN B. DUNLAP, Commissioner of Internal Revenue. Acting Secretary of the Treasury. (Filed with the Division of the Federal Register June 18, 1952, 8: 56 a. m.) TOBACCO AND SNUFF 1952-14-13867 Tob. 337 Tobacco and snuff manufactured in and removed from domestic factories during the month of May 1952, compared with the same month of 1951 NOTE. These figures are subject to revision until incorporated in the total for the calendar year to be published in the Commissioner's annual report. CIGARETTES AND SMALL CIGARS 1952-14-13869 Tob. 338 Cigarettes and small cigars manufactured in and removed from domestic factories during the month of May 1952, compared with the same month of 1951 NOTE. These figures are subject to revision until incorporated in the total for the calendar year to be published in the Commissioner's annual report. LEGISLATION 1952-14-13865 H. R. 156. PUBLIC LAW 386, EIGHTY-SECOND CONGRESS An Act To repeal the Alaska railroad tax Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, effective with respect to taxable years ending after the date of the enactment of this Act, chapter 8 of the Internal Revenue Code (imposing the Alaska railroads tax) is hereby repealed. Approved June 10, 1952. 1952-14-13866 H. R. 7188. PUBLIC LAW 391, EIGHTY-SECOND CONGRESS [CHAPTER 420, SECOND SESSION] An Act To provide that the additional tax imposed by section 2470 (a) (2) of the Internal Revenue Code shall not apply in respect of coconut oil produced in, or produced from materials grown in, the Territory of the Pacific Islands. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2470 (a) (2) of the Internal Revenue Code (relating to the additional tax on domestic processing of coconut oil) is hereby amended to read as follows: (2) ADDITIONAL RATE ON COCONUT OIL.-There shall be imposed (in addition to the tax imposed by the preceding paragraph) a tax of 2 cents per pound, to be paid by the processor, upon the first domestic processing of coconut oil or of any combination or mixture containing a substantial quantity of coconut oil with respect to which oil there has been no previous first domestic processing. The additional tax imposed by this paragraph shall not apply when it is established, in accordance with regulations prescribed by the Secretary, that the coconut oil (whether or not contained in a combination or mixture) (A) is wholly the production of the Philippine Islands, any possession of the United States, or the Territory of the Pacific Islands (hereinafter in this paragraph referred to as the "Trust Territory"), or (B) was produced wholly from materials the growth or production of the Philippine Islands, any possessions of the United States, or the Trust Territory: Provided, however, That such additional tax shall apply in respect of coconut oil (whether or not contained in a combination or mixture) so derived from the Trust Territory, to such extent, and at such time after the date of the applicable proclamation, as the President, after taking into account the responsibilities of the United States with respect to the economy of the Trust Territory, shall hereafter determine and proclaim to be justified to prevent substantial injury or the threat thereof to the competitive trade of any country of the free world. The tax imposed by this paragraph shall not apply to any domestic processing after July 3, 1974. SEC. 2. The amendment made by this Act shall be effective only after the day on which this Act is enacted. Approved June 12, 1952. (12) Sections 190.22, etc‒‒‒‒‒ Artistic work, long-term compensation, prize received for 1952-14-13864 8 1952-14-13862 Awards, prize received for symphonic composition, long- 2 Cigarettes: Manufactured in and removed from domestic facto- May, 1952 and 1951__ Coconut oil, relating to additional tax on domestic proc- Compensation, long-term, prize received for symphonic 12 Corporations, information returns, payments of dividends, 1952-14-13862 2 1952-14-13868 7 Court decision: Robertson, Leroy J., v. United States. Dealers, personal property, installment sales of complete 1952-14-13863 Production of vodka, Regulations 15 amended _ _ _ _ Information at source, dividend payments by corpora- Installment sales, complete factory-built and "shell" or 7 Long-term compensation, prize received for symphonic Personal property, installment sales of complete factory- 1952-14-13863 5 Public laws: Eighty-second Congress- No. 386, repealing the Alaska railroads tax... Returns, information, payments of dividends by cor- 1952-14-13866 12 1952-14-13868 1952-14-13863 1952-14-13865 12 (13) |