26 U.S.C. § 5111 — Eligibility

Page 3176 TITLE 26—INTERNAL REVENUE CODE § 5111 5111 to 5114, respectively, and struck out ‘‘and rate of tax’’ after ‘‘Eligibility’’ in item 5111. 1997—Pub. L. 105–34, title XIV, § 1415(b)(3), Aug. 5, 1997, 111 Stat. 1047, struck out item 5115 ‘‘Sign required on premises’’. § 5111. Eligibility Any person using distilled spirits on which the tax has been determined, in the manufacture or production of medicines, medicinal prepara- tions, food products, flavors, flavoring extracts, or perfume, which are unfit for beverage pur- poses shall be eligible for drawback at the time when such distilled spirits are used in the manu- facture of such products as provided for in this subpart. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1345, § 5131; amended Pub. L. 94–455, title XIX, § 1905(a)(11), Oct. 4, 1976, 90 Stat. 1819; Pub. L. 100–203, title X, § 10512(d), Dec. 22, 1987, 101 Stat. 1330–448; Pub. L. 103–465, title I, § 136(b), Dec. 8, 1994, 108 Stat. 4841; renumbered § 5111 and amended Pub. L. 109–59, title XI, § 11125(a)(2), (b)(3)(A), (C), Aug. 10, 2005, 119 Stat. 1953, 1954.) Editorial Notes PRIOR PROVISIONS A prior section 5111, added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1340; amended Pub. L. 94–455, title XIX, § 1905(b)(3)(B), Oct. 4, 1976, 90 Stat. 1822; Pub. L. 100–203, title X, § 10512(b), Dec. 22, 1987, 101 Stat. 1330–448, related to tax on wholesale dealers in liquors or beer, prior to repeal by Pub. L. 109–59, title XI, § 11125(a)(1)(C), (c), Aug. 10, 2005, 119 Stat. 1953, 1957, ef- fective July 1, 2008, but inapplicable to taxes imposed for periods before such date. Another prior section 5111, act Aug. 16, 1954, ch. 736, 68A Stat. 618, related to tax on wholesale and retail dealers in liquors or beer, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 2005—Pub. L. 109–59, § 11125(b)(3)(C), struck out ‘‘and rate of tax’’ after ‘‘Eligibility’’ in section catchline, struck out ‘‘(a) Eligibility for drawback’’ before ‘‘Any person’’, and struck out subsec. (b). Text read as fol- lows: ‘‘The special tax imposed by subsection (a) shall be $500 per year.’’ Pub. L. 109–59, § 11125(b)(3)(A), renumbered section 5131 of this title as this section. Subsec. (a). Pub. L. 109–59, § 11125(a)(2), struck out ‘‘, on payment of a special tax per annum,’’ after ‘‘bev- erage purposes’’. 1994—Subsec. (a). Pub. L. 103–465 substituted ‘‘fla- voring extracts, or perfume’’ for ‘‘or flavoring ex- tracts’’. 1987—Subsec. (b). Pub. L. 100–203 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as fol- lows: ‘‘The special tax imposed by subsection (a) shall be graduated in amount as follows: (1) for total annual use not exceeding 25 proof gallons, $25 a year; (2) for total annual use not exceeding 50 proof gallons, $50 a year; (3) for total annual use of more than 50 proof gal- lons, $100 a year.’’ 1976—Subsec. (a). Pub. L. 94–455 struck out ‘‘produced in a domestic registered distillery or industrial alcohol plant and withdrawn from bond, or using distilled spir- its withdrawn from the bonded premises of a distilled spirits plant,’’ after ‘‘Any person using distilled spir- its’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109–59 effective July 1, 2008, but inapplicable to taxes imposed for periods before such date, see section 11125(c) of Pub. L. 109–59, set out as a note under section 5002 of this title. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–465 effective Jan. 1, 1995, see section 136(d) of Pub. L. 103–465, set out as a note under section 5001 of this title. EFFECTIVE DATE OF 1987 AMENDMENT Pub. L. 100–203, title X, § 10512(h), Dec. 22, 1987, 101 Stat. 1330–450, provided that: ‘‘(1) IN GENERAL.—The amendments made by this sec- tion [enacting sections 5081, 5276, and 5731 of this title and amending this section and sections 5091, 5121, 5131, 5691, and 5801 of this title] shall take effect on January 1, 1988. ‘‘(2) ALL TAXPAYERS TREATED AS COMMENCING IN BUSI- NESS 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 be- fore 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 1⁄2 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 para- graph, the term ‘occupational tax’ means any tax im- posed under part II of subchapter A of chapter 51, sec- tion 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 re- quired to be paid by reason of this paragraph shall be due on April 1, 1988.’’ EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–455 effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1905(d) of Pub. L. 94–455, set out as a note under section 5005 of this title. EFFECTIVE DATE Section effective July 1, 1959, see section 210(a)(1) of Pub. L. 85–859, set out as a note under section 5001 of this title. § 5112. Registration and regulation Every person claiming drawback under this subpart shall register annually with the Sec- retary; keep such books and records as may be necessary to establish the fact that distilled spirits received by him and on which the tax has been determined were used in the manufacture or production of medicines, medicinal prepara- tions, food products, flavors, flavoring extracts, or perfume, which were unfit for use for bev- erage purposes; and be subject to such rules and regulations in relation thereto as the Secretary shall prescribe to secure the Treasury against frauds. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1345, § 5132; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 103–465, title I, § 136(b), Dec. 8, 1994, 108 Stat. 4841; renumbered § 5112, Pub. L. 109–59, title XI, § 11125(b)(3)(A), Aug. 10, 2005, 119 Stat. 1953.)