To amend the Internal Revenue Code of 1986 to repeal the limitation on the cover over of distilled spirits taxes to the Virgin Islands and Puerto Rico.
Source: Congress.gov ·
297 words in original text
What This Bill Does
This bill removes a limitation on tax money sent to the Virgin Islands and Puerto Rico from distilled spirits taxes (alcohol taxes). It changes Section 7652 of the Internal Revenue Code by removing one subsection and reorganizing the remaining ones.
Who It Affects
The bill directly affects the Virgin Islands and Puerto Rico, which receive tax revenue from distilled spirits.
Key Provisions
• The bill removes subsection (f) from Section 7652 of the Internal Revenue Code and reorganizes the remaining subsections so they move up one letter in the alphabet (Sec. 1(a))
• The bill makes a correcting change to Section 7652(f)(1) by removing one part (subparagraph B) and simplifying the language about how the tax is applied (Sec. 1(b))
What Changes
The tax limitation on money sent to the Virgin Islands and Puerto Rico from distilled spirits taxes no longer applies. The specific sections of tax law that created this limitation are removed from the code.
Important Definitions
Distilled spirits: alcohol products created through the distillation process. Cover over: tax revenue that one government entity sends to another.
Effective Date
The changes apply to distilled spirits brought into the United States after December 31, 2021 (Sec. 1(c)).
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