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II
116TH CONGRESS
1ST SESSION
S. 3101
To amend the Internal Revenue Code of 1986 to repeal the limitation on
the cover over of distilled spirits taxes to Puerto Rico and the Virgin
Islands and to transfer a portion of such cover over to the Puerto
Rico Conservation Trust Fund.
IN THE SENATE OF THE UNITED STATES
DECEMBER 18, 2019
Mr. MENENDEZ (for himself and Mr. CRAPO) introduced the following bill;
which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to repeal
the limitation on the cover over of distilled spirits taxes
to Puerto Rico and the Virgin Islands and to transfer
a portion of such cover over to the Puerto Rico Conserva-
tion Trust Fund.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
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SECTION 1. REPEAL OF LIMITATION ON COVER OVER OF
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DISTILLED SPIRITS TAXES TO PUERTO RICO
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AND THE VIRGIN ISLANDS.
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(a) IN GENERAL.—Section 7652 of the Internal Rev-
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enue Code of 1986 is amended by striking subsection (f)
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•S 3101 IS
and by redesignating subsections (g) and (h) as sub-
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sections (f) and (g), respectively.
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(b) EFFECTIVE DATE.—The amendments made by
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this section shall apply to distilled spirits brought into the
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United States after December 31, 2018.
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SEC. 2. TRANSFER TO PUERTO RICO CONSERVATION
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TRUST FUND OF PORTION OF PUERTO RICO
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RUM COVER OVER.
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(a) IN GENERAL.—Section 7652(e) of the Internal
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Revenue Code of 1986 is amended by redesignating para-
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graphs (3), (4), and (5) as paragraphs (4), (5), and (6),
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respectively, and by inserting after paragraph (2) the fol-
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lowing new paragraph:
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‘‘(2) TRANSFER TO PUERTO RICO CONSERVA-
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TION
TRUST
FUND
OF
PORTION
OF
RUM
COVER
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OVER.—
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‘‘(A) IN
GENERAL.—From any amount
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otherwise required to be covered over to the
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treasury of Puerto Rico under this section with
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respect to taxes collected on rum under section
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5001(a)(1) or subsection (a), the Secretary of
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the Treasury shall transfer to the Puerto Rico
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Conservation Trust Fund an amount equal to
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$0.46 per proof gallon of rum to which such
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cover over is attributable. Any amount trans-
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•S 3101 IS
ferred under the preceding sentence shall be
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treated for purposes of this section (other than
2
this paragraph) as having been covered over to
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the treasury of Puerto Rico.
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‘‘(B) PUERTO RICO CONSERVATION TRUST
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FUND.—For purposes of this section, the term
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‘Puerto Rico Conservation Trust Fund’ means
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the fund established pursuant to a Memo-
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randum of Understanding between the United
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States Department of the Interior and the
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Commonwealth of Puerto Rico, dated December
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24, 1968.’’.
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(b) EFFECTIVE DATE.—The amendments made by
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this section shall apply to rum brought into the United
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States after December 31, 2018.
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Æ
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