Page:United States Statutes at Large Volume 111 Part 1.djvu/699

 PUBLIC LAW 105-33 —AUG. 5, 1997 111 STAT. 675 (B) before January 1, 2000, submits an application under subchapter B of chapter 52 of such Code to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of such chapter 52 shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit under such chapter 52 to engage in such business, (j) FLOOR STOCKS TAXES.— (1) IMPOSITION OF TAX.— On tobacco products and cigarette papers and tubes manufactured in or imported into the United States which are removed before any tax increase date, and held on such date for sale by any person, there is hereby imposed a tax in an amount equal to the excess of— (A) the tax which would be imposed under section 5701 of the Internal Revenue Code of 1986 on the article if the article had been removed on such date, over (B) the prior tax (if any) imposed under section 5701 of such Code on such article. (2) AUTHORITY TO EXEMPT CIGARETTES HELD IN VENDING MACHINES.— To the extent provided in regulations prescribed by the Secretary, no tax shall be imposed by paragraph (1) on cigarettes held for retail sale on any tax increase date, by any person in any vending machine. If the Secretary provides such a benefit with respect to any person, the Secretary may reduce the $500 amount in paragraph (3) with respect to such person. (3) CREDIT AGAINST TAX.— Each person shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to $500. Such credit shall not exceed the amount of taxes imposed by paragraph (1) on any tax increase date, for which such person is liable. (4) LIABILITY FOR TAX AND METHOD OF PAYMENT. — (A) LIABILITY FOR TAX.— ^A person holding cigarettes on any tax increase date, to which any tax imposed by paragraph (1) applies shall be liable for such tax. (B) METHOD OF PAYMENT. —The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations. (C) TIME FOR PAYMENT. —The tax imposed by paragraph (1) shall be paid on or before April 1 following any tax increase date. (5) ARTICLES IN FOREIGN TRADE ZONES. — Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) and any other provision of law, any article which is located in a foreign trade zone on any tax increase date, shall be subject to the tax imposed by paragraph (1) if— (A) internal revenue taxes have been determined, or customs duties liquidated, with respect to such article before such date pursuant to a request made under the 1st proviso of section 3(a) of such Act, or (B) such article is held on such date under the supervision of a customs officer pursuant to the 2d proviso of such section 3(a). (6) DEFINITIONS. —For purposes of this subsection— 26 USC 5701 note. Regulations. Regulations.

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