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 54 STAT.] 76TH CONG. , 3D SESS.-CHS. 416, 417-JUNE 24, 1940 March 3, 1897 (29 Stat. 626), or under said section 1, as variously amended, and may redeem or make allowance for unused strip stamps issued for bottles of distilled spirits bottled in bond under said section 1, as amended by the Act of July 9, 1937 (50 Stat. 487), or under subsection (d) of this section, by exchanging them for strip stamps for bottled-in-bond spirits, or by refunding moneys received therefor: Provided, That stamps may be exchanged or the value thereof refunded only in quantities of the value of $5 or more: And provided further,That no claim under this subsection for redemption or allowance in respect of case or strip stamps shall be allowed unless presented within two years after the date on which such case or strip stamps were lawfully issued. There are hereby authorized to be appropriated annually, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary to carry out this provision." SEC. 3 . Notwithstanding the limitations contained in sections 2803 (c) and 2903 (e), Internal Revenue Code, as amended and inserted, respectively, by this Act, as to the time within which claims under such sections must be presented, claims under such sections for the exchange of or refund for stamps lawfully issued prior to the date of enactment of this Act may be allowed if presented within two years from the date of enactment of this Act. Approved, June 24, 1940. [CHAPTER 417] AN ACT To eliminate the tax on brandy and wine spirits used in the fortification of wine; to increase the tax on wine; to compensate for the loss of revenue occasioned by the elimination of the tax on brandy and wine spirits used in the fortification of wine; and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, effective July 1, 1940, section 3030 (a) (1) (A), Internal Revenue Code, is amended to read as follows: "(A) IMPosrrxoN.- Upon all still wines, including vermouth, and all artificial or imitation wines or compounds sold as still wine produced in or imported into the United States after June 30, 1940, or which on July 1, 1940, were on any winery premises or other bonded premises or in transit thereto or at any customhouse, there shall be levied, collected, and paid taxes at rates as follows, when sold or removed for consumption or sale: "On wines containing not more than 14 per centum of absolute alcohol, 5 cents per wine-gallon, the per centum of alcohol under this section to be reckoned by volume and not by weight; "On wines containing more than 14 per centum and not exceeding 21 per centum of absolute alcohol, 15 cents per wine-gallon; "On wines containing more than 21 per centum and not exceeding 24 per centum of absolute alcohol, 25 cents per wine-gallon; "All such wines containing more than 24 per centum of absolute alcohol by volume shall be classed as distilled spirits and shall pay tax accordingly. "Any such wines may, under such regulations as the Commissioner may prescribe, with the approval of the Secretary, be sold or removed tax-free for the manufacture of vinegar, or for the production of dealcoholized wines containing less than one-half of 1 per centum of alcohol by volume. 26 U. S. C., Supp. V, g 2903. 26 U. S. C., Supp. V, 2903. Provisos. Minimum quantity. Time restriction on claims. Appropriation au- thorized. Certain claims al- lowable notwith- standing time limita- tion. June 24, 1940 [H. R. 9117] [Public, No. 655] Internal Revenue Code, amendments. 53 Stat. 347 . 26 U. S. C., Supp. V, § 3030 (a) (1) (A). Tax on still wines. Post, p. 525. Rates. Alcoholic strength. Higher strength classed as distilled spirits. Sale, etc., tax-free in certain cases. 193470 0 -41-PT. I --- 33

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