Page:United States Statutes at Large Volume 68A.djvu/646

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INTERNAL REVENUE CODE OF 1954

Subpart B—Rectification Sec. 5021. Sec. 5022. Sec. 5023. Sec. 5024. Sec. 5025. Sec. 5026. Sec. 5027. Sec. 5028.

Imposition and rate of tax. Tax on cordials and liqueurs containing wine. Tax on blending of beverage brandies. Definitions. Exemption from rectification tax. Determination and collection of rectification tax. Stamp provisions applicable to rectifiers. Cross references.

SEC. 5021. IMPOSITION AND RATE OF TAX. (a) R E C T I F I E D SPIRITS AND W I N E S. — I n addition to the tax imposed by this chapter on distilled spirits and wines, there is hereby imposed (except as otherwise provided in this chapter) a tax of 30 cents on each proof gallon and a proportionate tax a t a like rate on all fractional parts of such proof gallon on all distilled spirits or wines rectified, purified, or refined in such manner, and on all mixtures produced in such maimer, that the person so rectifying, purifying, refining, or mixing the same is a rectifier (as defined in section 5082). (b) CHANGE I N PROOF OR VOLUME.—When the process of rectifi-

cation is completed and the taxes prescribed by this section have been determined, it shall be unlawful for the rectifier or other dealer to reduce in proof or increase in volume such spirits or wine by the addition of water or other substance. Nothing in this subsection shall prevent a rectifier from using again in the process of rectification spirits already rectified and on which the taxes have theretofore been determined. SEC. 5022. TAX ON CORDIALS AND LIQUEURS CONTAINING WINE. On all liqueurs, cordials, or similar compounds produced in the United States and not sold as wine, which contain more than 2K percent by volume of wine of an alcoholic content in excess of 14 percent by volume (other than bottled cocktails), there shall be paid, in lieu of the tax imposed by section 5021, a tax a t the rate of $1.92 per wine gallon and a proportionate tax a t a like rate on all fractional parts of such wine gallon until April 1, 1955, and on or after April 1, 1955, a t the rate of $1.60 per wine gallon and a proportionate tax a t a like rate on all fractional parts of such wine gallon. All other provisions of law applicable to rectification shall apply to the products subject to tax under this section. SEC. 5023. TAX ON BLENDING OF BEVERAGE BRANDIES. Fruit brandies distilled from the same kind of fruit a t not more than 170 degrees proof may, for the sole purpose of perfecting such brandies according to commercial standards, be mixed or blended with each other, or with any such mixture or blend, by the distiller thereof in any internal revenue bonded warehouse operated by him exclusively for the storage of brandy or wine spirits, and sections 5021, 5081, and 5082 relating to rectification or other internal revenue laws of the United States shall not be held to apply to or prohibit such mixing or blending, and brandies so mixed or blended may be packaged, stored, transported, transferred in bond, withdrawn from bond taxpaid or tax-free, or be otherwise disposed of, in the same manner as such brandies not so mixed or blended: Provided, That, in addition to the tax imposed by this chapter on the production of distilled spirits, there shall be paid a tax of 30 cents as to each proof gallon §5021

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