Page:United States Statutes at Large Volume 68A.djvu/650

 610

INTERNAL REVENUE CODE OF 1954

(c) W I N E GALLON.—For the purpose of this chapter, the term "wine gallon" means a United States gallon of liquid measure equivalent to the volume of 231 cubic inches. On lesser quantities the tax shall be paid proportionately (fractions of less than one-tenth gallon being converted to the nearest one-tenth gallon, and fivehundred ths gallon being converted to the next full one-tenth gallon). (d) ILLEGALLY PRODUCED WINE.—Notwithstanding subsection (a), any wine produced in the United States at any place other than the bonded premises provided for in this chapter shall (except as provided in section 5042 in the case of tax-free production) be subject to tax at the rate prescribed in subsection (b) at the time of production and whether or not removed for consumption or sale. SEC. 5042. EXEMPTION FROM TAX (a) T A X - F R E E PRODUCTION.—

(1) CIDER.—Subject to regulations prescribed by the Secretary or his delegate, the noneffervescent product of the normal alcoholic fermentation of apple juice only, which is produced at a place other than a bonded wine cellar and without the use of preservative methods or materials, and which is sold or offered for sale as cider and not as wine or as a substitute for wine, shall not be subject to tax as wine nor to the provisions of subchapter F. (2) FAMILY WINE.—Subject to regulations prescribed by the Secretary or his delegate, the duly registered head of any family may, without payment of tax, produce for family use and not for sale an amount of wine not exceeding 200 gallons per annum. (3) EXPERIMENTAL WINE.—Subject to regulations prescribed by the Secretary or his delegate, any scientific university, college of learning, or institution of scientific research may produce, receive, blend, treat, and store wine, without payment of tax, for experimental or research use b u t not for consumption (other than organoleptical tests) or sale, and may receive such wine spirits without payment of tax as may be necessary for such production. (b)

CROSS R E F E R E N C E S. —

(1) For provisions relating to exemption of tax on losses of wine (including losses by theft or authorized destruction), see section 5370. (2) For provisions exempting from tax samples of wine, see section 5372. (3) For provisions authorizing withdrawals of wine without payment of tax, see section 5362. SEC. 5043. COLLECTION OF TAXES ON WINES. (a) PERSONS LIABLE FOR PAYMENT.—The taxes on wine provided for in this subpart shall be paid— (1) BONDED WINE CELLARS.—In the case of wines removed from any bonded wine cellar, by the proprietor of such bonded wine cellar: Provided, That, in the case of any withdrawal without payment of tax authorized under section 5362, such obligation, if any, shall become the obligation of the transferee, and the transferor shall thereupon be relieved of such obligation. (2) FOREIGN W I N E. — I n the case of foreign wines, by the importer thereof. (3) OTHER WINES.-—In the case of any other wine or of any wine produced, imported, received, removed, or possessed otherwise than as authorized iDy law, by any person producing, importing, § 5041(c)

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