Subpart D—Wholesale Dealers

        

Prior Provisions

A prior subpart D, consisting of sections 5111 to 5116, related to wholesale dealers, prior to the general revision of this chapter by Pub. L. 85–859, title II, §201, Sept. 2, 1958, 72 Stat. 1313.

§5111. Imposition and rate of tax

(a) Wholesale dealers in liquors

Every wholesale dealer in liquors shall pay a special tax of $500 a year.

(b) Wholesale dealers in beer

Every wholesale dealer in beer shall pay a special tax of $500 a year.

(Added Pub. L. 85–859, title II, §201, Sept. 2, 1958, 72 Stat. 1340; amended Pub. L. 94–455, title XIX, §1905(b)(3)(B), Oct. 4, 1976, 90 Stat. 1822; Pub. L. 100–203, title X, §10512(b), Dec. 22, 1987, 101 Stat. 1330–448.)

Prior Provisions

A prior section 5111, act Aug. 16, 1954, ch. 736, 68A Stat. 618, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.

Provisions similar to those comprising subsec. (a) of this section were contained in former section 5112(a), act Aug. 16, 1954, ch. 736, 68A Stat. 618, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

1987—Subsec. (a). Pub. L. 100–203, §10512(b)(1), substituted "$500" for "$255".

Subsec. (b). Pub. L. 100–203, §10512(b)(2), substituted "$500" for "$123".

1976—Subsec. (a). Pub. L. 94–455 struck out provisions authorizing the issuance of stamps denoting payment of the special tax.

Effective Date of 1987 Amendment

Amendment by Pub. L. 100–203 effective Jan. 1, 1988, see section 10512(h) of Pub. L. 100–203, set out as an Effective Date note under section 5081 of this title.

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–455 effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1905(d) of Pub. L. 94–455, set out as a note under section 5005 of this title.

Effective Date

Section effective July 1, 1959, see section 210(a)(1) of Pub. L. 85–859, set out as a note under section 5001 of this title.

Cross References

Due date of tax, see section 5142 of this title.

Method of payment of tax, see section 5142 of this title.

Section Referred to in Other Sections

This section is referred to in sections 5113, 5123, 5182 of this title.

§5112. Definitions

(a) Dealer

When used in this subpart, subpart E, or subpart G, the term "dealer" means any person who sells, or offers for sale, any distilled spirits, wines, or beer.

(b) Wholesale dealer in liquors

When used in this chapter, the term "wholesale dealer in liquors" means any dealer, other than a wholesale dealer in beer, who sells, or offers for sale, distilled spirits, wines, or beer, to another dealer.

(c) Wholesale dealer in beer

When used in this chapter, the term "wholesale dealer in beer" means a dealer who sells, or offers for sale, beer, but not distilled spirits or wines, to another dealer.

(Added Pub. L. 85–859, title II, §201, Sept. 2, 1958, 72 Stat. 1340.)

Prior Provisions

A prior section 5112, act Aug. 16, 1954, ch. 736, 68A Stat. 618, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.

Prior section 5112(a) also provided for issuance of stamp denoting payment of special tax as "wholesale dealer in wines" or "wholesale dealer in wines and beer". See section 5111(a) of this title.

Cross References

Businesses in more than one location, see section 5143 of this title.

Section Referred to in Other Sections

This section is referred to in sections 5002, 5691 of this title.

§5113. Exemptions

(a) Sales by proprietors of controlled premises

No proprietor of a distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, or brewery, shall be required to pay special tax under section 5111 or section 5121 on account of the sale at his principal business office as designated in writing to the Secretary, or at his distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, or brewery, as the case may be, of distilled spirits, wines, or beer, which, at the time of sale, are stored at his distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, or brewery, as the case may be, or had been removed from such premises to a taxpaid storeroom operated in connection therewith and are stored therein. However, on such proprietor shall have more than one place of sale, as to each distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, or brewery, that shall be exempt from special taxes by reason of the sale of distilled spirits, wines, or beer stored at such premises (or removed therefrom and stored as provided in this section), by reason of this subsection.

(b) Sales by liquor stores operated by States, political subdivisions, etc.

No liquor store engaged in the business of selling to persons other than dealers, which is operated by a State, by a political subdivision of a State or by the District of Columbia, shall be required to pay any special tax imposed under section 5111, by reason of selling distilled spirits, wines, or beer to dealers qualified to do business as such in such State, subdivision, or District, if such State, political subdivision, or District has paid the applicable special tax imposed under section 5121, and if such State, political subdivision, or District has paid special tax under section 5111 at its principal place of business.

(c) Casual sales

(1) Sales by creditors, fiduciaries, and officers of court

No person shall be deemed to be a dealer by reason of the sale of distilled spirits, wines, or beer which have been received by him as security for or in payment of a debt, or as an executor, administrator, or other fiduciary, or which have been levied on by any officer under order or process of any court or magistrate, if such distilled spirits, wines, or beer are sold by such person in one parcel only or at public auction in parcels of not less than 20 wine gallons.

(2) Sales by retiring partners or representatives of deceased partners to incoming or remaining partners

No person shall be deemed to be a dealer by reason of a sale of distilled spirits, wines, or beer made by such person as a retiring partner or the representative of a deceased partner to the incoming, remaining, or surviving partner or partners of a firm.

(3) Return of liquors for credit, refund, or exchange

No person shall be deemed to be a dealer by reason of the bona fide return of distilled spirits, wines, or beer to the dealer from whom purchased (or to the successor of the vendor's business or line of merchandise) for credit, refund, or exchange, and the giving of such credit, refund, or exchange shall not be deemed to be a purchase within the meaning of section 5117.

(d) Dealers making sales on purchaser dealer's premises

(1) Wholesale dealers in liquors

No wholesale dealer in liquors who has paid the special tax as such dealer shall again be required to pay special tax as such dealer on account of sales of wines or beer to wholesale or retail dealers in liquors, or to limited retail dealers, or of beer to wholesale or retail dealers in beer, consummated at the purchaser's place of business.

(2) Wholesale dealers in beer

No wholesale dealer in beer who has paid the special tax as such a dealer shall again be required to pay special tax as such dealer on account of sales of beer to wholesale or retail dealers in liquors or beer, or to limited retail dealers, consummated at the purchaser's place of business.

(e) Sales by retail dealers in liquidation

No retail dealer in liquors or retail dealer in beer, selling in liquidation his entire stock of liquors in one parcel or in parcels embracing not less than his entire stock of distilled spirits, of wines, or of beer to any other dealer, shall be deemed to be a wholesale dealer in liquors or a wholesale dealer in beer, as the case may be, by reason of such sale or sales.

(f) Sales to limited retail dealers

(1) Retail dealers in liquors

No retail dealer in liquors who has paid special tax as such dealer under section 5121(a) shall be required to pay special tax under section 5111 on account of the sale at his place of business of distilled spirits, wines, or beer to limited retail dealers as defined in section 5122(c).

(2) Retail dealers in beer

No retail dealer in beer who has paid special tax as such dealer under section 5121(b) shall be required to pay special tax under section 5111 on account of the sale at his place of business of beer to limited retail dealers as defined in section 5122(c).

(g) Coordination of taxes under section 5111

No tax shall be imposed by section 5111(a) with respect to a person's activities at any place during a year if such person has paid the tax imposed by section 5111(b) with respect to such place for such year.

(Added Pub. L. 85–859, title II, §201, Sept. 2, 1958, 72 Stat. 1340; amended Pub. L. 87–863, §4(b), Oct. 23, 1962, 76 Stat. 1142; Pub. L. 94–455, title XIX, §§1905(a)(7), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1819, 1834; Pub. L. 100–647, title II, §2004(t)(2), (4), Nov. 10, 1988, 102 Stat. 3609, 3610.)

Prior Provisions

A prior section 5113, act Aug. 16, 1954, ch. 736, 68A Stat. 619, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.

Provisions similar to those comprising subsecs. (a), (d), and (e) of this section were contained in prior sections 5123(a), (b)(3), (c), 5144(c), and 5306, act Aug. 16, 1954, ch. 736, 68A Stat. 621, 624, 657, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

1988—Subsec. (a). Pub. L. 100–647, §2004(t)(2), substituted "controlled premises" for "distilled spirits plants, bonded wine cellars, or breweries" in heading and inserted "taxpaid wine bottling house," after "bonded wine cellar," wherever appearing in text.

Subsec. (g). Pub. L. 100–647, §2004(t)(4), added subsec. (g).

1976—Subsec. (a). Pub. L. 94–455, §1906(b)(13)(A), struck out "or his delegate" after "Secretary".

Subsec. (f)(1). Pub. L. 94–455, §1905(a)(7), inserted reference to distilled spirits.

1962—Subsec. (b). Pub. L. 87–863 substituted "if such State, political subdivision, or district" for "if such liquor store" before "has paid the", and struck out reference to Territories wherever appearing.

Effective Date of 1988 Amendment

Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Pub. L. 100–203, title X, to which such amendment relates, see section 2004(u) of Pub. L. 100–647, set out as a note under section 56 of this title.

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–455 effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1905(d) of Pub. L. 94–455, set out as a note under section 5005 of this title.

Effective Date of 1962 Amendment

Section 4(c) of Pub. L. 87–863 provided that: "The amendments made by subsections (a) and (b) of this section [amending this section and section 5123 of this title] shall take effect on July 1, 1962."

Section Referred to in Other Sections

This section is referred to in sections 5093, 5123, 5681 of this title.

§5114. Records

(a) Requirements

(1) Distilled spirits

Every wholesale dealer in liquors who sells distilled spirits to other dealers shall keep daily a record of distilled spirits received and disposed of by him, in such form and at such place and containing such information, and shall submit correct summaries of such records to the Secretary at such time and in such form and manner, as the Secretary shall by regulations prescribe. Such dealer shall also submit correct extracts from or copies of such records, at such time and in such form and manner as the Secretary may by regulations prescribe; however, the Secretary may on application by such dealer, in accordance with such regulations, relieve him from this requirement until further notice, whenever the Secretary deems that the submission of such extracts or copies serves no useful purpose in law enforcement or in protection of the revenue.

(2) Wines and beer

Every wholesale dealer in liquors and every wholesale dealer in beer shall provide and keep, at such place as the Secretary shall by regulations prescribe, a record in book form of all wines and beer received, showing the quantities thereof and from whom and the dates received, or shall keep all invoices of, and bills for, all wines and beer received.

(b) Exemption of States, political subdivisions, etc.

The provision of subsection (a) shall not apply to a State, to a political subdivision of a State, to the District of Columbia, or to liquor stores operated by any of them, if they maintain and make available for inspection by internal revenue officers such records as will enable such officers to trace all distilled spirits, wines, and beer received, and all distilled spirits disposed of by them. Such States, subdivisions, District, or liquor stores shall, upon the request of the Secretary, furnish him such transcripts, summaries and copies of their records with respect to distilled spirits as he shall require.

(c) Cross references

(1) For provisions requiring proprietors of distilled spirits plants to keep records and submit reports of receipts and dispositions of distilled spirits, see section 5207.

(2) For penalty for violation of subsection (a), see section 5603.

(3) For provisions relating to the preservation and inspection of records, and entry of premises for inspection, see section 5146.

(Added Pub. L. 85–859, title II, §201, Sept. 2, 1958, 72 Stat. 1342; amended Pub. L. 94–455, title XIX, §§1905(c)(1), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834.)

Prior Provisions

A prior section 5114, act Aug. 16, 1954, ch. 736, 68A Stat. 619, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

1976—Subsec. (a). Pub. L. 94–455, §1906(b)(13)(A), struck out "or his delegate" after "Secretary" wherever appearing.

Subsec. (b). Pub. L. 94–455, §§1905(c)(1), 1906(b)(13)(A), struck out "or Territory" after "a State", "Territories" after "States,", and "or his delegate" after "Secretary".

Effective Date of 1976 Amendment

Amendment by section 1905(c)(1) of Pub. L. 94–455 effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1905(d) of Pub. L. 94–455, set out as a note under section 5005 of this title.

§5115. Sign required on premises

(a) Requirements

Every wholesale dealer in liquors who is required to pay special tax as such dealer shall, in the manner and form prescribed by regulations issued by the Secretary, place and keep conspicuously on the outside of the place of such business a sign, exhibiting, in plain and legible letters, the name or firm of the wholesale dealer, with the words: "wholesale liquor dealer." The requirements of this subsection will be met by the posting of a sign of the character prescribed herein, but with words conforming to the designation on the dealer's special tax stamp.

(b) Penalty

For penalty for failure to post sign, or for posting sign without paying the special tax, see section 5681.

(Added Pub. L. 85–859, title II, §201, Sept. 2, 1958, 72 Stat. 1342; amended Pub. L. 94–455, title XIX, §1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

Prior Provisions

A prior section 5115, act Aug. 16, 1954, ch. 736, 68A Stat. 620, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859. See section 5205(d) of this title.

Provisions similar to those comprising this section were contained in prior section 5116, act Aug. 16, 1954, ch. 736, 68A Stat. 620, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

1976—Subsec. (a). Pub. L. 94–455 struck out "or his delegate" after "Secretary".

Section Referred to in Other Sections

This section is referred to in section 5681 of this title.

§5116. Packaging distilled spirits for industrial uses

(a) General

The Secretary may, at his discretion and under such regulations as he may prescribe, authorize a dealer engaging in the business of supplying distilled spirits for industrial uses to package distilled spirits, on which the tax has been paid or determined, for such uses in containers of a capacity in excess of 1 wine gallon and not more than 5 wine gallons.

(b) Cross reference

For provisions relating to containers of distilled spirits, see section 5206.

(Added Pub. L. 85–859, title II, §201, Sept. 2, 1958, 72 Stat. 1343; amended Pub. L. 94–455, title XIX, §1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–39, title VIII, §807(a)(12), July 26, 1979, 93 Stat. 282; Pub. L. 98–369, div. A, title IV, §454(c)(3), July 18, 1984, 98 Stat. 821.)

Prior Provisions

A prior section 5116, act Aug. 16, 1954, ch. 736, 68A Stat. 620, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

1984—Subsec. (b). Pub. L. 98–369 substituted "reference" for "references" in heading, struck out former par. (1) which provided a cross reference to section 5205(a)(1) of this title regarding stamps for immediate containers, and struck out designation "(2)" preceding provisions relating to containers of distilled spirits.

1979—Subsec. (b)(1). Pub. L. 96–39 substituted "section 5205(a)(1)" for "section 5205(a)(2)".

1976—Subsec. (a). Pub. L. 94–455 struck out "or his delegate" after "Secretary".

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–369 effective July 1, 1985, see section 456(b) of Pub. L. 98–369, set out as an Effective Date note under section 5101 of this title.

Effective Date of 1979 Amendment

Amendment by Pub. L. 96–39 effective Jan. 1, 1980, see section 810 of Pub. L. 96–39, set out as a note under section 5001 of this title.

§5117. Prohibited purchases by dealers

(a) General

It shall be unlawful for any dealer to purchase distilled spirits for resale from any person other than—

(1) a wholesale dealer in liquors who has paid the special tax as such dealer to cover the place where such purchase is made; or

(2) a wholesale dealer in liquors who is exempt, at the place where such purchase is made, from payment of such tax under any provision of this chapter; or

(3) a person who is not required to pay special tax as a wholesale dealer in liquors.

(b) Limited retail dealers

A limited retail dealer may lawfully purchase distilled spirits for resale from a retail dealer in liquors.

(c) Penalty and forfeiture

For penalty and forfeiture provisions applicable to violation of subsection (a), see sections 5687 and 7302

(Added Pub. L. 85–859, title II, §201, Sept. 2, 1958, 72 Stat. 1343; amended Pub. L. 94–455, title XIX, §1905(a)(8), Oct. 4, 1976, 90 Stat. 1819.)

Amendments

1976—Subsecs. (b), (c). Pub. L. 94–455 added subsec. (b) and redesignated former subsec. (b) as (c).

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–455 effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1905(d) of Pub. L. 94–455, set out as a note under section 5005 of this title.

Section Referred to in Other Sections

This section is referred to in sections 5113, 5125 of this title.