“A bill to amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes.”
No CRS summary available for this bill.
This section repeals the limitation on cover over of distilled spirits taxes to Puerto Rico and the Virgin Islands (i.e., transfer of federal excise taxes on rum produced there and shipped to the U.S. mainland back to those territories); requires Puerto Rico to transfer from its covered-over rum tax receipts (received at $10.50 per proof gallon or greater) to the Puerto Rico Conservation Trust Fund an amount per proof gallon equal to or greater than 1/6 of the difference between $10.50 and the cover over rate (not to exceed $13.25), without modifying Puerto Rico payment priorities in effect on December 31, 2022; and applies retroactively certain prior rules for determining cover overs, all effective for articles brought into the United States after December 31, 2021. (Thus, Puerto Rico must transfer at least $0.458 per proof gallon ($2.75/6) if the cover over rate is $13.25.)