In response to Section 335, of the
Protecting Americans from Tax Hikes Act of 2015 (PATH Act; Division
Q of Pub. Law 114–113), which, effective January 1, 2017, amends
the Internal Revenue Code to modify the definition of wines
eligible for the hard cider tax rate of $0.226 per wine gallon, TTB
is issuing a temporary rule (and a concurrent notice of proposed
rulemaking) titled “Implementation of Statutory Amendments
Requiring the Modification of the Definition of Hard Cider.” The
temporary rule will amend § 24.257 by requiring a tax class
statement on labels of wine claiming the hard cider tax rate
provided for in 26 U.S.C. 5041(b)(6). Specifically, the new
information collection in new section § 24.257(a)(4)(v) will
require that industry members who remove wine on which the hard
cider tax rate applies place a specific statement, “Tax class
5041(b)(6),” on containers of such wine, in order to adequately
identify the applicable tax rate. For imported wines claiming the
hard cider tax rate, a new § 27.59(b) will cross-reference the tax
class statement labeling requirement contained in amended § 24.257.
TTB has determined that this new information collection regarding
the tax class statement is necessary to protect the revenue and
demonstrate compliance with the statutory requirements regarding
products eligible for the hard cider tax rate. The tax class
statement ensures the proper identification of the content of the
wine container, protects the Federal government’s revenue interest
prior to removal of the wine from bonded premises, and identifies
the wine at the time of its removal from bond coverage in order to
ensure that the correct Federal excise tax will be collected. TTB
believes that this label statement is the simplest and clearest way
to identify such products in order to avoid confusion with other,
higher-rate tax classes of wine. This regulatory amendment does not
require any other changes to label statements that industry members
use or may wish to use to identify their products.
US Code:
26
USC 5041 Name of Law: Internal Revenue Code
US Code: 26
USC 5386(b) Name of Law: Internal Revenue Code
PL: Pub.L. 114 - 113 335 (Div. Q) Name of
Law: PATH Act
TTB is revising 27 CFR
24.257(a)(4), by requiring the placement of the tax class statement
“Tax class 5041(b)(6)” on containers of wine that are eligible for
the hard cider tax rate. This requirement will be cross-reference
for imported products in new 27 CFR 27.59(b). In addition, TTB
believes that there would be a one-time burden of one hour for
wines that are eligible for the hard cider tax rate to come into
compliance with this information collection, but that the continued
compliance burden will be negligible. (This is a new collection;
therefore, there are no adjustments.)
$0
No
No
No
No
No
Uncollected
Kara Fontaine 202 453-2103
kara.fontaine@ttb.gov
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.