1513-0009 Supporting Statement (Wine Permit Mod 09-2024)

DEPARTMENT OF THE TREASURY

ALCOHOL AND TOBACCO TAX AND TRADE BUREAU

Supporting Statement –– Information Collection Request

OMB Control Number 1513–0009

Application to Establish and Operate Wine Premises; and Wine Bond

Changes Since Last Approval

Changes made to the Supporting Statement since this collection’s last approval:

• In Question 1, TTB explains the proposed rulemaking affecting this information collection request, which is intended to lower the respondent burden associated with the Application to Establish and Operate Wine Premises information collection contained under this collection request.

• In Question 8, TTB notes that it will seek public comment on the proposed amendments to this information collection request via publication of the described proposed rule in the Federal Register.

• In Question 12, 13, and 14, TTB is updating, respectively, the estimated hour burden and respondent labor costs, the estimated respondent non-labor costs, and the costs to the Federal Government associated with this information collection request based on the reduced respondent burden expected from the completion of the proposed rulemaking described in this Supporting Statement.

• In Question 15, TTB describes the program changes to this information collection request that would result from the completion of the proposed rulemaking described in this Supporting Statement.

A. Justification

1. What are the circumstances that make this collection of information necessary, and what legal or administrative requirements necessitate the collection? Also align the information collection to TTB’s Line of Business/Sub-function and IT Investment if one is used.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers chapter 51 (distilled spirits, wine, and beer), chapter 52 (tobacco products, processed tobacco, and cigarette papers and tubes), and sections 4181–4182 (firearms and ammunition excise taxes) of the Internal Revenue Code of 1986, as amended (IRC, 26 U.S.C.), pursuant to section 1111(d) of the Homeland Security Act of 2002, as codified at 6 U.S.C. 531(d). In addition, the Secretary of the Treasury (the Secretary) has delegated certain IRC administrative and enforcement authorities to TTB through Treasury Department Order 120–01.

In general, the IRC at 26 U.S.C. 5351–5357 requires a proprietor to file an application and bond with the Secretary before beginning operations at a bonded wine cellar, bonded winery, or taxpaid wine bottling house (hereafter collectively referred to as “wine premises”).

Specific to this information collection request, the IRC at 26 U.S.C. 5354 describes the required bond amounts for bonded wine cellars and bonded wineries and authorizes the Secretary to issue regulations concerning such bonds. That section exempts taxpaid wine bottling houses from the bond requirement, and, under 26 U.S.C. 5551(d), small wineries eligible to pay wine excise taxes on an annual or quarterly basis are also exempt from the bond requirement.¹ As for wine premises applications, the IRC at 26 U.S.C. 5356 authorizes the Secretary to issue regulations regarding the information required on such applications so that the Secretary may determine the location and extent of the premises, the type of operations to be conducted, and whether the operations will be in conformity with law and regulations.

Under those IRC authorities, TTB has issued regulations concerning the content and filing of wine premises applications and the filing of wine bonds, most of which are codified in 27 CFR Part 24, Wine, Subpart D, Establishment and Operations. The regulations in that subpart require the completion and submission of forms TTB F 5120.25, Application to Establish and Operate Wine Premises, and TTB F 5120.36, Wine Bond, unless, in the latter case, the proprietor is exempt from the wine bond requirement.

Applicants use TTB F 5120.25 and the required supporting data and documents to establish their identity and qualifications for a new wine premises, including the name, location, type, organization, premises description, security, and proposed operations of the business, and if the proprietor is exempt from the wine bond requirement. Current proprietors also use TTB F 5120.25 to amend wine premises information previously filed with TTB or to apply for the exemption to the wine bond requirement. The TTB regulations also require wine premises proprietors to maintain completed or amended application forms and supporting documents as a permanent record of their business and its qualifications to operate.

The following current TTB regulations in 27 CFR chapter I require the use of TTB F 5120.25, require supporting data or documents for it, or set out other requirements related to the wine premises permit application form: 27 CFR 18.40, 19.143, 24.100 – 24.103, 24.105 – 24.115, 24.117, 24.120, 24.122 –24.131, 24.135 – 24.137, and 25.81.

Those proprietors required to file a wine bond use TTB F 5120.36 to describe their collateral or surety bond coverage. The following current TTB regulations in 27 CFR part 24 require the use of TTB F 5120.36 or contain other requirements related to the wine bond or its form: 27 CFR 24.145 – 24.148, 24.153 – 24.159, and 24.291.

This information collection is aligned with:

• Line of Business/Sub-function: General Government/Taxation Management.

• IT Investment: Permits Online (PONL) system.

Modernization of Permit Application Requirements for Wine Premises Notice of Proposed Rulemaking

In a proposed rule titled “Modernization of Permit Application Requirements for Wine Premises,” TTB is proposing deregulatory amendments to its regulations to modernize and streamline the requirements for the Application to Establish and Operate Wine Premises information collection contained under this information collection request, which is approved under OMB control number 1513–0009. The proposed amendments also relax some reporting requirements associated with changes to the business of a wine premises proprietor that currently require the filing of an amended wine premises application. The proposed amendments are intended to reduce the overall respondent burden associated with the wine premises application information collection. (The Wine Bond portion of this information collection request is not affected by the proposed rule.) In addition, the proposed amendments will allow respondents additional flexibilities under the wine-related letterhead notice and wine-related recordkeeping information collections, approved under OMB control numbers 1513–0057, and 1513–0115, respectively.

In general, the proposed amendments involve:

(1) Eliminating the collection of certain information for applications to establish wine premises;

(2) Streamlining requirements to describe the wine premises and its security;

(3) Extending deadlines for reporting certain changes in the wine premises proprietor’s business ;

(4) Streamlining procedures for wine premises proprietors using new trade names;

(5) Allowing the maintenance of required records at locations other than the wine premises through a notification rather than an application for an alternate procedure; and

(6) Clarifying which individuals are required to submit statements of financial interest in the business in connection with an application to establish a wine premises.

The specific proposed regulatory amendments affecting the Application to Establish and Operate Wine Premises information collection, filed on form TTB F 5120.25, as contained under this information collection request are described below:

To reduce the information collected in applications to establish wine premises, TTB proposes amendments to § 24.109, Data for applications, in paragraphs (h) and (j), to eliminate requirements that applicants provide in their application narrative descriptions of spirits operations and volatile fruit-flavor concentrate applications, respectively. Paragraph (h) is eliminated entirely while paragraph (j) is revised to require only information about the capacity, kind, and intended use of any still(s) to be used in the production of volatile fruit-flavor concentrate. TTB is also proposing to eliminate the current § 24.109(k) requiring applicants to provide, if applicable, a description of “other operations” not specifically authorized under TTB’s wine premises regulations, as it is duplicative of § 24.103.

Regarding volatile fruit-flavor concentrate operations, TTB is proposing conforming amendments at 27 CFR 24.113 and 24.130, which concern volatile fruit-flavor concentrate operations at wine premises. Instead of requiring all applicants to submit a description of any concentrate production process, amended § 24.113 would require applicants and proprietors to submit such a description only upon TTB request. In § 24.130, instead of requiring proprietors to report any changes to their concentrate production process, the amended section would only require notification to TTB of any new stills to be used in the production of volatile fruit-flavor concentrates. Sections 24.109, 24.113, and 24.130 are currently included in the collection of information assigned OMB control number 1513–0009. However, because the proposed amendments change the information collection in § 24.130 from an amended wine premises application to a letterhead notice, TTB believes it is more appropriate to account for that section in the information collection approved under OMB No. 1513–0057, Letterhead Applications and Notices Relating to Wine (TTB REC 5120/2).

To streamline requirements to describe the wine premises and its security, TTB proposes additional amendments to § 24.109, and amendments to 24.111, 24.131, 24.135, 24.136, and 24.137. The proposed amendments to §§ 24.109 and 24.111 replace requirements to submit detailed narrative descriptions of the wine premises and certain of its attributes with a more specific set of information and a certification as to premises security, and those changes will require conforming amendments to § 24.131. The proposed amendments to §§ 24.135 – 24.137 generally consolidate requirements to provide specific descriptions or diagrams of wine premises alternation into the generally-applicable premises description requirements of §§ 24.209 and 24.111.

With respect to the collection of applicant background information, TTB proposes changes to § 24.110 to clarify which individuals are required to submit statements of financial interest in the applicant business. The proposed amendments clarify that (1) such statements of interest are required only from persons with an ownership interest in the applicant of 10 percent or greater; and (2) where a “person” holding such an interest is a legal entity other than an individual, an applicant must submit basic identifying information about a representative individual for that entity.

To extend deadlines for reporting certain changes in a wine premises proprietor’s business, TTB proposes amendments to 27 CFR 24.120, 24.123, and 24.124. The proposed amendment to § 24.120 extends the generally-applicable deadline for submitting an amended application from 30 to 60 days following a change in the information included in the approved application. The proposed amendment to § 24.124 similarly extends the deadline for reporting changes in corporate officers from 30 to 60 days. The proposed amendments to § 24.123 extend the deadline for reporting certain changes in ownership of the business from 30 to 60 days, except where the Federal Alcohol Administration Act establishes by law the 30-day deadline.

The TTB regulations in § 24.122 currently require that changes or additions to the trade names under which a permitted wine business may operate be made by filing for an amended wine premises application, which requires TTB approval prior to the applicant beginning operations under the new trade name. To relax this requirement, TTB proposes amendments to that section to allow changes or additions to wine premises proprietor trade names to be accomplished by the filing of a letterhead notice, which does not require TTB approval. While the information collection in § 24.122 is currently included approved under OMB No. 1513–0009, as a result of the proposed amendments changing the collection of information from an amended application to a letterhead notice, TTB believes it is more appropriate to account for the amended trade name information collection under the wine related letterhead application and notice collection request approved under OMB No. 1513–0057. (Provisions of § 24.122 relating to amended permits for changes in legal name will remain accounted under OMB No. 1513–0009.)

The proposed regulatory amendments to 27 CFR part 24 described above are a result of TTB’s evaluation of its permit and registration application requirements and consideration of relevant public comments submitted to the Treasury Department in response to its request for information concerning regulations that could be eliminated, modified, or streamlined. TTB believes the proposed regulatory amendments will significantly reduce the time needed to complete an application to establish and operate a wine premises.

2. How, by whom, and for what purpose is this information used?

TTB uses the information collected on the wine premises application form, TTB F 5120.25, and the attached supporting documents to determine the location and extent of the proposed premises, the type of operations to be conducted on the premises, and if those operations will be in conformity with Federal law and regulations. In the case of existing wine premises, TTB also uses the collected information that form to determine if certain proposed amendments to wine premises operations will be in conformity with Federal law and regulations, and also if an existing wine premises is no longer required under the IRC to maintain a wine bond. For those wine premises proprietors required to maintain a bond, TTB uses the information on the wine bond form, TTB F 5120.36, to identify the bonded premises, the type and amount of the bond, and the bond’s surety (if any), and to determine if the required bond will provide adequate protection of the revenue. The use of these standardized forms provides TTB with an efficient method of collecting the required information to make the required identifications and determination.

3. To what extent does this collection of information involve the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology? What consideration is given to use information technology to reduce burden?

The information required by the wine premises application and wine bond may be completed and submitted electronically via TTB’s Permits Online (PONL) system’s Winery Application. Access to PONL, the PONL Tutorial, and other customer information is available on the TTB website at https://www.ttb.gov/ponl/customer-support. In addition, TTB F 5120.25 and TTB F 5120.36 are available as fillable-printable forms on the TTB website forms page at https://www.ttb.gov/forms, as are supplemental instructions for both forms and a bond amount worksheet.

4. What efforts are used to identify duplication? Can similar information already available be used or modified for use for the purposes described in Item 2 above?

This information collection request requires wine premises and bond information that is pertinent and specific to each respondent. As far as TTB can determine, similar information is not available elsewhere.

5. If this collection of information impacts small businesses or other small entities, what methods are used to minimize burden?

As a matter of law, the IRC mandates that proprietors file an application to establish a wine premise and, unless exempted by the IRC, a wine bond, as required under regulations issued by the Secretary. As such, TTB cannot on its own authority waive these statutory requirements merely because the respondent’s business is small. TTB believes that the information collected under this request, which it proposes to further reduce under the rulemaking described in this document, is the minimum necessary to ensure protection of the revenue. As such, TTB believes that this occasional information collection requirement does not have a significant impact on small entities.

6. What consequences to Federal program or policy activities and what, if any, technical or legal obstacles to reducing burden will occur if this collection is not conducted or is conducted less frequently?

If TTB did not conduct this information collection request, it would not be able to fulfill the IRC’s statutory provisions mandating the filing of applications to establish wine premises and the filing of wine bonds. The collected application information is necessary to ensure that an applicant is qualified under the IRC to operate a wine premises, and the wine bond is necessary to ensure payment of outstanding wine excise tax liabilities in cases of default. As such, the collected information is necessary to ensure compliance with statutory and regulatory requirements regarding wines premises and to protect the revenue. Additionally, because respondents submit the wine premises application and bond information collections only on an as-needed basis, TTB cannot conduct this collection request less frequently.

7. Are there any special circumstances associated with this information collection that would require it to be conducted in a manner inconsistent with OMB guidelines?

Under 5 CFR 1320.5(d)(2)(iv), requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records, for more than three years is a special circumstance. In the case of this information collection request, the TTB regulations at 27 CFR 24.117, Maintenance of application file, proprietors must maintain a permanent file containing the required wine premises application and bond information, and they must make that file readily available at their premises for inspection by TTB.

8. What effort was made to notify the general public about this collection of information? Summarize the public comments that were received and describe the action taken by the agency in response to those comments.

To solicit comments from the general public regarding the proposed amendments to the information collection requirements contained under this collection approval, TTB will publish in the Federal Register a proposed rule titled “Modernization of Permit Application Requirements for Wine Premises,” which will be open for comment for 60 days.

9. Was any payment or gift given to respondents, other than remuneration of contractors or grantees? If so, why?

No payment or gift is associated with this information collection request.

10. What assurance of confidentiality was provided to respondents, and what was the basis for the assurance in statute, regulations, or agency policy?

TTB provides no specific assurance of confidentiality for this information collection request. A Privacy Act Statement is included on the wine premises application form (TTB F 5120.25), which explains what TTB uses the requested information for and to whom and for what purposes TTB may disclose the information. In addition, Federal law at 5 U.S.C. 552 protects the confidentiality of proprietary information obtained by the Government from regulated businesses and individuals, and 26 U.S.C. 6103 prohibits disclosure of tax returns and tax-related information unless disclosure is specifically authorized by that section. TTB maintains the collected wine premises application and wine bond information in secure computer systems and file rooms with controlled access.

11. What is the justification for questions of a sensitive nature? If personally identifiable information (PII) is being collected in an electronic system, identify the Privacy Impact Assessment (PIA) that has been conducted for the information collected under this request and/or the Privacy Act System of Records notice (SORN) issued for the electronic system in which the PII is being stored.

This information collection request contains no questions of a sensitive nature. However, this request does collect personally identifiable information (PII) in a government electronic system, specifically TTB’s Permits Online (PONL) system. As such, TTB has conducted a Privacy and Civil Liberties Impact Assessment (PCLIA) for PONL, and the collected information is included within TTB’s record system, titled “Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau (TTB) .001—Regulatory Enforcement System of Records.” TTB published a System of Records Notice (SORN) for that system on October 11, 2022, at 87 FR 61435. Links to TTB’s PCLIAs and SORN may be found on the TTB website at https://www.ttb.gov/foia.

12. What is the estimated hour burden of this collection of information?

Estimated Respondent Burden: Based on recent estimates and the expected burden reduction associated with proposed rule described above in this Supporting Statement, TTB estimates the number of annual respondents, responses, and burden hours for this information collection request will be as follows:

Information Collection	Instrument	Respondents	Responses / Respondent	Total Responses	Burden Hour / Response	Total Burden Hours
Wine Premises Applications	TTB F 5120.25*	600	1	600	0.75	450
	Permits Online*	2,400	1	2,400	0.75	1,800
	Wine Bond Exemptions**	1,000	1	1,000	0.75	750
	Subtotals	4,000	1	4,000	(0.75)	3,000
Wine Bond	TTB F 5120.36	360	1	360	1.0	360
	Permits Online	800	1	800	0.75	600
	Subtotals	1,160	1	1,160	(0.8276)	960
TOTALS		5,160	1	5,160	(0.7674)	3,960

*Includes new and amended wine premises applications. **Includes paper form and PONL submissions.

Estimated Respondent Labor Costs: TTB estimates the annual per-respondent and total respondent labor costs for this information collection request as follows:

NAICS 312100 - Beverage Manufacturing – Office & Administrative Support Occupations – Fully-loaded Labor Rate/Hour2 = $34.56*
Information Collection	Avg. Time / Response	Labor Cost / Response	Responses / Respondent	Labor Costs / Respondent	Total Respondents	Total Labor Costs
Wine Premises Applications	0.75 hrs	$25.92	1	$25.92	4,000	$103,680.00
Wine Bond	0.8276 hrs	$28.60	1	$28.60	1,160	$33,176.00
TOTALS:	(0.7674 hrs)	($26.5225)	1	($26.5225)	5,160	$136,856.00

* Labor costs rounded to the nearest whole cent unless otherwise noted.

Respondent Record Retention: Under the TTB regulations at 27 CFR 24.117, Maintenance of application file, wine premises proprietors must maintain a permanent file containing the required wine premises application and bond information, which must be readily available at their premises for inspection by TTB.

13. What is the estimated annual cost burden to respondents or record keepers resulting from this information collection request (excluding the value of the hour burden in Question 12 above)?

TTB believes there are no annualized start-up or ongoing operation or maintenance costs to respondents for this occasional information collection request. As for postage and mailing supply costs, respondents filing wine premises applications or wine bonds have no such costs, while those filing those information collections on paper forms have mailing costs as shown below:

Information Collection	Mailing Cost per Response	Responses Made by Mail*	Total Mailing Costs
Wine Premises Applications (TTB F 5120.25)	$10.00	600	$6,000.00
Wine Bond (TTB F 5120.36)	$2.00	360	$720.00
TOTALS	$7.00	960	$6,720.00

14. What is the annualized cost to the Federal Government?

TTB estimates the annualized costs to the Federal Government for this information collection request as follows:

TTB Overhead Costs for OMB No. 1513–0009
Type of Cost	Cost per Response	Responses	Total Cost
PONL & Other Computer Systems	$1.00	5,160	$5,160.00
Office Supplies	$0.50		$2,580.00
Postage & Mailing Supplies	$2.00	360*	$720.00
Printing & Distribution	0.00	0	0.003
TOTALS	($1.6395)	5,160	$8,460.00

* Within the 5,160 total responses, TTB mails responses to 360 paper submissions of TTB F 5120.36, Wine Bond.

Labor Costs for Personnel at TTB’s National Revenue Center in Cincinnati, Ohio*
Information Collection & Position	Fully-loaded Labor Rate/Hour4	Processing Time per Response	Labor Costs per Response	Total Responses	Total TTB Labor Costs
Wine Premises Applications
GS–5, Step 5, Clerk	$36.50	0.4 hr.	$14.60	4,000	$58,400.00
GS–11, Step 5, Specialist	$66.90	3.0 hr.	$200.70		$802,800.00
GS–13, Step 5, Supervisor	$95.36	0.3 hr.	$28.61		$114,440.00
Subtotal	($65.9216)	3.7 hr.	$243.9100	4,000	$975,640.00
Wine Bond
GS–5, Step 5, Clerk	$36.50	0.1 hr.	$3.65	1,160	$4,234.00
GS–11, Step 5, Specialist	$66.90	0.5 hr.	$33.45		$38,802.00
GS–13, Step 5, Supervisor	$95.36	0.2 hr.	$19.07		$22,121.20
Subtotal	($70.2123)	0.8 hr.	$56.1698	1,160	$65,157.20
TOTALS	($44.8233)	4.5	$201.7049	5,160	$1,040,797.20

* Labor costs rounded to the nearest whole cent, unless otherwise noted.

Total Federal Government Costs: $8,460.00 for overhead and $1,040,797.20 for labor, resulting in a total of $1,049,257.20 in such costs (approximately $212.962 per response for 5,000 responses).

15. What is the reason for any program changes or adjustments reported?

This information collection request, approved under OMB No. 1513–0009, contains two information collections: (1) Application to Establish and Operate Wine Premises, which requires the use of form TTB F 5120.25 or its electronic equivalent in TTB’s Permit’s Online (PONL) system; and (2) Wine Bond, which requires the use of form TTB F 5120.36, which may be submitted to TTB on paper or as an attachment in PONL.

At this time, there are no program changes or adjustments to the Wine Bond information collection. However, while there are no adjustments to the Application to Establish and Operate Wine Premises information collection, there are program changes and resulting estimated burden decreases to the wine premises application information collection due to the proposed rule, “Modernization of Permit Application Requirements for Wine Premises,” as described above.

Program Changes to the Application to Establish and Operate Wine Premises Information Collection.

The following current TTB regulations in 27 CFR chapter I require the use of TTB F 5120.25, Application to Establish and Operate Wine Premises, require supporting data or documents for that application form, or set out other requirements related to the application: 27 CFR 18.40, 19.143, 24.100 – 24.103, 24.105 – 24.115, 24.117, 24.120, 24.122 –24.131, 24.135 – 24.137, and 25.81.

As described above in Question 1, in the proposed rule described above, TTB proposes deregulatory amendments to its regulations to streamline the requirements for new and amended wine premises applications. The TTB proposals also relax certain reporting requirements associated with changes to the business or operations of a wine premises proprietor that currently require the filing of an amended wine premises application. The proposed amendments are intended to reduce the overall respondent burden associated with the wine premises application information collection.

In the proposed rule, TTB proposes to remove, revise, or make conforming amendments to lessen the respondent burden associated with the wine premises application information collection requirements contained in §§ 24.109(h), (j) and (k), 24.110, 24.111, 24.113, 24.120, 24.123, 24.124, 24.130, 24.131, 24.135, 24.136, and 24.137. TTB notes that the proposed amendments to § 24.122 will, instead of requiring proprietors to submit an amended wine premises application before using a new trade name, they will merely require submission of a lower-burden letterhead notice reporting to TTB the use of any new trade name. As a result, TTB proposes to account for the amended change in trade name information collection in § 24.122 under OMB No. 1513–0057, Letterhead Applications and Notices Relating to Wine (TTB REC 5120/2), instead of this collection, OMB No. 1513–0009. (Provisions of § 24.122 related to amended wine premises permits for changes in legal business name will remain accounted under OMB No. 1513–0009.) Similarly, conforming amendments to § 24.130 will revise the reporting requirement for changes to volatile fruit-flavor concentrate production operations from a narrative description attached to an amended wine premises application to a letterhead notice reporting the addition of any stills used in concentrate production. As such, TTB also proposes to account for that letterhead submission under OMB No. 1513–0057 rather than OMB No. 1513–0009.

Program Change Burden Reductions

As a result of the proposed program changes described above, TTB believes that the respondent burden associated with the Application to Establish and Operate Wine Premises information collection will be reduced as follows: (1) While the estimated number of annual responses-per-respondent will remain at one each, the estimated number of annual respondents and responses to that information collection will decrease from 4,640 to 4,000; (2) the estimated per-response burden will decrease from 1 hour (60 minutes) to 0.75 hour (45 minutes); and (3) the estimated total annual burden hours will decrease from 4,640 hours to 3,000, an overall decrease of 1,640 hours.

TTB notes that the decrease in the estimated number of annual respondents filing wine premises applications results from proposed amendments to 27 CFR 24.122 and 24.130, which will require existing wine premises proprietors to submit letterhead notices under OMB No. 1513–0057 regarding changes or additions to trade names and changes in volatile fruit-flavor concentrate operations rather than requiring the submission of an amended wine premises application under this information collection.⁵ The decrease in the per-response burden for the wine premises application results from other regulatory amendments, as described above, that change certain supporting narrative description requirements for a wine premises application to less burdensome information collection methods.

16. Outline plans for tabulation and publication for collections of information whose results will be published.

TTB will not publish the results of this information collection request.

17. If seeking approval to not display the expiration date for OMB approval of this information collection, what are the reasons that the display would be inappropriate?

TTB will display the expiration date for OMB approval of this information collection request on its related collection instruments, TTB F 5120.25 and TTB F 5120.36.

18. What are the exceptions to the certification statement?

There are no exceptions to the certification statement.

B. Collections of Information Employing Statistical Methods.

This information collection request does not employ statistical methods.

1 Under the IRC at 26 U.S.C. 5061(d)(4), to use annual filing, an alcohol excise taxpayer must reasonably expect to be liable for not more than $1,000 in excise taxes for the calendar year and must be liable for not more than $1,000 in such taxes in the preceding calendar year; and, to use quarterly filing, a taxpayer must reasonably expect to be liable for not more than $50,000 in excise taxes for the calendar year and must be liable for not more than $50,000 in such taxes in the preceding calendar year.

2 Private Sector Fully-loaded Labor Rate = Hourly wage x 1.44 to account for benefit costs. Per the most recent U.S. Department of Labor, Bureau of Labor Statistics, data for National Industry-Specific Occupational Employment and Wage Estimates for NAICS 312100—Beverage Manufacturing, the average fully-loaded labor rate per hour for all Office and Administrative Support Occupations (43–0000) is $34.56, based on a mean hourly wage of $24.00. See the Bureau of Labor Statistics website at https://www.bls.gov/oes/current/naics4_312100.htm.

3 TTB’s printing and distribution costs have decreased to $0.00 in this cost estimate due to the use of Permits Online (PONL) for wine premises applications and wine bonds, as well as the availability of TTB forms to the public on the TTB website (http://www.ttb.gov).

4 Federal Government Fully-loaded Labor Rate = Hourly wage rate x 1.63 to account for benefit costs. Per the most recent Office of Personnel Management (OPM) wage data, the fully-loaded labor rates for the Cincinnati, Ohio, area are: (1) GS–5, step 5, employee = $36.50 (based on $22.39/hour); (2) GS–11, step 5, employee = $66.90 (based on $41.04/hour); and (3) GS–13, step 5 employee = $95.36 (based on $58.50/hour). See the OPM website at

https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2024/CIN_h.pdf.

5 While the number of respondents to OMB No. 1513–0057, Letterhead Applications and Notices Relating to Wine (TTB REC 5120/2), will increase by an estimated 640 annually if the proposed rule described in this document is implemented, the per-response burden associated with that letterhead collection is 0.5 hour rather than the 1.0 hour currently associated with the wine premises application information collection contained under OMB No. 1513–0009. Thus, the overall information collection burden associated with reporting changes to trade name(s) and volatile fruit-flavor concentrate operations to TTB by wine premises proprietors will decrease by 320 hours.

OMB No. 1513–0009 Supporting Statement (Wine Permit Modernization NPRM-09-2024)