sons other than, etc.; penalty. 11, 12, and 13. Act March 1, 1879. Im 3320 (amended). Gauging and stamp ing rectified spirits. 1. Act of March 4, 1915. Gauging ported liquor stamps, etc. Act of March 3, 1897. Bottling of distilled spirits in bond. Act of March 1, 1913. Shipments into State, etc., in violation of law thereof prohibited. 5. Act of March 3, 1917. Advertisements in certain States; shipments into States prohibiting sale. 1110. Act of October 3, 1917. Construction of section 5, act of March 3, 1917. 1407. Act of February 24, 1919. Extension of act of March 3, 1917, as amended, to District of Columbia. Act June 7, 1906. alcohol. Act March 2, 1907. Denatured Amendatory of the denatured alcohol act. Act of October 3, 1913. Manufacture by farmers of alcohol for denaturation; special tax on manufacturers of stills; storage cisterns. 603. Act of February 24, 1919. Removal for denaturation free of tax; allowance for leakage, etc. SEC. 3247. Every person who produces distilled spir-Distiller, deflits, or who brews or makes mash, wort, or wash, fit for distillation or for the production of spirits, or who, by any process of evaporization, separates alcoholic spirit from any fermented substance, or who, making or keeping mash, wort, or wash, has also in his possession or use a still, shall be regarded as a distiller. See section 3282 as to vinegar makers and restrictions respecting place of making mash fit for distillation, page 231. To make one in possession of a still a distiller because he keeps mash, wort, or wash, the mash, wort, or wash must be such as will produce spirits on distillation. (United States v. House and Lot No. 3 Abattoir Place; 25 Int. Rev. Rec., 319; Fed. Cas. No. 15166.) When regarded as a mash fit for distillation-so-called pomace wine. (T. D. 1949.) Raisin wine where sugar Distilled spir has been added. (T. D. 2012.) Cider to which sugar has been added to produce fermentation. (T. D. 2675.) All persons having an interest in the business of distilling or directly aiding in the production of spirits for their use or benefit are distillers, and amenable to the provisions of the Internal Revenue laws. (United States v. Howard, Fed. Cas. No. 15401; 11 Int. Rev. Rec., 119.) (15 A corporation may carry on the business of distilling. SEC. 3248. Distilled spirits, spirits, alcohol, and alcoits, definition of holic spirit, within the true intent and meaning of this act, is that substance known as ethyl alcohol, hydrated oxide of ethyl, or spirit of wine, which is commonly produced by the fermentation of grain, starch, molasses, or sugar, including all dilutions and mixtures of this substance; and the tax shall attach to this substance as soon as it is in existence as such, whether it be subsequently separated as pure or impure spirit, or be immediately, or at any subsequent time, transferred into any other substance, either in the process of original production or by any subsequent process. Solidified whiskey. (T. D. 1735.) Extracting spirits from wood. (T. Ds. 1823, 2331, 2565.) When tax attaches. (Greenbrier Distillery Co. v. Johnson, 88 Fed., 638; Clay v. Swope, 53 Fed., 999.) "Pomace or "raisin " wine produced from mash fit for distillation is an alcoholic spirit. (T. D. 1949.) T. D. 1949 explained. (T. Ds. 1972, 2002.) Standard of SEC. 3249. Proof spirit shall be held to be that alcoholic of liquor which contains one-half its volume of alcohol of a proof spirits; prevention frauds. specific gravity of seven thousand nine hundred and thirty-nine ten thousandths (.7939) at sixty degrees Fahrenheit. And for the prevention and detection of frauds by distillers of spirits, the Commissioner of Internal Revenue may prescribe for use such hydrometers, saccharometers, weighing and gauging instruments, or other means for ascertaining the quantity, gravity, and producing capacity of any mash, wort, or beer used, or to be used, in the production of distilled spirits, and the strength and quantity of spirits subject to tax, as he may deem necessary; and he may prescribe rules and regulations to secure a uniform and correct system of inspection, weighing, marking, and gauging of spirits. Meters. (Tice v. United States, 99 U. S., 286; Sausser ↑. United States, 9 Ct. Cls., 338; 11 Id., 538; Finch v. United States, 12 Ct. Cls., 364; 102 U. S. (12 Otto), 269; 26 Int. Rev. Rec., 410.) By the act of June 6, 1872 (17 Stat., 239), all the provisions of the act of July 20, 1868, touching meters were repealed. On the 1st of May, 1892, the method of gauging of spirits by rod, theretofore used, was changed to a weighing system, by which the number of wine gallons contents is determined by the weight of the package. Weighing beams are furnished for the use of distilleries and rectifying houses, and their use made obligatory, except at fruit distilleries of a production of less than 10,000 proof gallons during the season, and at rectifying houses rectifying less than 5,000 Weighing spirits: Commissioner's annual report (1892). Circular No. 218, August 1, 1879, authorizes the outage of packages of less than 63 gallons capacity to be 1 gallon where Corey's apparatus for aging whisky and other spirits in distillery warehouses is used, and modifies Circular No. 180 accordingly. (25 Int. Rev. Rec., 245.) See Gaugers' Manual, 1906, for rule applicable to all apparatus for aging whisky, which has been approved by the Commissioner. The Internal Revenue Gaugers' Weighing Manual, 1911, What is the meaning of the term "Whisky" under the (De 66 Proof defined. (Louisville Public Warehouse Co. v. Collector of Customs, 49 Fed., 561.) "Specific gravity defined. (Louisville Public Warehouse Co. v. Collector of Customs, 49 Fed., 561.) Directions for taking gravity of distillery beer and slop. (T. D. 1840.) Meters, tanks, SEC. 607. [Act of February 24, 1919 (40 Stat., 1057).] That the Commissioner, with the approval of the Secre- pipes, etc. tary is hereby authorized to require at distilleries, breweries, rectifying houses, and wherever else in his judgment such action may be deemed advisable, the installation of meters, tanks, pipes, or any other apparatus for the purpose of protecting the revenue, and such meters, tanks, and pipes and all necessary labor incident thereto shall be at the expense of the person on whose premises the installation is required. Any such person refusing or neglecting to install such apparatus when so required by the Commissioner shall not be permitted to conduct business on such premises. seals at fruit SEC. 621. [Act of February 24, 1919 (40 Stat., 1057).] Meters, locks, That the Commissioner, by regulations to be approved by distilleries. the Secretary, may require the use at each fruit distillery of such spirit meters, and such locks and seals to be affixed to fermenters, tanks, or other vessels and to such pipe connections as may in his judgment be necessary or expedient, and is hereby authorized to assign to any such distillery and to each winery where wines are to be fortified such. number of gaugers or storekeeper-gaugers in the capacity of gaugers as may be necessary for the proper supervision of the manufacture of brandy or the making or fortifying of wines subject to tax imposed by this section; and the compensation of such officers shall not exceed $5 per diem while so assigned, together with their actual and necessary traveling expenses, and also a reasonable allowance for their board bills, to be fixed by the Commissioner, with the approval of the Secretary, but not to exceed $2.50 per diem for such board bills. Gallon as used in sales, definition of. Repealed by sec. 48, act Obsolete. of SEC. 3250. In all sales of spirits a gallon shall be held to be a gallon of proof spirit, according to the standard prescribed in the preceding section, set forth and declared for the inspection and gauging of spirits throughout the United States. See definition of gallon, as relates to fermented liquors, in section 21, act of March 1, 1879. (See p. 310.) SEC. 3251. [Amended by sec. 1, act of March 3, 1875 Aug. 28, 1894. (18 Stat., 339).] [There shall be levied and collected on all distilled spirits produced in the United States on which the tax prescribed by law has not been paid, a tax of ninety cents on each proof gallon, or wine gallon when below proof, to be paid by the distiller, owner, or person having possession thereof before removal from the distillery bonded warehouse: Provided, That distilled spirits lawfully deposited in a distillery bonded warehouse prior to the first day of August, eighteen hundred and seventy-two may be withdrawn on payment of the taxes thereon at the rate, within the time, and in the manner provided by law at the time of such deposit.] The tax on such spirits shall be collected on the whole number of gauge or wine gallons when below proof, and shall be increased in proportion for any greater strength than the strength of proof spirit, as defined in this title; [and any fractional part of a gallon amounting to onehalf gallon or over in a cask or package shall be taxed as a gallon, and any fractional part of a gallon less than one-half gallon in any cask or package shall be exempt from tax]. Every proprietor or possessor of, and every person in any manner interested in the use of, any still, distillery, or distilling apparatus, shall be jointly and severally liable for the taxes imposed by law on the distilled spirits produced therefrom, and the tax shall be a first lien on the spirits distilled, the distillery used for distilling the same, the stills, vessels, fixtures, and tools therein, the lot or tract of land whereon the said distillery is situated, and on any building thereon from the time said spirits are in existence as such until the said tax is paid. Lien. Part in brackets repealed by act of August 27, 1894. Fractional parts of a gallon. (See p. 193.) The stockholders of a corporation engaged in operating a distillery are "persons interested in the use of the distillery," within the meaning of section 3251, which declares that every proprietor and possessor, "and every person in any manner interested in the use of" a distillery, shall be jointly and severally liable for the taxes imposed by law on the distilled spirits produced therefrom. (United States v. Wolters, 46 Fed., 509; United States v. Howard, 11 Int. Rev. Rec., 119; Wood v. United States, 204 Fed., 55; T. D. 1836.) When tax becomes due. (United States Fidelity & Guaranty Co. of Baltimore v. United States, 220 Fed., 592.) Taxability of persons selling warehouse receipts. (T. D. 2784.) Drawing samples from packages after they have been regauged and before arrival of tax-paid stamps is unauthorized. (T. D. 2397.) Tax SEC. 48. [Act of August 27, 1894 (28 Stat., 509).] That. on and after the passage of this act there shall be levied and collected on all distilled spirits in bond at that time, till spirits. or that have been or that may be then or thereafter produced in the United States, on which the tax is not paid before that day, a tax of one dollar and ten cents on each proof gallon, or wine gallon when below proof, and a proportionate tax at a like rate on all fractional parts of such proof or wine gallon: Provided, That in computing the tax on any package of spirits all fractional parts of a gallon, less than one tenth, shall be excluded. dis Fractional gallons. The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe and furnish suitable stamps denoting the payment of the internal-revenue tax imposed by this section; and until such stamps are prepared and furnished, the stamps now used to denote the payment of the internal-revenue tax on distilled spirits shall be affixed to all packages containing distilled spirits on which the tax imposed by this section is paid; and the Commissioner of Internal Revenue shall, by assessment or otherwise, cause to be collected the tax on any fractional gallon contained in each of such packages as ascertained by the original gauge, or the tax. regauge when made, before or at the time of removal of such packages from warehouse or other place of storage; and all provisions of existing laws relating to stamps denoting the payment of internal-revenue tax on distilled spirits, so far as applicable, are hereby extended to the stamps provided for in this section. Collection of Laws applicable. That the tax herein imposed shall be paid by the distiller of the spirits, on or before their removal from the distillery or place of storage, except in case the removal therefrom without payment of tax is authorized by law; and (upon spirits lawfully deposited in any distillery warehouse, or other bonded warehouse, established under internal-revenue laws) within eight years from the date Tax to be paid of the original entry for deposit in any distillery ware- within house, or from the date of original gauge of fruit brandy years. deposited in special-bonded warehouse, except in case of withdrawal therefrom without payment of tax as authorized by law. Apple brandy included in term distilled spirits. (United SEC. 600. [Act of February 24, 1919 (40 Stat., 1057).] (a) That there shall be levied and collected on all distilled spirits now in bond or that have been or that may be hereafter produced in or imported into the United States, except such distilled spirits as are subject to the tax provided in section 604, in lieu of the internal-revenue taxes now imposed thereon by law, a tax of $2.20 (or, if 140184°-2013 by the distiller eight Tax on distilled spirits. |