Record of Carbon Dioxide Measurement in Effervescent Products Taxed as Hard Cider

ICR 201612-1513-011

OMB: 1513-0139

Federal Form Document

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Name
Status
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ICR Details
1513-0139 201612-1513-011
Historical Inactive
TREAS/TTB PATH (Cider) 2/3
Record of Carbon Dioxide Measurement in Effervescent Products Taxed as Hard Cider
New collection (Request for a new OMB Control Number)   No
Regular
Preapproved 07/21/2017
Retrieve Notice of Action (NOA) 12/29/2016
  Inventory as of this Action Requested Previously Approved
07/31/2020 36 Months From Approved
13,700 0 0
58,225 0 0
0 0 0

On December 18, 2015, the President signed into law the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), Pub. L. 144–113. Section 335(a) of the PATH Act amends the Internal Revenue Code of 1986 (IRC) at 26 U.S.C. 5041 by modifying the definition of hard cider for purposes of applying the hard cider excise tax rate. Pursuant to section 335(b) of the PATH Act, the amendment of the definition of hard cider applies to such products removed on or after January 1, 2017. The PATH Act does not change the tax rate applicable to wine eligible for the hard cider tax rate; rather, it broadens the range of products to which the hard cider tax rate applies. Among other things, beginning January 1, 2017, the percentage of alcohol by volume and the amount of carbon dioxide allowed in wine that falls within the hard cider tax-class will increase. In response to the PATH Act, 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 27 CFR 24.302 by adding a new paragraph (k) to require industry members to record the amount of carbon dioxide in their artificially carbonated hard cider or naturally sparkling hard cider. TTB has determined that this recordkeeping requirement is necessary to protect the revenue and demonstrate compliance with the statutory requirements regarding products eligible for the hard cider tax rate because: (1) The PATH Act raises the allowable carbon dioxide in hard cider tax rate-eligible products from no more than 0.392 gram per 100 milliliters to no more than 0.64 gram per 100 milliliters; and (2) The tax-rate differential between hard cider, at $0.226 per wine gallon, and that of artificially carbonated wine, at $3.30 per wine gallon, and that of champagne and other naturally sparkling wines, at $3.40 per wine gallon, is substantial (see 26 U.S.C. 5041(b)(4)) and (b)(5).

US Code: 26 USC 5041 Name of Law: Internal Revenue Code
   US Code: 26 USC 5368(b) Name of Law: Internal Revenue Code
  
PL: Pub.L. 114 - 113 335 (Div. Q) Name of Law: PATH Act

1513-AC30 Final or interim final rulemaking

No

1
IC Title Form No. Form Name
Record of Carbon Dioxide Measurement in Effervescent Products Taxed as Hard Cider

  Total Request Previously Approved Change Due to New Statute Change Due to Agency Discretion Change Due to Adjustment in Estimate Change Due to Potential Violation of the PRA
Annual Number of Responses 13,700 0 13,700 0 0 0
Annual Time Burden (Hours) 58,225 0 58,225 0 0 0
Annual Cost Burden (Dollars) 0 0 0 0 0 0
No
No
TTB is requesting to implement this information collection on an immediate basis in relation to a TTB temporary rule that we are issuing in response to the Protecting Americans from Tax Hikes Act of 2015 (PATH Act; Division Q of Pub. Law 114–113). This rulemaking implements section 335 of the PATH Act, which amends the Internal Revenue Code to modify the definition of wines eligible for the hard cider tax rate of $0.226 per wine gallon. As a result, TTB is making a program change by revising § 24.302 to require that the amount of carbon dioxide in artificially carbonated hard cider or sparkling hard cider be included in the effervescent wine record. (This is a new collection; therefore, there are no adjustments.)

$0
No
No
No
No
No
Uncollected
Kara Fontaine 202 453-2103 [email protected]

  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.
12/29/2016


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