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

Forms and Documents

Document Name	Status
07-05-2017 Revised 1513-NEW SS (Carbon Dioxide Record).docx Supporting Statement A	2017-07-17

IC Document Collections

IC ID	Document Title	Status
224691	Record of Carbon Dioxide Measurement in Effervescent Products Taxed as Hard Cider	New

ICR Details

OMB Control No: 1513-0139	ICR Reference No: 201708-1513-012
Status: Historical Active	Previous ICR Reference No: 201612-1513-011
Agency/Subagency: TREAS/TTB	Agency Tracking No: PATH (Cider) 2/3
Title: Record of Carbon Dioxide Measurement in Effervescent Products Taxed as Hard Cider
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 08/23/2017
	Date Received in OIRA: 08/23/2017
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	08/31/2020	36 Months From Approved
Responses	13,700	0	0
Time Burden (Hours)	58,225	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: 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).

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Authorizing Statute(s): US Code: 26 USC 5041 Name of Law: Internal Revenue Code
   US Code: 26 USC 5368(b) Name of Law: Internal Revenue Code
  

Citations for New Statutory Requirements: PL: Pub.L. 114 - 113 335 (Div. Q) Name of Law: PATH Act

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1513-AC30	Final or interim final rulemaking	82 FR 7653	01/23/2017

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

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

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ICR Summary of Burden

	Total Approved	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

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: 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.)

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 12/29/2016

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