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

Forms and Documents

Document Name	Status
OMB No. 1513-0139 Supporting Statement (10-2023).docx Supporting Statement A	2023-10-06

IC Document Collections

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

ICR Details

OMB Control No: 1513-0139	ICR Reference No: 202309-1513-005
Status: Received in OIRA	Previous ICR Reference No: 202008-1513-001
Agency/Subagency: TREAS/TTB	Agency Tracking No: ICN 90 - 7/9
Title: Record of Carbon Dioxide Measurement in Effervescent Products Taxed as Hard Cider
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 10/30/2023

	Requested	Previously Approved
Expiration Date	36 Months From Approved	10/31/2023
Responses	400	20,500
Time Burden (Hours)	1,000	87,125
Cost Burden (Dollars)	32,160	2,242,500

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Abstract: The Internal Revenue Code (IRC), at 26 U.S.C. 5041, defines and imposes six Federal excise tax rates on wine, which vary by the wine’s alcohol and carbon dioxide content. Wines with no more than 0.392 grams of carbon dioxide per 100 milliliters are taxed as still wine at $1.07, $1.57, or $3.15 per gallon, depending on their alcohol content, while wines with more than 0.392 grams of carbon dioxide per 100 milliliters are taxed as effervescent wine at $3.30 per gallon if artificially carbonated or $3.40 per gallon if naturally carbonated. However, under those IRC provisions, certain apple- and pear-based wines are subject to the “hard cider” tax rate of $0.226 per gallon if the product contains no more than 0.64 grams of carbon dioxide per 100 milliliters of wine and does not exceed 8.5 percent alcohol by volume. Given the significant difference in those excise tax rates which, in part, depend on the level of a wine's effervescence, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations at 27 CFR 24.302 require proprietors who produce or receive effervescent hard cider to record the amount of carbon dioxide in the product. This recordkeeping requirement is necessary to protect the revenue as it allows TTB to verify during field audits a respondent's compliance with the statutory definition of wine eligible for the hard cider tax rate.

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

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	88 FR 47235	07/21/2023
30-day Notice:	Federal Register Citation:	Citation Date:
	88 FR 74243	10/30/2023
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 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	400	20,500	0	0	-20,100	0
Annual Time Burden (Hours)	1,000	87,125	0	0	-86,125	0
Annual Cost Burden (Dollars)	32,160	2,242,500	0	0	-2,210,340	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: There are no program changes associated with this information collection at this time. As for adjustments, due to changes in agency estimates based on recent data, TTB is decreasing the estimated number of annual respondents to this information collection, from 820 to 100, is decreasing the estimated number of annual responses per respondent, from 25 to 4, and is decreasing the time required to complete one response, from 4.25 hours to 2.5 hours. Because this information collection is relatively new, TTB previously over-estimated the number of hard cider producers required to respond to this collection, the number of annual responses made by each respondent, and the time required to complete a response. In turn, those adjustments decrease this collection’s estimated number of annual responses, from 20,500 to 400, and, in turn, decrease its estimated burden hours, from 87,125 to 1,000. In addition, those burden decreases lower TTB’s estimate of respondent labor and non-labor costs for this information collection.

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Annual Cost to Federal Government: $0

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     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? No

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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: 10/30/2023

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