Sec. 7. Implementation of excise tax
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/bill/116/s/2519/is/section-7A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Any person who— on the date of the enactment of this Act, is engaged in business as a manufacturer of electronic nicotine delivery systems or e-liquids; and before the applicable date, submits an application under subchapter B of chapter 52 of the Internal Revenue Code of 1986 to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of chapter 52 of such Code shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit to manufacture electronic nicotine delivery systems or e-liquids under such chapter 52.
On electronic nicotine delivery systems or e-liquids manufactured in or imported into the United States which are removed before the applicable date and held on such date for sale by any person, there is hereby imposed a tax in an amount equal to the tax which would be imposed under section 5701 of the Internal Revenue Code of 1986 on the article if the article had been removed on such applicable date. A person holding electronic nicotine delivery systems or e-liquids on the applicable date to which any tax imposed by paragraph
(1)applies shall be liable for such tax. The tax imposed by paragraph
(1)shall be paid in such manner as the Secretary shall prescribe by regulations. The tax imposed by paragraph
(1)shall be paid on or before the date that is 120 days after the applicable date. Notwithstanding the Act of June 18, 1934 (commonly known as the Foreign Trade Zone Act, 48 Stat. 998, 19 U.S.C. 81a et seq.), or any other provision of law, any article which is located in a foreign trade zone on any tax increase date shall be subject to the tax imposed by paragraph
(1)if— internal revenue taxes have been determined, or customs duties liquidated, with respect to such article before such date pursuant to a request made under the 1st proviso of section 3(a) of such Act; or such article is held on such date under the supervision of an officer of the United States Customs and Border Protection of the Department of Homeland Security pursuant to the 2d proviso of such section 3(a). Rules similar to the rules of section 5061(e)(3) of the Internal Revenue Code of 1986 shall apply for purposes of this subsection. All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5701 of the Internal Revenue Code of 1986 shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1), to the same extent as if such taxes were imposed by such section 5701. The Secretary may treat any person who bore the ultimate burden of the tax imposed by paragraph
(1)as the person to whom a credit or refund under such provisions may be allowed or made. For purposes of this section— Any term used in this section which is also used in section 5701 or 5702 of the Internal Revenue Code of 1986 shall have the same meaning as such term has in such section. The term applicable date means the day after the date which is 90 days after the date of enactment of this Act. The term Secretary means the Secretary of the Treasury or the Secretary’s delegate.
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