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Distilled Spirits Tax Changes: Support for Puerto Rico and Virgin Islands

This bill modifies how distilled spirits tax revenues are transferred to Puerto Rico and the Virgin Islands. This means more of these tax funds could stay in these territories, potentially impacting their local budgets and projects, including environmental conservation in Puerto Rico.
Key points
Removes limits on the transfer of distilled spirits taxes to Puerto Rico and the Virgin Islands, potentially increasing their revenues.
A portion of rum tax revenues transported to the U.S. will be mandatorily transferred to Puerto Rico's conservation trust fund, supporting local environmental efforts.
The changes apply retroactively, potentially affecting tax calculations from late 2021.
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Additional Information
To amend the Internal Revenue Code of 1986 to modify the cover over of certain distilled spirits taxes.
Print number: HR 3146
Sponsor: Rescom. González-Colón, Jenniffer [R-PR-At Large]
Process start date: 2023-05-09