1

who deals in, dispenses, or gives away marihuana, $3 per year: Provided, That any person who has registered and paid the special tax as an importer, manufacturer, compounder, or producer, as required by paragraphs 1 (1) and (2) of this subsection, may deal in, dispense, or give away marihuana imported, manufactured, compounded, or produced by him without further payment of the tax imposed by this section;

(6) MILLERS. Any person who at a mill manufactures or produces from the plant Cannabis sativa L. any fiber or fiber products, $1 per year, or fraction thereof, during which he engages in such activities.

(b) COMPUTATION OF TAX.-Where a tax under paragraph 2 (1) or (5) of subsection (a) is payable on July 1 of any year it shall be computed for one year; where any such tax is payable on any other day it shall be computed proportionately from the first day of the month in which the liability for the tax accrued to the following July 1.

(c) LIABILITY IN CASE OF ACTIVITIES IN MORE THAN ONE PLACE.In the event that any person subject to a tax imposed by this section engages in any of the activities enumerated in subsection (a) of this section at more than one place, such person shall pay the tax with respect to each such place.

(d) LIABILITY IN CASE OF MORE THAN ONE ACTIVITY BY SAME PERSON AT SAME TIME.-Except as otherwise provided, whenever more than one of the activities enumerated in subsection (a) of this section is carried on by the same person at the same time, such person shall pay the tax for each such activity, according to the respective rates prescribed.

SEC. 3231. REGISTRATION.

(a) IN GENERAL.-Any person subject to the tax imposed by section 3230 shall, upon payment of such tax, register his name or style and his place or places of business with the collector of the district in which such place or places of business are located.

(b) SPECIAL REQUIREMENTS FOR MILLERS.-The Secretary shall not permit the registration of any person under this section as a person required to pay the tax imposed by section 3230 (a) (6), unless in the opinion of the Secretary such person (or if a corporation, each officer thereof) is a person of good moral character and unless in the opinion of the Secretary such person is a person of suitable financial standing, intends to engage in good faith in the business of manufacturing or producing fiber or fiber products from the plant Cannabis sativa L. on a commercial basis, and is not seeking registration under this section for the purpose of facilitating the unlawful diversion of marihuana. Any person who is registered under this section and has paid the tax imposed by section 3230 (a) (6) shall afford agents of the Bureau of Narcotics ready access at all times to any part of the premises of the mill or other premises of such person and the right to inspect any and all books, papers, records, or documents connected with the activities of such person in dealing in, manufacturing, and 1 The statute reads "subdivisions".

The statute reads "subdivision".

processing Cannabis sativa L. and fiber or fiber products thereof, and the handling of marihuana. The Secretary may cancel or may refuse to renew, after notice and opportunity for hearing, the registration of any such person if he finds that such person has not complied or is not complying with the requirements of this subsection, or if he finds that grounds exist which would justify the refusal to permit the original registration of such person under this section.

SEC. 3232. EXEMPTION FROM TAX AND REGISTRATION.

(a) EMPLOYEES.-No employee of any person who has paid the special tax and registered, as required by sections 3230 and 3231, acting within the scope of his employment, shall be required to register and pay such special tax.

(b) GOVERNMENT AND STATE OFFICIALS.

(1) IN GENERAL.-An officer or employee of the United States, any State, Territory, the District of Columbia, or insular possession, or political subdivision, who, in the exercise of his official duties, engages in any of the activities enumerated in section 3230 shall not be required to register or pay the special tax, but his right to this exemption shall be evidenced in such manner as the Secretary may by regulations prescribe.

(2) CROSS REFERENCE.

For authority of the President to issue Executive orders providing for the registration and the imposition of special taxes upon persons in the Virgin Islands, see section 2603 (b).

SEC. 3233. RETURNS.

(a) REGISTRANTS.-Any person who shall be registered under the provisions of section 3231 in any internal revenue district shall, whenever required so to do by the collector of the district, render to the collector a true and correct statement or return, verified by affidavits, setting forth the quantity of marihuana received or harvested by him during such period immediately preceding the demand of the collector, not exceeding three months, as the said collector may fix and determine. If such person is not solely a producer, he shall set forth in such statement or return the names of the persons from whom said marihuana was received, the quantity in each instance received from such persons, and the date when received.

(b) PERSONS LIABLE FOR TAX.

For general requirement as to records, statements, and returns in the case of persons liable for tax, see section 2594.

SEC. 3234. UNLAWFUL ACTS IN CASE OF FAILURE TO REGISTER AND PAY SPECIAL TAX.

(a) TRAFFICKING.

(1) LIABILITY. It shall be unlawful for any person required to register and pay the special tax under the provisions of sections 3230 and 3231 to import, manufacture, produce, compound, sell, deal in, dispense, distribute, prescribe, administer, or give away marihuana without having so registered and paid such tax.

(2) ENFORCEMENT OF LIABILITY. In any suit or proceeding to enforce the liability imposed by this section or sections 3230 and 3231, if proof is made that marihuana was at any time growing upon land under the control of the defendant, such proof shall

be presumptive evidence that at such time the defendant was a producer and liable under this section as well as under sections 3230 and 3231.

(b) TRANSPORTATION.-It shall be unlawful for any person who shall not have paid the special tax and registered, as required by sections 3230 and 3231, to send, ship, carry, transport, or deliver any marihuana within any Territory, the District of Columbia, or any insular possession, or from any State, Territory, the District of Columbia, any insular possession of the United States, or the Canal Zone, into any other State, Territory, the District of Columbia, or insular possession of the United States: Provided, That nothing contained in this section shall apply to any common carrier engaged in transporting marihuana; or to any employee of any person who shall have registered and paid the special tax as required by sections 3230 and 3231, while acting within the scope of his employment; or to any person who shall deliver marihuana which has been prescribed or dispensed by a physician, dentist, veterinary surgeon, or other practitioner registered under section 3231, who has been employed to prescribe for the particular patient receiving such marihuana; or to any United States, State, county, municipal, District, Territorial, or insular officer or official acting within the scope of his official duties.

SEC. 3235. PENALTIES.

For penalties for violating or failing to comply with any of the provisions of this part, see section 2596.

SEC. 3236. LIST OF SPECIAL TAXPAYERS.

Collectors are authorized to furnish, upon written request, to any person a certified copy of the names of any or all persons who may be listed in their respective collection districts as special taxpayers under section 3230, upon payment of a fee of $1 for each 100 of such names or fraction thereof upon such copy so requested.

SEC. 3237. OTHER LAWS APPLICABLE.

All provisions of law (including penalties) applicable in respect of the taxes imposed by sections 2550 and 3220 shall, insofar as not inconsistent with this part, be applicable in respect of the taxes imposed by this part.

SEC. 3238. DEFINITIONS.

When used in this part and subchapter C of chapter 23—

(a) PERSON.-The term "person" means an individual, a partnership, trust, association, company, or corporation, and includes an officer or employee of a trust, association, company, or corporation, or a member or employee of a partnership, who, as such officer, employee, or member, is under a duty to perform any act in respect of which any violation of this part or subchapter C of chapter 23 occurs.

(b) MARIHUANA.-The term "marihuana" means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds, or resin; but shall not include the mature stalks of such plant, fiber produced from such stalks, oil or cake made from the seeds of such plant, any other compound, manufacture, salt, deriv

ative, mixture, or preparation of such mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of such plant which is incapable of germination.

(c) PRODUCER.-The term "producer" means any person who (1) plants, cultivates, or in any way facilitates the natural growth of marihuana; or (2) harvests and transfers or makes use of marihuana.

(d) TRANSFER OR TRANSFERRED.-The term "transfer" or "transferred" means any type of disposition resulting in a change of possession but shall not include a transfer to a common carrier for the purpose of transporting marihuana.

SEC. 3239. CROSS REFERENCE.

For provisions authorizing seizure and confiscation of marihuana from 1 persons violating this part, see section 2598 of chapter 23.

For provisions giving the Secretary authority to prescribe rules and regulations to enforce this part, see section 2599 of chapter 23.

For authority of the Secretary to delegate the powers conferred on him by this part to officers and employees of the Treasury Department, see section 2600 of chapter 23.

For the territorial extent of this part, see section 2602 of chapter 23. For administration of the special taxes in Puerto Rico, see section 2603 (a) of chapter 23.

For burden of proof in the case of exemptions in this part, see section 2597 of chapter 23.

SEC. 3250. TAX.

Part VII-Liquor

(a) WHOLESALE DEALERS IN LIQUORS.

(1) IN GENERAL.-Wholesale dealers in liquors shall pay a special tax of $110.

(2) WHOLESALE DEALERS IN LIQUORS DEALING IN WINES OR

WINES AND MALT LIQUORS.

For the designation of wholesale dealers in liquors as wholesale dealers in wines or wholesale dealers in wines and malt liquors, and the issuance of the appropriate special tax stamps, see section 3254 (b). (3) RETAILERS SELLING AT WHOLESALE. Except as provided in section 3254 (c) (2), a qualified retail dealer in liquors may not sell distilled spirits, wines, or malt liquors in quantities of five wine gallons or more to the same person at the same time without incurring liability to special tax as a wholesale dealer in liquors.

(4) DISTILLERS SELLING AT WHOLESALE.-No distiller who has given the required bond and who sells only distilled spirits of his own production at the place of manufacture, or at the place of storage in bond, in the original packages to which the tax-paid stamps are affixed, shall be required to pay the special tax of a wholesale dealer in liquors on account of such sales.

(5) RETAIL DEALERS IN LIQUIDATION.

For exemption of retailers liquidating entire stock from payment. of special tax as wholesalers, see section 3251 (c).

(6) CREDITORS,

PARTNERS.

FIDUCIARIES, OFFICERS OF COURT, AND

For exemption of creditors, fiduciaries, officers of court, and partners. from the payment of any special tax by reason of casual sales, see section 3251 (a) and (b).

(b) RETAIL DEALERS IN LIQUORS.

(1) IN GENERAL. -Except as provided in paragraph (3) of subsection (e), retail dealers in liquors shall pay a special tax of $27.50.

(2) RETAIL DRUG STORES OR PHARMACIES.-The tax required to be paid by paragraph (1) shall, in the case of a retail drug store or pharmacy making sales of liquors through a duly licensed pharmacist be designated as a "medicinal spirits stamp tax.” (3) RETAIL DEALERS IN LIQUORS DEALING IN WINES OR WINES

AND MALT LIQUORS.

For the designation of retail dealers in liquors as retail dealers in wines and malt liquors, and the issuance of appropriate special tax stamps, see section 3254 (c) (1).

(4) WHOLESALERS SELLING AT RETAIL. A qualified wholesale dealer in liquors may not sell distilled spirits, wines, or malt liquors in quantities of less than five wine gallons without incurring liability to special tax as a retail dealer in liquors.

(5) CREDITORS,

PARTNERS.

FIDUCIARIES, OFFICERS OF COURT, AND

For exemption of creditors, fiduciaries, officers of court, and partners from the payment of any special tax by reason of casual sales, see section 3251 (a) and (b).

(c) BREWERS.

(1) IN GENERAL.-Brewers shall pay $110 in respect of each brewery: Provided, That any brewer of less than 500 barrels a year shall pay the sum of $55.

(2) CROSS REFERENCE.

For effect upon special tax of purchases or sales of malt liquors by brewers, see paragraph (3) of subsection (d).

(d) WHOLESALE DEALERS IN MALT LIQUORS.—

(1) IN GENERAL.-Wholesale dealers in malt liquors shall pay a special tax of $55.

(2) RETAILERS SELLING AT WHOLESALE. A qualified retail dealer in malt liquors may not sell such liquors in quantities of five gallons or more to the same person at the same time without incurring liability to special tax as a wholesale dealer in malt liquors. No retail dealer in malt liquors shall be held to be a wholesale dealer in malt liquors solely by reason of sales of five gallons or more to the same person at the same time if such sales are for immediate consumption on the premises where sold.

(3) BREWERS SELLING AT WHOLESALE.-No brewer shall be obliged to pay special tax as a dealer by reason of selling in the original stamped hogsheads, barrels, or kegs, whether at the place of manufacture or elsewhere, malt liquors manufactured by him, or purchased and procured by him in his own hogsheads, barrels, or kegs, under provisions of section 3155 (f), but the quantity of malt liquors so purchased shall be included in calculating the liability to brewers' special tax of both the brewer who manufactures and sells the same and the brewer who purchases the

same.

(4) RETAIL DEALERS IN LIQUIDATION.

For exemption of retailers liquidating entire stock from payment of special tax as wholesalers, see section 3251 (c).