SEC. 6. DETERMINATION OF TAX.

The first sentence of section 5006(a)(1) is amended to read as follows: `Except as otherwise provided in this section, the tax on distilled spirits shall be determined when the spirits are transferred from a distilled spirits plant to a bonded dealer or are withdrawn from bond.'

SEC. 7. LOSS OR DESTRUCTION OF DISTILLED SPIRITS.

(a) Subsections (a)(1)(A) and (a)(2) of section 5008 are amended by inserting `bonded dealer,' after `distilled spirits plant,'.

(b) Subsection (c)(1) of section 5008 is amended by striking `of a distilled spirits plant under section 5215(a)' and inserting `but only for destruction, denaturation, redistillation, reconditioning, or rebottling'.

(c) Subsection (c)(2) of section 5008 is amended by striking `distilled spirits plant' and inserting `bonded premises'.

SEC. 8. TIME FOR COLLECTING TAX ON DISTILLED SPIRITS.

(a) Section 5061(d) is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph:

`(5) ADVANCED PAYMENT OF DISTILLED SPIRITS TAX- Notwithstanding the preceding provisions of this subsection, in the case of any tax imposed by section 5001 with respect to a bonded dealer who has an election in effect on September 20 of any year, any payment of which would, but for this paragraph, be due in October or November of that year, shall be made on such September 20. No penalty or interest shall be imposed for the period from such September 20 until the due date determined without regard to this paragraph to the extent that tax due exceeds the tax which would have been due with respect to distilled spirits in the preceding October and November had the election under section 5011 been in effect.'

(b) Section 5061(e)(1) is amended by inserting `or any bonded dealer,' after `respectively,'.

SEC. 9. EXEMPTION FROM OCCUPATIONAL TAX NOT APPLICABLE.

Section 5113(a) is amended by adding after the last sentence the following new sentence: `This exemption shall not apply to a proprietor of a distilled spirits plant

whose premises are used for operations of a bonded dealer.'

SEC. 10. TECHNICAL, CONFORMING, AND CLERICAL AMENDMENTS.

(a) TECHNICAL AND CONFORMING AMENDMENTS-

(1) Section 5003(3) is amended by striking `certain'.

(2) Section 5214 is amended by redesignating subsection (b) as subsection (c) and inserting after subsection (a) the following new subsection:

`(b) EXCEPTION- Subsections (a) (1), (2), (3), (5), (10), (11), and (12) of this section shall not apply to distilled spirits withdrawn from premises used for operations as a bonded dealer.'

(3) Section 5215(a) is amended by striking all that follows `bonded premises' and inserting a period.