The Secretary shall withhold 10 per centum of the amount required to be apportioned to any104(b)(1), 104(b)(3), and 104(b)(4) [1] of this title on the first day of each fiscal year after the second fiscal year beginning after September 30, 1985 , in which the purchase or public possession in such (B) Fiscal year 2012 and thereafter.—
For fiscal year 2012 and each fiscal year thereafter, the amount to be withheld under this section shall be an amount equal to 8 percent of the amount apportioned to the noncompliant State, as described in subparagraph (A), under paragraphs (1) and (2) of section 104(b).
(2) State grandfather law as complying.—If, before the later of (A) October 1, 1986 , or (B) the tenth day following the last day of the first session the legislature of a State), such (b) Effect of Withholding of Funds.—
(c) Alcoholic Beverage Defined.— As used in this section, the term “alcoholic beverage” means— beer as defined in section 5052(a) of the Internal Revenue Code of 1986, wine of not less than one-half of 1 per centum of alcohol by volume, or distilled spirits as defined in section 5002(a)(8) of such Code.The date of the enactment of this paragraph, referred to in subsec. (a)(2), is the date of enactment of Pub. L. 99–272, which was approved Apr. 7, 1986 .
The Internal Revenue Code of 1986, referred to in subsec. (c), is set out in Title 26, Internal Revenue Code.
Amendments2012—Subsec. (a)(1). Pub. L. 112–141 designated existing provisions as subpar. (A), inserted subpar. heading, and added subpar. (B).
1998—Subsec. (a)(1). Pub. L. 105–178, § 1103(l)(2)(A)(i)–(iii), redesignated par. (2) as (1), substituted “In general” for “After the first year” in heading and “104(b)(3), and 104(b)(4)” for “104(b)(2), 104(b)(5), and 104(b)(6)” in text, and struck out former par. (1) which read as follows:
“(1) First year .—The104(b)(1), 104(b)(2), 104(b)(5), and 104(b)(6) of this title on the first day of the fiscal year succeeding the first fiscal year beginning after September 30, 1985 , in which the purchase or public possession in suchSubsec. (a)(2), (3). Pub. L. 105–178, § 1103(l)(2)(A)(ii), (iv), redesignated par. (3) as (2) and substituted “paragraph (1)” for “paragraphs (1) and (2) of this subsection”. Former par. (2) redesignated (1).
Subsec. (b). Pub. L. 105–178, § 1103(l)(2)(B), added subsec. (b) and struck out heading and text of former subsec. (b) which related to period of availability forPub. L. 99–272, § 4104(d)(1), added subsection heading.
Subsec. (a)(1). Pub. L. 99–272, § 4104(d)(2)–(4), added paragraph heading, aligned margins, and inserted “first” before “fiscal year beginning”.
Subsec. (a)(2). Pub. L. 99–272, § 4104(a), (d)(3), (5), added paragraph heading, realigned margins, and substituted “each fiscal year after” for “the fiscal year succeeding”.
Subsec. (b). Pub. L. 99–272, § 4104(c), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “ThePub. L. 99–272, § 4104(d)(6), added subsection heading.
Statutory Notes and Related Subsidiaries Effective Date of 2012 AmendmentAmendment by Pub. L. 112–141 effective Oct. 1, 2012 , see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of this title.