§ 618. — Existing contracts; imposition of tax on vendee; collection.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC618]
TITLE 7--AGRICULTURE
CHAPTER 26--AGRICULTURAL ADJUSTMENT
SUBCHAPTER III--COMMODITY BENEFITS
Sec. 618. Existing contracts; imposition of tax on vendee;
collection
(a) If (1) any processor, jobber, or wholesaler has, prior to the
date a tax with respect to any commodity is first imposed under this
chapter, made a bona fide contract of sale for delivery on or after such
date, of any article processed wholly or in chief value from such
commodity, and if (2) such contract does not permit the addition to the
amount to be paid thereunder of the whole of such tax, then (unless the
contract prohibits such addition) the vendee shall pay so much of the
tax as is not permitted to be added to the contract price.
(b) Taxes payable by the vendee shall be paid to the vendor at the
time the sale is consummated and shall be collected and paid to the
United States by the vendor in the same manner as other taxes under this
chapter. In case of failure or refusal by the vendee to pay such taxes
to the vendor, the vendor shall report the facts to the Commissioner of
Internal Revenue who shall cause collections of such taxes to be made
from the vendee.
(May 12, 1933, ch. 25, title I, Sec. 18, 48 Stat. 41.)
Separability
Validity of remainder of this chapter as not affected should any of
the provisions of this chapter be declared unconstitutional, see section
614 of this title.
Transfer of Functions
Functions of all officers of Department of the Treasury, and
functions of all agencies and employees of such Department, transferred,
with certain exceptions, to Secretary of the Treasury, with power vested
in him to authorize their performance or performance of any of his
functions, by any of such officers, agencies, and employees, by 1950
Reorg. Plan No. 26, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64
Stat. 1280, set out in the Appendix to Title 5, Government Organization
and Employees. Commissioner of Internal Revenue, referred to in this
section, is an officer of Department of the Treasury.
Constitutionality
Unconstitutionality of processing and floor stock taxes, see note
set out under section 616 of this title.
Section Referred to in Other Sections
This section is referred to in section 673 of this title.
