Treasury's FY 2011 Budget Request Includes New TTB Fees
On February 1, 2010, the President submitted his fiscal year 2011 budget request (October 1, 2010 through September 30, 2011) to Congress. The FY 2011 budget request for the Treasury Department is $13.9 billion, an increase of almost $500 million over what was enacted in FY 2010.
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Highlights of Treasury's FY 2011 budget request include:
TTB Licensing and Registration Fees Proposed
The FY 2011 Treasury budget proposes to shift the cost of paying for regulating the alcohol and tobacco industries from the general taxpayer to the industries themselves by funding the Alcohol and Tobacco Tax and Trade Bureau (TTB) with new annual licensing and registration fees, totaling $106 million a year.
In general, these fees would support TTB's core mission and the funds would be used to continue to provide benefits to members of the regulated community, including importers, retailers, wholesalers, breweries, wineries, distilleries, and industrial alcohol businesses.
(The Administration also proposed these annual licensing and registration fees in its FY 2010 budget request, but they were not included in the FY 2010 Treasury appropriation enacted into law.)
TTB Priorities & Challenges Include e-Permits, Sampling, IPR, Etc.
According to Treasury, TTB's FY 2011 priorities and challenges include:
Developing an electronic permit application process. TTB envisions a secure, web-based, E-government solution that will allow members of its regulated industries to electronically submit amendments and applications for original establishment of operations (such as alcohol and tobacco importers, tobacco export warehouses, etc.);
Conducting statistically valid sampling programs to determine industry-wide compliance with advertising, labeling, and formulation regulations;
Detecting counterfeit alcohol and tobacco products, and those industry products diverted from lawful channels, and collect the taxes rightfully due;
Enhancing food safety programs focusing on the integrity and safety of domestic and imported beverage alcohol products; and
Regulatory initiatives (including regulations on serving facts and allergen labeling).
Elimination of Terrorism Risk Insurance Program
Treasury's FY 2011 budget proposes the elimination of nearly $250 million in Federal subsidies to insurance companies for terrorism insurance. These subsidies are no longer necessary given the robust private market for such insurance, and domestic terrorism insurance policies are now sufficiently available and affordable to meet demand.
Funding Increase for Terrorism and Financial Intelligence Office
Treasury's FY 2011 budget requests a total of $112 million for the Office of Terrorism and Financial Intelligence (which includes the Office of Foreign Assets Control), an increase of over $40 million from what was enacted in FY 2010.
Funding for International Programs
Treasury's FY 2011 budget request $3 billion for its international programs, and reflects the Administration's commitment to meet major global challenges, $635 million of which would be for international efforts to combat global climate change and to help developing countries respond to its impacts.
Treasury's FY 2011 budget justification available at http://www.treas.gov/offices/management/budget/budget-documents/cj/2011/FY%202011%20CJ%20complete.pdf