Title 7AgricultureRelease 119-73

§620 Falsely ascribing deductions or charges to taxes; penalty

Title 7 › Chapter CHAPTER 26— - AGRICULTURAL ADJUSTMENT › Subchapter SUBCHAPTER III— - COMMODITY BENEFITS › § 620

Last updated Apr 6, 2026|Official source

Summary

You must not, in writing or speaking, tell someone that part of a price deduction, processing charge, or contract settlement is a tax under this law when you know that statement is false or that the actual tax is smaller than the amount you claim. This rule applies when buying or offering to buy a taxed commodity, when charging for processing (commercial, toll, exchange, or similar), and when settling contracts to buy or sell a taxed commodity or its products. Breaking this rule is a misdemeanor and can be punished by a fine of up to $1,000, jail for up to six months, or both.

Full Legal Text

Title 7, §620

Agriculture — Source: USLM XML via OLRC

(a)Whoever in connection with the purchase of, or offer to purchase, any commodity, subject to any tax under this chapter, or which is to be subjected to any tax under this chapter, makes any statement, written or oral, (1) intended or calculated to lead any person to believe that any amount deducted from the market price or the agreed price of the commodity consists of a tax imposed under this chapter, or (2) ascribing a particular part of the deduction from the market price or the agreed price of the commodity, to a tax imposed under this chapter, knowing that such statement is false or that the tax is not so great as the amount deducted from the market price or the agreed price of the commodity, ascribed to such tax, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than $1,000 or by imprisonment for not exceeding six months, or both.
(b)Whoever in connection with the processing of any commodity subject to any tax under this chapter, whether commercially, for toll, upon an exchange, or otherwise, makes any statement, written or oral, (1) intended or calculated to lead any person to believe that any part of the charge for said processing, whether commercially, for toll, upon an exchange, or otherwise, consists of a tax imposed under this chapter, or (2) ascribing a particular part of the charge for processing, whether commercially, for toll, upon an exchange, or otherwise, to a tax imposed under this chapter, knowing that such statement is false, or that the tax is not so great as the amount charged for said processing ascribed to such tax, shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine of not more than $1,000 or by imprisonment for not exceeding six months, or both.
(c)Whoever in connection with any settlement, under a contract to buy any commodity, and/or to sell such commodity, or any product or byproduct thereof, subject to any tax under this chapter, makes any statement, written or oral, (1) intended or calculated to lead any person to believe that any amount deducted from the gross sales price, in arriving at the basis of settlement under the contract, consists of a tax under this chapter, or (2) ascribing a particular amount deducted from the gross sales price, in arriving at the basis of settlement under the contract, to a tax imposed under this chapter, knowing that such statement is false, or that the tax is not so great as the amount so deducted and/or ascribed to such tax, shall be guilty of a misdemeanor, and, upon conviction thereof, shall be punished by a fine of not more than $1,000 or by imprisonment for not exceeding six months, or both.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

ConstitutionalityUnconstitutionality of processing and floor stock taxes, see note set out under section 616 of this title.

Reference

Citations & Metadata

Citation

7 U.S.C. § 620

Title 7Agriculture

Last Updated

Apr 6, 2026

Release point: 119-73