Amendments
2018—Subsec. (e). Pub. L. 115–141 substituted “manufactured” for “manufacturered” in introductory provisions.
2009—Subsec. (a)(1). Pub. L. 111–3, § 701(a)(1), substituted “$50.33 per thousand” for “$1.828 cents per thousand ($1.594 cents per thousand on cigars removed during 2000 or 2001)”.
Subsec. (a)(2). Pub. L. 111–3, § 701(a)(2), (3), substituted “52.75 percent” for “20.719 percent (18.063 percent on cigars removed during 2000 or 2001)” and “40.26 cents per cigar” for “$48.75 per thousand ($42.50 per thousand on cigars removed during 2000 or 2001)”.
Subsec. (b)(1). Pub. L. 111–3, § 701(b)(1), substituted “$50.33 per thousand” for “$19.50 per thousand ($17 per thousand on cigarettes removed during 2000 or 2001)”.
Subsec. (b)(2). Pub. L. 111–3, § 701(b)(2), substituted “$105.69 per thousand” for “$40.95 per thousand ($35.70 per thousand on cigarettes removed during 2000 or 2001)”.
Subsec. (c). Pub. L. 111–3, § 701(c), substituted “3.15 cents” for “1.22 cents (1.06 cents on cigarette papers removed during 2000 or 2001)”.
Subsec. (d). Pub. L. 111–3, § 701(d), substituted “6.30 cents” for “2.44 cents (2.13 cents on cigarette tubes removed during 2000 or 2001)”.
Subsec. (e)(1). Pub. L. 111–3, § 701(e)(1), substituted “$1.51” for “58.5 cents (51 cents on snuff removed during 2000 or 2001)”.
Subsec. (e)(2). Pub. L. 111–3, § 701(e)(2), substituted “50.33 cents” for “19.5 cents (17 cents on chewing tobacco removed during 2000 or 2001)”.
Subsec. (f). Pub. L. 111–3, § 701(f), substituted “$2.8311 cents” for “$1.0969 cents (95.67 cents on pipe tobacco removed during 2000 or 2001)”.
Subsec. (g). Pub. L. 111–3, § 701(g), substituted “$24.78” for “$1.0969 cents (95.67 cents on roll-your-own tobacco removed during 2000 or 2001)”.
1997—Subsec. (a)(1). Pub. L. 105–33, § 9302(b)(1), substituted “$1.828 cents per thousand ($1.594 cents per thousand on cigars removed during 2000 or 2001)” for “$1.125 cents per thousand (93.75 cents per thousand on cigars removed during 1991 or 1992)”.
Subsec. (a)(2). Pub. L. 105–33, § 9302(b)(2), substituted “equal to 20.719 percent (18.063 percent on cigars removed during 2000 or 2001) of the price for which sold but not more than $48.75 per thousand ($42.50 per thousand on cigars removed during 2000 or 2001).” for “equal to—
“(A) 10.625 percent of the price for which sold but not more than $25 per thousand on cigars removed during 1991 or 1992, and
“(B) 12.75 percent of the price for which sold but not more than $30 per thousand on cigars removed after 1992.”
Subsec. (b)(1). Pub. L. 105–33, § 9302(a)(1), substituted “$19.50 per thousand ($17 per thousand on cigarettes removed during 2000 or 2001)” for “$12 per thousand ($10 per thousand on cigarettes removed during 1991 or 1992)”.
Subsec. (b)(2). Pub. L. 105–33, § 9302(a)(2), substituted “$40.95 per thousand ($35.70 per thousand on cigarettes removed during 2000 or 2001)” for “$25.20 per thousand ($21 per thousand on cigarettes removed during 1991 or 1992)”.
Subsec. (c). Pub. L. 105–33, § 9302(h)(3), substituted “On cigarette papers,” for “On each book or set of cigarette papers containing more than 25 papers,”.
Pub. L. 105–33, § 9302(c), substituted “1.22 cents (1.06 cents on cigarette papers removed during 2000 or 2001)” for “0.75 cent (0.625 cent on cigarette papers removed during 1991 or 1992)”.
Subsec. (d). Pub. L. 105–33, § 9302(d), substituted “2.44 cents (2.13 cents on cigarette tubes removed during 2000 or 2001)” for “1.5 cents (1.25 cents on cigarette tubes removed during 1991 or 1992)”.
Subsec. (e)(1). Pub. L. 105–33, § 9302(e)(1), substituted “58.5 cents (51 cents on snuff removed during 2000 or 2001)” for “36 cents (30 cents on snuff removed during 1991 or 1992)”.
Subsec. (e)(2). Pub. L. 105–33, § 9302(e)(2), substituted “19.5 cents (17 cents on chewing tobacco removed during 2000 or 2001)” for “12 cents (10 cents on chewing tobacco removed during 1991 or 1992)”.
Subsec. (f). Pub. L. 105–33, § 9302(f), substituted “$1.0969 cents (95.67 cents on pipe tobacco removed during 2000 or 2001)” for “67.5 cents (56.25 cents on pipe tobacco removed during 1991 or 1992)”.
Subsecs. (g), (h). Pub. L. 105–33, § 9302(g)(1), added subsec. (g) and redesignated former subsec. (g) as (h).
1990—Subsec. (a)(1). Pub. L. 101–508, § 11202(a)(1), substituted “$1.125 cents per thousand (93.75 cents per thousand on cigars removed during 1991 or 1992)” for “75 cents per thousand”.
Subsec. (a)(2). Pub. L. 101–508, § 11202(a)(2), substituted “equal to—” and subpars. (A) and (B) for “equal to 8½ percent of the wholesale price, but not more than $20 per thousand.”
Subsec. (b)(1). Pub. L. 101–508, § 11202(b)(1), substituted “$12 per thousand ($10 per thousand on cigarettes removed during 1991 or 1992)” for “$8 per thousand”.
Subsec. (b)(2). Pub. L. 101–508, § 11202(b)(2), substituted “$25.20 per thousand ($21 per thousand on cigarettes removed during 1991 or 1992)” for “$16.80 per thousand”.
Subsec. (c). Pub. L. 101–508, § 11202(c), substituted “0.75 cent (0.625 cent on cigarette papers removed during 1991 or 1992)” for “½ cent”.
Subsec. (d). Pub. L. 101–508, § 11202(d), substituted “1.5 cents (1.25 cents on cigarette tubes removed during 1991 or 1992)” for “1 cent”.
Subsec. (e)(1). Pub. L. 101–508, § 11202(e)(1), substituted “36 cents (30 cents on snuff removed during 1991 or 1992)” for “24 cents”.
Subsec. (e)(2). Pub. L. 101–508, § 11202(e)(2), substituted “12 cents (10 cents on chewing tobacco removed during 1991 or 1992)” for “8 cents”.
Subsec. (f). Pub. L. 101–508, § 11202(f), substituted “67.5 cents (56.25 cents on pipe tobacco removed during 1991 or 1992)” for “45 cents”.
1988—Subsecs. (f), (g). Pub. L. 100–647 added subsec. (f) and redesignated former subsec. (f) as (g).
1986—Subsecs. (e), (f). Pub. L. 99–272 added subsec. (e) and redesignated former subsec. (e) as (f).
1982—Subsec. (b)(1). Pub. L. 97–248, § 283(a)(1), substituted “$8” for “$4”.
Subsec. (b)(2). Pub. L. 97–248, § 283(a)(2), substituted “$16.80” for “$8.40”.
1976—Subsec. (a). Pub. L. 94–455, § 2128(a), substituted provisions setting a tax of 8½ percent of the wholesale price, but not more than $20 per thousand, on cigars weighing more than 3 pounds per thousand for provisions setting the tax according to a graduated table running from $2.50 per thousand for large cigars if removed to retail at not more than 2½ cents each to $20 per thousand if removed to retail at more than 20 cents each, and struck out provisions that, in determining the retail price, for tax purposes, regard be had to the ordinary retail price of a single cigar in its principal market, exclusive of any State or local taxes imposed on cigars as a commodity, and that, for purposes of that determination, the amount of State or local tax excluded from the retail price be the actual tax imposed, except that, if the combined taxes resulted in a numerical figure ending in a fraction of a cent, the amount so excluded would be rounded to the next highest full cent unless such rounding would result in a tax lower than the tax which would be imposed in the absence of State or local tax.
Subsec. (e). Pub. L. 94–455, § 1905(a)(24), inserted “, unless such import duties are imposed in lieu of internal revenue tax” after “such articles”.
1968—Subsec. (a). Pub. L. 90–240 provided that the amount of State and local tax excluded from the retail price be the actual tax imposed, except that, if the combined taxes result in a numerical figure ending in a fraction of a cent, the amount so excluded be rounded to the next highest full cent unless such rounding would result in a tax lower than the tax which would be imposed in the absence of State and local taxes.
1965—Pub. L. 89–44, § 502(a), struck out subsec. (a) relating to tobacco and redesignated subsecs. (b) to (f) as subsecs. (a) to (e), respectively.
Subsec. (b)(1). Pub. L. 89–44, § 501(f), removed the July 1, 1965, time limit for the $4 per thousand rate as well as the provision for imposition of a $3.50 rate on and after July 1, 1965.
1964—Subsec. (c)(1). Pub. L. 88–348 substituted “July 1, 1965” for “July 1, 1964” in two places.
1963—Subsec. (c)(1). Pub. L. 88–52 substituted “July 1, 1964” for “July 1, 1963” in two places.
1962—Subsec. (c)(1). Pub. L. 87–508 substituted “July 1, 1963” for “July 1, 1962” in two places.
1961—Subsec. (c)(1). Pub. L. 87–72 substituted “July 1, 1962” for “July 1, 1961” in two places.
1960—Subsec. (b). Pub. L. 86–779 substituted “imposed on cigars as a commodity” for “imposed on the retail sales of cigars”.
Subsec. (c)(1). Pub. L. 86–564 substituted “July 1, 1961” for “July 1, 1960” in two places.
1959—Subsec. (c)(1). Pub. L. 86–75 substituted “July 1, 1960” for “July 1, 1959” in two places.
1958—Subsec. (b). Pub. L. 85–859 provided that in determining the retail price, for tax purposes, regard shall be had to the ordinary retail price of a single cigar in its principal market, exclusive of any State or local taxes imposed on the retail sale of cigars, and required cigars not exempt from tax under this chapter which are removed but not intended for sale to be taxed at the same rate as similar cigars removed for sale.
Subsec. (c)(1). Pub. L. 85–475 substituted “July 1, 1959” for “July 1, 1958” in two places.
Subsec. (d). Pub. L. 85–859 substituted “On each book or set of cigarette papers containing more than 25 papers, manufactured in or imported into the United States, there shall be imposed” for “On cigarette papers, manufactured in or imported into the United States, there shall be imposed, on each package, book, or set containing more than 25 papers”.
Subsec. (f). Pub. L. 85–859 substituted “imposed by this section on tobacco products and cigarette papers and tubes imported into the United States” for “imposed on articles by this section”.
1957—Subsec. (c)(1). Pub. L. 85–12 substituted “July 1, 1958” for “April 1, 1957” in two places.
1956—Subsec. (c)(1). Act Mar. 29, 1956, substituted “April 1, 1957” for “April 1, 1956” in two places.
1955—Subsec. (c)(1). Act Mar. 30, 1955, substituted “April 1, 1956” for “April 1, 1955” in two places.
Floor Stocks Taxes
Pub. L. 111–3, title VII, § 701(h), Feb. 4, 2009, 123 Stat. 107, provided that:
“(1) Imposition of tax.—On tobacco products (other than cigars described in section 5701(a)(2) of the Internal Revenue Code of 1986) and cigarette papers and tubes manufactured in or imported into the United States which are removed before April 1, 2009, and held on such date for sale by any person, there is hereby imposed a tax in an amount equal to the excess of—
“(A)
the tax which would be imposed under section 5701 of such Code on the article if the article had been removed on such date, over
“(B)
the prior tax (if any) imposed under section 5701 of such Code on such article.
“(2) Credit against tax.—
Each person shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to $500. Such credit shall not exceed the amount of taxes imposed by paragraph (1) on April 1, 2009, for which such person is liable.
“(3) Liability for tax and method of payment.—
“(B) Method of payment.—
The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations.
“(C) Time for payment.—
The tax imposed by paragraph (1) shall be paid on or before August 1, 2009.
“(4) Articles in foreign trade zones.—Notwithstanding the Act of June 18, 1934 (commonly known as the Foreign Trade Zone Act, 48 Stat. 998, 19 U.S.C. 81a et seq.) or any other provision of law, any article which is located in a foreign trade zone on April 1, 2009, shall be subject to the tax imposed by paragraph (1) if—
“(A)
internal revenue taxes have been determined, or customs duties liquidated, with respect to such article before such date pursuant to a request made under the 1st proviso of section 3(a) of such Act [
19 U.S.C. 81c(a)], or
“(B)
such article is held on such date under the supervision of an officer of the United States Customs and Border Protection of the Department of Homeland Security pursuant to the 2d proviso of such section 3(a).
“(5) Definitions.—For purposes of this subsection—
“(A) In general.—
Any term used in this subsection which is also used in section 5702 of the
Internal Revenue Code of 1986 shall have the same meaning as such term has in such section.
“(B) Secretary.—
The term ‘Secretary’ means the Secretary of the Treasury or the Secretary’s delegate.
“(6) Controlled groups.—
Rules similar to the rules of section 5061(e)(3) of such Code shall apply for purposes of this subsection.
“(7) Other laws applicable.—
All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5701 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1), to the same extent as if such taxes were imposed by such section 5701. The Secretary may treat any person who bore the ultimate burden of the tax imposed by paragraph (1) as the person to whom a credit or refund under such provisions may be allowed or made.”
Pub. L. 105–33, title IX, § 9302(j), Aug. 5, 1997, 111 Stat. 675, as amended by Pub. L. 106–554, § 1(a)(7) [title III, § 315(a)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A–643, provided that:
“(1) Imposition of tax.—On cigarettes manufactured in or imported into the United States which are removed before any tax increase date, and held on such date for sale by any person, there is hereby imposed a tax in an amount equal to the excess of—
“(A)
the tax which would be imposed under section 5701 of the
Internal Revenue Code of 1986 on the article if the article had been removed on such date, over
“(B)
the prior tax (if any) imposed under section 5701 of such Code on such article.
“(2) Authority to exempt cigarettes held in vending machines.—
To the extent provided in regulations prescribed by the Secretary, no tax shall be imposed by paragraph (1) on
cigarettes held for retail sale on any tax increase date, by any person in any vending machine. If the Secretary provides such a benefit with respect to any person, the Secretary may reduce the $500 amount in paragraph (3) with respect to such person.
“(3) Credit against tax.—
Each person shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to $500. Such credit shall not exceed the amount of taxes imposed by paragraph (1) on any tax increase date, for which such person is liable.
“(4) Liability for tax and method of payment.—
“(A) Liability for tax.—
A person holding
cigarettes on any tax increase date, to which any tax imposed by paragraph (1) applies shall be liable for such tax.
“(B) Method of payment.—
The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations.
“(C) Time for payment.—
The tax imposed by paragraph (1) shall be paid on or before April 1 following any tax increase date.
“(5) Articles in foreign trade zones.—Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) and any other provision of law, any article which is located in a foreign trade zone on any tax increase date, shall be subject to the tax imposed by paragraph (1) if—
“(A)
internal revenue taxes have been determined, or customs duties liquidated, with respect to such article before such date pursuant to a request made under the 1st proviso of section 3(a) of such Act [
19 U.S.C. 81c(a)], or
“(B)
such article is held on such date under the supervision of a customs officer pursuant to the 2d proviso of such section 3(a).
“(6) Definitions.—For purposes of this subsection—
“(A) In general.—
Terms used in this subsection which are also used in section 5702 of the
Internal Revenue Code of 1986 shall have the respective meanings such terms have in such section, as amended by this Act.
“(B) Tax increase date.—
The term ‘tax increase date’ means January 1, 2000, and January 1, 2002.
“(C) Secretary.—
The term ‘Secretary’ means the Secretary of the Treasury or the Secretary’s delegate.
“(7) Controlled groups.—
Rules similar to the rules of section 5061(e)(3) of such Code shall apply for purposes of this subsection.
“(8) Other laws applicable.—
All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5701 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1), to the same extent as if such taxes were imposed by such section 5701. The Secretary may treat any person who bore the ultimate burden of the tax imposed by paragraph (1) as the person to whom a credit or refund under such provisions may be allowed or made.”
Pub. L. 101–508, title XI, § 11202(i), Nov. 5, 1990, 104 Stat. 1388–420, provided that:
“(1) Imposition of tax.—On cigarettes manufactured in or imported into the United States which are removed before any tax-increase date and held on such date for sale by any person, there shall be imposed the following taxes:
“(A) Small cigarettes.—
On
cigarettes, weighing not more than 3 pounds per thousand, $2 per thousand.
“(B) Large cigarettes.—
On
cigarettes weighing more than 3 pounds per thousand, $4.20 per thousand; except that, if more than 6½ inches in length, they shall be taxable at the rate prescribed for
cigarettes weighing not more than 3 pounds per thousand, counting each 2¾ inches, or fraction thereof, of the length of each as one
cigarette.
“(2) Exception for certain amounts of cigarettes.—
“(A) In general.—No tax shall be imposed by paragraph (1) on cigarettes held on any tax-increase date by any person if—
“(i)
the aggregate number of
cigarettes held by such person on such date does not exceed 30,000, and
“(ii)
such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this subparagraph.
For purposes of this subparagraph, in the case of
cigarettes measuring more than 6½ inches in length, each 2¾ inches (or fraction thereof) of the length of each shall be counted as one
cigarette.
“(B) Authority to exempt cigarettes held in vending machines.—
To the extent provided in regulations prescribed by the Secretary, no tax shall be imposed by paragraph (1) on
cigarettes held for retail sale on any tax-increase date by any person in any vending machine. If the Secretary provides such a benefit with respect to any person, the Secretary may reduce the 30,000 amount in subparagraph (A) and the $60 amount in paragraph (3) with respect to such person.
“(3) Credit against tax.—
Each person shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to $60. Such credit shall not exceed the amount of taxes imposed by paragraph (1) for which such person is liable.
“(4) Liability for tax and method of payment.—
“(A) Liability for tax.—
A person holding
cigarettes on any tax-increase date to which any tax imposed by paragraph (1) applies shall be liable for such tax.
“(B) Method of payment.—
The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations.
“(C) Time for payment.—
The tax imposed by paragraph (1) shall be paid on or before the 1st June 30 following the tax-increase date.
“(5) Definitions.—For purposes of this subsection—
“(A) Tax-increase date.—
The term ‘tax-increase date’ means January 1, 1991, and January 1, 1993.
“(B) Other definitions.—
Terms used in this subsection which are also used in section 5702 of the
Internal Revenue Code of 1986 shall have the respective meanings such terms have in such section.
“(C) Secretary.—
The term ‘Secretary’ means the Secretary of the Treasury or his delegate.
“(7) Other laws applicable.—
All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5701 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1), to the same extent as if such taxes were imposed by such section 5701.”
Pub. L. 100–647, title V, § 5061(e), Nov. 10, 1988, 102 Stat. 3680, provided that:
“(1) Imposition of tax.—
On
pipe tobacco manufactured in or imported into the United States which is removed before
January 1, 1989, and held on such date for sale by any person, there is hereby imposed a tax of 45 cents per pound (and a proportionate tax at the like rate on all fractional parts of a pound).
“(2) Liability for tax and method of payment.—
“(A) Liability for tax.—
A person holding
pipe tobacco on
January 1, 1989, to which the tax imposed by paragraph (1) applies shall be liable for such tax.
“(B) Method of payment.—
The tax imposed by paragraph (1) shall be treated as a tax imposed by section 5701 of the 1986 Code and shall be due and payable on
February 14, 1989, in the same manner as the tax imposed by such section is payable with respect to
pipe tobacco removed on or after
January 1, 1989.
“(C) Treatment of pipe tobacco in foreign trade zones.—Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) or any other provision of law, pipe tobacco which is located in a foreign trade zone on January 1, 1989, shall be subject to the tax imposed by paragraph (1) and shall be treated for purposes of this subsection as held on such date for sale if—
“(i)
internal revenue taxes have been determined, or customs duties liquidated, with respect to such
pipe tobacco before such date pursuant to a request made under the first proviso of section 3(a) of such Act [
19 U.S.C. 81c(a)], or
“(ii)
such
pipe tobacco is held on such date under the supervision of a customs officer pursuant to the second proviso of such section 3(a).
“Under regulations prescribed by the Secretary of the Treasury or his delegate, provisions similar to sections 5706 and 5708 of the 1986 Code shall apply to pipe tobacco with respect to which tax is imposed by paragraph (1) by reason of this subparagraph.
“(3) Pipe tobacco.—
For purposes of this subsection, the term ‘
pipe tobacco’ shall have the meaning given to such term by subsection (o) [now subsection (n)] of section 5702 of the 1986 Code.
“(4) Exception where liability does not exceed $1,000.—
No tax shall be imposed by paragraph (1) on any person if the tax which would but for this paragraph be imposed on such person does not exceed $1,000. For purposes of the preceding sentence, all persons who are treated as a single taxpayer under section 5061(e)(3) of the 1986 Code shall be treated as 1 person.”
Pub. L. 97–248, title II, § 283(b), Sept. 3, 1982, 96 Stat. 568, as amended by Pub. L. 97–448, title III, § 306(a)(14), Jan. 12, 1983, 96 Stat. 2405; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) Imposition of tax.—On cigarettes manufactured in or imported into the United States which are removed before January 1, 1983, and held on such date for sale by any person, there shall be imposed the following taxes:
“(A) Small cigarettes.—
On
cigarettes, weighing not more than 3 pounds per thousand, $4 per thousand;
“(B) Large cigarettes.—
On
cigarettes, weighing more than 3 pounds per thousand, $8.40 per thousand; except that, if more than 6½ inches in length, they shall be taxable at the rate prescribed for
cigarettes weighing not more than 3 pounds per thousand, counting each 2¾ inches, or fraction thereof, of the length of each as one
cigarette.
“(2) Liability for tax and method of payment.—
“(A) Liability for tax.—
A person holding
cigarettes on
January 1, 1983, to which any tax imposed by paragraph (1) applies shall be liable for such tax.
“(B) Method of payment.—
The tax imposed by paragraph (1) shall be treated as a tax imposed under section 5701 and shall be due and payable on
February 17, 1983 in the same manner as the tax imposed under such section is payable with respect to
cigarettes removed on
January 1, 1983.
“(3) Cigarette.—
For purposes of this subsection, the term ‘
cigarette’ shall have the meaning given to such term by subsection (b) of section 5702 of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954].
“(4) Exception for retailers.—
The taxes imposed by paragraph (1) shall not apply to
cigarettes in retail stocks held on
January 1, 1983, at the place where intended to be sold at retail.”
