Internal Revenue Code:Sec. 5701. Rate of tax
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 52 - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES
Subchapter A - Definitions; Rate and Payment of Tax; Exemption From
Tax; and Refund and Drawback of Tax
Statute
Sec. 5701. Rate of tax
(a) Cigars
On cigars, manufactured in or imported into the United States,
there shall be imposed the following taxes:
(1) Small cigars
On cigars, weighing not more than 3 pounds per thousand, $1.828
cents per thousand ($1.594 cents per thousand on cigars removed
during 2000 or 2001);
(2) Large cigars
On cigars weighing more than 3 pounds per thousand, a tax 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).
Cigars not exempt from tax under this chapter which are removed but
not intended for sale shall be taxed at the same rate as similar
cigars removed for sale.
(b) Cigarettes
On cigarettes, manufactured in or imported into the United
States, there shall be imposed the following taxes:
(1) Small cigarettes
On cigarettes, weighing not more than 3 pounds per thousand,
$19.50 per thousand ($17 per thousand on cigarettes removed
during 2000 or 2001);
(2) Large cigarettes
On cigarettes, weighing more than 3 pounds per thousand, $40.95
per thousand ($35.70 per thousand on cigarettes removed during
2000 or 2001); except that, if more than 6 1/2 inches in length,
they shall be taxable at the rate prescribed for cigarettes
weighing not more than 3 pounds per thousand, counting each 2 3/4
inches, or fraction thereof, of the length of each as one
cigarette.
(c) Cigarette papers
On cigarette papers, manufactured in or imported into the United
States, there shall be imposed a tax of 1.22 cents (1.06 cents on
cigarette papers removed during 2000 or 2001) for each 50 papers or
fractional part thereof; except that, if cigarette papers measure
more than 6 1/2 inches in length, they shall be taxable at the rate
prescribed, counting each 2 3/4 inches, or fraction thereof, of the
length of each as one cigarette paper.
(d) Cigarette tubes
On cigarette tubes, manufactured in or imported into the United
States, there shall be imposed a tax of 2.44 cents (2.13 cents on
cigarette tubes removed during 2000 or 2001) for each 50 tubes or
fractional part thereof, except that if cigarette tubes measure
more than 6 1/2 inches in length, they shall be taxable at the rate
prescribed, counting each 2 3/4 inches, or fraction thereof, of the
length of each as one cigarette tube.
(e) Smokeless tobacco
On smokeless tobacco, manufacturered (FOOTNOTE 1) in or imported
into the United States, there shall be imposed the following taxes:
(FOOTNOTE 1) So in original. Probably should be
''manufactured''.
(1) Snuff
On snuff, 58.5 cents (51 cents on snuff removed during 2000 or
2001) per pound and a proportionate tax at the like rate on all
fractional parts of a pound.
(2) Chewing tobacco
On chewing tobacco, 19.5 cents (17 cents on chewing tobacco
removed during 2000 or 2001) per pound and a proportionate tax at
the like rate on all fractional parts of a pound.
(f) Pipe tobacco
On pipe tobacco, manufactured in or imported into the United
States, there shall be imposed a tax of $1.0969 cents (95.67 cents
on pipe tobacco removed during 2000 or 2001) per pound (and a
proportionate tax at the like rate on all fractional parts of a
pound).
(g) Roll-your-own tobacco
On roll-your-own tobacco, manufactured in or imported into the
United States, there shall be imposed a tax of $1.0969 cents (95.67
cents on roll-your-own tobacco removed during 2000 or 2001) per
pound (and a proportionate tax at the like rate on all fractional
parts of a pound).
(h) Imported tobacco products and cigarette papers and tubes
The taxes imposed by this section on tobacco products and
cigarette papers and tubes imported into the United States shall be
in addition to any import duties imposed on such articles, unless
such import duties are imposed in lieu of internal revenue tax.
Sources
(Aug. 16, 1954, ch. 736, 68A Stat. 705; Mar. 30, 1955, ch. 18, Sec.
3(a)(9), 69 Stat. 14; Mar. 29, 1956, ch. 115, Sec. 3(a)(9), 70
Stat. 66; Pub. L. 85-12, Sec. 3(a)(7), Mar. 29, 1957, 71 Stat. 9;
Pub. L. 85-475, Sec. 3(a)(7), June 30, 1958, 72 Stat. 259; Pub. L.
85-859, title II, Sec. 202, Sept. 2, 1958, 72 Stat. 1414; Pub. L.
86-75, Sec. 3(a)(7), June 30, 1959, 73 Stat. 157; Pub. L. 86-564,
title II, Sec. 202(a)(9), June 30, 1960, 74 Stat. 290; Pub. L.
86-779, Sec. 1, Sept. 14, 1960, 74 Stat. 998; Pub. L. 87-72, Sec.
3(a)(9), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, Sec. 3(a)(8),
June 28, 1962, 76 Stat. 114; Pub. L. 88-52, Sec. 3(a)(9), June 29,
1963, 77 Stat. 72; Pub. L. 88-348, Sec. 2(a)(9), June 30, 1964, 78
Stat. 237; Pub. L. 89-44, title V, Sec. 501(f), 502(a), June 21,
1965, 79 Stat. 150; Pub. L. 90-240, Sec. 4(a), Jan. 2, 1968, 81
Stat. 776; Pub. L. 94-455, title XIX, Sec. 1905(a)(24), title XXI,
Sec. 2128(a), Oct. 4, 1976, 90 Stat. 1821, 1921; Pub. L. 97-248,
title II, Sec. 283(a), Sept. 3, 1982, 96 Stat. 568; Pub. L. 99-272,
title XIII, Sec. 13202(a), Apr. 7, 1986, 100 Stat. 311; Pub. L.
100-647, title V, Sec. 5061(a), Nov. 10, 1988, 102 Stat. 3679; Pub.
L. 101-508, title XI, Sec. 11202(a)-(f), Nov. 5, 1990, 104 Stat.
1388-419; Pub. L. 105-33, title IX, Sec. 9302(a)-(g)(1), (h)(3),
Aug. 5, 1997, 111 Stat. 671, 672, 674.)
Miscellaneous
AMENDMENTS
1997 - Subsec. (a)(1). Pub. L. 105-33, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 9302(g)(1), added subsec.
(g) and redesignated former subsec. (g) as (h).
1990 - Subsec. (a)(1). Pub. L. 101-508, Sec. 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, Sec. 11202(a)(2), substituted
''equal to - '' and subpars. (A) and (B) for ''equal to 8 1/2
percent of the wholesale price, but not more than $20 per
thousand.''
Subsec. (b)(1). Pub. L. 101-508, Sec. 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, Sec. 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, Sec. 11202(c), substituted ''0.75
cent (0.625 cent on cigarette papers removed during 1991 or 1992)''
for '' 1/2 cent''.
Subsec. (d). Pub. L. 101-508, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 283(a)(1),
substituted ''$8'' for ''$4''.
Subsec. (b)(2). Pub. L. 97-248, Sec. 283(a)(2), substituted
''$16.80'' for ''$8.40''.
1976 - Subsec. (a). Pub. L. 94-455, Sec. 2128(a), substituted
provisions setting a tax of 8 1/2 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 2 1/2 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, Sec. 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, Sec. 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, Sec. 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.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 9302(i) of Pub. L. 105-33 provided that:
''(1) In general. - The amendments made by this section (enacting
section 5754 of this title and amending this section and sections
5702, 5704, 5712, 5713, 5721, 5722, and 5761 to 5763 of this title)
shall apply to articles removed (as defined in section 5702(k) (now
section 5702(j)) of the Internal Revenue Code of 1986, as amended
by this section) after December 31, 1999.
''(2) Transitional rule. - Any person who -
''(A) on the date of the enactment of this Act (Aug. 5, 1997)
is engaged in business as a manufacturer of roll-your-own tobacco
or as an importer of tobacco products or cigarette papers and
tubes, and
''(B) before January 1, 2000, submits an application under
subchapter B of chapter 52 of such Code to engage in such
business,
may, notwithstanding such subchapter B, continue to engage in such
business pending final action on such application. Pending such
final action, all provisions of such chapter 52 shall apply to such
applicant in the same manner and to the same extent as if such
applicant were a holder of a permit under such chapter 52 to engage
in such business.''
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11202(h) of Pub. L. 101-508 provided that: ''The
amendments made by this section (amending this section and section
5702 of this title) shall apply with respect to articles removed
after December 31, 1990.''
EFFECTIVE DATE OF 1988 AMENDMENT
Section 5061(d) of Pub. L. 100-647 provided that:
''(1) In general. - The amendments made by this section (amending
this section and section 5702 of this title) shall apply to pipe
tobacco removed (within the meaning of section 5702(k) (now section
5702(j)) of the 1986 Code) after December 31, 1988.
''(2) Transitional rule. - Any person who -
''(A) on the date of the enactment of this Act (Nov. 10, 1988),
is engaged in business as a manufacturer of pipe tobacco, and
''(B) before January 1, 1989, submits an application under
subchapter B of chapter 52 of the 1986 Code to engage in such
business,
may, notwithstanding such subchapter B, continue to engage in such
business pending final action on such application. Pending such
final action, all provisions of chapter 52 of the 1986 Code shall
apply to such applicant in the same manner and to the same extent
as if such applicant were a holder of a permit to manufacture pipe
tobacco under such chapter 52.''
EFFECTIVE DATE OF 1986 AMENDMENT
Section 13202(c) of Pub. L. 99-272, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(1) In general. - The amendments made by this section (amending
this section and section 5702 of this title) shall apply to
smokeless tobacco removed after June 30, 1986.
''(2) Transitional rule. - Any person who -
''(A) on the date of the enactment of this Act (Apr. 7, 1986),
is engaged in business as a manufacturer of smokeless tobacco,
and
''(B) before July 1, 1986, submits an application under
subchapter B of chapter 52 of the Internal Revenue Code of 1986
(formerly I.R.C. 1954) to engage in such business,
may, notwithstanding such subchapter B, continue to engage in such
business pending final action on such application. Pending such
final action, all provisions of chapter 52 of such Code shall apply
to such applicant in the same manner and to the same extent as if
such applicant were a holder of a permit to manufacture smokless
(sic) tobacco under such chapter 52.''
EFFECTIVE DATE OF 1982 AMENDMENT
Section 283(c) of Pub. L. 97-248, as amended by Pub. L. 99-107,
Sec. 2, Sept. 30, 1985, 99 Stat. 479; Pub. L. 99-155, Sec. 2(a),
Nov. 14, 1985, 99 Stat. 814; Pub. L. 99-181, Sec. 1, Dec. 13, 1985,
99 Stat. 1172; Pub. L. 99-189, Sec. 1, Dec. 18, 1985, 99 Stat.
1184; Pub. L. 99-201, Sec. 1, Dec. 23, 1985, 99 Stat. 1665; Pub. L.
99-272, title XIII, Sec. 13201(a), Apr. 7, 1986, 100 Stat. 311,
provided that: ''The amendment made by subsection (a) (amending
this section) shall apply with respect to cigarettes removed after
December 31, 1982.''
(Pub. L. 99-272, title XIII, Sec. 13201(b), Apr. 7, 1986, 100
Stat. 311, provided that: ''For purposes of all Federal and State
laws, the amendment made by subsection (a) (amending section 283(c)
of Pub. L. 97-248, set out above) shall be treated as having taken
effect on March 14, 1986.'')
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(a)(24) of Pub. L. 94-455 effective on
first day of first month which begins more than 90 days after Oct.
4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
under section 5005 of this title.
Section 2128(e) of Pub. L. 94-455 provided that: ''The amendments
made by this section (amending this section and sections 5702 and
5741 of this title) shall take effect on the first month which
begins more than 90 days after the date of the enactment of this
Act (Oct. 4, 1976).''
EFFECTIVE DATE OF 1968 AMENDMENT
Section 4(b) of Pub. L. 90-240 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to the
removal of cigars on or after the first day of the first calendar
quarter which begins more than 30 days after the date of the
enactment of this Act (Jan. 2, 1968).''
EFFECTIVE DATE OF 1965 AMENDMENT
Section 701(d) of Pub. L. 89-44 provided that: ''The amendments
made by section 501 (repealing sections 5063 and 5707 of this title
and provisions formerly set out below and amending this section and
sections 5001, 5022, 5041, and 5051 of this title) shall apply on
and after July 1, 1965. The amendments made by section 502
(striking out subchapter D of chapter 52 of this title and
redesignating subchapters E, F, and G as subchapters D, E, and F
respectively, and amending this section and sections 5702, 5704,
5711, 5741, 5753, 5762, and 5763 of this title) shall apply on and
after January 1, 1966.''
EFFECTIVE DATE OF 1960 AMENDMENT
Section 2 of Pub. L. 86-779 provided that: ''The amendment made
by the first section of this Act (amending this section) shall
apply with respect to cigars removed on or after the ninth day of
the first month which begins after the date of the enactment of
this Act (Sept. 14, 1960).''
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-859 effective Sept. 3, 1958, see section
210(a)(1) of Pub. L. 85-859, set out as a note under section 5001
of this title.
COORDINATION WITH TOBACCO INDUSTRY SETTLEMENT AGREEMENT
Section 9302(k) of Pub. L. 105-33, as added by Pub. L. 105-34,
title XVI, Sec. 1604(f)(3), Aug. 5, 1997, 111 Stat. 1099, which
provided that the increase in excise taxes collected as a result of
the amendments made by subsections (a), (e), and (g) of section
9302 of Pub. L. 105-33 (amending this section and section 5702 of
this title) were to be credited against the total payments made by
parties pursuant to Federal legislation implementing the tobacco
industry settlement agreement of June 20, 1997, was repealed by
Pub. L. 105-78, title V, Sec. 519, Nov. 13, 1997, 111 Stat. 1519.
FLOOR STOCKS TAXES
Section 9302(j) of Pub. L. 105-33, as amended by Pub. L. 106-554,
Sec. 1(a)(7) (title III, Sec. 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.''
Section 11202(i) of Pub. L. 101-508 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 6 1/2 inches in length, they shall be taxable at the rate
prescribed for cigarettes weighing not more than 3 pounds per
thousand, counting each 2 3/4 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 6 1/2 inches in length, each 2 3/4 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.
''(6) Controlled groups. - Rules similar to the rules of section
11201(e)(6) (Pub. L. 101-508, set out in a note under section 5001
of this title) 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.''
Section 5061(e) of Pub. L. 100-647 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.''
Section 283(b) of Pub. L. 97-248, as amended by Pub. L. 97-448,
title III, Sec. 306(a)(14), Jan. 12, 1983, 96 Stat. 2405; Pub. L.
99-514, Sec. 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 6 1/2 inches in length, they shall be taxable at the rate
prescribed for cigarettes weighing not more than 3 pounds per
thousand, counting each 2 3/4 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.''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5702, 5703 of this title.
