[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR40.21]

[Page 732]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--BUREAU OF ALCOHOL, TOBACCO AND FIREARMS, DEPARTMENT OF THE 
                                TREASURY
 
PART 40--MANUFACTURE OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES--Table of Contents
 
                            Subpart C--Taxes
 
Sec. 40.21  Cigar tax rates.


    (a) Cigars are taxed at the following rates under 26 U.S.C. 5701(a):

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                                                         Tax rate for removals during the years:
            Type and amount            -------------------------------------------------------------------------
                                             1993 to  1999            2000 and  2001          2002 and  after
----------------------------------------------------------------------------------------------------------------
Small cigars per thousand.............  $1.125                   $1.594                   $1.828
Large cigars per thousand *
     percentage of sale price.  12.75%                   18.063%                  20.719%
     but not to exceed.
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*For large cigars, the percentage tax rate applies when the sale price is $235.294 per thousand or less, and the
  flat tax rate applies when the sale price is more than $235.294 per thousand.

    (b) See Sec. 40.22 of this part for rules concerning determination 
of sale price of large cigars.
    (c) Cigars not exempt from tax under 26 U.S.C. chapter 52 and the 
provisions of this part which are removed but not intended for sale 
shall be taxed at the same rate as similar cigars removed for sale.

[ T.D. ATF-420, 64 FR 71939, Dec. 22, 1999]