[Code of Federal Regulations] [Title 27, Volume 2] [Revised as of April 1, 2003] From the U.S. Government Printing Office via GPO Access [CITE: 27CFR275.31] [Page 58-59] TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE TREASURY (CONTINUED) PART 275--IMPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES--Table of Contents Subpart D--Taxes Sec. 275.31 Cigar tax rates. (a) Cigars are taxed at the following rates under 26 U.S.C. 5701(a): [[Page 59]] ---------------------------------------------------------------------------------------------------------------- Tax rate for removals during the years Product ------------------------------------------------------------------------- 1993 to 1999 2000 and 2001 2002 and after ---------------------------------------------------------------------------------------------------------------- Small cigars (per thousand)........... $1.125 $1.594 $1.828 Large cigars \1\ percentage of sale price.......... 12.75% 18.063% 20.719% but not to exceed per thousand.... $30 $42.50 $48.75 ---------------------------------------------------------------------------------------------------------------- \1\ 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. (b) See Sec. 275.39 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 71942, Dec. 22, 1999]