[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR40.31]

[Page 808]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 40_MANUFACTURE OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES
--Table of Contents
 
                 Subpart Ca_Special (Occupational) Taxes
 
Sec. 40.31  Liability for special tax.

    Source: T.D. ATF-271, 53 FR 17560, May 17, 1988, unless otherwise 
noted.


    (a) Manufacturer of tobacco products. Every manufacturer of tobacco 
products shall pay a special (occupational) tax at a rate specified by 
Sec. 40.32 of the part. The tax shall be paid on or before the date of 
commencing the business of manufacturing tobacco products, and 
thereafter every year on or before July 1. On commencing business, the 
tax shall be computed from the first day of the month in which liability 
is incurred, through the following June 30. Thereafter, the tax shall be 
computed for the entire year (July 1 through June 30).
    (b) Transition rule. For purposes of paragraph (a) of this section, 
a proprietor engaged in the business of manufacturing tobacco products 
on January 1, 1988, shall be treated as having commenced business on 
that date. The special tax imposed by this transition rule shall cover 
the period January 1, 1988, through June 30, 1988, and shall be paid on 
or before April 1, 1988.
    (c) Each place of business taxable. A manufacturer of tobacco 
products incurs special tax liability at each place of business in which 
an occupation subject to special tax is conducted. A place of business 
means the entire office, plant or area of the business in any one 
location under the same proprietorship. Passageways, streets, highways, 
rail crossings, waterways, or partitions dividing the premises are not 
sufficient separation to require additional special tax, if the 
divisions of the premises are otherwise contiguous.

(26 U.S.C. 5143, 5731)