[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR40.21]
[Page 825]
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 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
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Small cigars per thousand............. $1.125 $1.594 $1.828
Large cigars per thousand *
percentage of 12.75% 18.063% 20.719%
sale price.
but not to $30 $42.50 $48.75
exceed[rarr].
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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]