§ 41.31 - Cigar tax rates.  


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  • § 41.31 Cigar tax rates.

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

    Type and amount Tax rate for removals during the following periods:
    2002 to
    March 31, 2009
    April 1, 2009 and after
    Small cigars per thousand $1.828 $50.33
    Large cigars*
    • percentage of sale price 20.719% 52.750%
    • but not to exceed - $48.75 per thousand $0.4026 per cigar.

    (b) See § 41.39 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. Redesignated and amended by T.D. TTB-16, 69 FR 52424, 52425, Aug. 26, 2004; T.D. TTB-75, 74 FR 14484, Mar. 31, 2009]