Code Section 5701
| Code Section | Effective Date | Name of Act | Name of Provision | 10yr Revenue Estimate ($millions) |
|---|---|---|---|---|
| 5701 | 2/4/2009 | Children’s Health Insurance Program Reauthorization Act of 2009 | Increase Excise Tax Rates on Tobacco Products, Cigarette Papers and Tubes | 65,511 |
Increase Excise Tax Rates on Tobacco Products, Cigarette Papers and Tubes
Explanation of Provision
Rate Increases
Under the provision, the rates of excise tax on tobacco products and cigarette papers and tubes are increased, generally in a proportionate manner. The special rules relating to the application of the tax rates to large cigarettes and cigarette papers and tubes longer than six and one-half inches apply under the provision in the same manner as under present law. The rates under the provision are as follows:
- Small cigars are taxed at the rate of $50.33 per thousand
- Large cigars are taxed at the rate equal to 52.75 percent of the manufacturer’s or importer’s sales price but not more than $0.4026 per cigar
- Small cigarettes are taxed at the rate of $50.33 per thousand
- Large cigarettes are taxed at the rate of $105.69 per thousand
- Cigarette papers are taxed at the rate of $0.0315 for each 50 papers or fractional part thereof
- Cigarette tubes are taxed at the rate of $0.0630 for each 50 tubes or fractional part thereof
- Snuff is taxed at the rate of $1.51 per pound, and proportionately at that rate on all fractional parts of a pound
- Chewing tobacco is taxed at the rate of $0.5033 per pound, and proportionately at that rate on all fractional parts of a pound
- Pipe tobacco is taxed at the rate of $2.8311 per pound, and proportionately at that rate on all fractional parts of a pound; and
- Roll-your-own tobacco is taxed at the rate of $24.78 per pound, and proportionately at that rate on all fractional parts of a pound. The rate for roll-your-own tobacco is intended to approximate the rate for small cigarettes
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