26 USC 5701 - Rate of tax

Collapse to view only § 5701. Rate of tax

§ 5701. Rate of tax
§ 5702. Definitions
§ 5703. Liability for tax and method of payment
§ 5704. Exemption from tax
§ 5705. Credit, refund, or allowance of tax
§ 5706. Drawback of tax
[§ 5707. Repealed.
§ 5708. Losses caused by disaster

§ 5701. Rate of tax

(a) Cigars

On cigars, manufactured in or imported into the United States, there shall be imposed the following taxes:

(1) Small cigars

(2) Large cigars

Cigars not exempt from tax under this chapter which are removed but not intended for sale shall be taxed at the same rate as similar cigars removed for sale.

(b) Cigarettes

On cigarettes, manufactured in or imported into the United States, there shall be imposed the following taxes:

(1) Small cigarettes

(2) Large cigarettes

(d) Cigarette tubes

(e) Smokeless tobacco

On smokeless tobacco, manufactured in or imported into the United States, there shall be imposed the following taxes:

(1) Snuff

(2) Chewing tobacco

(f) Pipe tobacco

(g) Roll-your-own tobacco

(h) Imported tobacco products and cigarette papers and tubes

(Aug. 16, 1954, ch. 736, 68A Stat. 705; Mar. 30, 1955, ch. 18, § 3(a)(9), 69 Stat. 14; Mar. 29, 1956, ch. 115, § 3(a)(9), 70 Stat. 66; Pub. L. 85–12, § 3(a)(7), Mar. 29, 1957, 71 Stat. 9; Pub. L. 85–475, § 3(a)(7), June 30, 1958, 72 Stat. 259; Pub. L. 85–859, title II, § 202, Sept. 2, 1958, 72 Stat. 1414; Pub. L. 86–75, § 3(a)(7), June 30, 1959, 73 Stat. 157; Pub. L. 86–564, title II, § 202(a)(9), June 30, 1960, 74 Stat. 290; Pub. L. 86–779, § 1, Sept. 14, 1960, 74 Stat. 998; Pub. L. 87–72, § 3(a)(9), June 30, 1961, 75 Stat. 193; Pub. L. 87–508, § 3(a)(8), June 28, 1962, 76 Stat. 114; Pub. L. 88–52, § 3(a)(9), June 29, 1963, 77 Stat. 72; Pub. L. 88–348, § 2(a)(9), June 30, 1964, 78 Stat. 237; Pub. L. 89–44, title V, §§ 501(f), 502(a), June 21, 1965, 79 Stat. 150; Pub. L. 90–240, § 4(a), Jan. 2, 1968, 81 Stat. 776; Pub. L. 94–455, title XIX, § 1905(a)(24), title XXI, § 2128(a), Oct. 4, 1976, 90 Stat. 1821, 1921; Pub. L. 97–248, title II, § 283(a), Sept. 3, 1982, 96 Stat. 568; Pub. L. 99–272, title XIII, § 13202(a), Apr. 7, 1986, 100 Stat. 311; Pub. L. 100–647, title V, § 5061(a), Nov. 10, 1988, 102 Stat. 3679; Pub. L. 101–508, title XI, § 11202(a)–(f), Nov. 5, 1990, 104 Stat. 1388–419; Pub. L. 105–33, title IX, § 9302(a)–(g)(1), (h)(3), Aug. 5, 1997, 111 Stat. 671, 672, 674; Pub. L. 111–3, title VII, § 701(a)–(g), Feb. 4, 2009, 123 Stat. 106, 107; Pub. L. 115–141, div. U, title IV, § 401(a)(250), Mar. 23, 2018, 132 Stat. 1196.)

§ 5702. DefinitionsWhen used in this chapter—

(a) Cigar

(b) Cigarette“Cigarette” means—

(1) any roll of tobacco wrapped in paper or in any substance not containing tobacco, and

(2) any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in paragraph (1).

(d) Manufacturer of tobacco products“Manufacturer of tobacco products” means any person who manufactures cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco, except that such term shall not include—

(1) a person who produces cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco solely for the person’s own personal consumption or use, and

(2) a proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse.

Such term shall include any person who for commercial purposes makes available for consumer use (including such consumer’s personal consumption or use under paragraph (1)) a machine capable of making cigarettes, cigars, or other tobacco products. A person making such a machine available for consumer use shall be deemed the person making the removal as defined by subsection (j) with respect to any tobacco products manufactured by such machine. A person who sells a machine directly to a consumer at retail for a consumer’s personal home use is not making a machine available for commercial purposes if such machine is not used at a retail premises and is designed to produce tobacco products only in personal use quantities.

(e) Cigarette paper

(f) Cigarette tube

(g) Manufacturer of cigarette papers and tubes

(h) Export warehouse

(i) Export warehouse proprietor

(j) Removal or remove

(k) Importer

(l) Determination of price on cigarsIn determining price for purposes of section 5701(a)(2)—

(1) there shall be included any charge incident to placing the article in condition ready for use,

(2) there shall be excluded—

(A) the amount of the tax imposed by this chapter or section 7652, and

(B) if stated as a separate charge, the amount of any retail sales tax imposed by any State or political subdivision thereof or the District of Columbia, whether the liability for such tax is imposed on the vendor or vendee, and

(3) rules similar to the rules of section 4216(b) shall apply.

(m) Definitions relating to smokeless tobacco

(1) Smokeless tobacco

(2) Snuff

(3) Chewing tobacco

(n) Pipe tobacco

(o) Roll-your-own tobacco

(p) Manufacturer of processed tobacco

(1) In general

(2) Processed tobacco

(Aug. 16, 1954, ch. 736, 68A Stat. 706; Pub. L. 85–859, title II, § 202, Sept. 2, 1958, 72 Stat. 1415; Pub. L. 89–44, title V, § 502(b)(3), title VIII, § 808(a), June 21, 1965, 79 Stat. 151, 164; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), title XXI, § 2128(b), Oct. 4, 1976, 90 Stat. 1834, 1921; Pub. L. 99–272, title XIII, § 13202(b)(2)–(4), Apr. 7, 1986, 100 Stat. 312; Pub. L. 100–647, title V, § 5061(b)–(c)(2), Nov. 10, 1988, 102 Stat. 3679; Pub. L. 101–508, title XI, § 11202(g), Nov. 5, 1990, 104 Stat. 1388–419; Pub. L. 105–33, title IX, § 9302(g)(2)–(3)(B), (h)(4), Aug. 5, 1997, 111 Stat. 672, 674; Pub. L. 106–554, § 1(a)(7) [title III, § 315(a)(2)], Dec. 21, 2000, 114 Stat. 2763, 2763A–644; Pub. L. 111–3, title VII, § 702(a)(4), (5), (d)(1), Feb. 4, 2009, 123 Stat. 108, 110; Pub. L. 112–141, div. F, title I, § 100122(a), July 6, 2012, 126 Stat. 914.)

§ 5703. Liability for tax and method of payment

(a) Liability for tax

(1) Original liability

(2) Transfer of liability

(b) Method of payment of tax

(1) In general

(2) Time for payment of taxes

(A) In general

(B) Imported articles

In the case of tobacco products and cigarette papers and tubes which are imported into the United States—

(i) In general

(ii) Special rule for entry for warehousing

(iii) Foreign trade zones

(iv) Exception for articles destined for export

(D) Special rule for tax due in September

(i) In general

(ii) Safe harbor

(iii) Taxpayers not required to use electronic funds transfer

(E) Special rule where due date falls on Saturday, Sunday, or holiday

(F) Special rule for unlawfully manufactured tobacco products

(3) Payment by electronic fund transfer

(d) Assessment

(Aug. 16, 1954, ch. 736, 68A Stat. 707; Pub. L. 85–859, title II, § 202, Sept. 2, 1958, 72 Stat. 1417; Pub. L. 94–455, title XIX, §§ 1905(a)(25), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1821, 1834; Pub. L. 97–448, title III, § 308(a), Jan. 12, 1983, 96 Stat. 2407; Pub. L. 98–369, div. A, title I, § 27(c)(2), July 18, 1984, 98 Stat. 509; Pub. L. 99–509, title VIII, § 8011(a)(1), Oct. 21, 1986

§ 5704. Exemption from tax

(a) Tobacco products furnished for employee use or experimental purposes

(b) Tobacco products and cigarette papers and tubes transferred or removed in bond from domestic factories and export warehouses

(d) Tobacco products and cigarette papers and tubes exported and returned

(Aug. 16, 1954, ch. 736, 68A Stat. 708; Pub. L. 85–859, title II, § 202, Sept. 2, 1958, 72 Stat. 1418; Pub. L. 88–342, § 1(b), June 30, 1964, 78 Stat. 234; Pub. L. 89–44, title V, § 502(b)(4), June 21, 1965, 79 Stat. 151; Pub. L. 94–455, title XIX, §§ 1905(a)(26), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1821, 1834; Pub. L. 99–509, title VIII, § 8011(a)(2), Oct. 21, 1986, 100 Stat. 1952; Pub. L. 101–239, title VII, § 7508(a), Dec. 19, 1989, 103 Stat. 2370; Pub. L. 105–33, title IX, § 9302(h)(1)(A), Aug. 5, 1997, 111 Stat. 673; Pub. L. 106–476, title IV, § 4002(b), Nov. 9, 2000, 114 Stat. 2177.)

§ 5705. Credit, refund, or allowance of tax

(a) Credit or refund

(b) Allowance

(Aug. 16, 1954, ch. 736, 68A Stat. 709; Pub. L. 85–859, title II, § 202, Sept. 2, 1958, 72 Stat. 1419; Pub. L. 89–44, title VIII, § 808(b)(1), (2), (c)(1), June 21, 1965, 79 Stat. 164, 165; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

§ 5706. Drawback of tax

There shall be an allowance of drawback of tax paid on tobacco products and cigarette papers and tubes, when shipped from the United States, in accordance with such regulations and upon the filing of such bond as the Secretary shall prescribe.

(Aug. 16, 1954, ch. 736, 68A Stat. 709; Pub. L. 85–859, title II, § 202, Sept. 2, 1958, 72 Stat. 1419; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

[§ 5707. Repealed. Pub. L. 89–44, title V, § 501(g), June 21, 1965, 79 Stat. 150]

§ 5708. Losses caused by disaster

(a) Authorization

(b) ClaimsNo claim shall be allowed under this section unless—

(1) filed within 6 months after the date on which the President makes the determination that the disaster referred to in subsection (a) has occurred; and

(2) the claimant furnishes proof to the satisfaction of the Secretary that—

(A) he was not indemnified by any valid claim of insurance or otherwise in respect of the tax, or tax and duty, on the tobacco products or cigarette papers or tubes covered by the claim, and

(B) he is entitled to payment under this section.

Claims under this section shall be filed under such regulations as the Secretary shall prescribe.

(d) Other laws applicable

(Added Pub. L. 85–859, title II, § 202, Sept. 2, 1958, 72 Stat. 1420; amended Pub. L. 91–606, title III, § 301(j), Dec. 31, 1970, 84 Stat. 1759; Pub. L. 93–288, title VII, § 702(j), formerly title VI, § 602(j), May 22, 1974, 88 Stat. 164, renumbered title VII, § 702(j), Pub. L. 103–337, div. C, title XXXIV, § 3411(a)(1), (2), Oct. 5, 1994, 108 Stat. 3100; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 100–707, title I, § 109(l), Nov. 23, 1988, 102 Stat. 4709; Pub. L. 108–311, title IV, § 408(a)(7)(E), Oct. 4, 2004, 118 Stat. 1191.)