Determination of amount of tax due.

  1. Law
  2. CFR 27
  3. Alcohol, Tobacco Products and Firearms
  4. Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury
  5. Tobacco
  6. Miscellaneous Regulations Relating to Tobacco Products and Cigarette Papers and Tubes
  7. Floor Stocks Tax on Certain Tobacco Products, Cigarette Papers, and Cigarette Tubes Held for Sale on April 1, 2009
  8. Tax Liability Calculation
  9. Determination of amount of tax due.

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§ 46.222 Determination of amount of tax due.

After the dealer has taken the inventory, the dealer must convert the inventory quantities to taxable units using the table below. For tobacco products, round the quantities to two decimal places. The dealer must then apply the applicable tax rate for each type of taxable article using the table in § 46.221 to determine the amount of tax due.

Expand Table
Product Computation
Small cigars weighing not more than 3 pounds thousand Divide number of cigars by 1,000 and multiply by the small cigar tax rate.
Small cigarettes weighing not more than 3 pounds thousand Divide number of cigarettes by 1,000 and multiply by the small cigarette tax rate.
Large cigarettes weighing more than 3 pounds thousand, measuring 61⁄2″ or less in length Divide number of cigarettes by 1,000 and multiply by the large cigarette tax rate.
Large cigarettes weighing more than 3 pounds thousand, measuring more than 61⁄2″ in length Mathematically adjust the number of large cigarettes using the instructions below.* Divide the adjusted number of large cigarettes by 1,000 and multiply by the small cigarette tax rate.
Snuff Multiply the total in pounds by the snuff tax rate.
Chewing tobacco Multiply the total in pounds by the chewing tobacco tax rate.
Pipe tobacco Multiply the total in pounds by the pipe tobacco tax rate.
Roll-your-own Multiply the total in pounds by the roll-your-own tax rate.
Cigarette papers 61⁄2″ or less in length Divide the number of cigarette papers by 50, add 1 if there is a remainder, and multiply that number by the cigarette paper tax rate.
Cigarette papers more than 61⁄2″ in length Mathematically adjust the number of cigarette papers using the instructions below.* Divide the adjusted number of cigarette papers by 50, add 1 if there is a remainder, and multiply that number by the cigarette paper tax rate.
Cigarette tubes 61⁄2″ or less in length Divide the number of cigarette tubes by 50, add 1 if there is a remainder, and multiply that number by the cigarette tube tax rate.
Cigarette tubes more than 61⁄2″ in length Mathematically adjust the number of cigarette tubes using the instructions below.* Divide the adjusted number of cigarette tubes by 50, add 1 if there is a remainder, and multiply that number by the cigarette tube tax rate.

*Large cigarettes, cigarette papers, and cigarette tubes more than 61⁄2 inch in length are counted as multiple units. Each 23⁄4 inch or fraction of the length is counted as a separate taxable unit. For each different length of product in this category, divide the length by 23⁄4 inch and add 1 to the result if there is a remainder. Multiply the number of cigarettes, cigarette papers, or tubes of that length by the resulting number.


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