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Title 26 — Internal Revenue CodeRelease 119-73not60

§5731 Imposition and Rate of Tax

Title 26 › Subtitle Subtitle E— Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter 52— TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES › Subchapter D— Occupational Tax › § 5731

Last updated Apr 5, 2026|Official source

Summary

Businesses that make tobacco products, make cigarette papers or tubes, or run export warehouses must pay a special tax. The normal amount is $1,000. If a business’s gross receipts for its most recent tax year before the taxable period are under $500,000, the tax is $500 instead of $1,000. Groups treated as one taxpayer under section 5061(e)(3) are counted together for the $500,000 test, and similar rules to those in section 448(c)(3) apply when figuring gross receipts. If someone willfully fails to pay the tax, they can be fined up to $5,000, put in jail for up to 2 years, or both, for each offense.

Full Legal Text

Title 26, §5731

Internal Revenue Code — Source: USLM XML via OLRC

(a)Every person engaged in business as—
(1)a manufacturer of tobacco products,
(2)a manufacturer of cigarette papers and tubes, or
(3)an export warehouse proprietor,
(b)(1)Subsection (a) shall be applied by substituting “$500” for “$1,000” with respect to any taxpayer the gross receipts of which (for the most recent taxable year ending before the 1st day of the taxable period to which the tax imposed by subsection (a) relates) are less than $500,000.
(2)All persons treated as 1 taxpayer under section 5061(e)(3) shall be treated as 1 taxpayer for purposes of paragraph (1).
(3)For purposes of paragraph (1), rules similar to the rules of subparagraphs (B) and (C) of section 448(c)(3) shall apply.
(c)Any person engaged in a business referred to in subsection (a) who willfully fails to pay the tax imposed by subsection (a) shall be fined not more than $5,000, or imprisoned not more than 2 years, or both, for each such offense.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5731, acts Aug. 16, 1954, ch. 736, 68A Stat. 714; Sept. 2, 1958, Pub. L. 85–859, title II, § 202, 72 Stat. 1423, restricted shipment and delivery of tobacco materials to shipment and delivery pursuant to

Regulations

, prior to repeal by Pub. L. 89–44, title V, § 502(b)(7), title VII, § 701(d), June 21, 1965, 79 Stat. 151, 157, applicable on and after Jan. 1, 1966.

Amendments

2005—Subsecs. (c), (d). Pub. L. 109–59 redesignated subsec. (d) as (c) and struck out former subsec. (c). Text read as follows: “Rules similar to the rules of subpart G of part II of subchapter A of chapter 51 shall apply for purposes of this section.”

Statutory Notes and Related Subsidiaries

Effective Date

of 2005 AmendmentAmendment by Pub. L. 109–59 effective July 1, 2008, but inapplicable to taxes imposed for periods before such date, see section 11125(c) of Pub. L. 109–59, set out as a note under section 5002 of this title.

Effective Date

Section effective Jan. 1, 1988, see section 10512(h) of Pub. L. 100–203, set out as an

Effective Date

of 1987 Amendment note under section 5111 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 5731

Title 26 — Internal Revenue Code

Last Updated

Apr 5, 2026

Release point: 119-73not60