New York Provides Guidance on Taxability of Little Cigars

Wednesday, September 10th, 2014

 
 
A closeup of cigarettes.
Share
Link
New York
General

The New York Department of Taxation and Finance recently issued guidance on the taxation of little cigars.

New York's tobacco products tax applies to cigarettes and cigars. Cigars and cigarettes are taxed at different rates. Little cigars are subject to the cigarette tax rate rather than the cigar tax rate. Little cigars are therefore taxed $4.35 for 20 little cigars plus $1.0875 for each additional five little cigars. The rate for cigars, in contrast, is 75% of the wholesale price.

A "cigar," for this tax, is a roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco. A "little cigar" is a cigar that meets three requirements. First, it must be a roll for smoking made with any amount of tobacco. Second, it must have a cigar wrapper that is not natural leaf tobacco but that contains some amount or form of tobacco. Third, it must either (1) weigh four pounds or less per one thousand cigars or (2) have a filter made of cellulose acetate or any other integrated filter.

http://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/tobprod/little_cigars.htm


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Economic Nexus in Washington

Monday, August 13th, 2018 -Effective October 1, 2018, certain out-of-state businesses will be required to collect and pay Washington sale...

Economic Nexus in Michigan

Thursday, August 9th, 2018 -Effective October 1, 2018, certain out-of-state sellers will be required to collect and pay Michigan sales or ...

Georgia Suspends Tax on Jet Fuel

Wednesday, August 8th, 2018 -Effective August 1, 2018, Georgia no longer collects state level sales and use tax on jet fuel. Georgia tax...

Employment Services Contracts for Permanent Employees Not...

Monday, August 6th, 2018 -The Ohio Board of Tax Appeals recently addressed whether contracts entered into by an employment services agen...

Alarm Systems and Monitoring Not Taxable in Missouri

Wednesday, August 1st, 2018 -The Missouri Department of Revenue recently released a ruling determining that (1) security, fire, tornado, an...

Economic Nexus in Utah

Wednesday, August 1st, 2018 -Effective January 1, 2019, certain out-of-state sellers will be required to collect and pay Utah sales or use ...