Rev. Ruling 66-122 Cigar Classification Section 5702(a) of the Internal Revenue Code of 1954 defines a cigar as "any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette within the meaning of subsection (b)(2))." Section 5702(b) of the Code defines a cigarette as "(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)." Similar definitions of "cigar" and "cigarette" are prescribed in 26 CFR 270.11. It is held that the use of paper as a binder in the manufacture of cigars does not cause the finished product to be classified as a cigarette and subject to the rate of tax imposed on cigarettes. Revenue Ruling 64-14, C.B. 1964-1 (Part 1), 575, is hereby superseded. 26 U.S.C. 5702; 27 CFR 270.11 |
Ruling 66-122
Last updated: May 2, 2024