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 Sec. 46.221 to determine the amount of tax due. ------------------------------------------------------------------------
Product Computation------------------------------------------------------------------------Small cigars weighing not more than 3 Divide number of cigars by
pounds thousand. 1,000 and multiply by the
small cigar tax rate.Small cigarettes weighing not more than Divide number of cigarettes by
3 pounds thousand. 1,000 and multiply by the
small cigarette tax rate.Large cigarettes weighing more than 3 Divide number of cigarettes by
pounds thousand, measuring 6\1/2\ or less in length. large cigarette tax rate.Large cigarettes weighing more than 3 Mathematically adjust the
pounds thousand, measuring more than number of large cigarettes
6\1/2\ in length. 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 6\1/2\ or Divide the number of cigarette
less in length. papers by 50, add 1 if there
is a remainder, and multiply
that number by the cigarette
paper tax rate.Cigarette papers more than 6\1/2\ in length. 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 6\1/2\ or Divide the number of cigarette
less in length. tubes by 50, add 1 if there is
a remainder, and multiply that
number by the cigarette tube
tax rate.Cigarette tubes more than 6\1/2\ in length. 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 6\1/
2\ inch in length are counted as multiple units. Each 2\3/4\ 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 2\3/
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.