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Date of acts imposing tax on cigars and cigarettes and rates of

tax-Continued.

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per M...

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.50

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per M..

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per M. Per M.

Mar. 2, 1901
June 13, 1898

10

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per M. per M.

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per M.

.....do..

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per M..

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per M..

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Per V.
Cigars and cheroots of all descriptions... $6.00 Mar. 3, 1875
Cigarettes weighing not over 3 pounds

1.75 do..
Weighing over 3 pounds per M.. 6.00 .do...
Cigars and cheroots of all descriptions. 3.00 Mar. 3, 1883
Cigarettes weighing not over 3 pounds
per M...

do. Weighing over 3 pounds per M.. 3.00 .....do... Cigars weighing more than 3 pounds

3.00 July 24, 1897 Weighing not more than 3 pounds

1.00 do... Cigarettes weighing more than 3 pounds

3.00

do.... Weighing not more than 3 pounds

1.00 do.... Cigars weighing more than 3 pounds

3.60 June 13, 1898 Weighing not more than 3 pounds

1.00 Cigarettes weighing more than 3 pounds per M..

3.60 do. Weighing not more than 3 pounds

1.50 do.. Cigars weighing more than 3 pounds per M.....

3.00 Mar. 2, 1901 Weighing not more than 3 pounds per M.

.....do.. Cigarettes weighing more than 3 pounds

3.00 A pr. 12, 1902 Weighing not more than 3 pounds

per M of wholesale value or price
of
Not over $2 per M..

.54 Mar. 2,1901
More than $2 per M.

1.08

.do... Cigars weighing more than 3 pounds

3.00 Aug. 5, 1909 Weighing not more than 3 pounds

. 75. .do. Cigarettes weighing more than 3 pounds

3. 00

do.. Weighing not more than 3 pounds

1.25 do. Class A. Cigars weighing more than 3

pounds per 1,000 il manufac-
tured or imported to retail

at less than 4 cents each.... 3.00 Oct. Class B. Cigars weighing more than 3

pounds per 1,000 if manufac-
tured or imported to retail
at 4 cents or more and not

more than 7 cents each... 3.50 ..do.. Class C. Cigars weighing more than 3

pounds per 1,000 il manufac-
tured or imported to retail
at more than 7 cents each
and not more than 15 cents
each.

4.50 Class D. Cigars weighing more than 3

pounds per 1,000 is manufac-
tured or imported to retail
at more than 15 cents each
and not more than 20 cents
each.

5.50 Class E. Cigars weighing more than 3

pounds per 1,000 if manufac-
tured or imported to retail

at more than 20 cents each.. 6.50 .do.
Cigars weighing not more than
3 pounds per 1,000.

.873 .do..
Cigarettes weighing not more

than 3 pounds per 1,000.... 1.65 .....do....
Cigarettes weighing more than
3 pounds per 1,000....

4.20 do..

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Date of acts imposing tar on cigars and cigarettes and rates of

tar-Continued.

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Vonths.

16

16

16

16

16

16

16

16

Class 1. Cigars weighing more than 3 Per M.

pounds per 1,000 if manufac-
tured or imported to retail

at less than 4 cents each.. $3.00 Oct. 3, 1917 | Feb. 24, 1919. Class B. Cigars weighing more than 3

pounds per 1,000 if manufac-
tured or imported to retail
at 4 cents or more and not
more than 7 cents each.. 4.00 .do..

do. Class C. Cigars weighing more than 3

pounds per 1,000 if mamifac-
tured or imported to retail
at more than 7 cents each
and not more than 15 cents
cach,..

6.00 .....do..

.do.. Class D. Cigars weighing more than 3

pounds per 1,000 il manufac-
tured or imported to retail
at more than 15 cents each
and not more than 20 cents
each..

8.00
.do..

do. Class E. Cigars weighing more than 3

pounds per 1,000 if manufac-
tured or imported to retail
at more than 20 cents each.. 10.00 .do.

do..
Cigars weighing not more than
3 pounds per 1,000...

1.00

.do..
Cigarettes weighing not more
than 3 pounds per 1,000.. 2.05 .do..

do..
Cigarettes weighing more than
3 pounds per 1,000..

.....do.

4.80

.do.. Class A. Cigars weighing more than 3

pounds per 1,000 il manufac-
tured or imported to retail
at not more than 5 cents
cach....

4.00

Feb. 24, 1919
Class B. Cigars weighing more than 3

pounds per 1,000 if manufac-
tured or imported to retail
at more than 5 cents each
and not more than 8 cents
cach..

6.00 .do... Class C. Cigars weighing more than 3

pounds per 1,000 if manufac-
tured or imported to retail
at more than 8 cents each
and not more than 15 cents
cach...

9.00 .do... Class D. Cigars weighing more than 3

pounds per 1,000 if manufac-
tured or imported to retail
at more than 15 cents each
and not more than 20 cents
cach..

12.00

do..... Class E. Cigars weighing more than 3

pounds per 1,000 if manufac-
tured or imported to retail

at more than 20 cents each.. 15.00 .do...
Cigars weighing not more than
3 pounds per 1,000..

1.50

.do...
Cigarettes weighing not more
than 3 pounds per 1,000. 3.00

.do...
Cigarettes weighing more than
3 pounds per 1,000.

7.20

.do..

The act of July 1, 1862, went into operation September 1, 1862.

The act of July 20, 1868, first required payment of tax on cigars by stamps.

Assessment of tax on cigars removed without stamps. (Sec. 3371, p. 384.)

fur

Authority of commissioner to examine returns of cigar manufacturers and to treat deficiency in product based on the return of one thousand cigars for every 25 pounds of tobacco as prima facie evidence of nonpayment of taxes. (See note under sec. 3371, p. 384.)

Section 3302, amended, provides that fine-cut shorts, the refuse of fine-cut chewing tobacco, refuse scraps, clippings, cuttings, and sweepings of tobacco may be sold in bulk as material and without the payment of tax, by one manufacturer directly to another manufacturer, or for export, under such restrictions, rules, and regulations as the Commissioner of Internal Revenue may prescribe. This relates to cigar manufacturers as well as manufacturers of tobacco.

Summary of sections of the act of August 5, 1909, effective July 1, 1910. (T. D. 1602.)

Increased rates of taxation umder said act. (T. D. 1622 ; T. D. 1629.)

Scrap tobacco, Sweepings, clippings, classified as “ l'umanufactured tobacco" under Tariff Act of 1997. (Latimer v. United States, 223 U. S. 501.)

Cigars manufactured in bonded warehouses, Act of October 3, 1913. (T. D. 1919.)

Label on boxes of large cigars indicating class of tax pay. ment. (T. D. 2595.)

Regulations concerning taxes on tobacco, snuff, cigars, and cigarettes removed from factory or customhouse on and after October 4, 1917, subject to half additional tax and on and after November 2, 1917, subject to full additional tax

imposed by the act of October 3, 1917. (T. D. 2569.) Stamps, how

Sec. 3395. The Commissioner of Internal Revenue shall prepared, nished, and ac: cause to be prepared, for payment of the tax upon cigars, counted for.

suitable stamps denoting the tax thereon. Such stamps shall be furnished to collectors requiring them, and collectors shall, if there be any cigar-manufacturers within their respective districts, keep on hand at all times a supply equal in amount to two months sales thereof, and shall sell the same only to the cigar-manufacturers who have given bonds and paid the special tax, as required by law, in their districts, respectively, and to importers of cigars, who are required to affix the same to imported cigars in the custody of customs officers, and to persons required by law to affix the same to cigars on hand after the first day of April, eighteen hundred and sixty-nine. Every collector shall keep an account of the number, amount, and denominate values of the stamps sold by him to each cigar-manufacturer, and to other persons above described.

See sections 3447 and 3446 as amended (p. 586) as to authority to prescribe how stamps shall be attached, canceled, etc.

See, also, Section 3369, page 383.

Porto Rico. An act to provide means for the sale of internal-revenue stamps in the island of Porto Rico, approved June 29, 1906. (See p. 620.)

Sale of internal-revenue stamps in the island of Porto Rico, Circular No. 679, dated July 25, 1906 (T. D. 1031).

Sale of stamps to a sheriff or constable. (25 Int. Rev.

Rec., 21.) Regulations Sec. 3396. The Commissioner of Internal Revenue may authorized.

prescribe such regulations for the inspection of cigars, cheroots, and cigarettes, and the collection of the tax

Record 47.

lent or imitation

thereon, as he may deem most effective for the prevention of frauds in the payment of such tax.

The commissioner has authority to prescribe regulations for the inspection of cigars and the collection of the tax

thereon. (Ludloff v. United States, 108 U. S., 176.) SEC. 3397. [Amended by sec. 16, act of March 1, 1879 Removal with (20 Stat., 327).] Whenever any cigars are removed from ing, stamping, or any manufactory, or place where cigars are made, without branding, being packed in boxes as required by the provisions of this chapter, or without the proper stamp thereon denoting the tax, or without stamping, indenting, burning, or impressing into each box, in a legible and durable manner, the number of the cigars contained therein, the number of the manufactory, and the number of the district and the State, or without properly affixing thereon and canceling the stamp denoting the tax on the same, or are sold, or offered for sale, not properly boxed and stamped, they shall be forfeited to the United States. And every person Penalty. who commits any of the above-described offenses shall be fined for each such offense not less than one hundred dollars nor more than one thousand dollars, and imprisoned not less than six months nor more than two years.

And every person who packs cigars in any box bearing Using, fraudu. a false or fraudulent or counterfeit stamp, or who affixes stamps. to any box containing cigars a stamp in the similitude or likeness of any stamp required to be used by the laws of the United States, whether the same be a customs or internal-revenue stamp, or who buys, receives, or has in his possession any cigars on which the tax to which they are liable has not been paid, or who removes, or causes to be removed, from any box any stamp denoting the tax on cigars, with intent to use the same, or who uses, or permits any other person to use, any stamp so removed, or who receives, buys, sells, gives away, or has in his possession any stamp so removed, or who makes any other fraudulent use of any stamp intended for cigars, or who removes from the place of manufacture any cigars not properly boxed and stamped as required by law, shall be deemed guilty of a felony, and shall be fined not less than one hundred dollars nor more than one thousand dollars, and imprisoned not less than six months nor more than three years.

Provided, That cigars packed expressly for export, and which shall be exported to a foreign country under the for export. restrictions and regulations prescribed by the Commissioner of Internal Revenue, and approved by the Secretary of the Treasury, shall be exempt from the provisions of this section, and also from the provisions of section thirty-three hundred and ninety-three of the Revised Statutes, requiring a label to be affixed to each box.

See section 3445, page 589, relative to canceling stamps.

Affixing to a box containing domestic cigars a stamp in the similitude of a customs stamp is an indictable offense, and it is not necessary in the indictment to aver an intent

Penalty.

Cigars packed

stamps
of
of tax.

to defraud the United States. (United States v. Jacoby, 12 Blatchf. 491;. Fed. Cas. No. 15462.).

Where a sheriff or constable removes cigars from a cigar factory without the same being properly boxed and stamped, and sells the same unstamped, he is liable to the penalty prescribed. (T. D. 21167.)

Stamps on boxes of cigars must be properly affixed and canceled to avoid liability to seizure. (T. D. 19063.)

Cigars removed from factory without stamping into each box the number of the manufactory and the number of the district and State; the natural inference is that the cigars were removed from the factory in the condition in which they were found. (Jackson 1. United States., 21 Fed. 35 ; 30 Int. Rev. Rec., 279.)

United States v. Woolheim, 11 Int. Rev. Rec. 78; Fed. Cas. No. 16761.

Boxes of cigars in the hands of innocent purchasers upon which the number of the factory had not been impressed for feitable. (United States v. 76, 125 Cigars, 18 Fed. 147.)

Cigars exposed for sale outside of tamped packages. (Cir. 643; T. D. 678.)

Cigars exposed for sale in boxes without covers. (T. Ds. 724, 788, 1287, 1296.)

Unstamped cigars and cigarettes removed as smokers."

(T. Ds. 1723, 1725, 1744.)

Sec. 3398. The absence of the proper revenue-stamp Absence of evidence

on any box of cigars sold, or offered for sale, or kept for nonpayment

sale, shall be notice to all persons that the tax has not been paid thereon, and shall be prima-facie evidence of the nonpayment thereof, and such cigars shall be forfeited to the United States.

See section 3376, page 386 (T. D. 1296). Cigars manu

Sec. 3399. Whenever cigars of any description are factured

manufactured, in whole or in part, upon commission or hares, sjon,

shares, or the material is furnished by one party and

how stamped.

manufactured by another, or the material is furnished or sold by one party with an understanding or agreement with another that the cigars are to be received in payment therefor, or for any part thereof, the stamps required by law shall be affixed by the actual maker be

fore the cigars are removed from the place of manufacFra ud, pen- turing. And in case of fraud on the part of either of alty.

said parties in respect to said manufacture, or of any collusion on their part with intent to defraud the revenue, such material and cigars shall be forfeited to the United States; and every person engaged in such fraud or collusion shall be fined not less than one hundred dollars nor more than five thousand dollars, and imprisoned for not less than six months nor more than three years.

Sec. 3400. Every manufacturer of cigars who removes property for sell.

con or sells any cigars without payment of the special tax using talske as a cigar manufacturer, or without having given bond

as such, or without the proper stamps denoting the tax thereon; or who makes false or fraudulent entries of the manufacture or sale of any cigars; or makes false or fraudulent entries of the purchase or sale of leaf-tobacco, tobacco-stems, or other material used in the manufacture

on commis

or contract,

Forfeiture

of

etc..

to

trary

stamps, etc.

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