TECHNICAL EXPLANATION OF THE

TECHNICAL EXPLANATION OF THE
REVENUE PROVISIONS OF H.R. 976,
THE "CHILDREN’S HEALTH INSURANCE PROGRAM
REAUTHORIZATION ACT OF 2007,"
AS PASSED BY THE HOUSE ON SEPTEMBER 25, 2007
Here is the link to the actual act:
http://www.house.gov/jct/x-91-07.pdf
PRESENT LAW
Cigars weighing not more than three pounds per thousand ("small cigars") are taxed
at the rate of $1.828 per thousand;
• Cigars weighing more than three pounds per thousand ("large cigars") are taxed at the
rate equal to 20.719 percent of the manufacturer’s or importer’s sales price but not
more than $48.75 per thousand;
NEW LAW
Small cigars are taxed at the rate of $50.00 per thousand (the same rate applied to
small cigarettes);
• Large cigars are taxed at the rate equal to 52.988 percent of the manufacturer’s or
importer’s sales price but not more than $3.00 per cigar;