# 26 U.S.C. § 5731: Imposition and rate of tax

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s5731>. Cite pinpoints as 26 U.S.C. § 5731(a)(1).

## § 5731(a) General rule

Every person engaged in business as—

**§ 5731(a)(1)** a manufacturer of tobacco products,

**§ 5731(a)(2)** a manufacturer of cigarette papers and tubes, or

**§ 5731(a)(3)** an export warehouse proprietor,

shall pay a tax of $1,000 per year in respect of each premises at which such business is carried on.

## § 5731(b) Reduced rates for small proprietors

**§ 5731(b)(1) In general.** Subsection (a) shall be applied by substituting “$500” for “$1,000” with respect to any taxpayer the gross receipts of which (for the most recent taxable year ending before the 1st day of the taxable period to which the tax imposed by subsection (a) relates) are less than $500,000.

**§ 5731(b)(2) Controlled group rules.** All persons treated as 1 taxpayer under section 5061(e)(3) shall be treated as 1 taxpayer for purposes of paragraph (1).

**§ 5731(b)(3) Certain rules to apply.** For purposes of paragraph (1), rules similar to the rules of subparagraphs (B) and (C) of section 448(c)(3) shall apply.

## § 5731(c) Penalty for failure to register

Any person engaged in a business referred to in subsection (a) who willfully fails to pay the tax imposed by subsection (a) shall be fined not more than $5,000, or imprisoned not more than 2 years, or both, for each such offense.

## Connections

Cites: § 448 Limitation on use of cash method of accounting; § 5061 Method of collecting tax

Cited by: none

## Prior provisions

- A prior section 5731, acts Aug. 16, 1954, ch. 736, 68A Stat. 714; Sept. 2, 1958, Pub. L. 85–859, title II, § 202, 72 Stat. 1423, restricted shipment and delivery of tobacco materials to shipment and delivery pursuant to regulations, prior to repeal by Pub. L. 89–44, title V, § 502(b)(7), title VII, § 701(d), June 21, 1965, 79 Stat. 151, 157, applicable on and after Jan. 1, 1966.

## Amendments

- 1987-12-22: [Pub. L. 100-203](/26/act/100-203.md), 101 Stat. 1330
- 2005-08-10: [Pub. L. 109-59](/26/act/109-59.md), 119 Stat. 1957