1. (a) The tobacco tax rate for cigarettes is:

   1. (1) $5.00 for each package of 20 cigarettes; and
   2. (2) 25 cents for each cigarette in a package of more than 20 cigarettes.

2. (b)

   1. (1) Except as provided in paragraph (2) of this subsection, the tobacco tax rate for other tobacco products is 60% of the wholesale price of the tobacco products.

   2. (2)

      1. (i) In this paragraph, “pipe tobacco” and “premium cigars” have the meanings stated in § 16.5-101 of the Business Regulation Article.

      2. (ii) 1. Except as provided in subsubparagraph 2 of this subparagraph, the tobacco tax rate for cigars is 70% of the wholesale price of the cigars.

         1. 2. The tobacco tax rate for premium cigars is 15% of:

            1. A. the wholesale price of the premium cigars; or
            2. B. for premium cigars sold by an out-of-state seller, the price determined under subsection (c) of this section.

      3. (iii) The tobacco tax rate for pipe tobacco is 30% of:

         1. 1. the wholesale price of the pipe tobacco; or
         2. 2. for pipe tobacco sold by an out-of-state seller, the price determined under subsection (c) of this section.

3. (c)

   1. (1) For premium cigars and pipe tobacco sold by an out-of-state seller, the tobacco tax rate applies to:

      1. (i) the actual price paid by an out-of-state seller for a stock keeping unit; or
      2. (ii) if the actual price paid by an out-of-state seller for a stock keeping unit is not available, the average of the actual price paid by an out-of-state seller for a stock keeping unit over the 12 calendar months before January 1 of the year in which the sale occurs.
   2. (2) The Comptroller shall adopt regulations to implement this subsection.

Added by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Amended by Acts 1988, c. 284; Acts 1991, c. 671, § 1; Acts 1992, c. 1, § 1; Acts 1999, c. 121, § 2, eff. July 1, 2000; Acts 2002, c. 288, § 16, eff. June 1, 2002; Acts 2003, c. 20, § 1, eff. April 8, 2003; Acts 2007, 1st Sp. Sess., c. 6, § 3, eff. Jan. 1, 2008; Acts 2012, 1st Sp. Sess., c. 2, § 2, eff. July 1, 2012; Acts 2021, c. 37, § 1, eff. March 14, 2021; Acts 2021, c. 767, § 2, eff. July 1, 2022; Acts 2021, c. 768, § 2, eff. July 1, 2022; Acts 2024, c. 717, § 2, eff. July 1, 2024.

Formerly Art. 81, §§ 432, 433.