26 USC § 5731 - Imposition and rate of tax

---
identifier: "/us/usc/t26/s5731"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 5731 - Imposition and rate of tax"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "5731"
section_name: "Imposition and rate of tax"
chapter_number: 52
chapter_name: "TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES"
subchapter_number: "D"
subchapter_name: "Occupational Tax"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 100–203, title X, § 10512(f)(1), Dec. 22, 1987, 101 Stat. 1330–449; amended Pub. L. 109–59, title XI, § 11125(b)(20)(E), Aug. 10, 2005, 119 Stat. 1957.)"
---


# § 5731. Imposition and rate of tax

**(a)** **General rule** Every person engaged in business as—

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

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

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

**(3)** an export warehouse proprietor,

**(b)** **Reduced rates for small proprietors**

**(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.

**(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).

**(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.

**(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.

---

**Source Credit**: (Added Pub. L. 100–203, title X, § 10512(f)(1), Dec. 22, 1987, 101 Stat. 1330–449; amended Pub. L. 109–59, title XI, § 11125(b)(20)(E), Aug. 10, 2005, 119 Stat. 1957.)

## Editorial Notes

### Prior Provisions

A prior section 5731, acts , ; , , , restricted shipment and delivery of tobacco materials to shipment and delivery pursuant to regulations, prior to repeal by , title VII, § 701(d), , , 157, applicable on and after .

### Amendments

2005—Subsecs. (c), (d).  redesignated subsec. (d) as (c) and struck out former subsec. (c). Text read as follows: “Rules similar to the rules of subpart G of part II of subchapter A of chapter 51 shall apply for purposes of this section.”

## Statutory Notes and Related Subsidiaries

### Effective Date of 2005 Amendment

Amendment by  effective , but inapplicable to taxes imposed for periods before such date, see , set out as a note under .

### Effective Date

Section effective , see , set out as an Effective Date of 1987 Amendment note under .