26 USC § 5734 - Application of State laws

---
identifier: "/us/usc/t26/s5734"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 5734 - Application of State laws"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "5734"
section_name: "Application of State laws"
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. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1348, § 5145; renumbered § 5734 and amended Pub. L. 109–59, title XI, § 11125(b)(20)(A), Aug. 10, 2005, 119 Stat. 1956.)"
---


# § 5734. Application of State laws

The payment of any tax imposed by this subchapter for carrying on any trade or business shall not be held to exempt any person from any penalty or punishment provided by the laws of any State for carrying on such trade or business within such State, or in any manner to authorize the commencement or continuance of such trade or business contrary to the laws of such State or in places prohibited by municipal law; nor shall the payment of any such tax be held to prohibit any State from placing a duty or tax on the same trade or business, for State or other purposes.

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**Source Credit**: (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1348, § 5145; renumbered § 5734 and amended Pub. L. 109–59, title XI, § 11125(b)(20)(A), Aug. 10, 2005, 119 Stat. 1956.)

## Editorial Notes

### Amendments

2005— renumbered  as this section, transferred section to this subchapter, and substituted “this subchapter” for “this part” in text.

## 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 .