The federal excise tax on tobacco increased on April 1,2009, from 39 cents per pack to a new total of $1.0066 per pack. In addition, the tax on moist smokeless tobacco products increased from $0.585 to $1.51 per pound.  Other tax increases on tobacco products included: $0.40 per large cigar, 96 cents per pack on little cigars, pipe tobacco $1.71 per pound, roll-your-own tobacco $23.53 per pound, and chewing tobacco 30.5 cents per pound.

Retailers, distributors and wholesalers will have to pay a floor stocks tax on tobacco inventory held at the close of business March 31st. The floor stocks tax must be paid on or before August 1, 2009. There is one exemption in the floor stock tax on large cigars that weigh more than 3 pounds per 1,000 cigars. A floor stocks tax credit of $500 will be granted to each company (not to each store) liable for the floor stocks tax.

Floor Stocks Tax form and instructions are available online:

http://www.ttb.gov/tax_audit/floor-stocks-tax-interim.shtml