Little cigars

Tax Bulletin TP-530 (TB-TP-530)

Issue Date: August 1, 2024

Introduction

Little cigars are tobacco products subject to the tobacco products tax. This bulletin explains what a little cigar is, describes how to distinguish between little cigars and other cigars, and provides the tax rate for both.

For more information about the tax on tobacco products, see Cigarette and tobacco products tax. 

Definitions

Under the Tax Law, a cigar is any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco.

A little cigar is a cigar that has all the following characteristics:

• it is a roll for smoking made with any amount of tobacco;
• the cigar wrapper contains some amount or form of tobacco (such as homogenized tobacco leaf), but is not natural leaf tobacco; and
• the product must either:
  • weigh 4 pounds or less per 1,000,
                      or
  • have a filter made of cellulose acetate (for example, a cigarette-type filter) or any other integrated filter.

Note: Only the weight of the cigar and filter are included, do not include the weight of the packaging.

Types of cigar wrappers

Homogenized tobacco is a substance commonly used to wrap cigars that contains tobacco but is not natural leaf tobacco. It is made from tobacco scraps that are pulverized, mixed with other products, and rolled into sheets that can be used to wrap cigars.

A natural leaf tobacco wrapper is any wrapper made from one or more natural tobacco leaves. They can be used for both hand-rolled and machine-made cigars.

Quick reference chart: cigar vs. little cigar

If the wrapper is natural leaf tobacco, the product is classified as a cigar.

If the wrapper is homogenized tobacco leaf, or any other substance containing tobacco that is not natural leaf tobacco, use the following chart to determine the appropriate classification under the Tax Law.

Note: The Tax Department may request product information from manufacturers of tobacco products to assist in properly classifying products as little cigars or cigars.

Examples

Example 1: A distributor of tobacco products imports 1,000 cigars into New York State and needs to classify the cigars to determine how much tax is due. The cigars weigh 4.25 pounds per thousand, are wrapped with homogenized tobacco leaf wrappers, and have cellulose acetate filters.

These cigars are considered little cigars under the Tax Law because even though they do not meet the New York State weight requirement, the wrapper contains tobacco (but is not a natural leaf tobacco wrapper) and the cigar has a cellulose acetate filter. These cigars are taxed at the tax rate for little cigars.

Example 2: A distributor of tobacco products imports 1,000 cigars into New York State and needs to classify the cigars to determine how much tax is due. The cigars weigh 3.26 pounds per thousand, are wrapped in tobacco based paper and have no filter.

These cigars are considered little cigars under the Tax Law because they meet the New York State weight requirement and the wrapper contains tobacco (but is not a natural leaf tobacco wrapper). They do not need a filter to meet the little cigar classification because they meet the weight requirement. These cigars are taxed at the tax rate for little cigars.

Tax rate

Little cigars are taxed at the rate of 0.2675 cents ($0.2675) per little cigar. This differs from the tax on cigars which is 75% of the wholesale price.

Note: Unlike cigarettes, little cigars are not subject to a separate New York City tax ($1.50 per pack of 20). However, under packaging and minimum pricing requirements, little cigars sold in New York City must be sold in packs of at least 20 for at least $10.95 per pack, excluding other tobacco products (OTP) tax and sales tax.

Note: A Tax Bulletin is an informational document designed to provide general guidance in simplified language on a topic of interest to taxpayers. It is accurate as of the date issued. However, taxpayers should be aware that subsequent changes in the Tax Law or its interpretation may affect the accuracy of a Tax Bulletin. The information provided in this document does not cover every situation and is not intended to replace the law or change its meaning.