104 STAT. 1388-420 PUBLIC LAW 101-508—NOV. 5, 1990 "(m) DETERMINATION OF PRICE ON CIGARS.— In determining price for purposes of section 5701(a)(2)— "(1) there shall be included any charge incident to placing the article in condition ready for use, "(2) there shall be excluded— "(A) the amount of the tax imposed by this chapter or section 7652, and "(B) if stated as a separate charge, the amount of any retail sales tax imposed by any State or political subdivision thereof or the District of Columbia, whether the liability for such tax is imposed on the vendor or vendee, and "(3) rules similar to the rules of section 4216(b) shall apply." 26 USC 5701 (h) EFFECTIVE DATE.—The amendments made by this section shall ^°^- apply with respect to articles removed after December 31, 1990. 26 USC 5701 (i) FLOOR STOCKS TAXES ON CIGARETTES. -;- "°**- (1) IMPOSITION OF TAX.—On cigarettes manufactured in or imported into the United States which are removed before any tax-increase date and held on such date for sale by any person, there shall be imposed the following taxes: (A) SMALL CIGARETTES. —On cigarettes, weighing not more than 3 pounds per thousand, $2 per thousand. (B) LARGE CIGARETTES. — On cigarettes weighing more than 3 pounds per thousand, $4.20 per thousand; except that, if more than 6V2 inches in length, they shall be taxable at the rate prescribed for cigarettes weighing not more than 3 pounds per thousand, counting each 2% inches, or fraction thereof, of the length of each as one cigarette. (2) EXCEPTION FOR CERTAIN AMOUNTS OF CIGARETTES. — (A) IN GENERAL.— No tax shall be imposed by paragraph (1) on cigarettes held on any tax-increase date by any person if— (i) the aggregate number of cigarettes held by such person on such date does not exceed 30,000, and (ii) such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this subparagraph. For purposes of this subparagraph, in the case of cigarettes measuring more than QV2 inches in length, each 2% inches (or fraction thereof) of the length of each shall be counted as one cigarette. (B) AUTHORITY TO EXEMPT CIGARETTES HELD IN VENDING MACHINES. — To the extent provided in regulations prescribed by the Secretary, no tax shall be imposed by paragraph (1) on cigarettes held for retail sale on any taxincrease date by any person in any vending machine. If the Secretary provides such a benefit with respect to any person, the Secretary may reduce the 30,000 amount in subparagraph (A) and the $60 amount in paragraph (3) with respect to such person. (3) CREDIT AGAINST TAX.—Each person shall be allowed as a credit against the taxes imp(»sed by paragraph (1) an amount equal to $60. Such credit shall not exceed the amount of taxes imposed by paragraph (1) for which such person is liable. (4) LIABILITY FOR TAX AND METHOD OF PAYMENT.—
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