Rule2025-18878
Tobacco Product Floor Stocks Tax; Removal of Obsolete Regulations
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 29, 2025
Effective
November 28, 2025
Issuing agencies
Treasury DepartmentAlcohol and Tobacco Tax and Trade Bureau
Abstract
In this final rule, the Alcohol and Tobacco Tax and Trade Bureau (TTB) is removing regulations related to the 2009 tobacco product floor stocks tax. These regulations are no longer necessary because they implement a tax that applied only to specified articles held for sale on April 1, 2009, and was required to be paid on or before August 1, 2009. This deregulatory action removes 42 regulatory sections from TTB regulations.
Full Text
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<title>Federal Register, Volume 90 Issue 186 (Monday, September 29, 2025)</title>
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[Federal Register Volume 90, Number 186 (Monday, September 29, 2025)]
[Rules and Regulations]
[Pages 46474-46475]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18878]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 46
[Docket No. TTB-2025-0005; T.D. TTB-203]
RIN 1513-AD25
Tobacco Product Floor Stocks Tax; Removal of Obsolete Regulations
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Direct final rule; Treasury decision.
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SUMMARY: In this final rule, the Alcohol and Tobacco Tax and Trade
Bureau (TTB) is removing regulations related to the 2009 tobacco
product floor stocks tax. These regulations are no longer necessary
because they implement a tax that applied only to specified articles
held for sale on April 1, 2009, and was required to be paid on or
before August 1, 2009. This deregulatory action removes 42 regulatory
sections from TTB regulations.
DATES: This rule is effective November 28, 2025 without further action,
unless significant adverse comment is received by October 29, 2025. If
we receive significant adverse comment, we will publish a timely
withdrawal notice in the Federal Register informing the public that
this rule will not take effect.
ADDRESSES: You may electronically submit comments to TTB objecting to
this final rule, view copies of this document, its supporting
materials, and any comments TTB receives on it, within Docket No. TTB-
2025-0005 as posted at <a href="https://www.regulations.gov">https://www.regulations.gov</a>. A direct link to
that docket is available on the TTB website at <a href="https://www.ttb.gov/laws-regulations-and-public-guidance/laws-and-regulations/all-rulemaking">https://www.ttb.gov/laws-regulations-and-public-guidance/laws-and-regulations/all-rulemaking</a>. Alternatively, you may submit comments via postal mail to
the Director, Regulations and Rulings Division, Alcohol and Tobacco Tax
and Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005.
Your comment must reference T.D. TTB-203 and must be submitted or
postmarked by the closing date shown in the DATES section of this
document. In general, TTB will post comments as submitted, and it will
not redact any identifying or contact information from the body of a
comment or attachment. Do not enclose any material in your comments
that you consider confidential or that is inappropriate for disclosure.
FOR FURTHER INFORMATION CONTACT: Michael Hoover, Alcohol and Tobacco
Tax and Trade Bureau, Regulations and Rulings Division; telephone 202-
453-1039, ext. 135, or by email using the contact form available at
<a href="https://www.ttb.gov/contact-rrd">https://www.ttb.gov/contact-rrd</a>.
SUPPLEMENTARY INFORMATION:
Background
The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers
provisions of the Internal Revenue Code of 1986, as amended, (IRC, 26
U.S.C. chapter 52) related to Federal excise tax on tobacco products
and cigarette papers and tubes. TTB administers these provisions
pursuant to section 1111(d) of the Homeland Security Act of 2002, as
codified at 6 U.S.C. 531(d). In addition, the Secretary of the Treasury
(the Secretary) has delegated certain IRC administrative and
enforcement authorities to TTB through Treasury Department Order 120-
01.
Section 701 of the Children's Health Insurance Program
Reauthorization Act of 2009 (the Act), Public Law 111-3, enacted on
February 4, 2009, increased the rate of Federal excise tax on tobacco
products and cigarette papers and tubes removed from the factory,
internal revenue bond, or Customs custody on or after April 1, 2009.
Section 701(h) of the Act also imposed a floor stocks tax on certain
taxpaid or tax determined tobacco products (all tobacco products
subject to Federal excise tax except large cigars) and on cigarette
papers and tubes held for sale on April 1, 2009. The floor stocks tax
rate was equal to the difference between the previous excise tax rate
and the new excise tax rate. The Act authorized the Secretary to issue
regulations regarding payment of the floor stocks tax, which was due on
or before August 1, 2009. Persons subject to the floor stocks tax
included manufacturers, importers, and wholesale and retail dealers of
the specified products.
TTB published a temporary rule on March 31, 2009, to implement
section 701 of the Act through regulations related to the tobacco
excise tax increase and the floor stocks tax (see T.D. TTB-75 at 74 FR
14479). The 2009 floor stocks tax regulations were codified in subpart
I of 27 CFR part 46, Miscellaneous Regulations Relating to Tobacco
Products and Cigarette Papers and Tubes. TTB finalized the temporary
regulations on July 10, 2010 (see T.D. TTB-85 at 75 FR 42605).
Removal of Obsolete Floor Stocks Tax Regulations
In support of the Administration's deregulatory objective, this
direct final rule removes all 42 regulatory sections in subpart I of 27
CFR part 46 related to the 2009 tobacco product floor stocks tax as
those regulations no longer provide useful guidance. Pursuant to
section 701(h)(3)(C) of the Act, the floor stocks taxes were due to TTB
by August 1, 2009. Accordingly, there is no need to retain these
regulations; in the unanticipated event that any issues were to arise
from compliance with the floor stocks tax at that time, any action
would be taken under the provisions of the law and regulations in
effect at the time. Removing these regulations from the Code of Federal
Regulations (CFR) will streamline the TTB regulations in part 46 and
increase their clarity.
[[Page 46475]]
In addition, TTB is removing the heading ``Subpart H [Reserved]''
from part 46 as the reservation of that subpart, which contains no
regulatory sections, is no longer needed due to the removal of subpart
I.
Regulatory Analysis and Notices
E.O. 12866
This direct final rule is not a significant regulatory action under
Executive Order 12866, as amended. Therefore, a regulatory assessment
is not required.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA), Public Law 96-354, codified
in 5 U.S.C. 601 et seq. applies only to rules for which an agency
publishes a general notice of proposed rulemaking (NPRM) pursuant to 5
U.S.C. 553(b). This rule is being published as a direct to final rule;
it was not preceded by an NPRM. Therefore, the RFA does not apply to
it. However, pursuant to 28 U.S.C. 7805(f), TTB has submitted this
final rule to the Chief Counsel for Advocacy of the Small Business
Administration for comment on the impact of the regulations on small
businesses.
Paperwork Reduction Act
As announced in the floor stocks tax temporary rule (74 FR 14479,
14481), the collection of information related to the 2009 floor stocks
tax, which required submission of a tax return and the keeping of
certain records, was previously reviewed and approved in March 2009 by
the Office of Management and Budget (OMB) in accordance with the
Paperwork Reduction Act of 1995 (44 U.S.C. 3507) and assigned control
number 1513-0129. As explained above, the regulations in 27 CFR part
46, subpart I, are no longer necessary. As such, their removal will
have no effect on the burden or requirements of any current TTB
information collection.
List of Subjects in 27 CFR Part 46
Administrative practice and procedure, Cigars and cigarettes,
Claims, Excise taxes, Packaging and containers, Penalties, Reporting
and recordkeeping requirements, Seizures and forfeitures, Surety bonds,
Tobacco.
Amendment to the Regulations
For the reasons discussed in the preamble, TTB is amending 27 CFR
part 46 as follows:
PART 46--MISCELLANEOUS REGULATIONS RELATING TO TOBACCO PRODUCTS AND
CIGARETTE PAPERS AND TUBES
0
1. The authority citation for part 46 continues to read as follows:
Authority: 18 U.S.C. 2341-2346, 26 U.S.C. 5061, 5704, 5708,
5731-5734, 5751, 5754, 5761-5763, 6001, 6109, 6601, 6621, 6622,
7212, 7342, 7602, 7606, 7805; 44 U.S.C. 3504(h), 49 U.S.C. 782,
unless otherwise noted.
Subpart H--[Removed]
0
2. Under the authority of 26 U.S.C. 7805(a), remove subpart H.
Subpart I--[Removed]
0
3. Under the authority of section 701, Public Law 111-3 and 26 U.S.C.
7805(a), remove subpart I.
Signed: September 24, 2025.
Mary G. Ryan,
Administrator.
Approved: September 24, 2025.
Kenneth J. Kies,
Assistant Secretary for Tax Policy.
[FR Doc. 2025-18878 Filed 9-26-25; 8:45 am]
BILLING CODE 4810-31-P
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</html>Indexed from Federal Register on September 29, 2025.
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