Tax news is dry but important

The New York State Department of Taxation and Finance has addressed one of the major issues in tax administration by defining the difference between ‘big’ and ‘little’ cigars, according to a report by the National Law Review.

After giving details of the definitions (http://www.natlawreview.com/article/case-we-didn-t-know-difference-between-big-and-little-cigars-new-york-state-tax-depa), the Review goes on to say that the importance of the ruling is that little cigars and cigarettes are taxed at the same rate, which is lower than the rate on big cigars.

It then goes on to say: ‘This is probably the most important tax development to come along since the Internal Revenue Service released Revenue Ruling 63-194, 1963-2 C.B. 670, explaining the requirements that a martini would have to meet to be considered a “dry martini” for tax purposes’