The US Food & Drug Administration (FDA) has released their calculations for user fees of tobacco products for 2017.
User fees are part of the new regulations issued by the FDA. The money obtained via user fees is used to fund the FDA’s operation. The amount paid will vary by year and are based on a percentage of SCHIP (40.26 cents) taxes paid by cigar companies.
It is expected that the Cigar industry will fund an estimated $61,549,280 of the $635 million allocated to the Center for Tobacco Products.
| FY 2017 | Revenue Target |
|---|---|
| Full Year | $635,000,000 |
| Per Quarter | $158,750,000 |
| Tobacco Product Class | FY 2017 Class Est, Taxes From TTB Based on 2015 TTB data 1 | Allocation by Class (Percent) Based on 2015 TTB data 1 | Amount Per Quarter (Final Quarter Amount) |
|---|---|---|---|
| Cigarettes | $5,222,773,031 | 88.2622% | $140,116,243 |
| Roll-Your-Own Tobacco | $4,019,924 | 0.0679% | $107,791 |
| Snuff | $68,779,515 | 1.1623% | $1,845,151 |
| Chewing Tobacco | $3,941,169 | 0.0666% | $105,728 |
| Cigars | $573,556,667 | 9.6928% | $15,387,320 |
| Pipe Tobacco | $44,265,802 | 0.7480% | $1,187,450 |
| Total | $5,917,336,107 | 99.9998% | $158,749,683 |
