Rev. Rul. 55-326

The tax imposed by the State of Louisiana, Section 841, Chapter 8, Title 47, Louisiana Revised Statutes of 1950, on the privilege of selling, using, consuming, handling, or distributing cigarettes, payment of which must be evidenced by stamps affixed to the containers, is deductible for Federal income tax purposes under section 164(a) of the Internal Revenue Code of 1954 by the wholesale or retail dealer or other person receiving unstamped goods who purchases, affixes, and cancels the cigarette stamps. The tax is not a retail sales tax imposed on persons selling tangible personal property at retail within the meaning of section 164(c) of the Code and is not deductible by the consumer or purchaser of stamped cigarettes. Insofar as the ultimate consumer or purchaser of stamped cigarettes is concerned the tax represents an additional cost of the article