1953-55 Taxpaid Cigarette Revenues, Mint, Set of 35 Stamps U.S.

U.S. Cigarette Revenue stamps are also “taxpaids,” a phrase used when the denomination is expressed in units rather than money.  Cigarettes were classed and taxed at a rate per thousand.  Class A cigarettes, which are the most common, weigh three pounds or less per thousand. 

The tax was levied against the manufacturer who processed, blended, and added flavorings to the tobacco.  The stamp would often be placed over a seal on the container, so that the stamp would be torn if the seal was broken.