1 Cent - Cigarette Tax Kentucky

Kentucky issued individual denomination cigarette tax stamps in fractional cent values during the early 1940s to handle the arithmetic of its sliding-rate tobacco excise, which was calculated per cigarette rather than per pack. The 1-cent stamp covered the smallest taxable unit, affixed directly to individual packs at point of sale by licensed dealers who purchased them in bulk sheets from the Commissioner of Revenue.

At 18 x 15 mm, this is among the smallest fiscal paper items in American state revenue philately — smaller than a U.S. definitive postage stamp of the same period.