27 Mar Please Review Notice from California State Board of Equalization
Please review the following notice, “Cigarette and Tobacco Products Tax Rate Increase and New Products Subject to Tax,” from the California State Board of Equalization: http://www.boe.ca.gov/pdf/l488.pdf These updates are in response to Proposition 56, approved by California voters in November. The ballot measure increases the cigarette tax by $2.00 per pack, with an equivalent increase on other tobacco products (OTP). The tax increase and floor tax on cigarettes goes into effect on April 1, 2017. On July 1, 2017, the tax rate on OTP will increase at a rate equivalent to the increase on cigarettes. The OTP calculation has not yet been released. Please stay tuned for future updates.