IPCPR Legislative | California

California

california

California State Contact Information

California State Board of Equalization (BOE)
Special Taxes and Fees
1-800-400-7115
Tax Questions Form: http://www.boe.ca.gov/info/email.html

California Secretary of State
Campaign Finance and Lobbying Activities
(916) 653-6224
Political Reform Division Question Form: http://www.sos.ca.gov/campaign-lobbying/contact-information/email-political-reform-division/

Taxation in California

 

California imposes a Cigarette and Tobacco Products Surtax on every distributor of tobacco products in the state. The tax is based on the wholesale cost of the products, at a rate determined annually by the State Board of Equalization (“BOE”). “Wholesale cost” means the cost of tobacco products to the distributor prior to any discounts or trade allowances and includes all manufacturing costs, the cost of raw materials, the cost of labor, any direct and indirect overhead costs, the wholesale markup, and any federal excise and U.S. Custom’s taxes paid.

 

Cal. Rev. & Tax. Code § 30123(b)

 

The state tobacco products tax is in lieu of all other state, county, municipal, or district taxes on the privilege of distributing tobacco products.

 

Cal. Rev. & Tax. Code § 30111

The tobacco products tax rate is determined annually by the State Board of Equalization (“BOE”) and is equivalent to the combined rate of the taxes applied to cigarettes. The current tax on other tobacco products, as of July 1, 2016, is 27.30% of the wholesale cost.

 

Cal. Rev. & Tax. Code § 30123(b)

 

California State Board of Equalization: Cigarette and Tobacco Products Tax
https://www.boe.ca.gov/sptaxprog/cig_n_tob_prod_tax.htm

Each distributor of tobacco products must file a Tobacco Products Distributor Tax Return (Form BOE-501-CT) with the BOE on or before the 25th day of each month, along with payment for taxes due. Everyone who purchases untaxed tobacco products must file a Cigarette and Tobacco Products Excise Tax Return (Form BOE-501-CI) on or before the last day of the month following the quarter in which the product was received, along with payment for taxes due.

 

Cal. Bus. & Prof. Code §§ 30181-30188: Reports and Payments

 

Tobacco products manufacturers or imports must file a Tobacco Products Manufacturer/Importer Return of Taxable Distribution of Samples in California (Form BOE-501-TIM) on or before the 25th day of the month following the month during which samples were distributed, along with payment for taxes due. Manufacturer or importer of tobacco products must attach to their return a Manufacturer/Importer Report of Tobacco Products Delivered or Shipped into California (Form BOE-501-MIT).

 

Cal. Bus. & Prof. Code §§ 22979-22979.7: License and Administration Fee for Manufacturers and Importers

 

All tax returns and reports may be submitted through the BOE’s e-filing website (https://efile.boe.ca.gov/ereg/index.boe).

California State Board of Equalization (BOE): e-filing
https://efile.boe.ca.gov/ereg/index.boe

 

California State Board of Equalization
http://www.boe.ca.gov/sptaxprog/sptaxforms.htm

 

Form BOE-501-CT: Tobacco Products Distributor Tax Return
http://www.boe.ca.gov/pdf/boe501ct.pdf

 

Form BOE-501-CI: Cigarette and Tobacco Products Excise Tax Return
http://www.boe.ca.gov/pdf/boe501ci.pdf

 

Form BOE-501-TIM: Tobacco Products Manufacturer/Importer Return of Taxable Distribution of Samples in California
http://www.boe.ca.gov/pdf/boe501tim.pdf

 

Form BOE-501-MIT: Manufacturer/Importer Report of Tobacco Products Delivered or Shipped into California
http://www.boe.ca.gov/pdf/boe501mit.pdf

Definitions in California

 

“To smoke” means to have in one’s immediate possession a lighted pipe, cigar, or cigarette containing tobacco or any other plant.

 

Cal. Health & Safety Code § 118948(b)

 

“Tobacco products” includes all forms of cigars, smoking tobacco, chewing tobacco, snuff, and any other articles or products made of, or containing at least 50 percent, tobacco, but does not include cigarettes.

 

Cal. Bus. & Prof. Code § 30121(b)

 

“Smokeless tobacco” means: a loose or flat, compressed cake form of tobacco that may be chewed or held in the mouth; or a shredded, powdered, or pulverized form of tobacco that may be inhaled through the nostrils, chewed, or held in the mouth.

 

Cal. Health & Safety Code § 118950(c)(2)

 

An “untaxed tobacco product” is either of the following:

  • Any tobacco product that has not yet been distributed in a manner that results in a tax liability
  • Any tobacco product that was distributed in a manner that resulted in a tax liability under this part, but that was returned to the distributor after the tax was paid and for which the distributor has either claimed a deduction, a refund, or a credit

 

Cal. Rev. & Tax. Code § 30005.5

 

“Distribution” includes:

  • The sale of untaxed cigarettes or tobacco products in California
  • The use or consumption of untaxed cigarettes or tobacco products in California
  • The placing in this state of untaxed cigarettes or tobacco products in a vending machine or in retail stock for the purpose of selling the cigarettes or tobacco products to consumers

 

Cal. Rev. & Tax. Code § 30008

 

A “retailer” is a person who engages in California in the sale of cigarettes or tobacco products directly to the public from a retail location, including a person who operates vending machines from which cigarettes or tobacco products are sold.

 

Cal. Bus. & Prof. Code § 22971(p)

 

“Wholesale cost” means the cost of tobacco products to the distributor prior to any discounts or trade allowances.

 

Cal. Rev. & Tax. Code § 30017

 

A “sale” is any transfer of title or possession for a consideration, exchange, or barter, in any manner or by any means whatever.

 

Cal. Rev. & Tax. Code § 30006

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