Source: https://premiumcigars.org/state/california/
Timestamp: 2020-07-09 23:10:11
Document Index: 437583656

Matched Legal Cases: ['§ 6404', '§ 1530', '§ 12523', '§ 22975', '§ 22979', '§ 22972', '§ 30181', '§ 86100']

Political Reform Division Question Form
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.
The state tobacco products tax is in lieu of all other states, county, municipal, or district taxes on the privilege of distributing tobacco products.
Two types of excise taxes are collected on cigarettes and tobacco products distributed in California:
Cigarette and Tobacco Products surtaxes.
As of July 1, 2019, the tax rate for cigarettes is $0.1435/cigarette ($2.87/pack of the ’20s) and 59.27% of the wholesale cost for other tobacco products. Each tax is described below, according to the type of product sold.
Cigarettes are subject to both the cigarette tax and the cigarette and tobacco products surtaxes, collectively referred to as cigarette taxes. The taxes are assessed on each cigarette distributed in California. Cigarette distributors pay the taxes by purchasing cigarette tax stamps from the CDTFA. Distributors are required to affix the tax stamp to each package of cigarettes before distribution. In turn, distributors receive a purchase discount of 0.85 percent of the total tax value per purchase order to help offset the cost of affixing cigarette tax stamps. As of April 1, 2017, the 0.85 percent discount for cigarette tax stamps is capped at the first one dollar ($1.00) in the denominated value of the stamp (Revenue and Taxation Code section 30166). Distributors pass the cigarette taxes on to their customers, as part of the retail selling price of the cigarettes. The cost of the cigarette tax stamp includes all of the aforementioned taxes.
Other tobacco products, also known as OTP, are subject to the cigarette and tobacco products surtaxes. The CDTFA determines one combined rate annually, which is equivalent to the combined rate of the taxes imposed on cigarettes. The calculation of the rate is based on the wholesale premium brand cigarette price as of March 1 each year, as published by the Tobacco Merchants Association, to be effective during the next fiscal year (July 1 through June 30). The tobacco products tax is imposed upon the distribution of tobacco products and is paid by tobacco products distributors.
A tobacco product distributor is required to calculate the amount of tobacco products tax due by applying the tobacco products tax rate to the wholesale cost of the tobacco products distributed in California and remit the total amounts owed each period.
California Special Notice Proposition 56
California State Board of Equalization: Tax Rates – Special Taxes and Fees
On August 12, 2019, your permit, license and/or account was moved into the new CDTFA online services system. For more information on the online service enhancements, see Special Notice L-598. This change may require customers or agents to create a Username and Password for the new system on and after August 12, 2019.
All tax returns and reports may be submitted through the Taxpayer Online Services Portal.
California State Board of Equalization (BOE) e-filing
California State Board of Equalization Home
Tobacco Products Distributor Tax Return Form CDTFA-501-CT
Cigarette and Tobacco Products Excise and Use Tax Return Form CDTFA-501-CIU
Tobacco Products Manufacturer/Importer Return of Taxable Distribution of Samples in California Form CDTFA-501-TIM
Manufacturer/Importer Report of Nontaxable Sales of Tobacco Products Form CDTFA-501-MIT
Cal. Bus and Professions Code 22950.5
“Tobacco products” includes, but is not limited to, a product containing, made, or derived from tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including, but not limited to, cigars, little cigars, chewing tobacco, pipe tobacco, or snuff, but does not include cigarettes. Tobacco products shall also include electronic cigarettes.
“Tobacco products” shall not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where that product is marketed and sold solely for such approved use. Tobacco products does not include any food products.
Untaxed Tobacco Product
California law prohibits smoking in the following locations:
Enclosed spaces at a place of employment including lobbies, lounges, waiting areas, elevators, stairwells, and restrooms
Indoor common areas of apartment and condominium complexes, including hallways, stairwells, laundry rooms, and recreation rooms
Public buildings owned and occupied, or leased and occupied, by the state, a county, a city, or a California community college district
Outdoor areas within 20 feet of a main exit, entrance, or operable window of a public building
Passenger vehicles owned by the state
Within 25 feet of a playground or tot lot sandbox area; on the premises of a licensed day care center or in a licensed family day care home during the hours of operation
Group homes, foster family agencies, small family homes, transitional housing placement providers, and crisis nurseries and in vehicles regularly used to transport children
Any motor vehicle in which there is a minor, regardless of whether the vehicle is in motion or at rest
Public transportation systems and in any vehicle of an entity receiving transit assistance from the state
Any aircraft or Amtrak train, except to the extent permitted by federal law
By drivers of a youth bus or operators of general public paratransit vehicles
A pediatric day health and respite care facility is authorized to implement policies and procurements that prohibit smoking by patients, parents, staff, visitors, or consultants within the facility or on the premises if the prohibition is clearly stated in the admission agreement and notices are posted at the facility.
The prohibition on smoking in a place of employment is expanded to include owner-operated businesses defined as businesses with no employees, independent contractors or volunteers, in which the owner-operator of the business is the only worker. In addition, most exemptions that previously permitted smoking in certain work environments have been eliminated.
California 2015 A.B. X2 7
Cal. Lab. Code § 6404.5(b)
Cal. Health & Safety Code § 1530.7
Cal. Veh. Code §§ 12523(d)(2), 12523.5(d)(2)
An employer who permits any non-employee access to his or her place of employment on a regular basis has not acted knowingly or intentionally in violation of the smoking prohibition if he or she has taken the following reasonable steps to prevent smoking by a non-employee:
The Legislature has declared its intent not to preempt the field of regulation of the smoking of tobacco. A local governing body may ban completely the smoking of tobacco or may regulate smoking in any manner not inconsistent with state law.
State law on smoking in public buildings does not preempt the authority of any county, city, city and county, California Community College campus, the campus of the California State University, or campus of the University of California to adopt and enforce additional, more restrictive smoking and tobacco control ordinances, regulations, or policies.
Family day care homes before or after hours of operation as a day care facility, but smoking in areas where children are present, even after hours, is prohibited.
In California, it is illegal for any person, agent, or employee of a person in the business of selling or distributing smokeless tobacco or cigarettes to engage in the non-sale distribution of any smokeless tobacco, cigarettes, coupons, coupon offers, gift certificates, or gift cards to any person:
in any public building, park, or playground, or on any public sidewalk, street, or other public grounds, including city and county streets and sidewalks, parade grounds, fairgrounds, public transportation facilities and terminals, public reception areas, public health facilities, public recreational facilities, and public office buildings
on any private property that is open to the general public, whether or not a fee or charge is imposed for entry or use
However, the distribution of tobacco product samples in connection with the sale of another item, including tobacco products, cigarette lighters, magazines, or newspapers will not constitute non-sale distribution.
City or county ordinances regulating the distribution of smokeless tobacco or cigarette samples within their boundaries may be more restrictive than state law. An ordinance that imposes greater restrictions on the sale or distribution of tobacco than state law will govern, to the extent of any inconsistency.
Any person or entity engaged in business in California who intends to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail must first obtain a California Sellers Permit by applying electronically at the BOE’s e-filing website or in person at the nearest BOE office.
Every distributor and wholesaler of tobacco products must then obtain a California Tobacco Products Distributor License at least 30 days before purchasing untaxed tobacco products from an out-of-state seller or purchasing tax-paid tobacco products for resale to other retailers. Distributor Licenses may be obtained by registering and submitting the appropriate application at the BOE’s e-filing website and paying an annual registration fee of $1,200 per business location. Distributor Licenses are valid for one calendar year and must be renewed electronically every year.
Cal. Bus. & Prof. Code § 22975-22978.8: License for Wholesalers and Distributors of Cigarettes and Tobacco Products
Every tobacco product manufacturer or importer must obtain a California Manufacturer/Importer Tobacco Products License at least 30 days before commencing business. Manufacturer/Importer Licenses may be obtained by registering and submitting the appropriate application at the BOE’s e-filing website and paying a one-time registration fee in an amount that depends on the products to be manufactured or imported.
Product type registration fee
Chewing tobacco or snuff $10,000
Only tobacco products excluding chewing tobacco or snuff $2,000
Chewing tobacco, snuff, and other tobacco products $10,000
Manufacturer/Importer Licenses are valid for one calendar year and must be renewed electronically every year.
Cal. Bus. & Prof. Code § 22979-22979.7: License and Administration Fee for Manufacturers and Importers
Retail sellers of tobacco products in California must obtain a California Cigarette and Tobacco Products Retailer License prior to purchasing tax-paid products from California Licensed Distributors or Wholesalers and prior to making retail sales of tobacco products to consumers. A separate license is required for each location or vending machine from which tobacco products are sold at retail. Retailer Licenses may be obtained by registering and submitting the appropriate application at the BOE’s e-filing website. Retailer Licenses are valid for one calendar year and must be renewed electronically every year.
Effective July 1, 2016, a fee of $265 is to be submitted with each license application for manufacturers, importers, distributors, wholesalers, and retailers of cigarettes and tobacco products. For calendar years beginning on and after January 1, 2016, every retailer must file an application for renewal of a retailer’s license accompanied by a fee of $265 per retail location. Additionally, the licensing fees for every wholesaler and distributor who commences business selling or distributing cigarettes or tobacco products, or who commences doing so at a new of different place of business in the state is raised to $1,200.
California 2015 A.B. X2 11
Cal. Bus. & Prof. Code § 22972-22974.8: License for Retailers of Cigarettes and Tobacco Products
Cal. Bus. & Prof. Code § 30181-30188: Reports and Payments
All tax returns and reports may be submitted through the BOE’s e-filing website.
California State Board of Equalization (BOE) – Filing e-filing
California State Board of Equalization (BOE) – Home Home
To register and file electronically, the filer must first obtain a lobbying identification number and password by completing a Lobbying Application to Obtain Login ID Number and Password. The filer will then be able to use the Cal-Online system.
Article 1: Registration and Reporting Cal. Gov. Code § 86100-86118
California Secretary of State: Lobbying Forms & Instructions Forms & Instructions
Lobbying Firm Registration Statement Form 601
Lobbying Firm Activity Authorization Form 602
Lobbyist Employer or Lobbying Coalition Registration Statement Form 603
Lobbyist Certification Statement Form 604
Lobbyist Report Form 615
Report of Lobbying Firm Form 625
Report of Lobbyist Employer and Report of Lobbying Coalition Form 635
Report of Person Spending $5,000 or More to Influence Legislative or Administrative Action Form 645
California Secretary of State: Lobbying Registration: Documents Required for Registration, Amendment, Termination, and Withdrawal Lobbying Registration
California Secretary of State: Lobbying Forms and Instructions Forms and Instructions
Lobbying Application to Obtain Login ID Number and Password Application for Access
California Online Campaign & Lobbying Filing System Cal-Online
California has various requirements in order to sell tobacco products to a person in the state over the internet, on the phone or via any other non “face-to-face” sales method. The delivery seller may be required to report to the Attorney General its delivery sales of cigarettes and tobacco products to California consumers. Cigars are excluded from this law.
California requires any person selling or distributing tobacco products to verify that the purchaser or recipient of the product is 18 years or older. The requirements include but are not limited to receiving the date of birth, name, and address of the purchaser. If the seller or distributor is unable to verify the age, the customer shall be required to submit an age-verification kit. These requirements are found in the Stop Tobacco Access to Kids Enforcement Act.
The state tobacco products tax is in lieu of all other states, county, municipal, or district taxes on the privilege of distributing tobacco products. California requires an excise tax on tobacco products which is in addition to the sales and use taxes.
In California, every distributor is required to pay a tax on their distributions of cigarettes at rates set in statute. This tax applies to other tobacco products except for cigars which are excluded from requirements that are specific to the mail order/internet cigarette taxes.
Additional information about taxation in California, including information about tax rates, filings, and forms, is available under the Taxation and Definitions tabs above.