California Code of Regulations › Title 18 - Public Revenues › Division 2 - California Department of Tax and Fee Administration- Business Taxes (State Board of Equalization- Business Taxes, See Ch. 6 and 9.9) › Chapter 9 - Cigarette and Tobacco Products Tax Law Regulations › Article 5 - Inventories › Section 4022 - Inventories of Cigarettes

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  Every distributor, importer, and wholesaler engaged in the sale of cigarettes
				  shall file with the Department by the 25th day of
				  each calendar month a certified report and the supporting schedules required by
				  subdivisions (c) and (d), which includes a reconciliation of the cigarettes in
				  inventory at the end of the month covered by the report. Distributors and
				  importers must also report the number of cigarettes contained in packages to
				  which tax stamps are affixed and the number of cigarettes in packages not
				  bearing tax stamps.
(b) If the
				  distributor, importer, or wholesaler has a cycle count inventory system and
				  perpetual inventory system in place, the monthly reconciliation shall be based
				  on the perpetual inventory report run on the last business day of the month for
				  which the distributor's, importer's, or wholesaler's report is filed. However,
				  at least once every calendar year, the monthly reconciliation shall be based on
				  a physical inventory of cigarettes on hand on the last business day of the
				  month for which the distributor's, importer's, or wholesaler's report is filed.
A "cycle count inventory system" is a system that provides
					 evidence that all cigarettes are counted on a regular basis, with each item
					 being counted at least once every three-month period.
A "perpetual inventory system" is a system in which
					 inventory records are maintained and updated continuously as items are
					 purchased or sold.
(c) A
				  distributor or importer engaged in the sale of cigarettes shall submit a
				  cigarette disbursement schedule, which must contain the name and account number
				  of the licensee filing the schedule, the month and year covered by the
				  schedule, the schedule code for the activity being reported, and the following
				  information regarding each cigarette disbursement:
(1) The buyer's name and federal employer
				  identification number (FEIN);
(2)
				  The address (street, city, state, zip code, and country) where the cigarettes
				  were delivered;
(3) The Tax
				  Jurisdiction Code;
(4) The name of
				  the manufacturer of the cigarettes disbursed;
(5) The Master Settlement Agreement status of
				  the manufacturer of the cigarettes disbursed;
(6) The brand or variant name of the
				  cigarettes disbursed, and the corresponding Universal Product Code
				  (UPC);
(7) The unit of measure for
				  the UPC, for example, case, carton, pack, or sticks, and the quantity of the
				  cigarettes disbursed as identified by the unit of measure for the
				  UPC;
(8) The date and number of the
				  bill of lading or other shipping documents;
(9) The total number of cigarettes
				  disbursed;
(10) The total sales
				  price of the cigarettes disbursed reported in U.S. dollars; and
(11) For disbursements made using a delivery
				  service:
A. The name of the delivery
				  service;
B. The FEIN of the
				  delivery service;
C. The complete
				  address and telephone number of the delivery service; and
D. The sales price, reported in U.S. dollars,
				  of the cigarettes that were delivered.