Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2016

Cigarette and Tobacco Products Tax Annotations

TOBACCO PRODUCTS—Section 30121(b)

Measure of Tax for Tobacco Products. The rate of the tobacco products tax is required by Revenue & Taxation Code Section 30123 to be "based on the wholesale cost of these products . . . which is equivalent to the combined rate of tax imposed on cigarettes . . . " . Since the calculated wholesale cost of cigarettes does not include the cost of incoming freight charges, the wholesale cost of tobacco products should also exclude freight. 4/20/89.

Tobacco Products—Tobacco Content. The Cigarette and Tobacco Products Tax applies to all forms of cigars, smoking tobacco, chewing tobacco, and snuff, regardless of the amount of tobacco they contain. In addition, the tax applies to any other articles or products which are made entirely of tobacco or contain at least 50 percent tobacco, excluding cigarettes. 9/27/96.

Tobacco Products—Chewing Gum. Chewing gum containing any tobacco is chewing tobacco and is therefore subject to the Cigarette and Tobacco Products Tax. 9/27/96.