Prevent All Cigarette Trafficking (PACT) Act Enhances the Requirements of the Federal Jenkins Act
Federal Law (15 U.S.C. §§ 375-377) commonly referred to as the Jenkins Act, requires any person selling transferring or shipping for-profit cigarettes or smokeless tobacco products in interstate commerce, to register and file monthly reports, with the tobacco tax administrator of the state into which shipment is made no later than the 10th day of each month. The report is known as the Jenkins Act Report and provisions of the Jenkins Act are enforced by the Federal Authorities.
The PACT Act of 2009 (Senate Bill 1147 was signed into law on March 31, 2010 and became public law 111-154), amends the Jenkins Act to revise provisions governing the collection of taxes and trafficking by requiring Internet and other remote sellers of cigarettes and smokeless tobacco to comply with the same laws that apply to local cigarette and tobacco retailers.
If you operate a business for profit that sells, transfers, ships, advertises, or offers for sale cigarettes or smokeless tobacco through interstate commerce into California or commerce transferred into or through Indian country of an Indian tribe, located within the external borders of California, you must register with the State Board of Equalization (BOE).
To register, download the Federal PACT Act form, ATF Form 5070.1, Prevent All Cigarettes Trafficking (PACT) Act Registration Form at: www.atf.gov/forms/alcohol-tobacco/. Mail the completed forms to the California State Board of Equalization, Special Taxes and Fees, MIC: 88, P.O. Box 942879, Sacramento, CA 94279-0088.
Monthly Report Filings Requirements
You must also file monthly reports, using the newly developed PACT Act forms with the BOE and the California Attorney General. The monthly PACT Act form should contain detailed information on each shipment of cigarettes or smokeless tobacco products made during the previous calendar month, into California or Indian country, and are due before the 10th day of each calendar month. To download a copy of the required report forms, please visit the Federation of Tax Administrators web site: www.taxadmin.org/fta/tobacco/default.html. It is recommended that you submit the required reports electronically to PACT.Act@boe.ca.gov. If you are unable to submit the reports electronically, please mail to Special Taxes and Fees Division, MIC: 57, P.O. Box 942879, Sacramento, California 94279-0057.
Separate monthly reports are required to be filed for cigarettes and other tobacco products. To report cigarettes, use form PA-1 State Cigarette P.A.C.T Act Report. To report smokeless tobacco products use form PA-2 State Tobacco P.A.C.T Act Report.
Other Requirements for Delivery Sellers (direct sales to consumers)
A "delivery sale" is defined, in part, as any sale of cigarettes or smokeless tobacco to a consumer. If you are a delivery seller, and plan to make delivery sales of cigarettes or smokeless tobacco products in California, you must apply for a California Cigarette and Tobacco Products Retailer and Distributor license. Essentially, a delivery seller must comply with all California laws regarding the sale of cigarettes and smokeless tobacco products into the State as if you were located in the state.
Failure to comply with these requirements may result in the assessment of penalties or civil action brought by the Office of the California Attorney General.
If you have questions about registering for the PACT Act or about cigarette or tobacco tax, please visit the BOE website at www.boe.ca.gov. You may also call the Taxpayer Information Section at 800-400-7115 (TTY: 711); from the main menu, select the option Special Taxes and Fees. Assistance is available weekdays from 8:00 am to 5:00 pm (Pacific Time) except state holidays. The Office of the California Attorney General can be reached at www.oag.ca.gov/tobacco, (916) 565-6486.