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Cigarette
and Tobacco Product Taxes
 Two
types of excise taxes are collected on cigarette and tobacco products
distributed in California:
- the cigarette tax and
- the cigarette and tobacco products surtax
What is the amount of the tax?
Cigarettes are subject to both the cigarette tax and the cigarette
and tobacco products surtax. The tax and surtax are paid by distributors
through the use of tax stamps, which are purchased from the Board of Equalization and affixed
to each package of cigarettes before distribution. The cost of the
stamp includes both the cigarette tax and the surtax. Currently, each
stamp costs 87 cents per pack of twenty cigarettes, comprising 12 cents
for the cigarette tax and 75 cents for the combined surtax.
Tobacco products, not including cigarettes, are subject only to the
cigarette and tobacco products surtax. Tobacco products include all
forms of cigars, smoking tobacco, chewing tobacco, and snuff, as well
as other products containing at least 50 percent tobacco. Effective
July 1, 2008 through June 30, 2009, the rate is 45.13 percent.
For more information on cigarette and tobacco product taxes, please review Publication 93,California Cigarette and Tobacco Product Taxes.
Cigarette and tobacco product tax evasion is a serious crime.
Cigarette and tobacco product tax evasion is a serious and expanding
problem in California and other states. Tax evasion cheats programs
that provide essential services for the state's residents and hurts
honest businesspeople.
Retailers who purchase cigarettes or tobacco products from other than
licensed wholesalers and distributors should be aware that they are
in violation of the law and these products are subject to seizure by the
Board.
The Board's Investigation Division actively investigates and makes
seizures of unstamped or counterfeit stamped cigarettes and imports of domestic
labeled cigarettes or export type cigarettes stamped in violation of
the law.
A retailer's best defense against dealing in products subject to seizure
is to purchase cigarettes from a licensed cigarette wholesaler or distributor
and to obtain a purchase receipt that contains the proper information.
Under regulation 4092, Receipt for Tax Paid to Distributors, every
cigarette distributor is required to give the retailer a receipt. A
proper sales invoice, together with evidence of payment, constitutes
a valid receipt.
The most recent list of Licensed
California Cigarette and Tobacco Products Distributors and Wholesalers is
now available.
If you have any concerns or questions about the product you are purchasing,
contact us:
By Phone
800-400-7115 toll-free
By Mail
Excise Taxes Division, MIC:56
State Board of Equalization
P.O. Box 942879
Sacramento, CA 94279-0056
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