Special Taxes - Excise Taxes - Board of Equalization

On October 12, 2003, the State of California enacted the Cigarette and Tobacco Products Licensing Act (Assembly Bill 71 [Chapter 890, Statutes 2003]) (Act) which established a statewide licensing program under Division 8.6 (commencing with section 22970) of the California Business and Professions Code. The Act imposed licensing requirements on all retailers, wholesalers, and distributors of cigarettes and tobacco products and all manufacturers and importers of cigarettes. These licensing requirements are in addition to the permits and licenses that may be required depending on your business operations. The Act, intended to decrease tax evasion on the sales of cigarettes and tobacco products in California, also included provisions for new recordkeeping requirements, inspection and seizure of any untaxed cigarettes or tobacco products, and imposed civil and criminal penalties for violations.

Retail sellers of cigarettes and tobacco products in California must have a Cigarette and Tobacco Products Retailer's License. There is a one-time fee of $100 for each location from which you sell cigarettes or tobacco products at retail. The license is valid for one year and must be renewed annually. There is no additional charge to renew a license. However, if you fail to renew your license timely and allow your license to expire, you will be required to pay a reinstatement fee of $100.00 as a precondition for reinstatement. Please remember that you may not sell cigarette and/or tobacco products without a valid Cigarette and Tobacco Products Retail License.

Wholesalers of cigarettes and tobacco products (as defined in section 30016 of the Revenue and Taxation Code) are also required to annually obtain and maintain a license to engage in the sale of cigarettes and tobacco products. If you purchase tax-paid cigarettes or tobacco products for resale, you must obtain a wholesaler's license. The fee for a wholesaler's license is $1,000 a year for each location.

Distributors of cigarettes and tobacco products (as defined in section 30011 of the Revenue and Taxation Code) are also required to annually obtain and maintain a license to engage in the sale of cigarettes or tobacco products in California. If you purchase cigarettes and tobacco products from an out-of-state seller who does not have a license issued under the Act, you must obtain a distributor's license. The fee for a distributor's license is $1,000 a year for each location.

In accordance with the Act, every manufacturer and importer of cigarettes and/or tobacco products is required to obtain a license from the Board in order to engage in the sale of cigarettes in California.

For information on licensing requirements for cigarette manufacturers and importers, please visit http://www.boe.ca.gov/sptaxprog/spctmanufacturer.htm.

For information on licensing requirements for tobacco products manufacturers and importers, please visit http://www.boe.ca.gov/sptaxprog/CCTP_LicAct03.htm.

The licensing of manufacturers/importers, retailers, distributors, and wholesalers will be administered by the Board and monitored by the Department of Health Services and local authorities. In addition, the Board, the Office of the Attorney General, and any law enforcement officer in this state has authority to enforce the provisions of this Act. For detailed information about enforcement provisions of AB 71 or cigarette and tobacco product tax evasion, visit the Investigations Division webpage.

You can obtain an application for a license by contacting the Excise Taxes Division. Applications are also available by downloading and printing the document using the links below.

Publication 78, Sales of Cigarettes and Tobacco Products in California - License Requirement for Retailers

Application for Retailer's Cigarette and Tobacco Products License: Form BOE-400-LR

Application for Distributor's Cigarette and Tobacco Products License: Form BOE-400-LD

Application for Wholesaler's Cigarette and Tobacco Products License: Form BOE-400-LW

Application for Cigarette Manufacturers/Importers License: Form BOE-400-LMI

Application for Tobacco Products Manufacturer/Importers License: Form BOE-400-LT or BOE-400-LT1

Cigarette and Tobacco Products License Reinstatement Request: Form BOE-400-RLF

If you have additional questions about how the California Cigarette and Tobacco Products Licensing Act of 2003 applies to your business, you may call our Information Center at 800-400-7115 and select the "Cigarette and Tobacco Products" option. Staff is available to help you weekdays from 8:00 a.m. to 5:00 p.m., except State holidays, or you may write to the Board of Equalization, Excise Taxes Division, P.O. Box 948279, Sacramento, California, 94279-0056. You may also e-mail your questions to the Board's Webmaster e-mail at http://www.boe.ca.gov/info/webmail.html.