The California Department of Tax and Fee Administration has announced a newly approved tax rate for non-cigarette tobacco products. See below for the text of the Special Notice, or click HERE to view the original.
The California Department of Tax and Fee Administration (CDTFA) recently approved the new tax rate of 59.27 percent effective July 1, 2019 through June 30, 2020. Tobacco products distributors are required to apply this rate to all distributions of other tobacco products during the effective period.
Annually, the CDTFA is required to determine a tax rate on other tobacco products (products other than cigarettes) that is equivalent to the combined tax rate imposed on cigarettes. Tobacco products distributors pay this tax upon the distribution of tobacco products in California.
The tobacco products tax is due at the time the tobacco products are distributed in California and is based on the distributor’s wholesale cost, the cost of the tobacco products to the distributor prior to any discounts or trade allowances (see Revenue and Taxation Code section 30017 and Regulation 4076). This cost is typically the invoiced price of the tobacco products charged by a manufacturer or importer to the licensed distributor prior to any discounts or trade allowances. Accordingly, the tax rate that applies is the rate in effect at the time the tobacco product is sold by the distributor. You may find current and historical tobacco products tax rates on our website at www.cdtfa.ca.gov/taxes-and-fees/tax-rates-stfd.htm.
For more information regarding cigarette and tobacco products taxes,
see our online Tax Guide for Cigarette and Tobacco Products at www.cdtfa.ca.gov/industry/cigarette-and-tobacco-products.htm, or call
our Customer Service Center at 1-800-400-7115 (TTY:711) Monday through Friday from 8:00 a.m. to 5:00 p.m. (Pacific time), except state holidays; from the main menu, select Special Taxes and Fees.