Laws, Regulations & Annotations


Business Taxes Law Guide – Revision 2019

Cigarette and Tobacco Products Tax Law


Section 30462

30462. Disposition of fund. (a) All money deposited in the Cigarette Tax Fund under this part is hereby appropriated, subject to the provisions of any budget bill heretofore or hereafter enacted, and shall, upon order of the State Controller, be drawn therefrom and allocated for the following purposes:

(1) To pay the refunds authorized by this part.

(2) The balance remaining in the fund shall be transferred to the General Fund of this state on or before the last calendar day of each month.

(b) It is the intent of the Legislature that Section 30111 continues to prohibit the imposition of local taxes by any city, charter city, town, county, charter county, city and county, charter cities and counties, or other political subdivision or agency of this state, on the sale, use, ownership, holding, or other distribution of cigarettes and tobacco products except as provided by Section 30111. The Legislature finds and declares that the need for uniform statewide regulation and collection of cigarette taxes is a matter of statewide concern, and it is the Legislature's intent to regulate the subject matter of cigarette taxes comprehensively and to occupy the field to the exclusion of local action except as specifically provided by Section 30111.

History.—Stats. 1967, p. 2525, operative August 1, 1967, completely revised this section. Stats. 1968, p. 1202, in effect July 11, 1968, operative July 1, 1968, revised this section, deleting former (b), (c), and related provisions; substituted the allocation formula contained in (c) for the former method which was based solely on local sales tax revenues; and relettered the remaining provisions. Stats. 1969, p. 275, in effect May 27, 1969, revised (c) and added the third paragraph under (d). Stats. 1969, p. 1871, in effect November 10, 1969, applicable to taxes imposed on and after January 1, 1970, added "less 30 percent of the cost of administering this part" to (c). Stats. 1971, p. 2791, operative July 1, 1972, added language as second sentence of (c) (1) limiting consideration by Controller in making determinations to revenues derived from taxes imposed by county at a rate not in excess of 1 percent. Stats. 1973, Ch. 806, effective January 1, 1974, deleted "by the Controller" from the last sentence of (c) (3) (B). Stats. 1977, Ch. 309, effective July 8, 1977, deleted in (b) " … not to exceed one hundred fifty thousand dollars ($150,000) in each fiscal year." and in (c) "For transfer to the credit of a special account in the General Fund, an amount …", combined the former (c) into (b); changed (d) to (c). Stats. 1991, Ch. 331, in effect August 5, 1991, added "city and" before "city" in subdivision (b); added "one for the state" after "accounts", and "cities and" before "cities", and deleted "and one for the cities of this state" after "state", in the first sentence of paragraph (1) of subdivision (b); deleted "county" after "due each", substituted "and" for a comma after "city", added "county" after "city and county", substituted "respectively" for "in the unincorporated territory of a county" before "bear", substituted "that" for "such" after "total of", in the second sentence of paragraph (1) of subdivision (b); substituted "these" for "such" after "In making" in the third sentence of paragraph (1) of subdivision (b); substituted "(3)" for "(2)" after "to paragraph", and substituted "(4)" for "(3)" after "or paragraph" in the fourth sentence of paragraph (1) of subdivision (b); added the fifth sentence to paragraph (1) of subdivision (b); added paragraph (2) and renumbered paragraphs (2) and (3) as paragraphs (3) and (4); substituted "(4)" for "(3)" before "of this subdivision" and "until such time" in the sixth sentence of the new paragraph (3) of subdivision (b); substituted "(3)" for "(4)" after "paragraph" in the first sentence of the new paragraph (4) of subdivision (b). Stats. 1992, Ch. 699, in effect September 14, 1992, added "(a)" to the first paragraph, substituted "(1)" for "(a)" before "To pay the refunds", substituted "(b) To the Controller …" to the end of the section, which provided for allocation of revenues to cities and counties, with "(2) The balance remaining … provided by Section 30111." Stats. 2004, Ch. 227 (SB 1102), in effect August 16, 2004, deleted "and Section 11006 of the Government Code" after "heretofore or hereafter enacted".

Note.—Stats. 1971, p. 420 amending section 30108, provides under section 3, notwithstanding section 30462 of the Revenue and Taxation Code, no funds shall be appropriated from revenue generated by this act nor shall such funds be used for purposes of computations under such section, but shall be transferred to the State General Fund.