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Business Taxes Law Guide—Revision 2024
Cigarette and Tobacco Products Tax Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 13. Cigarette Tax
Chapter 10. Violations
Section 30474.1
30474.1. Penalty for selling or possessing counterfeit cigarettes or tobacco products. (a) Notwithstanding any other provision of law, the sale or possession for sale of counterfeit tobacco products, or the sale or possession for sale of counterfeit cigarettes by a manufacturer, importer, distributor, wholesaler, or retailer shall result in the seizure of the product by the board or any law enforcement agency and shall constitute a misdemeanor punishable as follows:
(1) A violation with a total quantity of less than two cartons of cigarettes shall be a misdemeanor punishable by a fine not to exceed five thousand dollars ($5,000), or imprisonment not to exceed one year in a county jail, or both fine and imprisonment, and shall also result in the revocation by the board of the manufacturer, distributor, or wholesale license.
(2) A violation with a quantity of two cartons of cigarettes or more shall be a misdemeanor punishable by a fine not to exceed fifty thousand dollars ($50,000) or imprisonment not to exceed one year in a county jail, or both fine and imprisonment, and shall also result in the revocation by the board of the manufacturer, distributor, or wholesaler license.
(b) A court shall consider a defendant's ability to pay when imposing fines pursuant to this section.
(c) For the purposes of this section, counterfeit cigarette and tobacco products include cigarette and tobacco products that have false manufacturing labels, false or fraudulent stamps or meter impressions, or a combination thereof.
(d) The board shall seize and destroy any cigarettes or other tobacco products forfeited to the state under this section.
History—Added by Stats. 2003, Ch. 890 (AB 71), in effect January 1, 2004. Stats. 2006, Ch. 501 (AB 1749), in effect January 1, 2007, deleted "the" after "or both" in paragraphs (1) and (2) and after "fine and" in paragraph (1) of subdivision (a); and deleted the former subdivision (e) which stated that "This section shall remain in effect until January 1, 2010, and as of that date shall be repealed."