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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 1. General Provisions and Definitions
(Part 13, Division 2, Revenue and Taxation Code1)
1The provisions of this part, except as otherwise noted, became effective June 17, 1959. The tax was imposed beginning July 1, 1959.
Enacted Statutes 1959, Chapter 1040; amended Statutes 1960, Chapters 12, 13; Statutes 1961, Chapters 178, 416, 486, 884, 893, 2193; Statutes 1963, Chapters 558, 1527; Statutes 1965, Chapters 332, 671, 679, 690, 1920; Statutes 1967, Chapters 881, 963, 1472; Statutes 1968, Chapters 469, 539, 543, 627, 711, 940, 1108, 1187, 1299; Statutes 1969, Chapters 24, 128, 933; Statutes 1970, Chapter 547; Statutes 1971, Chapters 261, 1400, 1634; Statutes 1972, Chapter 103; Statutes 1973, Chapter 806. Statutes 1974, Chapters 610, 1516; Statutes 1975, Chapters 661, 1235; Statutes 1976, Chapter 206; Statutes 1977, Chapters 329, 481, 921; Statutes 1978, Ch. 827; Statutes 1979, Chapters 322, 373, 712; Statutes 1980, Chapter 600. Statutes 1981, Chapter 947. Statutes 1982, Chapters 5 (First Extra Session), 454, 517, and 1589. Statutes 1983, Chapter 1092.
30001. Title. This part is known and may be cited as the "Cigarette and Tobacco Products Tax Law."
History—Stats. 1989, Ch. 634, in effect September 21, 1989 added "and Tobacco Products" after "Cigarette".
30002. Construction. Except where the context otherwise requires, the definitions given in this chapter govern the construction of this part.
Note.—Sec. 2, Statutes 1959, p. 3081, provided, "If any provision of this act is declared unconstitutional or invalid, for any reason, the remainder of the act shall not thereby be invalidated but shall remain in full force and effect."
30003. Cigarette. "Cigarette" means any roll for smoking, made wholly or in part of tobacco, irrespective of size or shape and irrespective of whether the tobacco is flavored, adulterated or mixed with any other ingredient, where such roll has a wrapper or cover made of paper or any other material, except where such wrapper is wholly or in the greater part made of tobacco and such roll weighs over three pounds per thousand.
30005. Untaxed cigarette. "Untaxed cigarette" means any cigarette which has not yet been distributed in such manner as to result in a tax liability under this part.
30005.5. Untaxed tobacco product. "Untaxed tobacco product" means either of the following:
(a) Any tobacco product that has not yet been distributed in a manner that results in a tax liability under this part.
(b) Any tobacco product that was distributed in a manner that resulted in a tax liability under this part, but that was returned to the distributor after the tax was paid and for which the distributor has either claimed a deduction pursuant to subdivision (c) of Section 30123 or 30131.2, or a refund or credit pursuant to Section 30176.2 or Section 30178.2.
History—Added by Stats. 1989, Ch. 634, in effect September 21, 1989. Stats. 2001, Ch. 426 (SB 312), in effect October 2, 2001, substituted "either of the following:" for "any" after "means" in the first paragraph; added subdivision letter designation (a) before "Any tobacco product"; added "Any" before "tobacco product that has not yet", and substituted "that" for "which" after "Any tobacco product" in subdivision (a); and added subdivision (b). Stats. 2007, Ch. 295 (SB 295), in effect October 5, 2007, added "or 30131.2" after "of Section 30123" in subdivision (b).
Note.—SEC. 7 of Stats. 2001, Ch. 426 (SB 312), effective October 2, 2001, states: The Legislature finds and declares that this act furthers and is consistent with the purposes expressed in Article 2 (commencing with Section 30121) of Chapter 2 of Part 13 of Division 2 of the Revenue and Taxation Code, as contained within the Tobacco Tax and Health Protection Act of 1988 (Proposition 99 of the November 8, 1988, general election), and Article 3 (commencing with Section 30131) of Chapter 2 of Part 13 of Division 2 of the Revenue and Taxation Code, as contained in the California Families and Children Act of 1998 (Proposition 10 of the November 3, 1998, general election).
30006. Sale. "Sale" includes any transfer of title or possession for a consideration, exchange or barter, in any manner or by any means whatever.
30008. Distribution. "Distribution" includes:
(a) The sale of untaxed cigarettes or tobacco products in this state.
(b) The use or consumption of untaxed cigarettes or tobacco products in this state.
(c) The placing in this state of untaxed cigarettes or tobacco products in a vending machine or in retail stock for the purpose of selling the cigarettes or tobacco products to consumers.
History—Stats. 1961, p. 2499, operative July 1, 1961, combined and reworded former (a) and (c) as (a) and combined and reworded former (b) and (d) as (b). Stats. 1967, p. 2514, operative August 1, 1967, added (c). Stats. 1989, Ch. 634, in effect September 21, 1989, added "or tobacco products" after "cigarettes" in subdivisions (a), (b), and (c).
30009. Use or consumption. "Use or consumption" includes the exercise of any right or power over cigarettes or tobacco products incident to the ownership thereof, other than the sale of the cigarettes or tobacco products or the keeping or retention thereof by a licensed distributor for the purpose of sale.
History—Stats. 1989, Ch. 634, in effect September 21, 1989, added "or tobacco products" after "cigarettes". Stats. 1998, Ch. 420 (SB 2230), in effect January 1, 1999, added "by a licensed distributor" after "or retention thereof".
30010. Person. "Person" includes any individual, firm, partnership, joint venture, limited liability company, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, this state, any county, city and county, municipality, district, or other political subdivision of the state, or any other group or combination acting as a unit.
History—Stats. 1994, Ch. 1200, in effect September 30, 1994, substituted "partnership" for "copartnership", added "limited liability company", and changed "S" in state to lower case.
30011. Distributor. "Distributor" includes:
(a) Every person who, after 4 o'clock a.m. on July 1, 1959, and within the meaning of the term "distribution" as defined in this chapter, distributes cigarettes.
(b) Every person who, on or after 12:01 a.m. on January 1, 1989, and within the meaning of the term "distribution" as defined in this chapter, distributes tobacco products.
(c) Every person who sells or accepts orders for cigarettes or tobacco products which are to be transported from a point outside this State to a consumer within this State.
History—Stats. 1989, Ch. 634, in effect September 21, 1989, added subdivision (b), substituted "(c)" for "(b)", and added "or tobacco products" after "cigarettes" in subdivision (c).
30012. Dealer. "Dealer" includes every person, other than one holding a distributor's or wholesaler's license, who engages in this state in the sale of cigarettes or tobacco products.
History—Stats. 1968, p. 2249, in effect November 13, 1968, added "or wholesaler's". Stats. 1989, Ch. 634, in effect September 21, 1989, added "or tobacco products" after "cigarettes".
30013. In this State. "In this State" or "in the State" means within the exterior limits of the State of California and includes all territory within these limits owned by or ceded to the United States of America.
30014. Transporter. (a) "Transporter" means any person transporting into or within this state any of the following:
(1) Cigarettes not contained in packages to which are affixed California cigarette tax stamps or meter impressions.
(2) Tobacco products upon which the tobacco products surtax imposed by Article 2 (commencing with Section 30121), Article 2.5 (commencing with Section 30130.50), and Article 3 (commencing with Section 30131) of Chapter 2 has not been paid.
(b) "Transporter" shall not include any of the following:
(1) A licensed distributor.
(2) A common carrier.
(3) A person transporting cigarettes and tobacco products under federal internal revenue bond or customs control that are non-tax-paid under Chapter 52 of the Internal Revenue Act of 1954 as amended.
History—Stats. 1967, p. 2514, operative August 1, 1967, completely revised this section. Stats 1989, Ch. 634, in effect September 21, 1989, added "(a)" before "Transporter", added "any of the following:" after "within this state", added "(1)", substituted "Cigarettes" for "cigarettes", deleted "However, transporter shall not include:", added subdivision (2), added "(b) 'transporter' shall not include any of the following:", and substituted "1", "2", and "3" for "a", "b" and "c" in subdivision (b). Stats. 2001, Ch. 251 (AB 1123), in effect January 1, 2002, added "and Article 3 (commencing with Section 30131)" after "by Article 2 (commencing with Section 30121)" in subdivision (a) paragraph (2). Proposition 56, Section 5.1, approved by voters at the November 8, 2016 election, in effect November 9, 2016, added ",Article 2.5 (commencing with Section 30130.50," after "Article 2 (commencing with Section 30121" in subdivision (a)(2).
30015. Package. "Package" means the individual packet, box or other container in which retail sales of cigarettes are normally made or intended to be made. "Package" does not include such containers as cartons, cases, bales or boxes which contain smaller packaging units of cigarettes.
History—Stats. 1967, p. 2515, operative August 1, 1967, substituted "packet" for "package" in the first sentence and added the second sentence.
30016. Wholesaler. "Wholesaler" includes:
(a) Any person, other than a licensed distributor, who engages in this state in making sales for resale of cigarettes that are contained in packages to which are affixed stamps or meter impressions.
(b) Any person, other than a licensed distributor, who engages in this state in making sales for resale of tobacco products on which the tax imposed in Sections 30123 and 30131.2 has been paid.
History—Added by Stats. 1968, p. 2249, in effect November 13, 1968. Stats. 1998, Ch. 420 (SB 2230), in effect January 1, 1999, substitued "includes: (a) Any" for "includes any" after "Wholesaler" and substituted "that" for ", which" after "resale of cigarettes" in subdivision (a); and added subdivision (b). Stats. 2001, Ch. 251 (AB 1123), in effect January 1, 2002, substituted "Sections" for "Section" after "on which the tax imposed in" and added "and 30131.2" after "imposed in Sections 30123" in subdivision (b).
30017. Wholesale cost. "Wholesale cost" means the cost of tobacco products to the distributor prior to any discounts or trade allowances.
History—Added by Stats. 1989, Ch. 634, in effect September 21, 1989.
30018. Stamps and meter impressions. (a) "Stamps and meter impressions" means the indicia of payment of tax, as required by Section 30161, and include, but are not limited to, stamps, meter impressions, or any other indicia developed using current technology.
(b) The board shall prescribe and approve the types of stamps and meter impressions, and the methods of applying stamps and meter impressions to packages of cigarettes.
History—Added by Stats. 2002, Ch. 1124 (AB 3000), in effect September 30, 2002.
30019. Importer. "Importer" means any purchaser for resale in the United States of cigarettes or tobacco products manufactured outside of the United States for the purpose of making a first sale or distribution within the United States.
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, added "or tobacco products" after "United States of cigarettes" and added "for the purpose of making a first sale or distribution within the United States" after "outside of the United States".