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Business Taxes Law Guide—Revision 2024
Cigarette and Tobacco Products Tax Regulations
Title 18. Public Revenues
Division 2. California Department of Tax and Fee Administration — Business Taxes (State Board of Equalization — Business Taxes — See Chapters 6 and 9.9)
Chapter 9. Cigarette and Tobacco Products Tax Law Regulations
Article 6. Records
Regulation 4027
Regulation 4027. Cigarette Manufacturer and Tobacco Products Manufacturer or Importer Monthly Return and Schedules.
Reference: Sections 30102, 30103, 30105, 30453 and 30454, Revenue and Taxation Code.
(a) Each cigarette manufacturer and each tobacco products manufacturer or importer shall file with the Department by the 25th day of each calendar month a certified return and supporting schedules, for the preceding calendar month, with respect to:
(1) All of its distributions of unstamped (untaxed) cigarettes and untaxed tobacco products as samples;
(2) All of its nontaxable sales and deliveries of cigarettes or tobacco products in interstate or foreign commerce or to a licensed distributor, common carrier engaged in interstate or foreign passenger service, U.S. military exchange or commissary, or the U.S. Veterans Administration; and
(3) All of its shipments of cigarettes or tobacco products from a point outside this state to a point within this state made or authorized by the manufacturer during the preceding calendar month.
The releases, deliveries and shipments for each purchaser shall be grouped together in the report.
(b) A cigarette manufacturer's return shall contain the total number of cigarettes distributed subject to tax, including the giving away of unstamped cigarettes as samples. A cigarette manufacturer shall also file a cigarette disbursement schedule with its return that satisfies the requirements of Regulation 4022, subdivision (c), and contains all its nontaxable cigarette disbursements.
(c) A tobacco products manufacturer's or importer's return must contain the following information:
(1) The wholesale cost of tobacco products given away as samples; and
(2) The total wholesale cost of tobacco products included in all its nontaxable disbursements.
(d) A tobacco products manufacturer or importer shall also file a tobacco products disbursement schedule with its return, which must contain the manufacturer's or importer's name and account number, the month and year covered by the schedule, and the following information regarding each nontaxable tobacco products disbursement:
(1) The date of the delivery or shipment of the nontaxable tobacco products;
(2) The name of the purchaser;
(3) The tobacco products distributor's California License Number required under section 22975 of the Business and Professions Code, or exemption code;
(4) The invoice or document number for the delivery or shipment;
(5) The type of tobacco product delivered or shipped;
(6) The tobacco product brand name and, in the case of "roll your own" tobacco, the Universal Product Code (UPC);
(7) The ounces of "Roll your own" tobacco delivered or shipped; and
(8) The wholesale cost of the nontaxable tobacco products.
The above information need not be supplied with respect to tobacco products which are non-tax-paid under the provisions of Chapter 52 of the Internal Revenue Act of 1954, as amended, and are released, delivered or shipped in internal revenue bond or customs control.
(e) In lieu of the monthly certified return and supporting schedules required by subdivision (a) of this section, a manufacturer or importer may arrange with the Department to supply the required information by supplying data processing media or other data in such manner and in such format as is satisfactory to the Department.
History—Adopted June 24, 1959.
Amended September 13, 1961.
Amended November 3, 1967.
Amended September 26, 2001, effective February 15, 2002. Added references to tobacco products and tobacco products manufacturers and deleted gender-specific language throughout the regulation. In the first sentence of subdivision (a), removed "he releases or delivers" after "storage places from which" and added "or tobacco products are released or delivered by the manufacturer". In subdivision (b), deleted "such" after "each" and added "described in paragraph (a) above" after "manufacturer" in the first sentence, deleted "in a form prescribed by the board" after "shall be" and added "on Board of Equalization Form … from Storage in California or Shipped into California", added "or tobacco products" to subdivision (b)(4), and added "or type, quantity and wholesale cost of tobacco products" to subdivision (b)(5).
Amended February 5, 2003, effective May 28, 2003. Deleted record keeping requirements in (a) and renumbered (b) to (a) and (c) to (b). General record keeping requirements can be found at California Code of Regulations, Title 18, Section 4901.
Amended December 27, 2021, effective December 27, 2021. The amendments revised the title of the regulation to add "Cigarette," delete "’s," from the end of "Manufacturer," add "and Tobacco Products Manufacturer or Importer," and replace "Report" with "Return and Schedules"; revised the first sentence in subdivision (a) to replace "or" with "manufacturer and each," add "or importer" before "shall," replace "board" with "Department," "20th" with "25th," "report" with "return and supporting schedules, for the preceding calendar month," add a colon after "respect to," add new subdivision (a)(1), and reformat the text after "respect to," which provided that "all releases and deliveries of cigarettes and tobacco products in this state and all shipments of cigarettes … during the preceding calendar month" as subdivisions (a)(2) and (3); revised reformatted subdivision (a)(2) to replace "all releases" with "All of its nontaxable sales" and "this state" with "interstate or foreign commerce … Administration;"; replaced "all" with "All of its" in reformatted subdivision (a)(3); deleted the third sentence from subdivision (a), which provided, "The report shall be on Board of Equalization Form BOE-501-MC entitled "Manufacturer's Report of Cigarettes Released from Storage in California or Shipped into California" or Board of Equalization Form BOE-501-MT entitled "Manufacturer's Report of Tobacco Products Released from Storage in California or Shipped into California" and shall show the following information with respect to each release, delivery or shipment: (1) the date of the release, delivery or shipment; (2) the location from which the release, delivery or shipment was made; (3) the name and address of the purchaser; (4) the address of the place to which the cigarettes or tobacco products were shipped, released or consigned; (5) the number of cigarettes or type, quantity and wholesale cost of tobacco products released, delivered or shipped; (6) the invoice or document number and date thereof representing the release, delivery or shipment; (7) if released to a licensed distributor, the license number of such distributor; and (8) in the case of a cancellation of any release, delivery or shipment, information indicating the transaction was cancelled"; added new subdivisions (b) through (d); reformatted the fourth sentence in subdivision (a) as the second sentence in subdivision (d) and deleted "cigarettes or" from before "tobacco," and replaced "c" with "C" in "Chapter"; renumbered old subdivision (b) as subdivision (e); replaced "reports" with "certified return and supporting schedules" and "paragraph" with "subdivision," added "or importer," and replaced "board" with "Department" in two places in renumbered subdivision (e); added references to Government Code sections 15570.22 and 15570.24 to the regulation’s authority note; and added references to Revenue and Taxation Code sections 30102, 30103, and 30105 to the regulation’s reference note.