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Business Taxes Law Guide—Revision 2024
California Healthy Outcomes and Prevention Education Act
Revenue and Taxation Code
Division 2. Other Taxes
Part 13.6. California Healthy Outcomes and Prevention Education Act
Section 31002
31002. Excise Tax. (a) (1) (A) Beginning July 1, 2022, a purchaser shall pay a tax on the purchase for use in this state of an electronic cigarette from a retailer at the rate of 12.5 percent of the sales price of the electronic cigarette.
(B) There is a rebuttable presumption that an electronic cigarette is purchased for use in this state if either of the following is true:
(i) The electronic cigarette is purchased from a retailer physically located in this state.
(ii) The address to which the retailer ships the purchased electronic cigarette is located in this state.
(2) A retailer shall collect the tax imposed by this part from the purchaser at the time of the retail sale of an electronic cigarette.
(b) A retailer shall include the amount of the tax imposed by this part in any price marketing on any sign or display inside or outside a licensed brick and mortar establishment.
(c) (1) The department shall collect the tax imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)).
(2) For purposes of this part, the references in the Fee Collection Procedures Law to “fee” shall include the tax imposed by this part, and references to “feepayer” shall include any retailer liable for the payment, pursuant to subdivision (d), of the tax imposed by this part.
(3) A retailer may retain 1 percent of the tax imposed by this part as reimbursement for all costs associated with collection of the tax and shall transmit the remainder of the tax to the department pursuant to subdivision (d).
(d) (1) Except as provided in paragraph (3), the tax imposed by this part shall be due and payable quarterly on or before the last day of the month following each calendar quarter.
(2) (A) The payments shall be accompanied by a return filed by the retailer using electronic media on or before the last day of the month following each quarterly period for the preceding quarterly period.
(B) Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the department.
(3) The department may require the payment of the tax imposed by this part and the filing of returns for other than quarterly periods.
(e) The tax that is required to be collected by the retailer and any amount unreturned to the purchaser which is not tax but was collected from the purchaser under the representation by the retailer that it was tax constitutes debts owed by the retailer to the state.
(f) A retailer subject to the provisions of this part shall register for a permit with the department using electronic media and shall set forth the name under which it transacts or intends to transact business and any other information as the department may require.
(g) (1) The department may prescribe, adopt, and enforce regulations relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
(2) (A) The department may prescribe, adopt, and enforce emergency regulations as necessary to implement this part.
(B) An emergency regulation prescribed, adopted, or enforced pursuant to this paragraph shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare.
History—Added by Stats. 2021, Ch. 489 (SB 395), in effect January 1, 2022.