Cigarette Distributor/Importer Tax Report

The California Department of Tax and Fee Administration (CDTFA) administers the California Cigarette and Tobacco Products Tax Law. This law requires all licensed cigarette distributors/importers to report all receipt, distribution, and inventory information for cigarettes in this state.

Every cigarette distributor is also required to keep daily records of the number of tax stamps used in their affixing operations. Distribution includes the sale of untaxed cigarettes, the use or consumption of untaxed cigarettes, and the placing of untaxed cigarettes into a vending machine or retail stock. A cigarette distributor is required to affix the California cigarette tax stamp to each package of cigarettes prior to distribution to indicate that taxes have been paid. Once the cigarette packs are stamped, distributors can sell the stamped cigarettes to wholesalers, retailers, and other distributors.

Filing Requirements

Every licensed cigarette distributor/importer is required to file the Cigarette Distributor/Importer Tax Report and supplemental schedules of all cigarette and stamp transactions during the reporting period. A report must be filed, via electronic media, for each reporting period, on or before the 25th day of the month following the reporting period, even if there are no transactions to report. A copy of the report and supplemental schedules should be retained on the licensed premises for verification by CDTFA auditors.

Do not report cigarettes you previously sold or distributed (cigarettes returned to you by your customers). Cigarettes returned to you by your customers may be re-introduced into your physical inventory, but the re-distribution may not be reported on this form or its supplemental schedules. For audit purposes, you should document in your record-keeping journals the receipt of cigarettes returned to you by your customers and the re-disbursement of returned cigarettes. Retain all supporting documents.

If you have adjustments or corrections to a report for a prior reporting period, you must file an amended report for that reporting period.

If you have a cycle count inventory system and perpetual inventory system in place, the monthly statement shall be based on the perpetual inventory report, ran on the last business day of the calendar month for which the report is filed. However, at least once every calendar year, the monthly statement shall be based on a physical inventory of cigarettes on hand on the last business day of the calendar month for which the report is filed. A "cycle count inventory system" is a system that provides evidence that all cigarettes are counted on a regular basis, with each item being counted at least once every three-month period.  A "perpetual inventory system" is a system in which inventory records are maintained and updated continuously as items are purchased or sold. (Cigarette and Tobacco Products Tax Regulation 4022)

If you do not have a cycle count inventory system and perpetual inventory system in place, the monthly statement shall be based on the cigarette inventory on hand at the end of the calendar month covered by the report. However, at least once every six months, the monthly statement of cigarettes on hand shall be based on a physical inventory performed within the last five days of the calendar month for which the report is filed.

Accountability

It is important that you report all transactions for which you are required to account for on this report and on the supplemental schedules. CDTFA will be comparing your receipts to the distributions manufacturers have reported on their respective tax forms. Information on this report will be shared with, and used by, other government agencies.  Failure to report fully may result in CDTFA contacting you to determine why your reports differ from reports submitted by third parties.

A CDTFA-810-CTIF-F Cigarette Tax Receipt and Disbursement Schedule must be submitted with every Cigarette Distributor/Importer Tax Report, to support applicable activities during the reporting period.  For detailed information regarding preparation of the schedules, please refer to the CDTFA-810-CTE, Instructions for Preparing Cigarette Tax Schedules.

Tax Jurisdiction Codes (TJC) – schedule codes

For Receipts:

1A: Stamp-Affixed or Tax-Paid Product Purchased/Received
2A: Unstamped or Untaxed Product Purchased/Received

For Disbursements:

7A: Exempt Disbursements or Sales in Interstate or Foreign Commerce
8A: Distributions or Sales to the United States Military or Government Tax Exempt
8D: Sales Under the United States Constitution Tax Exempt
10A: Stamp-Unaffixed or Tax-Unpaid Product Returned to Seller or Destroyed
10B: Exempt Disbursements or Sales by Original (First) Importer to Licensed Distributor
10C: Distributions or Sales to Common Carrier Engaged in Interstate or Foreign Passenger Service
13A: Stamp-Affixed or Tax-Paid Product Returned to Seller or Destroyed
F: All Stamp-Affixed Product That was Purchased Stamp-Unaffixed

Initial Questions

If you received, disbursed, and/or stamped any products during this reporting period, select Yes and click Next to select the filing method to upload the supplemental schedules.

Note: Do not report cigarettes returned to you by your customers.

If you have no activities to report for this reporting period, select No.

Method of Filing

Select one of the following filing methods to upload the required supplemental schedules:

Electronic Form Entry (most common). This filing method requires you to complete a CDTFA-810-CTIF-F, Cigarette Tax Receipt and Disbursement Schedule using a Flat (FLT) file attachment.

XML (Extensible Markup Language). This filing method requires you to upload the schedules using the XML file attachment. XML is a simple text-based format for representing structured information.

Note: This process is intended for participants who have technical expertise to create and validate an XML document.

Once the filing method is selected, click Next to get to the File Attachment screen and follow the prompts to upload the schedules.

Note: If you stamped products this reporting period, make sure to include Tax Jurisdiction Code (TJC) F schedule in the file attachment.

For additional instruction on file preparation and other information related to cigarette online filing, please visit our website.

Report the number of Cigarettes.

Beginning inventory (should agree with previous month's ending inventory)

Without stamps affixed. Enter the total number of cigarettes without stamps affixed that is held in inventory on the first day of the reporting period.

With stamps affixed. Enter the total number of cigarettes with stamps affixed that is held in inventory on the first day of the reporting period.

Total beginning inventory. The system will automatically calculate this field.

Product received without stamps affixed (total from TJC 2A). The total number of cigarettes received without stamps affixed as reported for TJC 2A (Unstamped or Untaxed Product Purchased/Received). The system will automatically calculate this field.

Product received with stamps affixed (total from TJC 1A). The total number of cigarettes received with stamps affixed as reported for TJC 1A (Stamp-Affixed or Tax-Paid Product Purchased/Received). The system will automatically calculate this field.

Total cigarettes to account for. The system will automatically calculate this field.

Ending inventory

Without stamps affixed. Enter the total number of cigarettes without stamps affixed that is held in inventory on the last day of the reporting period.

With stamps affixed. Enter the total number of cigarettes with stamps affixed that is held in inventory on the last day of the reporting period.

Total ending inventory. The system will automatically calculate this field.

Total distributions

Total distributions during month. The total number of cigarettes to account for less the total inventory at the end of the month. The system will automatically calculate this field.

Tax exempt distributions

Sold and shipped in interstate or foreign commerce commerce (total from TJC 7A). The total number of cigarettes sold and shipped in interstate or foreign commerce as reported for TJC 7A (Exempt Disbursements or Sales in Interstate or Foreign Commerce). The system will automatically calculate this field.

United States constitutionally exempt transactions or those sold to interstate or foreign passenger common carriers (total from TJC 8D plus 10C). The total number of cigarettes sold in transactions that are exempt from taxation under the United States Constitution or those sold to interstate or foreign passenger common carriers as reported for TJC 8D (Sales Under the United States Constitution Tax Exempt) and 10C (Distributions or Sales to Common Carrier Engaged in Interstate or Foreign Passenger Service). The system will automatically calculate this field.

Sold to U.S. Military exchanges, commissaries, ship stores, and the U.S. Veterans Administration (total from TJC 8A). The total number of cigarettes sold to U.S. Military exchanges, commissaries, ship stores, and the U.S. Veterans Administrations as reported for TJC 8A (Distributions or Sales to the United States Military or Government Tax Exempt). The system will automatically calculate this field.

Sold by original importers to licensed distributors (total from TJC 10B). The total number of cigarettes sold by original importers to licensed distributors as reported for TJC 10B (Exempt Disbursements or Sales by Original (First) Importer to Licensed Distributor). The system will automatically calculate this field.

Stamp affixed and stamp unaffixed product returned to seller or destroyed (total from TJC 10A plus 13A). The total number of cigarettes, stamps affixed or unaffixed, that were returned by you to the seller (a person whom you purchased from, such as a manufacturer or importer) or were destroyed by casualty or witnessed/approved by CDTFA as reported for TJC 10A (Stamp-Unaffixed or Tax-Unpaid Product Returned to Seller or Destroyed) and 13A (Stamp-Affixed or Tax-Paid Product Returned to Seller or Destroyed) and 13A (Stamp-Affixed or Tax-Paid Product Returned to Seller or Destroyed).. The system will automatically calculate this field.

Total exemptions. The system will automatically calculate this field.

Report in Tax Value prior to discount

Beginning inventory (should agree with previous month's ending inventory)

Tax value of unaffixed stamp inventory. Enter the tax value of stamps that are not affixed to packages that are held in inventory on the first day of the reporting period. Multiply the number of unaffixed stamps by the stamp tax value.

Tax value of stamps affixed to packages. The tax value of stamps that are affixed to packages that are held in inventory on the first day of the reporting period. The system will automatically calculate this field.

Total tax value (beginning inventory). The system will automatically calculate this field.

Tax value on tax-paid cigarette receipts (total from TJC 1A). The tax value of tax-paid cigarettes received as reported for TJC 1A (Stamp-Affixed or Tax-Paid Product Purchased/Received). The system will automatically calculate this field.

Tax value of stamps purchased. Enter the tax value of stamps purchased during this reporting period.

Total tax value to account for. The system will automatically calculate this field.

Ending inventory

Tax value of unaffixed stamp inventory. Enter the tax value of stamps that are not affixed to packages that are held in inventory on the last day of the reporting period.

Tax value of stamps affixed to packages. The tax value of stamps that are affixed to packages that are held in inventory on the last day of the reporting period. The system will automatically calculate this field.

Total tax value (ending inventory). The system will automatically calculate this field.

Tax value of stamps used. The total tax value to account for less the tax value of stamps used. The system will automatically calculate this field.

Unusable stamps for which claim has been filed. Enter the total tax value of unusable stamps (affixed to packages or unaffixed) for which a claim has been filed.

Tax value of stamps affixed to packages sold. The tax value of stamps used less the tax value of unusable stamps for which a claim has been filed. The system will automatically calculate this field.

• Tax Guide for Cigarettes and Tobacco Products
• Online Return Filing Tutorial
• Cigarette and Tobacco Products Online Filing
• Instructions for Preparing Cigarette Tax Schedules