Cigarette Manufacturer Tax Return
General Information
The California Department of Tax and Fee Administration (CDTFA) administers the California Cigarette and Tobacco Products Tax Law. Per Regulation 4081, Sample Cigarettes and Tobacco Products, the distributions of unstamped (untaxed) cigarettes as samples is taxable and the manufacturer giving away such sample cigarettes must report the distribution and pay the tax due.
Filing Requirements
Every licensed cigarette manufacturer is required to electronically file a Cigarette Manufacturer Tax Return and supplemental schedule (if applicable) of all distributions of unstamped (untaxed) cigarettes as samples; and all nontaxable sales and deliveries of cigarettes 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. The return is due on or before the 25th day of each calendar month following the reporting period (Regulation 4027). A return must be filed for each reporting period even if there are no transactions to report or any tax due. Payment for the amount due must be submitted by the due date of the return. A copy of the return and schedules must be retained on the licensed premises for verification by CDTFA auditors.
Penalty and Interest
The penalty for filing a late return and/or late payment is ten percent of the amount due for the period. Interest also applies to late payments for each month or fraction of a month that the payment is late. (Revenue and Taxation Code 30281)
Accountability
You must report all transactions that are required on this tax return and supplemental schedule. CDTFA will be comparing your disbursements to the receipts that distributors 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.
Schedule Preparation
A CDTFA-810-CTF-F, Cigarette Tax Disbursement Schedule, must be submitted with every Cigarette Manufacturer Tax Return, to support applicable transactions during this reporting period. For detailed information regarding schedule preparation, please refer to the Cigarette and Tobacco Products Online Filing webpage, under Guidelines.
Tax Jurisdiction Codes (TJC) — schedule codes
For Disbursements:
6A: Unstamped or Untaxed Product Distributed
7A: Exempt Disbursements or Sales in Interstate or Foreign Commerce
8A: Exempt Disbursements or Sales to the United States Military or Government Tax Exempt
Initial Questions
Did you sell unstamped or untaxed cigarettes to a licensed cigarette distributor during this reporting period? (Tax Jurisdiction Code (TJC) 6A)
If you sold unstamped or untaxed cigarettes to a licensed cigarette distributor during this reporting period, select Yes.
If you did not sell any unstamped or untaxed cigarettes to a licensed cigarette distributor during this reporting period, select No.
Did you have any exempt sales of cigarettes in interstate or foreign commerce during this reporting period? (TJC 7A)
If you had exempt sales of cigarettes in interstate or foreign commerce during this reporting period, select Yes.
If you did not have exempt sales of cigarettes in interstate or foreign commerce during this reporting period, select No.
Did you have any exempt sales of cigarettes to the United States military or government during this reporting period? (TJC 8A)
If you had exempt sales of cigarettes to the United States military or government during this reporting period, select Yes.
If you did not have exempt sales of cigarettes to the United States military or government during this reporting period, select No.
If Yes is selected to any of the above questions, you are required to complete and upload the Cigarette Tax Disbursement Schedule.
File Attachment
Method of Filing
Select one of the following filing methods to upload the required supplemental schedule:
Electronic Form Entry (most common). This filing method requires you to complete a CDTFA-810-CTF-F, Cigarette Tax Disbursement Schedule, using a Flat (FLT) file attachment.
XML (Extensible Markup Language). This filing method requires you to upload the schedule 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 you have selected a filing method, click Next to go to the File Attachment screen.
File Attachment
To upload the file attachment, click the Add button.
On the Select a file to attach pop-up window:
- Click the Type drop-down menu and select the appropriate file type. Available options to select from:
- Extensible Markup Language (XML)
- Cigarette Tax Flat File (FLT)
- Enter a description of the file in the Description field (for example: Account 123-456789, Period Jan. 2023).
- Click the Choose File button and follow the prompts to select and upload the file.
- Once you have completed all required information, click the Save button.
Click the Next button to proceed to the next screen.
For instructions on file preparation, including file type and formatting requirements, template Excel workbooks for creating Flat (FLT) files, sample files, and other useful information related to cigarette online filing, please visit our website.
Taxable Amounts
Total number of cigarettes distributed subject to tax. Enter the total number of unstamped (untaxed) cigarettes that were distributed during this reporting period, that are subject to excise tax.
Examples: samples in packages of 5 or less cigarettes, samples in packages of more than 5 cigarettes, taxable sales to the U.S. Government, and other distributions subject to tax.
Excess Tax
Did you collect more tax than what is due (excess tax)?
If you have collected more tax than what is due (excess tax) for this reporting period, select Yes and enter the amount of excess tax collected. (Revenue and Taxation Code 30361.5)
If you did not over collect for this reporting period, select No.
Excess tax collected can occur in the following situations:
- When tax is computed on a transaction which is not subject to tax;
- When tax is computed on an amount in excess of the amount subject to tax;
- When tax is computed using a tax rate higher than the rate imposed by law; and
- When mathematical or clerical errors result in an overstatement of the tax on a billing.