Tax Guide for California Electronic Cigarette Excise Tax
Getting Started
Required Permits, Licenses, and Accounts
Regardless of where a cigarette and tobacco products retailer is located, a CECET account is required, in addition:
- A retailer physically located in California who sells electronic cigarettes containing or sold with nicotine to consumers in California must have a seller's permit, CECET account, and a Cigarette and Tobacco Products Retailer License (CRL) with us.
- A retailer located outside California who sells electronic cigarettes containing or sold with nicotine and ships to consumers in California is considered a delivery seller (R&TC section 30101.7). Regardless if the out-of-state delivery seller is engaged in business in California (R&TC section 30108), the delivery seller must have a CECET account, a Cigarette and Tobacco Products Distributor License (CDL), a Tobacco Products Distributor Tax License, and a Prevent All Cigarette Trafficking (PACT) Act account with us, but is not required to have a CRL. The delivery seller may also be required to have a seller's permit or certificate of registration for use tax with us.
For more information about cigarettes and tobacco products tax, licensing, and the PACT Act, please visit our Tax Guide for Cigarettes and Tobacco Products and our California Cigarette and Tobacco Products Licensing Act of 2003-Retailer License webpage.
Registration
If you are a retailer of electronic cigarettes containing or sold with nicotine, you are responsible for registering for a CECET account with us.
Online Registration
To register with us online for a CECET account, cigarette and tobacco products license, PACT Act account (if applicable), seller's permit, any other permits, licenses, or accounts, please visit our Online Services webpage, which has a list of information you will need to complete your registration.
Multiple Cigarette and Tobacco Products Retailer License (CRL) Locations
If you have multiple Cigarette and Tobacco Products Retailer License (CRL) locations that sell electronic cigarettes containing or sold with nicotine, only one CECET account is issued for reporting all your CRL locations. The total sales of the electronic cigarettes containing or sold with nicotine for all CRL locations will be reported on one CECET return. For example, if you have five CRL locations selling electronic cigarettes containing or sold with nicotine, you will report all five locations on your one CECET account.
Filing Returns and Payments
The CECET return and payment are due on or before the last day of the month following each calendar quarterly period. For example, if your reporting period is for the first quarter (January – March), then the return and payment are due on April 30.
Returns
You must electronically file a CECET return even if you do not have any reportable activity during the period and/or if no amount is owed. To be considered timely, returns must be received by the due date. If the due date falls on a Saturday, Sunday, or state holiday, returns received by the next business day will be considered timely.
File a Return Online – File your return and pay your taxes through our Online Services webpage. Log in using your username and password and select the account for which you wish to file a return, then select the File a Return link for the filing period you wish to file and follow the prompts.
If you do not have a username and password, select the Sign Up Now link under the Create a Username heading from the Online Services webpage.
Filing a late return or late payment may result in a late penalty and/or interest assessment. See Penalty and Interest topic in this section.
Please visit our Video Tutorials page to view How to File a California Electronic Cigarette Excise Tax (CECET) Return.
Payments
Payments must be submitted by the return due date to be considered timely.
Make a Payment – Make payments through our Online Services webpage. Log in using your username and password and select the account for which you wish to make a payment. Select the More link under the I Want To section. Then select the Make a Payment link and follow the prompts.
Additional Payment Options – Please visit our website for additional convenient payment methods.
Electronic Funds Transfer (EFT) - Taxpayers with an estimated average monthly tax liability of $20,000 or more are required to pay amounts due by EFT. We will notify you in writing if you are required to pay your taxes electronically. Please visit our Electronic Funds Transfer (EFT) - Frequently Asked Questions (FAQ's) for payment methods and payment deadline information.
Payments must be received or postmarked by the due date to be considered timely. If the due date falls on a Saturday, Sunday, or state holiday, payments postmarked or received by the next business day will be considered timely.
Penalty and Interest
The penalty for filing a late return and/or late tax payment is ten percent (10%) of the tax amount due for the period. Interest also applies to late tax payments.
Log into your account to submit an online request for an extension to file a return or relief from penalty (including interest due to a disaster).
Retailer Reimbursement
A one percent (1%) reimbursement of the CECET collected, for any costs associated with collecting the tax, is automatically calculated and issued when you file your CECET return.