Resources for Cigarette and Tobacco Products Guides

Need to know more? Follow the links below for more information about the topics covered in this guide, as well as other information you might find helpful:

Laws

Regulations

Publications

Tax rates and license fees

Special notices and notification letters

Videos

Classes and seminars

Verify a license

Select one of the following links below for a current list of licensed California cigarette and tobacco products distributors, wholesalers or retailers. You are responsible for verifying the entity you are purchasing from or selling to has a valid cigarette and tobacco products license.

Public data

Other helpful resources

  • Contact Us–A listing of our contacts for your questions and concerns.
  • Sign Up for CDTFA Updates–Subscribe to our email lists and receive the latest news, newsletters, tax and fee updates, public meeting agendas, and other announcements.
  • Videos and How-To Guides–These resources will help you avoid common mistakes, file your tax returns online, and more.
  • City and County Tax Rates–A listing of current and historical tax rates.
  • Find a Sales and Use Tax Rate–Enter an address and find the sales and use tax rate for that location.
  • Online Services–Learn about the online services we offer.
  • Office Locations and Addresses–A comprehensive listing of our offices and contact information.
  • Get It In Writing!–Tax and fee laws can be complex, and you are encouraged to put your tax questions in writing. You may submit your question online or send your request in a letter to: Special Taxes and Fees Policy Section, MIC:31, California Department of Tax and Fee Administration, P.O. Box 942879, Sacramento, CA 94279-0031.
  • Taxpayers’ Rights Advocate (TRA)–The TRA Office helps taxpayers when they are unable to resolve a matter through normal channels, such as speaking to a supervisor, or when there are apparent rights violations.
  • GO-Biz–The Governor’s Office of Business and Economic Development offers extensive information on state, local, and federal permit requirements. For a listing of their assistance centers, visit their website.
  • CalGold–Provides help with permit and licensing requirements for other state, federal, and local authorities. For example, you may need to register with the Franchise Tax Board or the Employment Development Department. You may also want to consult with a tax professional or your local city and county authorities for assistance regarding other agencies’ requirements or restrictions.
  • California’s Tax Service Center–A one-stop tax help and resource website that guides taxpayers to forms and services they need.

Cigarette and tobacco products license data request by state and local agencies

The following Business and Professions Code (BPC) provisions give us the authority to provide confidential information, at no charge, to certain state and local agencies, when used for specific purposes:

Retailers

BPC 22973.2:

The department shall, upon request, provide to the State Department of Public Health, the office of the Attorney General, a law enforcement agency, a local lead agency, and any agency authorized to enforce or administer state or local tobacco control laws, access to the department’s database of licenses issued to retailers within the jurisdiction of that agency, local lead agency, or law enforcement agency. The agencies authorized by this section to access the department’s database shall access and use the department’s database only for purposes of enforcing tobacco control laws and shall adhere to all state laws, policies, and regulations pertaining to the protection of personal information and individual privacy.

Distributors and wholesalers

BPC 22978:

The department shall, upon request, provide to the State Department of Public Health, the office of the Attorney General, a law enforcement agency, a local lead agency, and any agency authorized to enforce or administer state or local tobacco control laws, access to the department’s database of licenses issued to distributors and wholesalers for locations within the jurisdiction of that agency, local lead agency, or law enforcement agency. The agencies authorized by this section to access the department’s database shall access and use the department’s database only for purposes of enforcing tobacco control laws and shall adhere to all state laws, policies, and regulations pertaining to the protection of personal information and individual privacy.

Manufacturers and importers

BPC 22979.3:

The department shall, upon request, provide to the State Department of Public Health, the office of the Attorney General, a law enforcement agency, a local lead agency, and any agency authorized to enforce or administer state or local tobacco control laws, access to the department’s database of licenses issued to manufacturers and importers for locations within the jurisdiction of that agency, local lead agency, or law enforcement agency. The agencies authorized by this section to access the department’s database shall access and use the department’s database only for purposes of enforcing tobacco control laws and shall adhere to all state laws, policies, and regulations pertaining to the protection of personal information and individual privacy.

If the request is being made according to one or more of the referenced statutes, please identify your agency, the types of licensee information desired (retailer, distributor, and so on), the geographic locations for which the request is begin made (specific city or cities, county or state-wide), and indicate how the data will be used. Requests that meet the statutory requirements are generally processed within one business day and will be forwarded to the recipient via encrypted email or other secure method.

Each record provided will contain the following fields:

  • License number, owner name, business name, address, city, state, zip code, site city code, and license start date.

How the revenue is used

Licensing fee revenue

Cigarette and tobacco products license fees are deposited into the Cigarette and Tobacco Products Compliance Fund solely for the purpose of implementing, enforcing, and administering the Cigarette and Tobacco Products Licensing Act (Licensing Act), including the seizure and destruction of cigarettes and tobacco products.

Cigarette tax revenue

The cigarette tax rate is $0.1435 per cigarette stick. Typically, a pack of cigarettes contains 20 sticks of cigarettes. Using this example, the cigarette tax rate on a pack of 20 cigarettes is $2.87. Of the total $2.87 cigarette tax per package of 20 cigarettes:

  • $2.00 are deposited into the California Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund (Proposition 56), to fund:
    • Existing healthcare, treatment, and programs for Californians with tobacco-related diseases and conditions,
    • Implementation, evaluation, and dissemination of health-promoting information and activities to monitor, evaluate, and reduce tobacco and nicotine use and tobacco-related disease rates,
    • School programs to prevent and reduce tobacco and nicotine products used by young people, and
    • The University of California for medical research of cancer, heart and lung tobacco-related diseases.
  • $0.50 are deposited into the California Children and Families Trust Fund (Proposition 10) and are used for programs that encourage proper childhood development, including:
    • Professional and parental education and training,
    • Informed selection of childcare providers,
    • Development and education of childcare providers, and
    • Standardized best practices for all programs and services relating to early childhood development.
  • $0.25 are deposited into the Cigarette and Tobacco Products Surtax Fund (Proposition 99) and may only be used for the following purposes:
    • Tobacco-related health education programs and disease research,
    • Medical and hospital care and treatment of patients who cannot afford those services, and for whom payment will not be made by any private coverage or federal program, and
    • Programs for fire prevention; environmental conservation; protection, restoration, enhancement, and maintenance of fish, waterfowl, and wildlife habitat areas; enhancement of state and local parks and recreation.
  • $0.10 are deposited into the Cigarette Tax Fund. Money deposited in the Cigarette Tax Fund is transferred to the General Fund, which is the principal operating fund for most governmental activities.
  • $0.02 are deposited into the Breast Cancer Fund, which supports breast cancer-related research and breast cancer screening for uninsured women.

Tobacco products tax revenue

View the current and historical tobacco products tax rates on our tax rates page. Tobacco products tax revenue is deposited into only three of the five funds discussed under Cigarette Tax Revenue:

  • California Healthcare, Research and Prevention Tobacco Tax Act of 2016 Cigarette Distribution Tax
  • California Children and Families Trust Fund
  • Cigarette and Tobacco Products Surtax Fund

How we determine the tobacco products tax rate

We annually determine the tobacco products tax rate, which is equivalent to the combined rate of the taxes imposed on cigarettes. The calculation of the rate is based on the wholesale cigarette prices reported to us as of March 1 each year, and is effective during the next fiscal year (July 1 through June 30). We calculate the tobacco products tax rate by dividing the tax rate imposed on cigarettes by the average wholesale cost of cigarettes:

C/W = X
C = Tax rate per cigarette
W = Weighted average wholesale cost of one cigarette
X = Tax rate on tobacco products

Starting with fiscal year 2021-22, the tobacco products tax rate calculation is based on cigarette sales as reported to us by cigarette manufacturers and importers for the preceding November through January. Prior to fiscal year 2021-22, the rate calculation was based on the wholesale premium brand cigarette price as of March 1, as published by the Tobacco Merchants Association.

Enforcement and penalties

Our inspectors have the authority to inspect any location where cigarettes or tobacco products are sold, produced, or stored and any site where there is evidence of tax evasion related to cigarette or tobacco products or non-compliance with the Master Settlement Agreement (MSA) (RTC section 30435). We may inspect any place where evidence of a violation of the UTL or California’s flavor ban may be found. To find a list of MSA-compliant manufacturers and brands, check the California Tobacco Directory. To find a list of tobacco product brand styles that do not have a characterizing flavor and are legal to sell in California, check the UTL. Upon entering your business, our inspectors will present their official identification and credentials to you or your employees. Any individual who refuses to allow an inspection is guilty of a misdemeanor and is subject to a fine.

Our inspectors and law enforcement officers may inspect your location and seize any of the following products:

  • Untaxed cigarettes and or tobacco products, including cigarettes without tax stamps, with stamps from other states, or with counterfeit or reused tax stamps
  • Non-MSA compliant cigarettes or roll-your-own tobacco
  • Tobacco products upon which tax is due but has not yet been paid to us
  • Flavored cigarettes, flavored tobacco products, and tobacco product flavor enhancers

Any retailer or wholesaler in possession of untaxed cigarettes or tobacco products is subject to penalties such as suspension or revocation of their license, and imprisonment.

To find notices of seizure and forfeiture of property posted within the last six months, visit Notice of Cannabis and Cigarette & Tobacco Product Seizures.

To help prevent cigarette tax evasion, we are authorized by Assembly Bill 1901 to seize and destroy any unaffixed cigarette tax stamps aggregated for reuse (for example, a collection or accumulation of unaffixed stamps for reapplying to untaxed packs of cigarettes). It is a misdemeanor for any person to possess, sell or offer to sell, or buy or offer to buy, any false, fraudulent, or unaffixed cigarette tax stamps. For purposes of this law, unaffixed stamps means tax-paid cigarette tax stamps purchased by a licensed distributor and previously affixed to cigarette packs.

You may be subject to civil and criminal penalties and the seizure and forfeiture of any noncompliant product if you violate any of the provisions of the:

Any person who intentionally evades the reporting, assessment, or payment of cigarette or tobacco products taxes that would otherwise be due is guilty of cigarette or tobacco products tax evasion. Evasion of tax liabilities of over $25,000 in a 12-month period is a felony.

For more information about our cigarette and tobacco products inspection program, citation appeal process, tax evasion, Licensing Act violations, or to file a complaint and report tax evasion, visit publication 161, Criminal Citations Include A Civil Administrative Process, or visit the Cigarette and Tobacco Products Inspection Program and Report Suspected Violation webpages.