Proposed Amendments to Regulation 4076, Wholesale Cost of Tobacco Products, and Adoption of New Regulation 4077, Tobacco Product Manufacturer

The California Department of Tax and Fee Administration (CDTFA) proposes to amend Regulation 4076 to provide additional notice that "tobacco products" include "electronic cigarettes" for tobacco tax purposes, and clarify the definition of electronic cigarettes and how to determine the wholesale cost of tobacco products, including electronic cigarettes. The CDTFA proposes to adopt Regulation 4077 to define "tobacco product manufacturer," clarify who is the manufacturer of specified electronic cigarettes, and clarify that a retailer who is not a licensed manufacturer or distributor must purchase its nicotine products from a licensed tobacco products distributor or wholesaler.