New Information – Beginning April 1, 2017, Proposition 56, The California Healthcare, Research and Prevention Tobacco Tax Act of 2016, provides these changes:
The cigarette tax rate increased from $0.87 to $2.87 per pack of 20 cigarettes. Please note, starting July 1, 2017, the tobacco products tax rate increased to 65.08 percent of wholesale cost. For details, see our tax rate page.
Retailers and wholesalers were required to take an inventory of all stamped cigarette packages, and distributors were required to take an inventory of all affixed and unaffixed California cigarette tax stamps in their possession/control at 12:01 a.m. on April 1, 2017, for determining the additional cigarette tax. See the March 2017 special notices to retailers/wholesalers and distributorsfor additional details.
The retailer and wholesaler cigarette floor stock tax returns and the distributor cigarette stamp adjustment tax return and payment were due July 1, 2017. Tobacco products, including little cigars, are not subject to the cigarette floor stock/stamp adjustment tax and should not be reported on these tax returns.
Tobacco products subject to the tobacco products tax include:
Any tobacco or nicotine products
Vapor products sold with nicotine