CA Changes Tobacco Tax Effective Apr 1 2017

Beginning April 1, 2017, the distribution of these newly classified tobacco products will be subject to the tobacco products tax. Tobacco products include, but are not limited to:

• Little cigars (little cigars were previously considered cigarettes for taxation purposes and required a cigarette tax stamp prior to the passage of Proposition 56; however, beginning April 1, 2017, little cigars will be taxed as a tobacco product)
• Any product containing, made of, or derived from any amount of tobacco that is intended for human consumption (prior to the passage of Proposition 56, tobacco products, other than cigars, smoking or chewing tobacco, or snuff, had to contain at least 50 percent tobacco)
• Any product containing, made of, or derived from any amount of nicotine that is intended for human consumption and sold with (for a single price) or without a delivery device or system.
• Electronic cigarettes or any device or delivery system sold in combination with nicotine (for a single price)
• Any component, part, or accessory of an electronic cigarette that is used during the operation of the device when sold in combination (for a single price) with nicotine (for example, a battery used in the operation of the device sold with nicotine for a single price).

Simplify your tobacco tax administration in all states with our automated TobTax software. Learn how it works.