California ~ Tobacco Tax: BOE Discusses New License Fees and Requirements

first_imgCCH Tax Day ReportThe California Board of Equalization (BOE) reminded taxpayers that, on June 9, 2016, the cigarette and tobacco products license application fee increased for retailers, wholesalers, and distributors, and that the reinstatement fee was eliminated for retailers. In addition, beginning January 1, 2017, retailers will be required to pay an annual license renewal fee and the annual renewal fee for wholesalers and distributors will increase. The new fee amounts are as follows:– Retailer Application Fee: $265 per location beginning June 9, 2016;– Retailer Renewal Fee: $265 per location per year beginning January 1, 2017;– Retailer License Reinstatement Fee: $0 beginning June 9, 2016;– Wholesaler/Distributor Application Fee: $1,200 per location beginning June 9, 2016; and– Wholesaler/Distributor Renewal Fee: $1,000 per location per year beginning June 9, 2016, and $1,200 per location per year beginning January 1, 2017.The BOE also reminded taxpayers that the definition of a tobacco product for retail licensing purposes was expanded effective January 1, 2017, to include the following:– Any product containing, made, or derived from nicotine that is intended for human consumption;– Any electronic smoking or vaping device that delivers nicotine or other vaporized liquids to the person inhaling from the device; and– Any component, part, or accessory of a tobacco product, whether or not sold separately.These items are currently not subject to the excise taxes imposed by the Cigarette and Tobacco Products Tax Law. Beginning in 2017, selling any of these products at retail in California requires a valid California cigarette and tobacco products retailer’s license.Special Notice L-471, California Board of Equalization, September 2016last_img

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