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Tobacco Cigarette Tax Increase To Take Effect, Pack To Cost About $10

California tobacco users can expect to pay a lot more for their next pack.


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The state’s tax board, in accordance with Prop 56, is raising the cost of cigarettes by nearly $3 a pack, according to a state tax official.

California Board of Equalization (BOE) officials announced the new tax increase on tobacco items for the 2017-18 fiscal year, which goes into effect July 1.

In accordance with Revenue and Taxation Code section 30123(b), the BOE is required to annually calculate a tax rate on tobacco products that is equivalent to the combined rate of tax imposed on cigarettes ($2.87 per pack of 20, or $0.1435 per cigarette).

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The tax rate on tobacco products other than cigarettes will increase from the current rate of 27.3 to 65.08 percent of the wholesale cost on July 1 as a part of the BOE’s annual tax rate adjustment.

The fiscal year 2017-18 Tobacco Products Tax Rate is based on the wholesale premium brand cigarette price as of March 1, 2017, as published by the Tobacco Merchants Association, and the new tobacco products tax rate will stay in effect through June 30, 2018.

The definition of “tobacco products other than cigarettes,” includes cigars, little cigars, smoking tobacco (including shisha), chewing tobacco, snuff, nicotine delivery devices (e-pipes, vape pens, e-hookahs, etc.) sold in combination with any liquid or substance containing nicotine and any products containing, made of, or derived from any amount of tobacco or nicotine that is intended for human consumption, according to Proposition 56.

Though an annual occurrence, a tax increase could potentially impact business and sales in drug stores across California.

The tobacco products tax is imposed upon the first distribution in California, paid by the licensed tobacco products distributor and based on their wholesale cost prior to any discounts or trade allowances.

Nicotine delivery devices sold independently, without nicotine, are not subject to the excise tax. This includes any battery, battery charger, carrying case, or other accessory used in the operation of a nicotine delivery device.

“Tobacco products” do not include cigarettes or any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes (for example, nicotine patches).

Additional information regarding the provisions of Proposition 56 is available online. For more information regarding cigarette and tobacco products taxes, read the Special Notice, visit the online Cigarette and Tobacco Products Tax Guide, or call the Customer Service Center at 1-800-400-7115.

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Tobacco Cigarette Tax Increase To Take Effect, Pack To Cost About $10

7 comments

  1. Wasn’t there a major *protest* in the early years of our country? I think it had something to do with tea, Boston and taxation.
    Our government officials have been out doing themselves on continually finding ways to tax the crap out of us, trying to change our Constitutional rights, giving themselves raises and perks.
    I’m for term limits, and pushing for our Congressman, Senators and so forth to be brought back into reality and force them to live on our pay scale and our benefits (or lack of). How can we do this? I’m not sure. But something has to change. A change to benefit us, not the rich or the poor, but the people.

  2. And that is why they all come to Nevada to buy smokes. Sorry you are just creating a “rich person’s” black market

  3. So take away 1 of the struggling classes few remaining simple pleasures, by pricing it out of their means. I’m sure some 1% will find a way to bootleg it into big shady bissness right here in the SCV.
    On a semi related issue-
    We Can’t really grow tobacco out here. So Why not just tax the crap outta pot instead.?

    • They are doing that now. At least here in Oregon. So many growing businesses here now, there’s not even a market for it anymore. Pay top price at the shops or $300-$400 a lb

  4. You cause kids to do without so their parents can smoke this is suppose to be a free country and they want to smoke let them

  5. I’m so tired of this. All the government does is take from us. I’m so angry. They allow the pot smokers, or however they use it, buy that crap, how much are their taxes. Not to mention it’s still against “federal law”. Those Dem. Governors need to go. They think their better then the rest of us, and know what is best for me. They don’t. What do they do with all that extra tax money. Same with the lottery money?

  6. Bloomberg,sure wants to control what people do like smoking with taxes.
    He wants to raise taxes on anything the Democratic party thinks isn’t good for people. That could cover a lot. So far it’s coke, Mt dew, and so on and of course smoking. If people don’t wake up and not Vote for the Democratic party we better get ready.

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About Jessy Holen

Hi there! My name is Jessy Holen and I am a 20 year old originally from Castaic, CA but attend Coe College in Cedar Rapids, IA. I am double majoring in communications and public relations to become the next Ellen DeGeneres (aka a talk show host.) At Coe, I am on the women's soccer team, a part of Delta Delta Delta, and give tours to prospective students. In my free time I enjoy exploring the great outdoors and sunny adventures (hiking, biking, camping, fishing, kayaking, etc.), cooking/baking, writing, and composing music. Thanks so much! "Be kind to one another." - Ellen DeGeneres