Tax & Accounting Blog

Products Labeled as Little or Small Cigars Considered Cigarettes for Tax Purposes in California

Indirect Tax, ONESOURCE, Sales and Use Tax February 1, 2013

Smoke trail

In California, products that are labeled as little or small cigars are considered cigarettes under the California Cigarette and Tobacco Products Tax Law and require cigarette tax stamps. Every package labeled as little or small cigars must have a cigarette stamp applied to the packaging by the distributor. Failure of the distributor to do so may lead to seizure of the product as well as possible civil and criminal penalties. Wholesalers and retailers must also verify that any little or small cigars they receive has a cigarette tax stamp affixed to the package. Any unstamped product should be returned to the distributor. Failure to do so may lead to seizure of the product.

For more information please visit: http://www.boe.ca.gov/pdf/boe400lsc.pdf

On behalf of Tatiana Cordova