Bill Text: CA ACA22 | 2009-2010 | Regular Session | Introduced
Bill Title: Taxation: cigarettes and other tobacco products.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2009-04-23 - Referred to Coms. on G.O. and REV. & TAX. [ACA22 Detail]
Download: California-2009-ACA22-Introduced.html
BILL NUMBER: ACA 22 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Torlakson
APRIL 16, 2009
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by adding Sections 37
and 38 to Article XIII thereof, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
ACA 22, as introduced, Torlakson. Taxation: cigarettes and other
tobacco products.
The Cigarette and Tobacco Products Tax Law imposes a tax on every
distributor of cigarettes and tobacco products at specified rates,
including additional taxes imposed under the Tobacco Tax and Health
Protection Act of 1988 (Proposition 99) and the California Families
and Children Act of 1998 (Proposition 10).
This measure would, commencing on and after the first day of the
first calendar quarter commencing more than 90 days on or after the
effective date of the measure, impose an additional tax on the
distribution of cigarettes at the rate of $0.074 for each cigarette
distributed, and upon the distribution of tobacco products at an
equivalent tax rate. The revenues collected from the additional tax
would be deposited in the Tobacco Excise Tax Fund, which would be
created by the measure, and would be allocated, upon appropriation by
the Legislature, for certain education-, health-, and child-related
purposes. The measure also would impose a floor stock tax on every
distributor and wholesaler for each cigarette or tobacco product in
his or her possession on the day the excise tax is first imposed.
This measure would prohibit the Legislature, between January 1,
2011, and January 1, 2016, from imposing any additional tax upon the
distribution of cigarettes or tobacco products.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
Resolved by the Assembly, the Senate concurring, That the
Legislature of the State of California at its 2009-10 Regular Session
commencing on the first day of December 2008, two-thirds of the
membership of each house concurring, hereby proposes to the people of
the State of California, that the Constitution of the State be
amended as follows:
First-- That Section 37 is added to Article XIII thereof, to read:
SEC. 37. (a) In addition to any tax imposed by the Cigarette
and Tobacco Products Tax Law (Part 13 (commencing with Section 30001)
of Division 2 of the Revenue and Taxation Code), or its successor
statute, an excise tax is hereby imposed upon every distributor of
cigarettes at the rate of seventy-four mills ($0.074) for each
cigarette distributed on and after the first day of the first
calendar quarter commencing more than 90 days after the effective
date of this section.
(b) (1) In addition to the taxes imposed upon the distribution of
tobacco products by the Cigarette and Tobacco Products Tax Law, or
its successor statute, an excise tax is hereby imposed upon every
distributor of tobacco products, based on the wholesale cost of these
products, at a tax rate, as determined annually by the State Board
of Equalization, which is equivalent to the rate of tax imposed on
cigarettes by subdivision (a).
(2) The wholesale cost used to calculate the amount of tax due
under paragraph (1) does not include the wholesale cost of tobacco
products that were returned by a customer during the same reporting
period in which the tobacco products were distributed, when the
distributor refunds the entire amount the customer paid for the
tobacco products either in cash or credit. For purposes of this
paragraph, refund or credit of the entire amount shall be deemed to
be given when the purchase price less rehandling and restocking costs
is refunded or credited to the customer. The amount withheld for
rehandling and restocking costs may be a percentage of the sales
price determined by the average cost of rehandling and restocking
returned merchandise during the previous accounting cycle.
(c) (1) Every dealer and wholesaler, for the privilege of holding
or storing cigarettes or tobacco products for sale, use, or
consumption, shall pay a floor stock tax for each cigarette or
tobacco product in his or her possession or under his or her control
in this state at 12:01 a.m. on the first day of the first calendar
quarter commencing more than 90 days after the effective date of this
section at the rate of seventy-four mills ($0.074) for each
cigarette or the equivalent rate of tax for each tobacco product, as
determined by the State Board of Equalization.
(2) Every dealer and wholesaler shall file a return with the State
Board of Equalization on or before the first day of the first
calendar quarter commencing more than 180 days after the effective
date of this section on a form prescribed by the board, showing the
number of cigarettes or tobacco products in his or her possession or
under his or her control at 12:01 a.m. on the first day of the first
calendar quarter commencing more than 90 days after the effective
date of this section. The amount of tax shall be computed and shown
on the return.
(d) (1) Every licensed cigarette distributor, for the privilege of
distributing cigarettes and for holding or storing cigarettes for
sale, use, or consumption, shall pay a cigarette indicia adjustment
tax for each California cigarette tax stamp that is affixed to any
package of cigarettes and for each unaffixed California cigarette tax
stamp in his or her possession or under his or her control at 12:01
a.m. on the first day of the first calendar quarter commencing more
than 90 days after the effective date of this section at the
following rates:
(A) One dollar and eighty-five cents ($1.85) for each stamp
bearing the designation "25."
(B) One dollar and forty-eight cents ($1.48) for each stamp
bearing the designation "20."
(C) Seventy-four cents ($0.74) for each stamp bearing the
designation "10."
(2) Every licensed cigarette distributor shall file a return with
the board on or before the first day of the first calendar quarter
commencing 180 days after the effective date of this section on a
form prescribed by the board, showing the number of stamps described
in subparagraphs (A), (B), and (C), of paragraph (1). The amount of
tax shall be computed and shown on the return.
(e) (1) The taxes required to be paid by subdivisions (c) and (d)
are due and payable on or before the first day of the first calendar
quarter commencing 180 days after the effective date of this section.
Payments shall be made by remittances payable to the State Board of
Equalization, and payments shall accompany the forms required to be
filed by paragraph (2) of subdivision (c) and paragraph (2) of
subdivision (d).
(2) Any amount required to be paid pursuant to this subdivision
that is not timely paid shall bear interest at the rate and by the
method established pursuant to Section 30202 of the Revenue and
Taxation Code, or its successor, from the first day of the first
calendar quarter commencing 180 days after the effective date of this
section, until paid, and shall be subject to determination, and
redetermination, and any penalties provided under Part 13 (commencing
with Section 30001) of Division 2 of the Revenue and Taxation Code
with respect to determinations and redeterminations.
(f) The taxes imposed under this section shall be administered in
accordance with the Cigarette and Tobacco Products Tax Law, or its
successor statute, but are not taxes imposed under that part.
(g) All revenues, less refunds, derived from a tax imposed
pursuant to this section shall be transferred to the Tobacco Excise
Tax Fund, which is hereby created in the State Treasury and shall,
upon appropriation by the Legislature, be allocated for each fiscal
year exclusively to fund any or all of the following:
(1) Education.
(2) Children's health care.
(3) Tobacco cessation services.
(4) Lung cancer research.
(5) General health care.
(h) Revenues derived from the taxes imposed pursuant to this
section shall be deemed General Fund revenues or General Fund
proceeds of taxes within the meaning of Section 8 of Article XVI.
(i) For purposes of this section, the following definitions apply:
(1) "Cigarette" has the same meaning as in Section 30003 of the
Revenue and Taxation Code, as it read on January 1, 2009.
(2) "Tobacco products" includes, but is not limited to, all forms
of cigars, smoking tobacco, chewing tobacco, snuff, and any other
articles or products made of, or containing at least 50 percent,
tobacco, but does not include cigarettes.
Second-- That Section 38 is added to Article XIII thereof, to
read:
SEC. 38. On and after January 1, 2011, and before January 1,
2016, the Legislature shall not impose by statute any additional tax
upon the distribution of cigarettes or tobacco products.
