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CA Tax On Many Tobacco Products Will More Than Double

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Sonora, CA — In April, the tax placed on a pack of cigarettes increased by two dollars, and this weekend a big increase will take effect for other tobacco products.

The California Board of Equalization reports that the current tax rate for tobacco products, other than cigarettes, is 27.3-percent of the wholesale cost. On July 1st it will increase to 65-percent of the wholesale cost. Unlike the cigarette tax, it is paid by the licensed tobacco distributor, and is based on the wholesale cost prior to any discounts or trade allowances. The increased tax paid by the distributor will likely be added to the cost of the tobacco products the consumers purchase. The increase will impact products like cigars, chewing tobacco, smoking tobacco and nicotine delivery devices (e-pipes, vape pens, e-hookahs, etc.).

It does not include FDA approved nicotine products designed to reduce or prevent smoking, such as nicotine patches.

The earlier cigarette tax increase, and the July 1st increase placed on other products, were both approved by state voters last November.

  • Tobacco