California Information
Tobacco Taxes
California's excise tax per pack of cigarettes: $0.870
California's excise tax collection for the
fiscal year ending June 2002: $1,074,323,000
Sales tax on tobacco products: 7.25%
Federal excise tax per pack of cigarettes: $0.39
Total federal excise tax collections in fiscal year 2002: $7,512,700,000
|
Who Profits from
Cigarette Sales? 
click for larger view |
Comparing Excise Taxes on Cigarettes, Beer and Wine
click for larger view |
Number of six-packs of beer that must be sold in California to produce the same state excise tax revenue generated by one carton of cigarettes: 77.3 |
click for larger view |
Number of bottles of wine that must be sold in California to produce the same state excise tax revenue generated by one carton of cigarettes: 219.6 |
California Smokers' Contributions
to the State Economy - 2004
In 2003, California smokers comprised only 16.8% of the adult population in the state. Here is what they already pay because they choose to buy a legal product:
· Smokers Pay Excise Taxes $1,030,057,000
· Smokers Pay Sales Taxes $329,023,000
· Smokers Pay Tobacco Settlement Payments $802,400,000
TOTAL: $2,161,480,000
Smokers' Economic/Tax Profile 2003
· Income
... California smokers' median household income $36,230
... California nonsmokers' median household income $44,131
· Working families pay more
... 35% of California smokers had household incomes LESS THAN $25,000
... 16% of California smokers had household incomes EQUAL TO or GREATER THAN $75,000
The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments.
· Smoker excise tax/sales tax/tobacco settlement payments liability in FY2004
... Total average paid per California smoker in excise and sales taxes $328
... Cost per California smoker for settlement payments to California $194
Total annual payments to California per smoker $522
Total annual payments to California per nonsmoker $0
California Smoker Facts
· Total smokers' payments in California in FY2004 were:
... Nearly seven times larger than state alcoholic beverage taxes ($313 million).
... Five times larger than estate taxes ($397.8 million).
... Larger than insurance taxes ($2.115 billion).
... Larger than vehicle license fees ($1.5 billion).
· California FY2004 smoker payments were large enough to finance FY2004 expenditures for:
... The Department of Housing and Community Development ($310.1 million) AND the California Highway Patrol ($1.18 billion) AND the Department of Forestry and Fire Protection ($593 million)
... Local Assistance Programs at the Dept. of Transportation ($1.5 billion) AND the Wildlife Conservation Board ($469.5 million)
... The Department of Parks and Recreation ($868.2 million) AND the Department of Child Welfare Services ($765.7 million)
... The California EPA ($1.049 billion) AND Adult Education ($617.4 million).
CIGARETTES DON'T PAY TAXES - CALIFORNIA SMOKERS DO!!
California Smokers' Contributions
to the State Economy - 2002
California smokers comprise only 17.2%1 of the adult population in the state. Here is what they already pay because they choose to buy a legal product:
Smokers Pay Excise Taxes2 |
$ |
1,074,322,864 |
Smokers Pay Sales Taxes2 |
$ |
333,410,544 |
Smokers Pay Tobacco Settlement Payments3 |
$ |
913,332,154 |
|
$ |
2,321,065,562 |
Smokers' Economic/Tax Profile
Income
California smokers' median income 20011 |
$ |
35,620 |
- California State Tax Liability for Median Income Smoker4
Annual state income tax liability for a couple |
$ |
370 |
Annual state income tax liability for a couple with two children |
$ |
212 |
- Smoker Excise Tax/Sales Tax/Tobacco Settlement Payments Liability5
Total average paid per California smoker in excise and sales taxes |
$ |
332 |
Cost per California smoker for settlement payments to California |
$ |
216 |
Total annual payment to California per smoker |
$ |
548 |
California Smoker Facts6
Total smokers' payments to California in FY2002 were:
- Eight times as large as state excise taxes on alcohol in FY2001 ($288.5 million).
- Larger than occupation and business license revenues ($1.7 billion) in FY2001.
- Two and one-half times as large as the Estate, Inheritance, and Gift tax collections ($934.7 million) in FY2001.
- Larger than the Insurance Gross Premium tax revenues ($1.5 billion) in FY2001.
- Smokers' payments in FY2002 were large enough to provide for estimated FY2002 expenditures for:
- The California Highway Patrol ($960.6 million).
- The Department of Parks and Recreation, including local assistance ($1.4 billion).
- The California Environmental Protection Agency ($1.6 billion).
- Public Health Services ($727.1 million).
- Department of Mental Health ($995.9 million).
- In 1997, approximately 27,873 Californians held jobs related to the sale or distribution of tobacco products. Those jobs resulted in an additional $45.8 million to the state in personal and corporate income taxes.7
TOTAL SMOKER CIGARETTE PAYMENTS TO CALIFORNIA |
Per year: |
$ |
2,321,065,562 |
Per day: |
$ |
6,354,731 |
Per hour: |
$ |
264,780 |
Per minute: |
$ |
4,413 |
Per second: |
$ |
74 |
|
CIGARETTES DON'T PAY TAXES -
CALIFORNIA SMOKERS DO!!
- Centers for Disease Control's Behavioral Risk Factor Surveillance System, 2001
- Orzechowski & Walker, Arlington, Virginia; latest estimates from state revenue department
- PriceWaterhouseCooper
- State annual income tax liability from PayBreeze software of General Programming, Inc., San Jose, California, which utilizes the Exact Calculation Method.
- U.S. Census Bureau, 2000 state population and Centers for Disease Control's Behavioral Risk Surveillance System, 2001
- Tax and Budget Comparisons are from the U.S. Census and the California Department of Finance, Governor's Budget Summary, 2002-2003, Jan. 2002. Online at http://www.dof.ca.gov/HTML/BUD_DOCS/Bud_link.htm.
- American Economics Group, Inc., The U.S. Tobacco Industry in 1997: Its Economic Impact in the States.
Master Settlement Agreement Payments To Date
$2,976,489,684 has been paid to California since the Master Settlement Agreement was signed on November 23, 1998.
A summary of California state law is provided below
(for specific questions regarding state law, contact your legal advisor.)
Minimum Age |
Customers must be 18 years or older to purchase tobacco products. Sellers of tobacco products shall check the identification of tobacco purchasers, to establish the age of the purchaser, if the purchaser reasonably appears to be under 18 years of age. |
Acceptable Forms of Identification |
A document issued by a federal, state, county, or municipal government, or subdivision or agency thereof, including, but not limited to, a motor vehicle operator's license or an identification card issued to a member of the Armed Forces, which contains the name, date of birth, description, and photograph of the individual. |
Restricted Products |
Any substance containing tobacco leaf, including, but not limited to, cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, or dipping tobacco. Restricted products also include cigarette papers and any other instrument or paraphernalia that is designed for the smoking or ingestion of tobacco products or any controlled substance.
No person shall sell, offer for sale, distribute, or import any tobacco product commonly referred to as “bidis” or “beedies,” unless that tobacco product is sold, offered for sale, or intended to be sold in a business establishment that prohibits the presence of persons under 18 years of age on its premises.
|
Fine/Penalty Schedule for Selling to Minors |
Violators will be subject to either a criminal action for a misdemeanor or a civil action punishable by a $200 fine for the first offense; a $500 fine for the second offense; and a $1,000 fine for the third offense. Under the STAKE Act, the California Department of Health Services has the authority to assess civil penalties of up to $6,000 against the owner(s) of the retail business.
Any person who violates the section regarding the sale of "bidis" is guilty of a misdemeanor or subject to a civil action brought by the Attorney General, a city attorney, county counsel, or district attorney for an injunction and a civil penalty of up to two thousand dollars ($ 2,000) per violation.
Upon the first conviction, the retailer shall receive a warning letter explaining the circumstances under which a retailer's license may be suspended or revoked and the amount of time the license may be suspended or revoked. The retailer and its employees shall receive training on tobacco control laws from the Department of Health Services upon a first conviction. For the second conviction within 12 months, the retailer shall be subject to a fine of $500; for the third conviction of a violation within 12 months, the retailer shall be subject to a fine of one thousand dollars ($1,000); for the fourth through seventh conviction of a violation, the board shall suspend the retailer's license to sell cigarette and tobacco products for 90 days; for the eighth conviction of a violation within 24 months, the board shall revoke the retailer's license to sell cigarette and tobacco products. |
Minor Possession |
Every person under age 18 who purchases, receives or possesses tobacco, cigarettes, cigarette papers, or any other preparation of tobacco, or any other instrument or paraphernalia that is designed for the smoking of tobacco, products prepared from tobacco, or any controlled substance, is subject to a fine of $75 or 30 hours of community service. |
Sign Requirement
 |
The STAKE Act requires that every person, firm, or corporation that sells, distributes, or deals with tobacco products, conspicuously post a notice — so that it is likely to be read by a consumer during the sale — at each point of purchase which states that selling tobacco products to minors is illegal and subject to penalties. The notice shall state that the law requires that all persons selling tobacco products check the identification of any purchaser of tobacco products who reasonably appears to be under 18 years of age. The notice also must include a toll-free number for persons to report violations to the California Department of Health Services.
Per Title 17 California Code of Regulations Section 6902, the sign must be square in shape and no smaller than 5.5. inches high by 5.5 inches wide (30.25 square inches) or be rectangular in shape and no smaller than 3.66 inches high by 8.5 inches wide (31.11 square inches). A sign may be larger; however, the sign shall be proportionate to one set of the dimensions set forth above. The sign must contain the following words with initial letters capitalized as shown, printed (in medium or bold Helvetica or Futura typeface) in black ink on white paper or dark blue ink on yellow paper or other high contrast format:
The Sale of Tobacco Products to Persons Under 18 Years of Age is Prohibited by Law and Subject to Penalties. Valid Identification May Be Required. (top and side margins must be at least 1/3 inch, no smaller than 20 point)
To Report an Unlawful Tobacco Sale
Call 1-800-5ASK-4-ID. (side margins must be at least 1/3 inch, no smaller than 30 point and at least 6 points larger than all other text) Business and Professions Code Section 22952. (side and bottom margins must be at least 1/4 inch, no smaller than 12 point)
Failure to post the required notice could result in a fine of $10 for the first offense, and $50 for subsequent offenses or imprisonment for up to 30 days.
To obtain California STAKE Act signs free of charge for every retail point-of-sale,
call 1-800-5-ASK-4ID.
Click here to see an example of the California STAKE Act required sign.
For a more detailed review of Title 17, California Code of Regulations Section 6902, Click Here. |
Compliance Checks |
As a condition of receiving federal substance abuse block grant funds, federal law requires the State of California to conduct random, unannounced inspections of tobacco outlets to determine compliance rates. The Department of Health Services coordinates the inspections and the Department and local law enforcement may use persons 15 -16 years of age. |
DISCLAIMER: This information summary is provided as a service of the Coalition, but is not intended to provide legal advice or analysis. These summaries are not intended to be complete representations of state law, which may contain additional rules and restrictions relating to tobacco products not mentioned in this summary, as well as retailing prohibitions related to matters including, but not limited to, state required training, minimum pack size, the sale of loose cigarettes and other restrictions. Retailers should not rely on these summaries as complete or accurate descriptions of applicable federal, state or local law. Users with questions about the law should seek the advice of counsel. Each state law is unique and possibly represents multiple legislative or regulatory acts. Local laws may differ. Check with local authorities for variations from state law. These summaries are not intended to be complete representations of state law. |
The reprinting of this information from the Coalition, does not constitute a representation or admission by RJRT that such information is accurate, complete, or a proper characterization of the laws concerned. The Coalition for Responsible Tobacco Retailing is a cooperative effort among retailers, wholesalers and manufacturers who share a common goal: to do all they can to prevent tobacco sales to minors.
|
California Department of Health Services
Tobacco Control Section
Request for Proposal
for
Tobacco Education Clearinghouse of California
TCS-02-25400
July 18, 2002
June 25, 2004
To Marin LJ Opinion Page
Re: Stepford County?
Dear Editor-
Ostensibly in the name of "Health", the display of the NAME of Miller Brewing Company is being stripped from its six-year sponsorship of live big-name bands at the upcoming Marin County Fair this Fourth of July weekend [IJ, front page, Thur. June 24]. For now, their BEER will still be for sale there. Armed with $8,500 in ready cash, a just-minted group calling itself the "Play Fair Coalition", with a 5-year plan to drive Miller's (and their predecessor, Budweiser's) name from view at the Fair, will instead have its OWN name there, for the first time in the nation. Somehow, this is supposed to help people who have trouble using alcohol responsibly.
I'm very skeptical, as was the former Special Master who supervised the Marin Community Foundation's and the Marin Institute's use of Beryl Buck's legacy funds, of this so-called "environmental approach" to dealing with drug and alcohol problems.
Who ARE the partners in this new "Play Fair Coalition"? The Marin County Department of Health and Human Services, Marin Community Foundation, Marin Institute, Healthy Marin Partnership, Youth Leadership Institute and Bay Area Community Resources. Where did the money come from? Possibly from the $8 billion Robert Wood Johnson Foundation of Princeton, NJ (the largest stockholder in Johnson & Johnson), which gave nearly $1 million to the food and drink critics at the "Center for Science in the Public Interest" between 1998 and 2001, and $87,007 to the Marin Institute (for Alcohol and other Drug Problems) between 1996 – 2000, according to the ActivistCash.com website. With the County budget in the shape that it is, I hope there were no public funds from the Department of Health & Human Services used for this brazen act of commercial censorship.
Only time will tell if this group will mount further interference with the food and drinks being offered at the County Fair, but I see a disturbing start here. And no, I personally don't drink much Miller beer. When Ioccasionally have one, I prefer a brew from Mexico that was created by a German emigrant to celebratethe new Millennium - in 1900. I also have no financial interest in either company - just an abiding belief thatthe Fourth of July is about celebrating and enjoying freedom, not social
engineering.
Terry Niksch
San Rafael, CA
[ Go Back ]
Information Copyright © by The Smokers Club, Inc. - (4011 reads) |
