California tobacco and vapor compliance

Cigarette and Tobacco Products Retailer License

Who needs it

Retailer

Agency

CDTFA

Fee

$450 per retail location for new and renewal applications filed on or after July 1, 2026 (was $265 from January 1, 2017 to June 30, 2026). Not prorated. CDTFA may raise it by regulation up to $600.

Bond

None

Term

12 months from the date the license is issued

Renewal

Annual, on the license anniversary.

Separate license for each retail location. A seller's permit is also required. Retailers selling e-cigarettes with nicotine also need a CECET account. In-state delivery (online) sellers need this retailer license. Retailers may buy only from California licensed distributors or wholesalers and may not buy from other retailers. License must be displayed. A separate B&P 22973.3 license exists for sellers of only untaxed STAKE Act tobacco products (for example nicotine-free devices), same fee schedule.

Bus. & Prof. Code 22972, 22973, 22973.3 (as amended by AB 573, Stats. 2025, ch. 269); CDTFA Special Notice L-1021 (April 2026) Source

Cigarette and Tobacco Products Distributor License

Who needs it

Distributor or wholesaler, Importer, Online or remote seller

Agency

CDTFA

Fee

$1,200 per location, application and annual renewal

Bond

Security deposit required before license issuance; CDTFA guidance states a minimum of $1,000 (amount set by CDTFA)

Term

Calendar year (January 1 to December 31), not prorated

Renewal

Annual, by December 31 for the next calendar year

Needed by any person who first distributes untaxed tobacco products in California and so owes the tobacco products tax. Out-of-state sellers engaged in business in California (RTC 30108), and out-of-state delivery sellers selling to California consumers, must register as distributors (plus a PACT Act account). CDTFA's engaged-in-business pages do not list a seller's permit for an out-of-state distributor selling only for resale (see open questions). License not transferable.

Bus. & Prof. Code 22975, 22977.1(c); Rev. & Tax. Code 30108, 30140; CDTFA Getting Started and Industry Topics pages Source

Cigarette and Tobacco Products Wholesaler License

Who needs it

Distributor or wholesaler

Agency

CDTFA

Fee

$1,200 per location, application and annual renewal

Bond

None stated

Term

Calendar year, not prorated

Renewal

Annual, by December 31

For sellers who buy tax-paid products from licensed distributors and resell to retailers or other licensees. Wholesalers cannot buy directly from manufacturers or importers. Separate license for each location.

Bus. & Prof. Code 22971(c), 22975, 22977.1(c) Source

Tobacco Products Manufacturer/Importer License

Who needs it

Manufacturer outside the US, US manufacturer, Importer

Agency

CDTFA

Fee

One-time fee: $10,000 for manufacturers or importers of chewing tobacco or snuff; $2,000 for all other tobacco products; combined fees capped at $10,000. Cigarette manufacturer/importer fee is market-share based.

Bond

None stated

Term

Continuous; must be maintained and certifications affirmed annually

Renewal

No renewal fee; annual maintenance and certification under B&P 22979

Required for manufacturers and importers whose products are sold in California. Must submit and update a list of brand families. Distributors, wholesalers and retailers may not deal in products of an unlicensed manufacturer or importer. Whether a foreign manufacturer that sells only through a licensed US importer needs its own license was not confirmed.

Bus. & Prof. Code 22979, 22979.23 Source

California Electronic Cigarette Excise Tax (CECET) account/permit

Who needs it

Retailer, Online or remote seller

Agency

CDTFA

Fee

No registration fee found. $100 reinstatement fee if suspended or revoked.

Bond

None stated

Term

Ongoing

Renewal

None

Every retailer, in-state or out-of-state, that sells e-cigarettes containing or sold with nicotine to California consumers must register and collect CECET. CDTFA may suspend or revoke the CECET permit if the seller's permit, retailer license or distributor license is revoked.

SB 395 (Stats. 2021, ch. 489); Rev. & Tax. Code 30101.7; CDTFA Special Notices L-838, L-854 Source

PACT Act account (CDTFA)

Who needs it

Online or remote seller, Distributor or wholesaler

Agency

CDTFA

Fee

None

Bond

None

Term

Ongoing

Renewal

None

Persons making interstate sales of cigarettes, roll-your-own, smokeless tobacco or ENDS into California register and file monthly PACT Act reports with CDTFA (not ATF).

15 U.S.C. 375 to 378; CDTFA PACT Act and Consumer page Source

Tobacco products tax (Proposition 99, 10 and 56 surtaxes combined)

Rate

51.08% of wholesale cost for July 1, 2026 through June 30, 2027 (54.27% for FY 2025-26; 52.92% for FY 2024-25)

Base

Distributor's wholesale cost, meaning the cost charged to the distributor before any discounts or trade allowances (Regulation 4076). For e-cigarettes in arm's-length deals it includes federal excise tax but excludes US domestic transportation.

Who pays

The licensed distributor, at the time the products are distributed in California (first taxable distribution). Products bought from an out-of-state licensed distributor are taxed to the in-state licensed distributor. Consumers who buy untaxed products from out of state owe the tax themselves.

Effective

Rate reset each July 1; current rate effective July 1, 2026

No premium cigar cap or per-cigar maximum. Little cigars moved from the cigarette tax to the tobacco products tax on April 1, 2017. E-cigarettes are tobacco products only when sold with or containing nicotine; devices sold alone or with 0 mg liquid are not taxed. The statutory definition covers products containing, made or derived from tobacco or nicotine, which appears to reach nicotine pouches including non-tobacco nicotine. Credits for products returned by customers in the same period (RTC 30123(c)) and refunds for exported tax-paid products claimed within 3 months after the month of export.

Rev. & Tax. Code 30121, 30123, 30130.51; CDTFA Special Notice L-1027 (May 2026) Source

California Electronic Cigarette Excise Tax (CECET)

Rate

12.5% of the retail selling price

Base

Retail selling price of e-cigarettes containing or sold with nicotine, excluding sales and use tax. The CECET is not itself subject to sales tax. Handling charges are included, prorated if the order mixes taxable and nontaxable items.

Who pays

Consumer pays; retailer (including out-of-state delivery sellers) collects at the point of sale, shows it separately on the receipt and remits it. Retailer keeps a 1% reimbursement.

Effective

July 1, 2022; CDTFA rate table shows 12.5% still in effect as of September 2026 (no 2025 or 2026 change found)

Applies in addition to the tobacco products tax paid by the distributor and in addition to sales and use tax. Must be included in advertised prices.

SB 395 (Stats. 2021, ch. 489); CDTFA Tax Rates page; Special Notices L-838, L-854 Source

Sales and use tax

Rate

State and local sales tax rates

Base

Retail selling price (for e-cigarettes, excluding the CECET)

Who pays

Retailer (sales tax) or consumer (use tax on out-of-state purchases)

Effective

Ongoing

Consumers buying untaxed tobacco products from out of state must register, file quarterly and pay both the excise tax and use tax.

CDTFA PACT Act and Consumer page; CECET Industry Topics Source

Tobacco Products Distributor Tax Return

Form

Tobacco Products Distributor Tax Return, with Schedule T (RYO from nonparticipating manufacturers), CDTFA-810-CTN Electronic Cigarettes and Vaping Products Tax Disbursement Schedule, Tax Credit Adjustment Worksheet (returned products), and Manufacturer/Importer Report if applicable

How often

Monthly

Due

On or before the 25th day of the month following the reporting month; tax paid with the return

Zero returns

Yes, file even with no activity

Where

https://onlineservices.cdtfa.ca.gov/

Must be filed electronically. Return and supporting schedules must be kept on the licensed premises for CDTFA auditors.

Rev. & Tax. Code 30183(b); CDTFA online filing instructions Source

Tobacco Products Manufacturer/Importer Tax Return

Form

Tobacco Products Manufacturer/Importer Tax Return; Schedule CDTFA-501-MIT (Manufacturer/Importer Report of Tobacco Products Delivered or Shipped into California) when there are nontaxable sales

How often

Monthly

Due

On or before the 25th day of the month following the reporting month

Zero returns

Yes, file even with no activity

Where

https://onlineservices.cdtfa.ca.gov/

Every licensed tobacco products manufacturer or importer files, including those distributing untaxed samples. Electronic filing required.

CDTFA online filing instructions Source

California Electronic Cigarette Excise Tax Return

Form

CECET return (online)

How often

Quarterly

Due

On or before the last day of the month following each calendar quarter

Zero returns

Yes, file even with no activity

Where

https://onlineservices.cdtfa.ca.gov/

Electronic filing required. Reports total retail sales of taxable e-cigarettes, 12.5% tax, 1% retailer reimbursement and any excess tax collected. CDTFA may change the filing frequency.

SB 395; CDTFA online filing instructions Source

PACT Act report to CDTFA

Form

CDTFA-5204-PA Excel template or online entry

How often

Monthly

Due

By the 10th day of each month for shipments into California in the prior month

Where

https://onlineservices.cdtfa.ca.gov/

Filed with CDTFA, not ATF.

15 U.S.C. 376; CDTFA PACT Act and Consumer page Source

Consumer cigarette and tobacco products excise/use tax return

Form

Online consumer return

How often

Quarterly

Due

Last day of the month following the calendar quarter

Where

https://onlineservices.cdtfa.ca.gov/

For persons who buy untaxed tobacco products from out-of-state sellers for their own use. Useful to explain to consumers of out-of-state online sellers that do not hold a California distributor license.

CDTFA PACT Act and Consumer page Source

Unflavored Tobacco List (UTL)

Who files

Manufacturer outside the US, US manufacturer, Importer

Fee

$300 per brand style (initial); $150 per variant; $150 per brand style annual renewal; fiscal-year fees, not prorated

Deadline

The statute directs the Attorney General to publish the list beginning on or before December 31, 2025 (H&S 104559.1(m)); applications for the first list were due by October 9, 2025. Rolling applications thereafter; AG responds within 90 days of a complete application. Renewal window April 1 to 15 each year for brand styles listed as of March 31, or removal effective on or after June 30. Minor updates within 15 days of the change.

Attorney General list of covered tobacco products (brand styles) certified as having no characterizing flavor. Any covered product not on the UTL is deemed flavored and may not be sold by retailers, wholesalers, distributors or delivery sellers. Applicants are manufacturers or importers; each brand style needs a product form, packaging images, certification under penalty of perjury and a sample. E-cigarettes and other products under FDA authority must have FDA marketing authorization or a qualifying pending application (for tobacco-derived nicotine products on the market on August 8, 2016 with a PMTA filed by September 9, 2020; parallel rule for non-tobacco nicotine products on the market April 14, 2022). Exempt from listing: premium cigars (handmade and not mass produced by use of mechanization, whole-leaf wrapper, capped by hand, wholesale price of at least $12, no filter, tip or non-tobacco mouthpiece), looseleaf pipe tobacco and shisha. RYO is not exempt. Handmade cigars under $12 wholesale are not exempt.

Health & Safety Code 104559.1 (AB 3218, Stats. 2024, ch. 849); 11 CCR 942 to 957 (permanent regulations approved by OAL June 19, 2026) Source

California Tobacco Directory (cigarettes and roll-your-own)

Who files

Manufacturer outside the US, US manufacturer, Importer, Distributor or wholesaler

Fee

None found

Deadline

Annual manufacturer certification by April 30

Attorney General directory of tobacco product manufacturers and brand families (participating and nonparticipating MSA manufacturers) whose cigarettes, including RYO tobacco, may be sold. Manufacturers certify on form JUS-TOB1. Nobody may sell or possess for sale RYO of a manufacturer or brand family not on the directory. Nonparticipating manufacturers must keep escrow current. Distributors report NPM RYO on Schedule T and file quarterly directory-related information within 25 days after each quarter. Listing on this directory does not make a product legal under the flavor law.

Rev. & Tax. Code 30165.1; Health & Safety Code 104555 to 104557 Source

Flavored tobacco sales ban

Effective

December 21, 2022 (SB 793 after Proposition 31 approval November 8, 2022); expanded January 1, 2025 (AB 3218, SB 1230)

Retailers and their agents may not sell, offer or possess for sale a flavored tobacco product or a tobacco product flavor enhancer. Covers flavored e-liquids and devices, flavored cigars and cigarillos, smokeless, RYO, wraps, nicotine products and menthol. Since January 1, 2025 it also covers cooling sensations, nicotine analogs and flavor enhancers, and applies to delivery and online sellers. Wholesalers and distributors may not sell products not on the UTL or flavor enhancers. No knowledge defense.

Health & Safety Code 104559.5, 104559.1 Source

Premium cigar, pipe tobacco and shisha exceptions

Effective

December 21, 2022

Flavored premium cigars and flavored looseleaf pipe tobacco may still be sold. A premium cigar must be handmade and not mass produced by use of mechanization, have a wrapper made entirely of whole tobacco leaf, be capped by hand, have a wholesale price of at least $12, and have no filter, tip or non-tobacco mouthpiece. Flavored shisha may be sold only by licensed hookah tobacco retailers that bar anyone under 21. Many cities and counties do not grant these exceptions.

Health & Safety Code 104559.5; 104559.1(g) Source

Minimum age 21

Effective

June 9, 2016 (age 21); penalty schedule restructured January 1, 2025 by SB 1230

No sale of tobacco products (including e-cigarettes) to anyone under 21. Civil penalties from $1,000 to $1,500 for a first violation up to at least $20,000 for a fifth within 5 years; license suspension (45 and 90 days) and revocation on third to fifth violations plus a $250 CDTFA penalty.

Bus. & Prof. Code 22958; Penal Code 308 Source

Purchasing only from licensed, compliant sources

Effective

Ongoing

Retailers and wholesalers may buy only tax-paid products from licensed California distributors or wholesalers, must verify the supplier's license, and may not buy from other retailers.

Bus. & Prof. Code 22980.1 and related; CDTFA Retailer and Wholesaler page Source

Shipping rule

Delivery sales (internet, phone, mail) of any tobacco product, including e-cigarettes, cigars and hookah tobacco, require age verification against a commercial database of persons 21 or older (or a copy of valid ID), a package label reading "CONTAINS TOBACCO PRODUCTS: SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR DELIVERY", and an adult 21 or older signature at delivery.

Bus. & Prof. Code 22963 (as amended by SB 39, 2019) Source

Shipping rule

Since January 1, 2025, delivery and online sellers must follow all state and local tobacco laws of the delivery location as if the sale occurred entirely there, including the flavor ban and the UTL. Penalties include misdemeanor fines up to $5,000 and civil penalties of $1,000 to $10,000.

Health & Safety Code 104559.5 (AB 3218) Source

Shipping rule

Out-of-state sellers shipping tobacco products to California consumers must register with CDTFA as distributors (tobacco products distributor license account) and for a PACT Act account; in-state delivery sellers need a retailer license. Out-of-state e-cigarette retailers must also register for and collect CECET.

Rev. & Tax. Code 30108; CDTFA Industry Topics; Special Notice L-854 Source

Local rule

State licensing law does not preempt local tobacco control laws other than those on state tax collection. Local licenses may be suspended or revoked for violating state tobacco law. Local flavor restrictions stricter than state law are allowed.

Bus. & Prof. Code 22971.3 Source

Local rule

City of Fresno adopted a local Tobacco Retailer's License (new Article 38 of Chapter 9, Fresno Municipal Code, file 26-1013) on top of the CDTFA license, following a 2025 fee study (Resolution 25-904). News reports put the annual fee at about $1,000; the fee was not confirmed on a city source.

Fresno City Council file 26-1013; Resolution 25-904 Source

Local rule

Sacramento County (unincorporated) requires a tobacco retailer license with annual unannounced inspection and has a flavor ban since July 25, 2022 that does not include the state exemptions for loose leaf tobacco and premium cigars. The City of Sacramento flavor ban (enforced from January 1, 2020) also has no premium cigar exemption, with 30-day and 90-day suspensions and revocation for repeat violations.

Sacramento County Tobacco Retailer Program; City of Sacramento Tobacco Retail License FAQ Source

Local rule

Some cities set minimum pack sizes and prices. Example: Berkeley bars selling cigars except in packs of at least 6 and little cigars except in packs of at least 20, and bars cigars priced under $7.00 per cigar or little cigars under $8.00 per pack.

Berkeley Ordinance No. 7,673-N.S. Source

Records

Distributors and wholesalers keep purchase and sales records (receipts, invoices) for 4 years; purchase records and invoices for the past year must be kept on the licensed premises. Records must be open to CDTFA inspection.

Bus. & Prof. Code 22978.1 to 22978.2 (Chapter 3 of the Licensing Act) Source

Records

Wholesaler and distributor sales invoices must show the seller's name, address, phone and license number; the buyer's name, address and license number; an itemized list of products; the sale date; and the California excise tax amount.

Bus. & Prof. Code 22978.4 Source

Records

Retailers keep purchase invoices with the same details for 4 years, at the licensed location for at least 1 year, and must produce them on CDTFA request.

Bus. & Prof. Code 22974 Source

Records

CDTFA may inspect any place where tobacco products are sold, produced or stored; refusal carries penalties.

Rev. & Tax. Code 30435 Source

Penalty

Late payment or late filing of a cigarette or tobacco products tax return: 10% of the tax, plus interest monthly; combined penalty capped at 10% per return.

Rev. & Tax. Code 30281 Source

Penalty

Retailer found with flavored products or products not on the UTL: seizure plus a $50 civil penalty per package seized; license suspended on second seizure and revoked on third. Separate civil penalties of $1,000 to $20,000+ apply per violation.

Bus. & Prof. Code 22974.2, 22958; Health & Safety Code 104559.5 Source

Penalty

Wholesaler or distributor with flavored products, flavor enhancers or products not on the UTL: warning notice for a first offense without seizure, then suspension and revocation; with seizure, $50 per package and suspension on second seizure, revocation on third. Health and Safety Code civil penalties run from $2,000 for a first violation up to $10,000 for a fifth within 5 years.

Bus. & Prof. Code 22978.3 (AB 3218; amended by AB 573); Health & Safety Code 104559.1 Source

Penalty

Selling RYO of a manufacturer or brand family not on the California Tobacco Directory: civil penalty of the greater of 5 times the retail value or $5,000 per violation, plus possible license revocation.

Rev. & Tax. Code 30165.1 Source

Penalty

Seized flavored products and flavor enhancers are destroyed.

Rev. & Tax. Code 30449 (SB 1230) Source

Penalty

Common trap: license fees are not prorated and a retailer license lapses 12 months from issue; distributor and wholesaler licenses lapse December 31. Monthly and quarterly returns are required even with no activity, and missing returns can lead to CDTFA estimated determinations.

Bus. & Prof. Code 22973, 22976; CDTFA filing instructions Source

July 1, 2026 through June 30, 2027

Tobacco products tax rate decreased to 51.08% of wholesale cost (from 54.27%).

CDTFA Special Notice L-1027 Source

July 1, 2026 (fee); January 1, 2026 (other provisions)

Retailer license fee increased from $265 to $450 per location for applications and renewals filed on or after July 1, 2026; CDTFA may raise it to $600 by regulation. AB 573 also added a $50 per package wholesaler seizure penalty structure, defined package, and repealed B&P 22974.1.

AB 573 (Stats. 2025, ch. 269); CDTFA Special Notice L-1021 Source

On or before December 31, 2025 (statutory publication date)

Unflavored Tobacco List published (H&S 104559.1(m) required publication beginning on or before December 31, 2025); products not listed are treated as flavored and cannot be sold. CDTFA notice L-1018 (February 2026) reminded retailers, wholesalers and distributors.

Health & Safety Code 104559.1; CDTFA Special Notice L-1018 Source

Approved June 19, 2026

Permanent UTL regulations approved by the Office of Administrative Law, replacing emergency rules (first approved August 6, 2025, readopted January 30, 2026 and May 7, 2026). Include multipack and variant rules.

11 CCR 942 to 957 Source

January 1, 2025

AB 3218 and SB 1230: created the UTL, extended the flavor ban to cooling sensations, nicotine analogs, flavor enhancers and delivery sellers, gave CDTFA seizure authority and restructured STAKE Act penalties.

AB 3218 (Stats. 2024, ch. 849); SB 1230 (Stats. 2024, ch. 462) Source

2026 (adopted summer 2026; effective date and fee to be confirmed)

City of Fresno adopted a local tobacco retailer license ordinance.

Fresno file 26-1013 Source

California Department of Tax and Fee Administration (CDTFA)

Handles

Issues retailer, wholesaler, distributor and manufacturer/importer licenses; administers the cigarette and tobacco products tax, the CECET, PACT Act reports, inspections and seizures of flavored or untaxed products

Online

https://onlineservices.cdtfa.ca.gov/

Source

California Department of Justice, Office of the Attorney General (Tobacco Grants and Enforcement)

Handles

Maintains the Unflavored Tobacco List (UTL) and the California Tobacco Directory (cigarettes and RYO) under the MSA statutes; enforces flavored tobacco and directory laws

Online

https://utl.doj.ca.gov/

Source

California Department of Public Health (CDPH), Office of Youth Tobacco Enforcement and California Tobacco Control Branch

Handles

Primary enforcer of the STAKE Act (age 21) and the flavored tobacco sales law since January 1, 2024; publishes retailer guidance

Source

Cities and counties

Handles

Local tobacco retail licenses, local flavor bans and packaging or pricing rules; not preempted by state licensing law

Source