What is Cigarette and Tobacco Products Tax Evasion?

California's cigarette tax per pack of 20 cigarettes currently stands at 87 cents. The tax on tobacco products is based on the wholesale cost of tobacco products, and as of July 1, 2007, the rate is 45.13%. Any person who evades the reporting, assessment or payment of cigarette or tobacco products taxes that would otherwise be due may be guilty of cigarette or tobacco products tax evasion.

And effective January 1, 2004, any retailer, wholesaler, or distributor of cigarettes and tobacco products and any manufacturer or importer of cigarettes that does not comply with the new licensing requirements of the Cigarette and Tobacco Products Licensing Act of 2003 (AB 71) may receive fines up to $5,000, imprisonment up to one year in county jail, or both fines and imprisonment. Examples of Cigarette or Tobacco Products Tax Evasion: • Sale of unstamped cigarettes. • Intentionally importing tobacco products from outside the state without remitting the appropriate California State tobacco ... more.

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