California CDTFA Releases Tobacco Products Tax Reimbursement Document

The California Department of Tax and Fee Administration (CDTFA) released a Tobacco Products Tax Reimbursement document, providing guidance to taxpayers on how a distributor collects tobacco tax reimbursement. The document clarifies that a distributor is considered to have collected the tax reimbursement when the full payment for invoices is made, stating the tobacco product is sold for a tax-included price, and the purchaser has reimbursed the distributor for the tax it owes. [Cal. Dep’t of Tax & Fee Admin., Cigarette and Tobacco Products Tax Annotations: Tobacco Products Tax Reimbursement, 06/17/24]

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