Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1238

Introduced by Assembly Member Linder

February 27, 2015

An act to begin delete amend Section 30002 of end delete begin insert add Sections 30004 and 30112 to end insert the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 1238, as amended, Linder. Cigarette and tobacco products begin delete taxes. end delete begin insert taxes: premium cigars. end insert

The Cigarette and Tobacco Products Tax Law imposes a tax on every distributor of cigarettes and tobacco products at specified rates, including additional taxes imposed under the Tobacco Tax and Health Protection Act of 1988 (Proposition 99) and the California Families and Children Act of 1998 (Proposition 10). begin delete Existing law provides definitions that govern the construction of this law. end delete begin insert That law imposes taxes on other tobacco products, including cigars, measured by wholesale cost, at a rate determined annually by the State Board of Equalization, as provided. end insert

begin insert

The Tobacco Tax and Health Protection Act of 1988, and the California Families and Children Act of 1998, each requires that amendments to its provisions be consistent with the act’s purposes, and be approved, respectively, by either a 4⁄5 or 2⁄3 vote of both houses of the Legislature.

end insert

This bill would begin delete make a nonsubstantive change to this provision regarding definitions under the law. end delete begin insert define a “premium cigar” for purposes of these taxes as any roll of tobacco spiral wrapped in leaf tobacco that does not contain a plastic or wooden filter or tip, and that weighs over 6 pounds per thousand cigars. The bill would also provide that the rate of tax imposed on the distribution of a premium cigar would not exceed $ ____. end insert

Vote:  begin delete majority end delete begin insert ⁴⁄₅ end insert . Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 30004 is added to the end insert begin insert Revenue and
Taxation Code end insert begin insert , to read: end insert

begin insert

begin insert 30004. end insert   

“Premium cigar” means any roll of tobacco spiral
wrapped in leaf tobacco that does not contain a plastic or wooden
filter or tip, and that weighs over six pounds per thousand cigars.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 30112 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 30112. end insert   

Notwithstanding any other provision of this part, the
rate of tax imposed on the distribution of a premium cigar shall
not exceed ____($____).

end insert

begin delete

SECTION 1.  

Section 30002 of the Revenue and Taxation Code
is amended to read:

30002.  

Except where the context otherwise requires, the
definitions provided in this chapter govern the construction of this
part.

end delete