Amended in Assembly April 6, 2016

Amended in Assembly March 29, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2184

Introduced by begin delete Assembly Members Low and Calderon end delete begin insert Assembly Member Low end insert

begin delete

(Coauthors: Assembly Members Bloom, Irwin, and Salas)

end delete

February 18, 2016

An act to amend Section 30166.1 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2184, as amended, Low. Cigarette tax: stamps and meter machines: report.

The Cigarette and Tobacco Products Tax Law imposes a tax on distributors of cigarettes at the rate of $0.87 per package of 20 cigarettes. That law requires that tax be paid through the use of stamps or meter impressions, and requires that these stamps or meter impressions be affixed to each package of cigarettes distributed. That law requires stamps and meter register settings to be sold at their denominated values less 0.85% to licensed distributors.

Existing law, no later than July 1, 2005, required the Board of Equalization to submit a report to the Legislature that evaluates the average actual costs, including labor, for applying indicia or impressions, bonding, warehousing, and leasing stamping equipment, including case cutters and packers, associated with applying stamps or meter impressions to cigarette packages and requires that report to be updated every 2 years.

This bill instead would require a report making the same evaluation to be submitted to the Legislature no later than January 1, 2018, and would require that report to be updated and submitted to the Legislature every 2 years.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

Section 30166.1 of the Revenue and Taxation
Code is amended to read:

30166.1.  

(a) No later than January 1, 2018, the board shall
submit begin delete a report end delete to the Legislature begin insert a report end insert that evaluates the
average actual costs, including labor for applying indicia or
impressions, bonding, warehousing, and leasing stamping
equipment, including case cutters and packers, associated with
applying stamps or meter impressions to cigarette packages.

(b) (1) A report to be submitted pursuant to subdivision (a)
shall be submitted in compliance with Section 9795 of the
Government Code.

(2) Notwithstanding Section 10231.5 of the Government Code,
the report required by subdivision (a) shall be updated and
submitted to the Legislature every two years.