BOE-501-CT (S1F) REV. 10 (9-07)
BOARD OF EQUALIZATION
BOARD USE ONLY
RA-B/A RR-QS AUD FILE REG REF
STATE OF CALIFORNIA
TOBACCO PRODUCTS DISTRIBUTOR TAX RETURN DUE ON OR BEFORE
YOUR ACCOUNT NO. EFF
BOARD OF EQUALIZATION EXCISE TAXES DIVISION PO BOX 942879 SACRAMENTO CA 94279-6069
The State Board of Equalization (Board) administers the California Cigarette and Tobacco Products Surtax Law. This law imposes
a tax upon the distribution of tobacco products based on the wholesale cost of these products. The rate is determined annually
by the Board and is equivalent to the combined rate of tax imposed on cigarettes.
Every person who distributes tobacco products in this state must file this tax return on or before the 25th day of the month
following the month for which the tax is due. The tax return must be filed even though there were no distributions during the
period covered by the return. The return must be accompanied by a remittance payable to the State Board of Equalization for the
amount of any tax due. Tobacco Schedule T (BOE-501-CTT) must be attached.
TOBACCO PRODUCTS TAX LIABILITY
1. Wholesale cost of all tobacco products distributed 1. $
EXEMPT DISTRIBUTIONS (see instructions)
2. Interstate or foreign commerce 3. Interstate or foreign passenger common carriers 4. Other exemptions (see instructions) 5. Credit on returned tobacco products where you reported tax for a prior reporting period 6. Total exempt distributions (add lines 2 thru 5) 7. Taxable distributions (line 1 minus line 6) 8. Tax rate 9. Total amount of tax due for tobacco products (multiply line 7 by line 8) 10. Penalty [multiply line 9 by 10% (0.10) if payment is made after due date shown above] 11. INTEREST: One month's interest is due on tax for each month or fraction of a month that payment is
delayed after the due date. The adjusted monthly interest rate is PENALTY INTEREST
2. $ 3. $ 4. $ 5. $ 6. $ 7. $ 8. 9. $ 10. 11. $ $
12. TOTAL AMOUNT DUE AND PAYABLE (add lines 9, 10, and 11)
IF PAID BY CREDIT CARD, CHECK HERE (Mandatory EFT accounts MUST pay by EFT). [ ]
I hereby certify that this return, including any accompanying schedules and statements, has been examined by
me and to the best of my knowledge and belief is a true, correct, and complete return.
YOUR SIGNATURE AND TITLE
Make check or money order payable to State Board of Equalization.
Always write your account number on your check or money order. Make a copy of this document for your records.
Tobacco Schedule T (BOE-501-CTT) must be attached.
BOE-501-CT (S1B) REV. 10 (9-07)
TOBACCO PRODUCTS DISTRIBUTOR TAX RETURN
Credit Card Payments. You can use a Discover/Novus, MasterCard, VISA, or American Express credit card to pay your taxes. Other credit cards cannot be accepted. EFT accounts are not eligible for credit card payments. Credit card payments can be made by calling 800-272-9829 or through our website at www.boe.ca.gov. After authorizing your payment, check the box on your return indicating you have paid with a credit card. Be sure to sign and mail your return.
DEFINITIONS Tobacco Products include, but are not limited to, all forms of cigars, smoking tobacco, chewing tobacco, snuff, and any other
articles or products made of, or containing at least 50 percent (0.50) tobacco; but does not include cigarettes.
Distribution includes the sale of untaxed tobacco products in this state, the use or consumption, including samples, of untaxed
tobacco products in this state, or the placing of untaxed tobacco products in a vending machine or in retail stock for the
purpose of selling the tobacco products to consumers.
Distributor includes every person who makes a "distribution" of tobacco products, or who sells or accepts orders for tobacco
products that are to be transported from outside California to a consumer within California.
Imposition of Tax. Every distributor must pay tax upon the distribution of untaxed tobacco products in this state.
Untaxed Tobacco Products means either tobacco products that have not yet been distributed in a manner that results in tax
liability or tobacco products that have been distributed and returned to the distributor after payment of tax and for which the
distributor has claimed a deduction [Revenue & Taxation Code section 30123(c)] or a refund or credit pursuant to Revenue &
Taxation Code section 30176.2 or 30178.2.
Wholesale Cost means the cost of tobacco products and samples to the distributor, including the dollar value of samples, and
the dollar value of any manufacturer's discounts or trade allowances (Revenue and Taxation Code section 30017 and 30123).
For example, the wholesale cost of any manufactured tobacco product that is distributed in a taxable manner shall include all
manufacturing costs, the cost of raw material, including waste materials not incorporated into the final product, the cost of
labor, any direct and indirect overhead costs, the wholesale markup and any Federal Excise and/or US Custom's Taxes paid.
In addition to the price paid for the tobacco product, the wholesale cost of any tobacco product that is imported into this state
directly from outside the country shall include any Federal Excise or US Custom's Taxes paid.
BOE-501-CT (S2) REV. 10 (9-07)
INSTRUCTIONS - TOBACCO PRODUCTS DISTRIBUTOR TAX RETURN
PREPARATION OF RETURN
Line 1. Wholesale Cost of all Tobacco Products Distributed. Enter the wholesale cost, as defined, of untaxed tobacco
products that you distributed. Do not include the wholesale cost of tobacco products that were returned to you by
a customer during the same month covered by this return when you refund the entire amount the customer paid
for the tobacco products either in cash or credit. Refund or credit of the entire amount shall be deemed to be
given when the purchase price, less rehandling charges and restocking cost, is refunded or credited to a customer
[Revenue & Taxation Code section 30131.2(c)].
Note: A licensed California distributor may also be the original importer of tobacco products manufactured outside
of the U.S. (Revenue & Taxation Code section 30105). If you are the original importer of tobacco products
manufactured outside of the U.S. and sell these products to a licensed distributor, you must include those sales
on form BOE-501-MIT. If you purchase tobacco products manufactured outside the U.S. from an original
importer, you must include the cost of the imported tobacco products on line 1 and pay the tax based on your
distribution of the imported products.
Line 2. Interstate or Foreign Commerce. Enter the wholesale cost, as defined, of those tobacco products reported on
line 1 that were distributed to purchasers in other states, territories or foreign countries by delivery outside
California and not returned to this state before use.
Interstate or Foreign Passenger Common Carrier. Enter the wholesale cost, as defined, of those tobacco
products reported on line 1 that were distributed to a common carrier engaged in interstate or foreign passenger
service or to a person authorized to sell tobacco products on the facilities of such carriers.
Other Exemptions. Enter the wholesale cost, as defined, of only those tobacco products reported on line 1 that
are exempt from tax, such as: (1) tobacco products sold to the U.S. Army, Air Force, Navy, Marine Corps, or Coast
Guard exchanges and commissaries, and Navy or Coast Guard ships stores; (2) tobacco products under internal
revenue bond or customs control; or (3) tobacco products sold or transferred to a law enforcement agency for use
in a criminal investigation.
Caution: Sales by original importers of tobacco products manufactured outside the U.S. to licensed distributors
are not taxable (Revenue & Taxation Code section 30105) and must be included on BOE-501-MIT. If, however,
you are an original importer with sales to unlicensed distributors in California, or sales to wholesalers or retailers
of tobacco products, you must include the sales on line 1.
Line 5. Credit on Returned Tobacco Products Where Tax Was Reported in a Prior Month. Enter the wholesale cost,
as defined, of those tobacco products that were returned by the customer during the period covered by this return
but that were reported on line 1 for a different month than covered by this return. Credit of the entire amount shall
be deemed to be given when the entire purchase price, less rehandling and restocking costs, is credited to the
customer (Revenue & Taxation Code section 30176.2). If the credit exceeds the liability on line 12, the balance will
Lines 10 Payment after the Due Date. If you are paying the tax after the due date shown on the front of this return,
and 11. additional amounts are due for penalty and interest charges. The penalty is 10 percent (0.10) of the amount of tax
owing. The interest rate for late payment is noted on line 11 on the front of this form and applies for each month or
portion of a month after the due date.
Line 12. Amount Due. Enter the total amount due and payable including penalty and interest, if applicable.
Tobacco Schedule T (BOE-501-CTT) must be attached to the Tobacco Products Distributor Tax Return (BOE-501-CT).
If you wish additional information, please contact the State Board of Equalization, Excise Taxes Division,
450 N Street, P.O. Box 942879, Sacramento, CA 94279-0056, Telephone 800-400-7115.