Laws, Regulations and Annotations


Business Taxes Law Guide—Revision 2024

Cigarette and Tobacco Products Tax Regulations

Title 18. Public Revenues
Division 2. California Department of Tax and Fee Administration — Business Taxes (State Board of Equalization — Business Taxes — See Chapters 6 and 9.9)
Chapter 9. Cigarette and Tobacco Products Tax Law Regulations

Article 4. Distributor's Bond

Regulation 4018

Regulation 4018. Amount of Security.

Reference: Sections 30141, 30142, and 30167, Revenue and Taxation Code.

(a) The amount of security shall be fixed by the board. The board may increase or reduce the amount of security at any time, but in no event shall the amount of security be less than $1,000.

(b) When a distributor is authorized to purchase stamps or meter register settings on the deferred payment basis, the security shall be fixed in an amount no less than 70 percent of the amount, and no more than twice the amount, as fixed by the board, of deferred payment purchases which the distributor may have unpaid at any time.

History—Adopted June 24, 1959.

Amended September 13, 1961.

Amended January 12, 1968.

Amended September 26, 2001, effective February 15, 2002. In subdivision (a), replaced "bond" with "security" and deleted second sentence, relating to security required for distributors who do not affix stamps. In subdivision (b), replaced "pursuant to the Cigarette Tax Law, his bond" with "the security", replaced "equal to" with "no less than", and added "and no more than twice the amount" after "70 percent of the amount".