Prevent All Cigarette Trafficking (PACT) Act Enhances the Requirements of the Federal Jenkins Act
Federal Law (15 U.S.C. sections 375-377) commonly referred to as the Jenkins Act, requires any person selling transferring or shipping for-profit cigarettes or smokeless tobacco products in interstate commerce, to register and file monthly reports, with the tobacco tax administrator of the state into which shipment is made no later than the 10th day of each month. The report is known as the Jenkins Act Report and provisions of the Jenkins Act are enforced by the Federal Authorities.
The PACT Act of 2009 (Senate Bill 1147), amended the Jenkins Act to revise provisions governing the collection of taxes and trafficking by requiring Internet and other remote sellers of cigarettes and smokeless tobacco products to comply with the same laws that apply to local cigarette and tobacco retailers. Effective March 27, 2021, the PACT Act amended the federal definition of cigarette to include electronic nicotine delivery systems (ENDS) (2021 Omnibus Appropriations Bill HR 133 section 601).
ENDS are defined as any electronic device that delivers nicotine, flavor, or any other substance to the user inhaling from the device. ENDS include: eCigarettes, vape pens, eHookas, eCigars, advanced refillable personal vaporizers, electronic pipes, and any component, liquid, part, or accessory of an ENDS device without regard to whether the component, liquid, part, or accessory is sold separately from the device. ENDS do not include a product that is approved by the Food and Drug Administration (FDA) for sale as a tobacco cessation product or any other therapeutic purpose and marketed and sold solely for this purpose.
If you operate a business for profit that sells, transfers, ships, advertises, or offers for sale cigarettes, smokeless tobacco products, or ENDS through interstate commerce into California or commerce transferred into or through Indian country of an Indian tribe located within the external borders of California, you must register with the California Department of Tax and Fee Administration (CDTFA).
To register with us online, from our Taxpayer Online Services Portal page, under the heading Registration, select Register a New Business Activity.
Monthly Report Filings Requirements
You must also file monthly reports with CDTFA no later than the 10th day of each calendar month. For more details about filings, see our Tax Guide for Cigarettes and Tobacco Products, under the Getting Started tab, under the heading Tax Return, Report, Schedule Filings and Payments.
Other Requirements for Delivery Sellers (direct sales to consumers)
A “delivery sale” is defined, in part, as any sale of cigarettes, smokeless tobacco products, or ENDS to a consumer. If you are a delivery seller, and plan to make delivery sales of cigarettes, smokeless tobacco products, or ENDS in California, you must apply for a California Cigarette and Tobacco Products Retailer and Distributor License. Essentially, as a delivery seller, you must comply with all California laws regarding the sale of cigarettes, smokeless tobacco products, and ENDS into the state as if you were located in the state.
Failure to comply with these requirements may result in the assessment of penalties or civil action brought by the Office of the California Attorney General.
For more information, see our Tax Guide for Cigarettes and Tobacco Products, under the Industry Topics tab, under the heading Distributors, under the heading Cigarettes, Smokeless Tobacco Products, and ENDS Shipped into California – Requirements under Federal Law: The Jenkins Act (Amended by the PACT Act), under the heading Delivery Sellers (Internet or Remote Sellers Selling Directly to Consumers).
If you have questions about registering for the PACT Act or about cigarette or tobacco tax, please visit our website. You may also call our Customer Service Center at 1-800-400-7115 (CRS: 711); then select the Special Taxes and Fees option and follow the prompts for Cigarette and Tobacco Products Licensing or Taxes. Customer service representatives are available Monday through Friday from 8:00 a.m. to 5:00 p.m. (Pacific Time), except state holidays. The Office of the California Attorney General can be reached at 1-916-565-6486.