2005 California Revenue and Taxation Code Sections 30131-30131.6 Account

30131.  Notwithstanding Section 30122, the California Children and
Families Trust Fund is hereby created in the State Treasury for the
exclusive purpose of funding those provisions of the California
Children and Families Act of 1998 that are set forth in Division 108
(commencing with Section 130100) of the Health and Safety Code.
30131.1.  The following definitions apply for purposes of this
article:
   (a) "Cigarette" has the same meaning as in Section 30003, as it
read on January 1, 1997.
   (b) "Tobacco products" includes, but is 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,
tobacco, but does not include cigarettes.
30131.2.  (a) In addition to the taxes imposed upon the distribution
of cigarettes by Article 1 (commencing with Section 30101) and
Article 2 (commencing with Section 30121) and any other taxes in this
chapter, there shall be imposed an additional surtax upon every
distributor of cigarettes at the rate of twenty-five mills ($0.025)
for each cigarette distributed.
   (b) In addition to the taxes imposed upon the distribution of
tobacco products by Article 1 (commencing with Section 30101) and
Article 2 (commencing with Section 30121), and any other taxes in
this chapter, there shall be imposed an additional tax upon every
distributor of tobacco products, based on the wholesale cost of these
products, at a tax rate, as determined annually by the State Board
of Equalization, which is equivalent to the rate of tax imposed on
cigarettes by subdivision (a).
   (c) The wholesale cost used to calculate the amount of tax due
under subdivision (b) does not include the wholesale cost of tobacco
products that were returned by a customer during the same reporting
period in which the tobacco products were distributed, when the
distributor refunds the entire amount the customer paid for the
tobacco products either in cash or credit.  For purposes of this
subdivision, refund or credit of the entire amount shall be deemed to
be given when the purchase price less rehandling and restocking
costs is refunded or credited to the customer.  The amount withheld
for rehandling and restocking costs may be a percentage of the sales
price determined by the average cost of rehandling and restocking
returned merchandise during the previous accounting cycle.
30131.3.  Except for payments of refunds made pursuant to Article 1
(commencing with Section 30361) of Chapter 6, reimbursement of the
State Board of Equalization for expenses incurred in the
administration and collection of the taxes imposed by Section
30131.2, and transfers of funds in accordance with subdivision (c) of
Section 130105 of the Health and Safety Code, all moneys raised
pursuant to the taxes imposed by Section 30131.2 shall be deposited
in the California Children and Families Trust Fund and are
continuously appropriated for the exclusive purpose of the California
Children and Families Program established by Division 108
(commencing with Section 130100) of the Health and Safety Code.
30131.4.  All moneys raised pursuant to taxes imposed by Section
30131.2 shall be appropriated and expended only for the purposes
expressed in the California Children and Families Act, and shall be
used only to supplement existing levels of service and not to fund
existing levels of service.  No moneys in the California Children and
Families Trust Fund shall be used to supplant state or local General
Fund money for any purpose.
30131.5.  The annual determination required of the State Board of
Equalization pursuant to subdivision (b) of Section 30131.2 shall be
made based on the wholesale cost of tobacco products as of March 1,
and shall be effective during the state's next fiscal year.
30131.6.  The taxes imposed by Section 30131.2 shall be imposed on
every cigarette and on tobacco products in the possession or under
the control of every dealer and distributor on and after 12:01 a.m.
on January 1, 1999, pursuant to rules and regulations promulgated by
the State Board of Equalization.