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CDTFA seeks one-year funding to implement flavored tobacco seizure authority
Summary
The California Department of Tax and Fee Administration requested $3.5 million from the cigarette and tobacco compliance fund to implement new seizure authority under AB 3218 and SB 1230, while the LAO cautioned about staffing and revenue uncertainty after recent declines in tobacco inspections and staffing.
The California Department of Tax and Fee Administration asked the Senate Budget Subcommittee No. 4 on April 24 for a one-year augmentation of $3.5 million from the Cigarette and Tobacco Compliance Special Fund to implement recent laws authorizing seizure and destruction of flavored tobacco.
CDTFA director Trista Gonzales and Chief Financial Officer Jason Mallett said AB 3218 and SB 1230 (as referred to in the department’s submission) authorized the agency, beginning Jan. 1, 2025, to seize flavored tobacco products from retailers. CDTFA requested limited-term funding for FY 2025–26 because the department does not yet have a reliable estimate of how much seized product value or penalty revenue the program will generate.
LAO summary and department response
Seth Kirstein of the Legislative Analyst’s Office told the subcommittee that recent state-level revenue…
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