SACRAMENTO, Calif. – Californians will have a new sin tax to ponder, with a $2-per-pack tax on cigarettes and “equivalent increases” on other tobacco products (OTP) and e-cigarettes making the Nov. 8 ballot, according to the proposition.
If approved, the tax will increase to $2.87 per pack.
California Proposition 56, officially called the “Cigarette Tax to Fund Healthcare, Tobacco Use Prevention, Research and Law Enforcement,” would allocate revenue for healthcare and prevention programs, among other state initiatives.
The measure will bring in an estimated $1 billion to $1.4 billion from 2017-2018, with potentially lower revenues in future years, according to the proposition.
Proponents for the legislation, including the American Cancer Society, Atlanta, and the American Heart Association, Dallas, say the move will tax tobacco users while funding prevention and treatment efforts.
Tobacco manufacturers are mounting a major campaign against the tax, saying that most of the revenue will go to health-insurance companies and special interests and not deterring smoking among youth.
Voter documents report that groups opposing the measure have raised twice as much money, $35 million, than those supporting it, $17 million.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.