Californians Vote To Increase Tax On Cigarettes, Tobacco Products
LOS ANGELES (CBSLA.com) — The price of a pack of cigarettes and other tobacco products will be going up in California.
Voters overwhelmingly backed a $2-per-pack tax to fund healthcare, tobacco-use prevention and other programs Tuesday.
Proposition 56, dubbed the "California Healthcare, Research and Prevention Tobacco Tax Act of 2016," will also place an equivalent tax increase on other tobacco products and electronic cigarettes containing nicotine.
The initiative will result in a net increase in tax revenues in the range of $1 billion to $1.4 billion annually by 2017-18, with revenues decreasing slightly in subsequent years, according to a study conducted by the Legislative Analyst's Office and Department of Finance.
Tax revenues generated from passage of the measure will be allocated to increase funding for existing health care programs; tobacco use prevention and control programs, tobacco-related disease research and law enforcement, University of California physician training, dental disease prevention programs and administration.
If the tax increases cause decreased tobacco consumption, tax revenues would be transferred to offset decreases to existing tobacco-funded programs and sale tax revenues.
Proponents of Prop. 56 argued that tobacco use results in 40,000 deaths in California every year. Opponents contended only 13 percent of the money generated by the tax would actually go towards treating smokers or smoking-prevention programs for children.
A similar measure was defeated in 2012.
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