STORY: Tobacco Products, Along With E-Cigs, Face Tax Hike

(The information below was taken from the California Secretary of State’s website.)

Analysis | Arguments & Rebuttals | Text of Proposed Law (PDF)

Increases cigarette tax by $2.00 per pack, with equivalent increase on other tobacco products and electronic cigarettes containing nicotine. Fiscal Impact: Additional net state revenue of $1 billion to $1.4 billion in 2017–18, with potentially lower revenues in future years. Revenues would be used primarily to augment spending on health care for low–income Californians.

A YES vote on this measure means: State excise tax on cigarettes would increase by $2 per pack—from 87 cents to $2.87. State excise tax on other tobacco products would increase by a similar amount. State excise tax also would be applied to electronic cigarettes. Revenue from these higher taxes would be used for many purposes, but primarily to augment spending on health care for low–income Californians.

A NO vote on this measure means: No changes would be made to existing state taxes on cigarettes, other tobacco products, and electronic cigarettes.

PRO Tobacco-related healthcare costs California taxpayers $3.5 billion annually, even if you don’t smoke. Prop. 56 works like a user fee, taxing tobacco to help pay for smoking prevention and healthcare—so smokers pay their fair share for their costs. American Cancer Society Cancer Action Network sponsored Prop. 56 to prevent kids from smoking and save lives. CON Follow the 56 money: This $1.6 billion tax increase gives $1 billion to health insurance companies and special interests. 56 cheats schools out of $600 million a year by circumventing our minimum school funding guarantee. Only 13% of the money helps smokers or prevents kids from starting. No on 56.

Yes on 56—Save Lives California
1020 12th Street, Suite 303
Sacramento, CA 95814
(916) 706-2487

No on 56—Stop the Special Interest Tax Grab
925 University Ave.
Sacramento, CA 95825
(916) 409-7500


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