Proposition 56: Tobacco Tax Increase
Available once the California Secretary of State has certified the election. This can take up to 3 weeks or more.
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.
Supporters of Proposition 56 claim that the measure will help reduce tobacco related health costs. They claim the measure would prevent youth smoking and would focus on reversing the harm caused by tobacco marketing aimed at youth. They say the measure contains effective provisions for transparency and accountability regarding the use of the revenue generated.
Opponents assert that Proposition 56 will funnel $1.4 billion in taxes to wealthy special interests and not to smoking prevention and treatment. They claim the state should use tax revenue for more pressing issues such as the drought and crime prevention. They also criticize the administrative costs as bureaucratic overhead.