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California Looks to Raise Tobacco Excise Tax

By CSD Staff | September 13, 2016

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Voters will have a chance to vote on a new tobacco tax proposition in the upcoming election.

California lawmakers have once again proposed a major tax increase on tobacco products.

According to a report from the Winston-Salem Journal, Proposition 56 grant California voters the opportunity to raise tobacco excise tax by $2 per pack to $2.87. Californians will have the chance to vote on the Proposition during the November 8 election.

While California is the country’s most populous state, it only accounts for approximately 6.6% of cigarette and snuff consumption, according to the Winston-Salem Journal. Therefore, analyst have projected that the effect of the tax hike on manufacturers’ bottom lines would be comparable to a 7-cent tobacco tax increase nationwide.

If the tax is approved by voters, it would be put into effect in April 2017, and it would be the ninth highest tobacco excise tax in the country.

The Winston-Salem Journal also reported that tobacco manufacturers have already put forth over $35 million to oppose the proposed tax hike.

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