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The California Proposition 56 Tobacco Tax and What it Means for You

Filed in News & Politics by on October 28, 2016 0 Comments

Most of us are suffering from campaign commercial overload, but we are thankfully nearing the finish line. And as we head into the big election and everyone one is trying to decide who to vote for the next President of the United States, it is important to remember there are many other issues on the ticket to research and review. If you live in the State of California, Proposition 56 is one of them.

 

You might be wondering how does this affect me as an ecig or vape user?

 

What Prop 56 means for you–

 

A “yes” vote favors increasing the cigarette tax by $2.00 per pack, with equivalent increases on other tobacco products and electronic cigarettes.

 

A “no” vote opposes increasing the cigarette tax by $2.00 per pack, with equivalent increases on other tobacco products and electronic cigarettes.

 

Currently, California has a tobacco tax of $0.87 per pack of cigarettes.

 

The revenue collected from the tobacco tax goes to the General Fund, tobacco prevention, healthcare services for those in low-income situations, environmental protection, breast cancer screenings and research, as well as early childhood development programs.

 

 

The increase suggested in Proposition 56 would raise the tobacco tax by $2.00, bringing the total to $2.87 per pack of cigarettes. You may be thinking, that’s fine- I don’t smoke cigarettes. Unfortunately, the tobacco tax would apply to e-cigarettes as well.

 

Revenue from the additional $2.00 tax would be allocated to similar initiatives as the current program,  going largely in part to health related services, education and prevention and used primarily to augment spending on health care for low–income Californians.

 

According to the LA Times

 

“E-cigarette liquid containing nicotine could be taxed at a rate as high as 67%, according to state estimates, an amount that an e-cigarette trade group believes would boost the price consumers pay for a typical 30-milliliter bottle to about $30 from around $20 today.”

 

There has been much contention over the proposed tax, including (not surprisingly) opposition from corporate sponsors, “Tobacco companies, some of which are invested in the e-cigarette business as well, have poured in more than $66 million to fight the measure.”

 

Although vapes continue to grow in popularity, a tax like this could cause small businesses to have to close up shop.  “The e-cigarette trade association, whose membership is largely mom-and-pop vape shops around the state, has only raised $3,600 in opposition, according to state campaign filings.”

 

 

If you want to know more about the Proposition, read the Pros and Cons, and how it will affect your ecig budget,- visit the California Voters Guide.

 

 

Do you live in California? What does this proposed tax mean to you?

Do you think it is fair to apply to ecigs?

 

Leave a comment and let us know how you feel.

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