On Tuesday, California residents voted on Proposition 56, a controversial measure that may increase the tobacco tax on cigarettes from 87 cents per pack to $2.87. The tax on the state’s tobacco merchandise has not been raised since 1999, and now, for the primary time, vapor merchandise may even be hit with a considerable tax improve as nicely.
Regardless of efforts by curiosity teams to sway the minds of state residents to vote towards Prop 56, the measure led sixty two.four% to 37.6% in late returns, based on the secretary of state’s workplace.
Whereas it has not but been confirmed, business individuals speculate that the tax on vapor merchandise can be between 60-70%, which might undoubtedly result in vape outlets closing their doorways, whereas producers of vapor items, of which California has many, will doubtless both droop manufacturing or relocate to stay in enterprise.
An e-cigarette commerce group believes that the tax hike would increase the worth shoppers would pay for a 30 milliliter bottle from the usual $20 to about $30.
Prop 56 was a measure that acquired bipartisan help, and the sensation amongst its supporters was that folks would finally be dissuaded from smoking cigarettes because of the larger value concerned, and that the proposition was essential in decreasing teen smoking.
“Smoking is the primary reason for avoidable dying within the state of California,” stated Democratic donor Tom Steyer, who was the co-chairman of the Proposition 56 marketing campaign. “We had a broader coalition to help the thought of pushing again towards the tobacco corporations and elevating the cigarette tax than ever earlier than. We consider that that type of broad coalition works towards organized and concentrated financial pursuits once we stick collectively and once we all end up and vote.”
These towards the invoice maintain a special opinion, with some calling the transfer a money seize and one which works to undermine public well being for Californians. In any case, the smoking fee in California is the second lowest within the nation coming in at simply 12%, which creates quite a lot of skepticism as to why Prop 56 was conceived, and the place that tax cash will probably be spent.
Roughly $1.four billion is the annual income anticipated to be raised within the state from the elevated tax, however solely about thirteen% would go in the direction of smoking cessation packages and prevention, in accordance with NPR.
The rising vapor product business will now have to pay its share in tobacco taxes, with extra states anticipated to comply with within the footsteps of the Golden State given sufficient time.
To learn extra on this, click on right here for an article featured within the Los Angeles Occasions. And it’s also possible to learn extra by clicking right here for the SFGATE piece.