http://www.eastbaytimes.com/2016/11/08/californians-to-decide-whether-to-raise-tobacco-taxes/
California voters soundly approved a ballot measure Tuesday to raise tobacco taxes $2 a pack and start taxing electronic cigarettes, marking what supporters called a victory for public health that overcame a heavily financed fight by tobacco companies.
The measure passed by a margin of 63 percent to 37 percent with more than 5.6 million votes counted.
Opponents, led by tobacco companies, poured more than $71 million into efforts to defeat Proposition 56, compared to more than $34 million raised by supporters of the initiative that included billionaire environmentalist Tom Steyer.
“This historic measure will reduce teen smoking, fund the health care system, and save lives,” Steyer said in a statement. “Californians rejected the tobacco industry’s lies and acted to protect the health of our kids.”
The measure will add $2 to the current 87-cents-a-pack state tax on cigarettes. California also joins only about a half dozen states in taxing e-cigarettes, including vapor products. Proponents of taxing such products hoped approval would prompt more states to follow the trendsetting California.
Anti-smoking advocates said the vapor liquids that come in candy flavors aim to hook a new generation on nicotine, while the vaping industry argued its products are a safer alternative to smoking tobacco and expressed concern that taxing them at the same rate as tobacco products could threaten them as a potentially useful tool to help smokers quit.
E-cigarettes heat liquid nicotine into a vapor, delivering the chemical that smokers crave without the harmful by-products generated from burning tobacco. Some say e-cigarettes are a potentially useful tool to help smokers — a benefit that could be threatened if the products are taxed.
California has not raised its tobacco taxes since 1998.
Besides Steyer, Proposition 56 drew support from medical groups, educators and former New York City Mayor Michael Bloomberg, who also supported a failed attempt to raise tobacco taxes in 2012. It was narrowly defeated amid big spending by tobacco interests.
California’s legislative analyst and the state’s finance director said Proposition 56 could raise $1 billion to $1.4 billion in state revenue by the 2017-2018 year, with potentially lower annual revenues over time.
Tobacco companies said the money will benefit insurance companies and hospital corporations. The industry was accused of misleading voters with that campaign because much of the money, in fact, will go to California’s Medi-Cal, the state-run program that pays insurance providers and hospitals for low-income residents. The tax revenue would also fund anti-smoking campaigns and medical research.
“Since day one, we ran our campaign on the issues and substance of the measure, and urged voters to evaluate the content, intent and flaws of Prop. 56,” Beth Miller, spokeswoman for the “No on 56” campaign, said in a statement. “While we believe Proposition 56 is bad public policy, the voters have spoken and we respect their decision.”
Both California and Hawaii recently increased the legal age to 21 to purchase either tobacco or e-cigarettes.