PROP
56

Cigarette Tax to Fund Healthcare, Tobacco Use Prevention, Research, and Law Enforcement. Initiative Constitutional Amendment and Statute.

Cigarette Tax to Fund Healthcare, Tobacco Use Prevention, Research, and Law Enforcement. Initiative Constitutional Amendment and Statute.

Summary

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.

Money Raised

Chart depicts total fundraising by all committees primarily formed for and against Prop 56.Totals are updated daily with contributions from Power Search opens new window and adjustments from the most recent Political Reform Division analysis. opens new window

Largest Contributions

Showing the 10 largest contributions to committees formed primarily for and against Prop 56 in the election cycle when it appeared on the ballot. Contributions in earlier election cycles and contributions between allied committees are excluded. For more information on funding for ballot measure campaigns, visit the Power Search opens new window campaign finance search engine.

Yes on Prop 56

California Hospitals Committee on Issues, (CHCI) sponsored by California Association of Hospitals and Health Systems (CAHHS)
06/30/2016
$9,000,000
Steyer, Thomas F.
10/25/2016
$3,500,000
Steyer, Thomas F.
09/19/2016
$2,500,000
Steyer, Thomas F.
10/12/2016
$2,300,000
California State Council of Service Employees Issues Committee
06/19/2015
$2,000,000
Steyer, Thomas F.
10/06/2016
$2,000,000
Steyer, Thomas
10/13/2016
$1,500,000
Steyer, Thomas F.
11/18/2015
$1,000,000
California Medical Association
12/21/2015
$1,000,000
California Dental Association
01/04/2016
$1,000,000

No on Prop 56

PHILIP MORRIS USA INC. (MADE BY ITS SERVICE COMPANY, ALTRIA CLIENT SERVICES LLC)
08/03/2016
$9,956,700
PHILIP MORRIS USA INC. (MADE BY ITS SERVICE COMPANY, ALTRIA CLIENT SERVICES LLC)
09/07/2016
$9,904,752
PHILIP MORRIS USA INC. (MADE BY ITS SERVICE COMPANY, ALTRIA CLIENT SERVICES LLC)
07/12/2016
$8,588,736
R.J. REYNOLDS TOBACCO COMPANY (MADE BY ITS SERVICE COMPANY, RAI SERVICES COMPANY)
08/03/2016
$7,050,000
R.J. REYNOLDS TOBACCO COMPANY (MADE BY ITS SERVICE COMPANY, RAI SERVICES COMPANY)
09/07/2016
$7,010,000
R.J. REYNOLDS TOBACCO COMPANY (MADE BY ITS SERVICE COMPANY, RAI SERVICES COMPANY)
07/12/2016
$6,080,000
PHILIP MORRIS USA INC. (MADE BY ITS SERVICE COMPANY, ALTRIA CLIENT SERVICES LLC)
10/06/2016
$5,123,718
R.J. REYNOLDS TOBACCO COMPANY (MADE BY ITS SERVICE COMPANY, RAI SERVICES COMPANY)
10/06/2016
$3,627,100
PHILIP MORRIS USA INC. (MADE BY ITS SERVICE COMPANY, ALTRIA CLIENT SERVICES LLC)
10/21/2016
$3,463,200
UST LLC (MADE BY ITS SERVICE COMPANY, ALTRIA CLIENT SERVICES LLC), AN AFFILIATE OF PHILIP MORRIS USA INC.
08/03/2016
$1,154,600

What your vote means

Yes

A YES vote on this measure means: State excise tax on cigarettes would increase by $2 per pack—from 87 cents to $2.87. State excise tax on other tobacco products would increase by a similar amount. State excise tax also would be applied to electronic cigarettes. Revenue from these higher taxes would be used for many purposes, but primarily to augment spending on health care for low-income Californians.

No

A NO vote on this measure means: No changes would be made to existing state taxes on cigarettes, other tobacco products, and electronic cigarettes.

More on Proposition 56

For background on Proposition 56, an analysis by the legislative analyst, endorsements for and against the measure, and more...

Arguments

Pro

Tobacco-related healthcare costs California taxpayers $3.5 billion annually, even if you don’t smoke. Prop. 56 works like a user fee, taxing tobacco to help pay for smoking prevention and healthcare—so smokers pay their fair share for their costs. American Cancer Society Cancer Action Network sponsored Prop. 56 to prevent kids from smoking and save lives.

Con

Follow the 56 money: This $1.6 billion tax increase gives $1 billion to health insurance companies and special interests. 56 cheats schools out of $600 million a year by circumventing our minimum school funding guarantee. Only 13% of the money helps smokers or prevents kids from starting. No on 56.

Campaigns

For

Yes on 56—Save Lives California
1020 12th Street, Suite 303
Sacramento, CA 95814
(916) 706-2487
info@YesOn56.org
YesOn56.org

Against

No on 56—Stop the Special Interest Tax Grab
925 University Ave.
Sacramento, CA 95825
(916) 409-7500
Info@NoOnProposition56.com
www.NoOnProposition56.com