ACA 22

Bill Subjects

Abstract

The Cigarette and Tobacco Products Tax Law imposes a tax on every distributor of cigarettes and tobacco products at specified rates, including additional taxes imposed under the Tobacco Tax and Health Protection Act of 1988 (Proposition 99) and the California Families and Children Act of 1998 (Proposition 10) . This measure would, commencing on and after the first day of the first calendar quarter commencing more than 90 days on or after the effective date of the measure, impose an additional tax on the distribution of cigarettes at the rate of $0.074 for each cigarette distributed, and upon the distribution of tobacco products at an equivalent tax rate. The revenues collected from the additional tax would be deposited in the Tobacco Excise Tax Fund, which would be created by the measure, and would be allocated, upon appropriation by the Legislature, for certain education-, health-, and child-related purposes. The measure also would impose a floor stock tax on every distributor and wholesaler for each cigarette or tobacco product in his or her possession on the day the excise tax is first imposed. This measure would prohibit the Legislature, between January 1, 2011, and January 1, 2016, from imposing any additional tax upon the distribution of cigarettes or tobacco products.