Attorney General No.

SA1999RF0004

Secretary of State No.

832

Description

REPEAL OF ADDITIONAL TOBACCO SURTAX ENACTED BY PROPOSITION 10. INITIATIVE STATUTE. Repeals additional $.50 per pack tax on cigarettes and equivalent increase in state tax on tobacco products previously enacted by Proposition 10 at November 3, 1998, election. Provides for elimination of funding for Proposition 10 early childhood development and smoking prevention programs. Prohibits imposition of additional surtaxes on the distribution of cigarettes or tobacco products unless enacted by the state legislature. Provides that all additional tobacco taxes previously collected under Proposition 10 shall be appropriated and expended at which time the California Children and Families First Trust Fund shall terminate. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: This measure would have the following results: (1) a reduction in annual state special fund revenues of approximately $680 million that would otherwise be allocated for early childhood development programs and activities; (2) annual reductions in Proposition 99 revenues of less than several million dollars and in Breast Cancer Fund revenues of less than $1 million; (3) annual decreases in state General Fund revenues of approximately $20 million and local government general sales tax revenues of approximately $8 million; and (4) unknown long-term state and local costs associated with an anticipated increase in tobacco consumption and/or a decrease in expenditures for early childhood development programs.

Proponents

Ned Roscoe Premium Tobacco Stores Inc. C/O Thomas W. Hiltachk Bell, Mcandrews & Hiltachk, 455 Capitol Mall, Suite 801, Sacramento, Ca 95814 (916) 442-7757

Date

4-20-1999

Document Type

Initiative

Qualified

Qualified

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