California’s Proposition 29, if passed, would levy an additional tax of $1 on every pack of smokes sold in the state beginning in October 2012. The tax would generate an estimated $615 million in 2012/2013, and $735 million in 2013/2014. Funds would be expected to decrease annually, in relation to declining cigarette consumption, but would remain substantial.
Revenues would be deposited into the California Cancer Research Life Sciences Innovation Trust Fund, and dedicated to “the support of research on cancer and tobacco-related diseases,” according to California’s Legislative Analyst’s Office (LAO). Money would be further divvied as follows:
60% would be used for research grants and loans around prevention, diagnosis, treatment, and potential cures for cancer and other tobacco-related diseases.
15% would be used for grants and loans for equipment and facilities
20% would be used for tobacco prevention and cessation programs
3% would be given to state agencies for law enforcement efforts to reduce illegal tobacco sales, cigarette smuggling and tobacco tax evasion
2% would be used to administer the plan, most of which would go to the Board of Equalization for tax collection costs
The proposition would also create a nine-member governing board – the Cancer Research Citizen’s Oversight Committee – empowered to distribute the funds.