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Cigarette Tax Hike In California To Push Through [VIDEO]

Update Date: Apr 04, 2017 07:04 AM EDT
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The majority of the state residents voted "yes" on cigarette tax hike in California. The new law increases the price of a pack of cigarettes by $2 in an attempt to prevent tobacco use and raise additional funds for healthcare and research among others.

The cigarette tax hike in California is not going to be easy in the pocket. A pack of cigarette is expected to cost between $8 and $9 when the law takes effect, and "nicotine delivery devices" are going to take a hit, too.

Electronic cigarettes, vape pens and the like will have a price increase as a result of a 27.3 percent tax rate on the wholesale cost. Accessories such as batteries and chargers that are not sold together with nicotine-containing substances are exempted from the regulation.

According to a survey in California, there is a three-fold risk of smoking traditional cigarettes within a year among e-cigarette-using teens. Authorities expect that teenagers, the segment which prefers e-cigarettes, may be discouraged from starting the habit due to the costs, and research backs it up. Studies have shown that teenagers are less likely to start the habit in consideration of the price.

Taxes imposed on cigars, cigarillos, snuff and chewing tobacco could go twice or higher beginning July compared to its current rate of 27.3 percent.

The state observed a decline in the habit and it has one of the lowest numbers of people who smoke in the country. Even so, a study revealed that as much as $18.1 billion was spent for smoking-related health care costs, the Sacramento Bee reported.

Robert Kaestner, a professor at the University of California Riverside explained that the price hike may not curb smoking as effectively as anticipated. A study he has conducted demonstrated only a 3 to 5 percent decrease even if there were a 40-percent increase in the cost of cigarettes.

Professor Jay Prag of Claremont Graduate University offered an unfavorable scenario. He believed that people might resort to other means to get ahold of cigarettes-purchasing them out of state or in the underground market, according to the Daily Breeze.

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