CSAC Bulletin Article

Vaping Tax Advocacy Continues

August 13, 2020

The Governor’s January budget and May Revision proposed a new Vaping Tax on top of existing tobacco taxes. There were adjustments to where the funding from the new tax would be allocated from the January budget to the May Revision. The agreement between the Administration and Legislature delayed the development and implementation of the Governor’s proposed vaping tax.

CSAC has historically advocated for tobacco taxes on combustible and vaping products. The new tax is estimated to generate $33 million the first year, and would be allocated as follows: $13.9 million for the CA Department of Tax & Fee Administration for administration; $7 million for the CA Highway Patrol for enforcement; and the remainder (~$12 M) to offset Medi-Cal expenses. More on the proposed changes were detailed in a recent blog posting here.

This week, CSAC joined a coalition letter with the First 5 Association of California, California Health Executives Association of California, and First 5 California to strongly advocate for the new Vape Tax follow the existing voter-approved tax structure, which supports safety net services across early childhood, public health, and health care systems. The letter specifically requests, 14.8 percent of revenues be allocated to Early Childhood Development Systems, First 5 (Proposition 10, 1998), 26 percent to Public Health (Proposition 99, 1988), and 59 percent to Health Care Workforce Program (Proposition 56, 2016).

CSAC will continue to encourage the Administration to ensure these critical programs are properly funded.

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