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.
