Repeal of Proposition 10 Tobacco Surtax.

REPEAL OF PROPOSITION 10 TOBACCO SURTAX. 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 distribution of cigarettes or tobacco products unless enacted by state legislature. • Provides for termination of California Children and Families First Trust Fund once all previously collected taxes under Proposition 10 are appropriated and expended. Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: • Reduction in annual state special fund revenues of approximately $670 million that would otherwise be allocated for early childhood development programs and activities. • Relatively small annual increases in Proposition 99 revenues of a few million dollars. • Annual decreases in state General Fund revenues of approximately $7 million and local government sales tax revenues of about $6 million. • Loss of potential long-term state and local governmental savings that could otherwise result from Proposition 10