CIGARETTE AND TOBACCO TAX. BENEFIT FUND. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE

CIGARETTE AND TOBACCO TAX. BENEFIT FUND. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Imposes additional tax upon cigarette distributors of one and one-fourth cents (1 1/4 cents) for each cigarette distributed. Imposes tax upon distributors of other tobacco products which is equivalent to combined rate of tax imposed on cigarettes. Directs State Board of Equalization to determine this tax annually. Places moneys raised in special account which can only be used for: treatment; research of tobacco-related diseases; school and community health education programs about tobacco; fire prevention; and environmental conservation and damage restoration programs. Declares revenues not subject to appropriations limit. Summary of Legislative Analyst\u27s estimate of net state and local government fiscal impact: Will raise additional state revenues of approximately $300 million in 1988-89 (part year) and $600 million in 1989-90 (first fully year). These revenue increases would decline gradually in subsequent years. Annual administrative costs are estimated at $500,000 in 1988-89 and $300,000 in subsequent years. There would be no substantial net effect on sales and excise tax revenues to the state, cities, and counties