SACRAMENTO, CA -- Despite a decline in smoking in California, state officials report an increase in tobacco taxes to the tune of tens of millions of dollars, the Los Angeles Times reports. California’s cigarette tax is 87 cents per-pack--one of the highest in the nation.
During the past 20 months, California raked in more than $124 million in new tobacco-tax receipts. Officials point to a new program aimed at cutting down on contraband cigarettes as part of the reason for the increase.
The program stamps every pack sold in the state with a counterfeit-proof sticker. Then investigators use a hand-held device to scan the stickers to see whether the cigarette packs have had the required taxes paid by the distributor. Illegal products are seized and the source tracked, according to the Los Angeles Times. With more inspectors, strict new licensing requirements and cigarette pack stickers, the state has busted dozens of smugglers and retailers, finding millions of illegal cigarettes. During the same time, the federal government made several high-profile arrests with its ramped up sting operations in California.
“No other state has done anything like this,” Eric Lindblom, director of policy research for the Campaign for Tobacco-Free Kids, told the Los Angeles Times. “Everywhere else they are using 1950s technology. We’re hoping other states will follow suit.”
Colorado, too, reports a large increase in revenue from its higher tobacco tax--84 cents per pack, a hike of 64 cents in early 2005. Even though cigarette sales in Colorado dropped 22 percent this year, revenue from the tobacco tax brought in nearly $133 million, according to the state’s Department of Revenue. The Rocky Mountain News reports that the cigarette tax revenue goes to help fund Medicaid for disabled children and other health programs. |
