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In other words, because the dollar amount of taxes on cigarettes does not change, an increase in the wholesale cost of cigarettes causes a decrease in the effective tax rate
Burdening legitimate operators with dramatically higher license fees is unfair and counterproductive because it raises costs for small retailers while doing nothing to stop the underground market that is already costing California an estimated $1.5 billion a year in lost tax revenue. Members help make our journalism possible
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The cigarette tax would bring in an estimated $416 million annually at an increase of $1 per pack and $588 million annually at an increase of $1.50 per pack
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