Initiative 12-0018, the Cigarette Tax to Fund

¶ … initiative 12-0018, the Cigarette Tax to Fund Student Financial Aid at University of California and California State University Initiative Statute.

According to the State of California the initiative has been proposed in the following method; "The Attorney General of California has prepared the following title and summary of the chief purpose and points of the proposed measure:

CIGARETTE TAX TO FUND STUDENT FINANCIAL AID AT UNIVERSITY OF

CALIFORNIA AND CALIFORNIA STATE UNIVERSITY. INITIATIVE STATUTE.

Increases cigarette tax by $1.00 per pack. Allocates revenues to expand financial aid for California residents enrolled at UC or CSU. If new tax causes decreased tobacco consumption, thus reducing existing tobacco-tax revenues, current tobacco funding for tobacco health education/research, medical care, environment, breast cancer research/services, early childhood development, and General Fund will be maintained by transferring new tax revenues to offset decrease. Requires annual independent audit and accounting. Establishes five-member oversight committee. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government:

Additional annual state tax revenues of (1) $800 million from the cigarette excise tax increase of $1 per pack and (2) $45 million from the excise tax increase on other tobacco products triggered by the measure. The additional cigarette tax revenue would be spent on financial aid for resident students at the state's public universities ($730 million) and backfilling losses to existing tobacco programs ($70 million). The additional revenue from other tobacco products would be used for other existing programs, including tobacco-prevention and education. (12-0018) "

The initiative began when Jesse Lucas submitted a letter requesting a ballot title on 24 September of last year. The Attorney General of California issued a ballot title and summary on November 16 shortly after. The circulation deadline ends in almost 6 weeks on 15 April 2013 where all the signatures must be submitted.

This imitative has also been called The California Residents College Accessibility and Affordability Act of 2014. In order for this initiative to reach the ballot valid signatures from 504, 760 registered voters, or what amounts to 5% of the total votes cast for governor in the 2010 general election, must be submitted to the State of California in order for this measure to be put on the ballot.

There seems to be much support for this measure. The City News Service (2013) reported that "voters have already rejected the past two proposed cigarette tax hikes because they know taxing a declining source of revenue isn't the smartest of options," referring to Proposition 29 on the June ballot to fund cancer research and Proposition 86 on the November 2006 ballot to finance hospital care for children and anti-smoking campaigns."

This initiative does more than just raise cigarette taxes however. New taxes will be imposed on diesel fuel and alcohol. Also vehicle license fees will be raised by one-half percent.