The 2-dollar-a-pack cigarette sales tax hike, approved as Proposition 56 last November, won’t likely provide a major benefit for children’s health and education programs, including in Nevada County.The Executive Director of the local First 5, Lindsay Dunckel, says revenue will be offset, somewhat, by plummetting cigarette sales. But she says they do expect to get a modest funding boost from the tax revenue from the sales e-cigarettes, which are now considered a tobacco product…
click to listen to Lindsay Dunckel
Dunckel says despite the funding fluctuations, their programs for children 5 and under have remain stable…
click to listen to Lindsay Dunckel
The Legislative Analyst’s Office predicted the measure’s approval would drop cigarette sales by 20 to 30%. But revenues were down 64% in May, compared to a year ago. Analysts speculate that some people may have loaded up on purchases, just prior to the tax hike and the sales decline will eventually level off more. It’s also possible that more lower-taxed cigarettes are being bought in neighboring states or even on the internet. But since the tax hike is so large, statewide revenue is still expected to more than double.
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