Repeal of Proposition 10 Tobacco Surtax.|
This initiative measure is submitted to the people in accordance with the provisions of Section 8 of Article II of the California Constitution.
This initiative measure adds a section to the Health and Safety Code, and amends a section of the Revenue and Taxation Code; therefore, existing provisions proposed to be deleted are printed in BOLDED/UNDERLINED type and new provisions proposed to be added are printed in italic type to indicate that they are new.
SECTION 1. Declaration of Findings and Purposes
(a) In November, 1998, Californians adopted Proposition 10 which, among others things, imposed more than a 135% increase in the tax on tobacco products.
(b) Funds derived from the increased tax are distributed to a new state commission and 58 county commissions creating an enormous bureaucracy made up of unelected political appointees. This new bureaucracy is unnecessary because existing law provides mechanisms for local governments to fund children's programs, including a "Children's Trust Fund" which distributes both federal and state funds to counties for child abuse and neglect prevention and intervention programs.
(c) After the election, the office of the independent Legislative Analyst pointed out that neither the state Legislature nor the newly created state commission has any oversight or control over the expenditure of the nearly $700 million annually raised by the tax. Not only is there no accountability for the expenditure of taxpayer funds, but Proposition 10 does not identify existing and successful programs to be implemented or expanded.
(d) The tax increase is extremely punitive and leveled against users of tobacco products, those least able to afford the massive tax increase. Yet, none of the funds raised by the tobacco tax are specifically dedicated to tobacco related education, prevention or research.
(e) The most critical problem facing our children is our failing
public education system. Yet, not one penny of the $700 million in taxes collected each year from Proposition 10 will go to public schools. In fact,
Proposition 10 prohibits any of the new tax revenue to be used for schools.
(f) Therefore, the voters of the state of California hereby repeal the tax increase imposed by Proposition 10 and the creation of an enormous new bureaucracy. At the same time, the voters encourage the Legislature to identify and fund effective programs that promote early childhood development from the prenatal stage to five years of age.
SECTION 2. Repeal of Proposition 10 Tobacco Tax
Section 30131.2 of the Revenue and Taxation Code is amended to read:
30131.2. (a) Except for In addition to the taxes imposed upon the distribution of cigarettes and tobacco products by Article 1 (commencing with Section 30101) and Article 2 (commencing with Section 30121) and any other taxes in this chapter, there shall be no additional surtax on the distribution of cigarettes or tobacco products unless adopted by a statute passed by the Legislature. there shall be imposed an additional surtax upon every distributor of cigarettes at the rate of twenty-five mills ($.025) for each cigarettes distributed.
#strikeout#(b) In addition to the taxes imposed upon the distribution of tobacco products by Article 1 (commencing with Section 30101) and Article 2 (commencing with Section 30121), and any other taxes in this chapter, there shall be imposed an additional tax upon every distributor of tobacco products, based on the wholesale cost of these products, at a tax rate, as determined annually by the State Board of Equalization, which is equivalent to the rate of tax imposed on cigarette by subdivision (a).
(b) All moneys collected pursuant to the taxes imposed by former Section 30131.2, as it existed on January 1, 1999, and in the California Children and Families First Trust Fund shall be appropriated pursuant to Section 30131.4 until all such monies are depleted, at which point the California Children and Families First Trust Fund shall be terminated.
SECTION 3. Repeal of New Bureaucracy Created by Proposition 10
Section 130105.1 is added to the Health and Safety Code, to read:
130105.1. After all monies collected pursuant to Section 30131.2 of the Revenue and Taxation Code and appropriated pursuant to Section 130105 are depleted, the California Children and Families First Trust Fund shall be terminated.
SECTION 4. Severability
If any provision of this act, or part thereof, is for any reason held to be invalid or unconstitutional, the remaining provisions shall not be affected, but shall remain in full force and effect, and to this end the provisions of this act are severable.