California currently has a tax of 87 per pack of 20 cigarettes. That’s well below the rates imposed in a number of other states, including neighboring AZ ($2 per pack; OR, $1.18 per pack) and slightly higher than ; Nevada’s 80 cents per pack. By comparison, NY imposes a $4.35 per pack (NYC is $5.85), NJ is $2.70 per pack, and CT is $3.40. Out on the West Coast, WA imposes a more than $3 a pack tax.

Consumption rates have dropped in the NYC metro area with the combination of higher taxes and more restrictive locations where smoking is permitted, which creates its own problems.

Health programs funded with tobacco taxes would see lower appropriations unless the taxes are increased to cover losses (and those who kick the habit because of higher taxes/restrictions). If the state doesn’t hike the taxes periodically, the programs lose necessary funding and have to curtail their operations or else draw upon general funds instead (which in CA isn’t possible due to its budget woes).

The question becomes whether the tax hikes will deliver the revenues projected, and what happens to the programs when the revenues fall short (does it require higher and higher taxes or shifting funds from other programs to cover the health programs funded by the tobacco taxes).