California Cigarette Sales Decline At Fastest Rate in a Decade

Smoking decline of more than eight percent reduces cigarette excise taxes collected from $913 million to $839 million.

July 29, 2010

SACRAMENTO, CA - According to a California Board of Equalization report released earlier this week, Californian's are "kicking the habit," as evidenced by an 8.1 percent drop in cigarette sales in 2009-10 compared to a year ago, the Sacramento Business Journal reports.

The decline was the largest since 1999-2000, when the drop reached 11.2 percent.

Since 1980, the unofficial peak of smoking in the Golden State, cigarette sales in California have fallen 66 percent.

State officials attribute the precipitous drop to health concerns, smoking restrictions, and rising costs. Cigarette prices rose nearly 19 percent in 2009-10, mostly the result of a federal cigarette tax increase of 62 cents per pack.

Falling smoking rates have also led to a sharp decline in excise taxes collected. For fiscal year 2009-10, California collected $839 million in excise taxes, down from $913 million in 2008-09.
Advertisement
Advertisement
Advertisement