March 17, 1993

The California Excise Tax on Cigarettes: The Tobacco Industry Profits From This Too-Reply

Author Affiliations

California Department of Health Services Sacramento

JAMA. 1993;269(11):1387-1388. doi:10.1001/jama.1993.03500110055032

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In Reply.  —We thank Dr Parra-Medina and her colleagues for pointing out an aspect of the collection of the cigarette tax in California that we were not aware of. The 0.85% discount rate given to cigarette wholesalers to offset the cost of affixing the tax stamps on individual packs of cigarettes is mandated by state law. We agree that the 25 cents per pack tax increase brought by Proposition 99 should not have increased the per-pack monetary value of the discount. We will look for ways to correct this inequity.