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Arizona Cigarette Tax Increase, Proposition 303 (2002)
From Ballotpedia
Proposition 303 was on the November 5, 2002 ballot in Arizona as an legislatively-referred state statute, where it was approved.[1]Election results
| Cigarette Tax Increase | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| 791,295 | 67% | |||
| No | 389,619 | 33% | ||
The measure increased taxes on cigarettes, cigars and similar products. The tax on a package of cigarettes increased from 58¢ per pack to $1.18 per pack, or an increase of 60¢ per pack.
Tax increases
| Item | Rate before Proposition 303 | Rate increase proposed by 303 | Total after 303 |
|---|---|---|---|
| Cigarettes | 2.9¢ each (58¢ per pack) | 3.0¢ each (60¢ per pack) | 5.9¢ each ($1.18 per pack) |
| Smoking tobacco, snuff, fine cut chewing tobacco and similar products | 6.5¢ per oz. | 6.8¢ per oz. | 13.3¢ per oz. |
| Cavendish, plug, or twist tobacco | 1.6¢ per oz | 1.7¢ per oz. | 3.3¢ per oz. |
| Small cigars (weighing not more than 3 pounds per 1000) | 12.9¢ per 20 | 13.4¢ per 20 | 26.3¢ per 20 |
| All other cigars (retailing at not more than 5¢ each) | 6.4¢ per 3 | 6.6¢ per 3 | 13.0¢ per 3 |
| All other cigars (retailing at more than 5¢ each) | 6.4¢ per | 6.6¢ per | 13.0¢ per 3 |
Use of funds
Increased revenues from Proposition 300 go into a "Tobacco Products Tax Fund", administered by the Arizona Health Care Cost Containment System (AHCCCS), to be distributed as follows:
- 42% to the Proposition 204 Protection Account for programs and services dedicated to the expanded population eligible for coverage under AHCCCS as a result of the 2000 ballot measure that allocated monies from the tobacco litigation settlement.
- 27% to the Tobacco Tax and Health Care Fund Medically Needy Account for services to low income and indigent persons.
- 20% to the Emergency Health Services Account for the reimbursement of uncompensated care, primary care services and trauma center readiness costs.
- 5% to the Health Research Fund for research on preventing and treating tobacco-related disease and addiction and other diseases.
- 4% to the Health Care Adjustment Account for distribution to other accounts under the Tobacco Tax and Health Care Fund to compensate for decreases in those accounts due to lower tobacco tax revenues from fewer sales as a result of the new tax on tobacco products.
- 2% percent to the Tobacco Tax and Health Care Fund Health Education Account for the prevention and early detection of the four leading disease-related causes of death in Arizona.
See also
External links
- Full text of Proposition 303
- Proposition 303 ballot pamphlet
- Campaign finance for Proposition 303
- Proposition 303 Text
- National Conference of State Legislatures Ballot Measures Database

