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Because the supporters of Proposition 56 believed the additional tax would lead to a decline in tobacco product consumption, Proposition 56 directs CDTFA to annually determine the amount of certain tax revenues lost due to the imposition of additional taxes by Proposition 56, and it directs the State Controllers Office (State Controller) to replace those revenues with Proposition 56 funds

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That doesnt include lost sales revenue if consumers start shopping out of state for other items while theyre buying their cigarettes