California Passes Prop 56 To Increase Cigarette Tax By $2 To Fund Health-Care

SAN FRANCISCO (CBS SF) -- Voters in California passed Proposition 56 and increased the cigarette tax by $2 a pack.

The revenue will go to fund health-care programs, smoking prevention, cancer research and school programs.

The tobacco tax will be levied on e-cigarettes, as well.

The initiative was hard-fought by the tobacco companies who outspent the 'yes' campaign 2-to-1.

Philip Morris and Reynolds Tobacco contributed nearly $70 million to defeat the measure.