California Proposition 86
was on the November 7, 2006 ballot
as an initiated constitutional amendment
, where it was approved
. The measure was designed to increase the tax on cigarettes with revenues from the tax going to various services such as hospital care for children and anti-smoking campaigns. It failed, with 51% of the electorate voting against it. The largest contributor to the cause was the "No on 86- Stop the $2 Billion Tax Hike" committee which raised $39,352,501. 
Objectives of the Proposal
The objectives of the proposal were to
- Impose additional 13 cent tax on each cigarette distributed ($2.60 per pack), and indirectly increases tax on other tobacco products.
- Provide funding to qualified hospitals for emergency services, nursing education and health insurance to eligible children.
- Revenue also allocated to specified purposes including tobacco-use-prevention programs, enforcement of tobacco-related laws, and research, prevention, treatment of various conditions including cancers (breast, cervical, prostate, colorectal), heart disease, stroke, asthma and obesity.
- Exempt recipient hospitals from antitrust laws in certain circumstances.
- Revenue excluded from appropriation limits and minimum education funding (Proposition 98) calculations. 
Arguments for the initiative
- Will prevent teen smoking
- Will lower amount of cigarettes consumed each year
- Will provide health insurance for children
- Is endorsed by major anti-smoking groups
Main proponent: Carolyn Rhee Chair American Cancer Society, California Division
Arguments against the initiative
- 40% of money goes to hospitals while less than 10% goes to anti smoking programs
- Tax increase excessive and unfair
- Will encourage smuggling of cigarettes, an already large source of income for gangs
Main opponents: Larry McCarthy; President California Taxpayers’ Association, James G Knight MD; Past President
San Diego County Medical Society 
- ↑ http://www.followthemoney.org/database/StateGlance/ballot.phtml?si=20065&m=29
- ↑ http://www.voterguide.sos.ca.gov/props/prop86/prop86.html
- ↑ http://www.voterguide.sos.ca.gov/props/prop86/argue_rebutt86.html