Tobacco tax vote could echo outside California

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Big Tobacco’s branding a proposed California cigarette tax as a government boondoggle sent a message that could echo in other states. Through a barrage of campaign ads, the industry was able to cut support for a $1-a-pack cigarette tax backed by cycling legend Lance Armstrong from a two-thirds majority in March to a dead heat on Election Day. While the outcome remained unclear Wednesday afternoon, experts said the vote could scare off tobacco foes in other states. The $47 million ad campaign _ which scarcely motioned the word “tobacco” _ also showed that cigarette makers are shifting from arguing about their product to finding other ways to attack tax initiatives. Anti-smoking advocates say they will keep fighting for increased taxes, which have been shown to cut smoking rates.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below. A California initiative to raise the tax on tobacco products was losing early Wednesday but the vote was still too close to call because hundreds of thousands of ballots potentially remained uncounted. The day after Election Day, Proposition 29 was losing by just over 1 percent, or about 64,000 votes out of more than 3.8 million counted. However, even with all precincts reporting, there typically are many late-arriving ballots from early and absentee voting not counted until after election day. These ballots typically comprise up to 20 percent of all votes, meaning potentially hundreds of thousands of votes were still to be counted statewide. It could be days or longer before a winner is declared.

Cycling legend Lance Armstrong backed the measure to impose an additional $1-per-pack tax on cigarettes to fund cancer research. A $50 million opposition ad campaign was led by Big Tobacco. In March, a statewide poll suggested the Proposition 29 would pass with two-thirds approval. The situation reminded some of a 2006 California cigarette tax measure that was leading by wide margins until tobacco companies spent $66 million to defeat it. The attempt to hike taxes on cigarettes and other tobacco products grew into a national fight last month with tobacco companies pouring in millions to quash the effort and celebrities including the New York City Mayor urging voters to support it. As returns came in, both camps said they expected a close race but remained confident they would emerge the winner.