California tobacco users can expect to pay a lot more for their next pack.

The state’s tax board, in accordance with Prop 56, is raising the cost of cigarettes by nearly $3 a pack, according to a state tax official.

California Board of Equalization (BOE) officials announced the new tax increase on tobacco items for the 2017-18 fiscal year, which goes into effect July 1.

In accordance with Revenue and Taxation Code section 30123(b), the BOE is required to annually calculate a tax rate on tobacco products that is equivalent to the combined rate of tax imposed on cigarettes ($2.87 per pack of 20, or $0.1435 per cigarette).

The tax rate on tobacco products other than cigarettes will increase from the current rate of 27.3 to 65.08 percent of the wholesale cost on July 1 as a part of the BOE’s annual tax rate adjustment.

The fiscal year 2017-18 Tobacco Products Tax Rate is based on the wholesale premium brand cigarette price as of March 1, 2017, as published by the Tobacco Merchants Association, and the new tobacco products tax rate will stay in effect through June 30, 2018.

The definition of “tobacco products other than cigarettes,” includes cigars, little cigars, smoking tobacco (including shisha), chewing tobacco, snuff, nicotine delivery devices (e-pipes, vape pens, e-hookahs, etc.) sold in combination with any liquid or substance containing nicotine and any products containing, made of, or derived from any amount of tobacco or nicotine that is intended for human consumption, according to Proposition 56.

Though an annual occurrence, a tax increase could potentially impact business and sales in drug stores across California.

The tobacco products tax is imposed upon the first distribution in California, paid by the licensed tobacco products distributor and based on their wholesale cost prior to any discounts or trade allowances.

Nicotine delivery devices sold independently, without nicotine, are not subject to the excise tax. This includes any battery, battery charger, carrying case, or other accessory used in the operation of a nicotine delivery device.

“Tobacco products” do not include cigarettes or any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes (for example, nicotine patches).

Additional information regarding the provisions of Proposition 56 is available online. For more information regarding cigarette and tobacco products taxes, read the Special Notice, visit the online Cigarette and Tobacco Products Tax Guide, or call the Customer Service Center at 1-800-400-7115.