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Nationally, the rate was 5.5%.2 Economics of tobacco use and tobacco control Economics of tobacco use in California California received $2.8083 billion (estimated) in revenue from tobacco settlement payments and taxes in fiscal year 2019.4 Of this, the state allocated $250.4 million in state funds to tobacco prevention in fiscal year 2019, 72% of the Centers for Disease Control and Preventions annual spending target.4 Smoking-related health care costs: $13.29 billion per year.4 Smoking-related losses in productivity: $10.35 billion per year.5 California tobacco laws Cigarette tax in California Tobacco taxes California is ranked 11th in the U.S