Still Close Too Close to Call But Cigarette Tax is Failing - Central Coast News KION/KCBA

Sacramento, Calif-- Early Wednesday morning, it appeared Proposition 29 will fail.  It would raise the tax on a pack of cigarettes by one dollar across the state.

The Califronia Secretary of State website shows 100% of precincts across the state reporting and the proposition is losing by about 60,000 votes.

Officials say the proposed tax would raise more than $700 million a year and that money would help promote anti-smoking campaigns.  But big tobacco companies are worried the tax hike would cost them customers and spent millions of dollars to defeat it.

As of Wednesday morning, there are still millions of votes left to be counted and it could be days before we know if Prop 29 passes or fails.