Louisiana House Bill HB1280

Louisiana 2010 Regular Session

• Introduced: 4/13/10
• Refer: 4/14/10

Caption

Authorizes certain political subdivisions to levy an excise tax on cigarettes (OR INCREASE LF RV See Note)

Impact

The bill proposes a significant shift in local taxation authority, enabling human services bodies to raise funds for their intended purposes through an excise tax on cigarettes. Currently, local governments can only impose sales and use taxes, so this added layer of taxation is anticipated to enhance funding for public health services, addiction treatment programs, and other vital community resources. However, the requirement for voter approval also places a check on this power, potentially limiting the frequency with which such taxes can be enacted.

Summary

House Bill 1280 aims to empower certain political subdivisions in Louisiana to levy an excise tax on the sale, use, or consumption of cigarettes, with the tax not exceeding fifty cents per pack. This bill specifically targets human services authorities or districts, allowing them to generate additional revenue to fund their services. Importantly, the imposition of this tax is contingent upon voter approval, ensuring that the local electorate has a say in the taxation process.

Sentiment

Discussions around HB 1280 reflect a mixture of support and concern. Proponents argue that the bill offers a necessary source of funding for important health services and reflects the community’s choice through the voter approval mechanism. Conversely, critics express apprehension about additional taxes on cigarettes, which they argue disproportionately affect lower-income populations who may be more likely to smoke. This concern has sparked dialogue about fairness and the potential financial burden placed on certain demographics.

Contention

One notable point of contention in the discussions about HB 1280 revolves around the effectiveness and fairness of the excise tax on cigarettes. Critics argue that while the tax may generate additional revenue for essential services, it could also lead to higher costs for consumers and potentially drive smokers to purchase cigarettes in neighboring areas without such taxes. Moreover, there is a broader debate about whether local authorities should have the autonomy to impose taxes of this nature, balancing the need for local funding against the overall impact on the community.