Louisiana House Bill HCR216

Louisiana 2010 Regular Session

• Introduced: 6/3/10
• Refer: 6/4/10
• Report Pass: 6/7/10
• Engrossed: 6/8/10
• Report Pass: 6/10/10
• Passed: 6/16/10

Caption

Suspends, from Aug. 10, 2010, through Aug. 13, 2010, the state excise tax on cigars and smoking tobacco given away by a dealer (EN -$45,000 GF RV See Note)

Impact

By suspending the excise tax, Louisiana hopes to attract more delegates and exhibitors to the cigar industry convention, which is anticipated to generate substantial economic benefits for the local economy. The anticipated economic impact from the direct and indirect spending of convention visitors is expected to exceed fifteen million dollars, significantly benefiting local restaurants and tourism-adjacent businesses in a traditionally slower month for such activities.

Summary

House Concurrent Resolution No. 216 (HCR216) proposes the suspension of the state excise tax on cigars and smoking tobacco given away by dealers from August 10, 2010, to August 13, 2010. This temporary measure specifically targets cigars and smoking tobacco distributed for promotional purposes during a convention hosted in New Orleans. The resolution aims to facilitate participation in a major convention and is positioned as a strategic move to enhance future competition for similar events against other cities that do not impose such taxes during promotional activities.

Sentiment

The sentiment surrounding HCR216 appears to be optimistic, focusing on potential economic growth and competitiveness within the tourism sector. Supporters argue that foregoing the excise tax during the convention is warranted by the expected financial returns, thereby demonstrating a proactive approach to supporting local economies. The discussion reflects a belief among proponents that the temporary suspension will yield long-term benefits that justify the short-term tax revenue loss.

Contention

While the resolution seems straightforward, contention may arise from concerns about the precedent it sets for tax exemptions for specific industries. Critics might question whether other industries might demand similar treatment, potentially leading to revenue deficits or inequities in tax policy. Moreover, the discussion around the impact of tobacco-related promotional activities could invite scrutiny regarding public health considerations and the appropriateness of incentivizing tobacco promotion in light of broader health campaigns.