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Regular Session, 2011
HOUSE BILL NO. 591
BY REPRESENTATIVES RITCHIE, ARNOLD, AUBERT, AUSTIN BADON, BOBBY
BADON, BISHOP, BROSSETT, BURRELL, DIXON, DOWNS, EDWARDS,
FRANKLIN, HARDY, HENDERSON, HI NES, HOFFMANN, HONORE,
MICHAEL JACKSON, ROSALIND JONES, LAFONTA, LEGER, MONTOUCET,
MORENO, PATRICIA SMITH, ST. GERMAIN, STIAES, AND WOOTON
TAX/TOBACCO TAX: Removes termination of the applicability of a certain portion of the
tax levied on cigarettes
AN ACT1
To amend and reenact R.S. 47:841(B)(2) and Section 4 of Act No. 32 of the 2000 Regular2
Session of the Legislature, as amended and reenacted by Act No. 21 of the 20023
Regular Session of the Legislature, and to enact R.S. 47:841(G), relative to the4
tobacco tax; to remove termination of the applicability of a certain portion of the tax5
levied on cigarettes; to provide for the use of the avails of the tax; to provide for an6
effective date; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 47:841(B)(2) is hereby amended and reenacted and R.S. 47:841(G)9
is hereby enacted to read as follows: 10
§841. Imposition of tax11
There is hereby levied a tax upon the sale, use, consumption, handling, or12
distribution of all cigars, cigarettes, and smoking and smokeless tobacco, as defined13
herein, within the state of Louisiana, according to the classification and rates14
hereinafter set forth:15
* * *16
B. Cigarettes.17
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(2) In addition to the tax levied in Paragraph (1) of this Subsection there is1
hereby levied an additional tax of four twentieths of one cent per cigarette, the avails2
of which shall be available for appropriation as provided in Subsection G of this3
Section.4
* * *5
G. After satisfaction of the requirements of Subsection F of this Section, all6
remaining revenues derived from the tax imposed pursuant to Paragraph (B)(2) of7
this Section shall be deposited into the state general fund and shall be available8
exclusively for the support of expenditures for the direct provision of health care9
services which are eligible for federal financial participation. In the event that there10
is insufficient federal financial participation available to support such services in any11
fiscal year, these monies may be appropriated to support state programs to provide12
for the services. On the last day of November of each year the secretary of the13
Department of Revenue shall provide to the chairman of the Joint Legislative14
Committee on the Budget and the commissioner of administration an official15
estimate of the amount of state revenues received within the previous twelve months16
which were derived from the tax imposed pursuant to Paragraph (B)(2) of this17
Section. The estimate shall be utilized by the commissioner of administration in the18
preparation of the following year's executive budget in which a recommendation19
shall be made to appropriate such amount for the purposes provided herein.20
Section 2. Section 4 of Act No. 32 of the 2000 Regular Session of the Legislature,21
as amended and reenacted by Act No. 21 of the 2002 Regular Session of the Legislature, is22
hereby amended and reenacted to read as follows:23
Section 4. The increase in the cigarette tax levied by Section 1 of this Act24
shall be effective for the period beginning on July 1, 2000 and ending on June 30,25
2012.26
Section 3. This Act shall become effective on July 1, 2011; if vetoed by the governor27
and subsequently approved by the legislature, this Act shall become effective on July 1,28
2011, or on the day following such approval by the legislature, whichever is later.29 HLS 11RS-493 REENGROSSED
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Ritchie HB No. 591
Abstract: Removes the June 30, 2012, termination date for levying a tax of four-twentieths
of one cent per cigarette, making that portion of the tax permanent, and provides for
the use of the avails of the tax.
Present law provides for the levy of a tax upon the sale, use, consumption, handling, or
distribution of all cigars, cigarettes, and smoking and smokeless tobacco in La.
Present law levies a tax on cigarettes at the rate of .36¢ per pack. However, authorization
for the levy of a tax of four-twentieths of one cent per cigarette is set to terminate on June
30, 2012.
Proposed law retains present law but removes the June 30, 2012, termination date for levying
the tax of four-twentieths of one cent per cigarette, making the levy of this portion of the tax
on cigarettes permanent.
Proposed law requires the revenues derived from the tax imposed pursuant to proposed law
to be deposited into the state general fund and shall be available exclusively for the support
of expenditures for the direct provision of health care services which are eligible for federal
financial participation. Further provides that if insufficient federal financial participation
is available to support such services in any fiscal year, these monies may be appropriated to
support state programs to provide for the services.
Proposed law requires the secretary of the Dept. of Revenue, on the last day of Nov. of each
year, to provide to the chairman of the JLCB and the commissioner of administration, an
official estimate of the amount of state revenues received within the previous 12 months
derived from the tax imposed pursuant to proposed law. The estimate shall be utilized by
the commissioner of administration in the preparation of the following year's executive
budget in which a recommendation shall be made to appropriate such amount for the
purposes provided herein.
Effective July 1, 2011.
(Amends R.S. 47:841(B)(2) and §4 of Act No. 32 of 2000 R.S. as amended by Act No. 21
of 2002 R.S.); Adds R.S. 47:841(G)
Summary of Amendments Adopted by House
House Floor Amendments to the engrossed bill.
1. Requires revenues derived from the tax imposed pursuant to proposed law to be
deposited into the state general fund and made available exclusively for the
support of expenditures for the direct provision of health care services which are
eligible for federal financial participation.
2. Requires the secretary of the Dept. of Revenue, on the last day of Nov. of each
year, to provide an official estimate of the amount of state revenues received
within the previous 12 months derived from the tax imposed pursuant to
proposed law. Requires the estimate to be utilized in the preparation of the HLS 11RS-493 REENGROSSED
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following year's executive budget in which a recommendation shall be made to
appropriate such amount for the purposes provided for in proposed law.