HLS 11RS-244 ORIGINAL
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Regular Session, 2011
HOUSE BILL NO. 63
BY REPRESENTATIVES RITCHIE, AUSTIN BADON, BURRELL, DIXON, HARDY,
HOFFMANN, MICHAEL JACKSON, ROSALIND JONES, PATRICIA SMITH,
AND STIAES AND SENATORS CHAISSON AND PETERSON
TAX/TOBACCO TAX: Removes the sunset on a portion of the tax levied on cigarettes and
increases the tax on cigars, cigarettes, smoking tobacco, and smokeless tobacco
AN ACT1
To amend and reenact Section 4 of Act No. 32 of the 2000 Regular Session, as amended and2
reenacted by Act No. 21 of the 2002 Regular Session, and R.S. 47:841(A), (C), and3
(E) and to enact R.S. 47:841(B)(6), relative to the tobacco tax; to remove termination4
of the applicability of a certain portion of the tax levied on cigarettes; to increase the5
tax on cigars, cigarettes, smoking tobacco, and smokeless tobacco; to provide for an6
effective date; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. Section 4 of Act No. 32 of the 2000 Regular Session, as amended and9
reenacted by Act No. 21 of the 2002 Regular Session is hereby amended and reenacted to10
read as follows:11
Section 4. The increase in the cigarette tax levied by Section 1 of this Act12
shall be effective for the period beginning on July 1, 2000 and ending on June 30,13
2012.14
Section 2. R.S. 47:841(A), (C), and (E) are hereby amended and reenacted and R.S.15
47:841(B)(6) is hereby enacted to read as follows: 16
§841. Imposition of tax17
There is hereby levied a tax upon the sale, use, consumption, handling, or18
distribution of all cigars, cigarettes, and smoking and smokeless tobacco, as defined19 HLS 11RS-244 ORIGINAL
HB NO. 63
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herein, within the state of Louisiana, according to the classification and rates1
hereinafter set forth:2
A. Cigars.3
(1) Upon cigars invoiced by the manufacturer at one hundred twenty dollars4
per thousand or less a tax of eight twelve percent of the invoice price as defined in5
this Chapter.6
(2) Upon cigars invoiced by the manufacturer at more than one hundred7
twenty dollars per thousand a tax of twenty thirty percent of the invoice price as8
defined in this Chapter.9
B. Cigarettes.10
* * *11
(6) In addition to the tax levied in Paragraphs (1), (2), (3), (4), and (5) of this12
Subsection, there is hereby levied an additional tax of three and one-half cents per13
cigarette.14
C. Smoking Tobacco. Upon smoking tobacco, a tax of thirty-three forty-15
nine and one-half percent of the invoice price as defined in this Chapter.16
* * *17
E. Smokeless tobacco. Upon smokeless tobacco, a tax of twenty thirty18
percent of the invoice price as defined in this Chapter.19
* * *20
Section 3. The increase in the cigarette tax levied by the provisions of Section 2 of21
this Act shall be effective for the period beginning on July 1, 2011; if vetoed by the governor22
and subsequently approved by the legislature, the increase in the cigarette tax levied by the23
provisions of this Section 2 of this Act shall become effective on July 1, 2011, or on the day24
following such approval by the legislature, whichever is later. 25
Section 4. This Act shall become effective on July 1, 2011; if vetoed by the governor26
and subsequently approved by the legislature, this Act shall become effective on July 1,27
2011, or on the day following such approval by the legislature, whichever is later.28 HLS 11RS-244 ORIGINAL
HB NO. 63
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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. 63
Abstract: Removes the sunset on a portion of the tax collected on cigarettes and increases
the tax on cigars, cigarettes, smoking tobacco, and smokeless tobacco.
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 provides that the levy of four-twentieths of one cent of the tax per cigarette
levied in present law shall expire on June 30, 2012.
Proposed law removes the sunset on that portion of the tax on cigarettes thereby making that
portion of the tax on cigarettes permanent.
Present law provides that the rate of the tax for cigars invoiced by the manufacturer at $120
per thousand or less shall be 8% of the invoice price and the rate of the tax for cigars
invoiced by the manufacturer at more than $120 per thousand shall be 20% of the invoice
price.
Proposed law increases the tax on cigars invoiced by the manufacturer at $120 per thousand
or less from 8% of the invoice price to 12% of the invoice price and increases the tax for
cigars invoiced by the manufacturer at more than $120 per thousand from 20% of the invoice
price to 30% of the invoice price.
Present law levies a tax on cigarettes at the rate of 36¢ per pack.
Proposed law increases the tax on cigarettes from 36¢ per pack to $1.06 per pack.
Present law provides that the rate of the tax for smoking tobacco shall be 33% of the invoice
price.
Proposed law increases the tax on smoking tobacco from 33% of the invoice price to 49.5%
of the invoice price.
Present law provides that the rate of the tax on smokeless tobacco shall be 20% of the
invoice price.
Proposed law increases the tax on smokeless tobacco from 20% of the invoice price to 30%
of the invoice price.
Effective July 1, 2011.
(Amends §4 of Act No. 32 of the 2000 R.S., as amended by Act No. 21 of the 2002 R.S., and
R.S. 47:841(A), (C), and (E); Adds R.S. 47:841(B)(6))