Temporarily exempts from tobacco tax cigars and smoking tobacco sampled during the Convention of the International Premium Cigar and Pipe Retailers. (8/15/11) (EN -$50,000 GF RV See Note)
Impact
Should SB210 be enacted, it would alter the way tobacco products, particularly those used for promotion and sampling during conventions, are taxed in Louisiana. The bill indicates an intention to drive business by allowing dealers to promote and sample cigars without the immediate burden of excise tax for a limited period. This could potentially influence the state's revenue from tobacco taxes, with a noted fiscal impact of a reduction estimated at $50,000 from the general fund during the exemption period.
Summary
Senate Bill 210 aims to amend the existing state law on tobacco taxes in Louisiana by temporarily exempting certain tobacco products from taxation. Specifically, the bill provides an exemption for cigars and smoking tobacco that are sampled during the Convention of the International Premium Cigar and Pipe Retailers Association. This exemption is applicable for the taxable periods from January 1, 2013, to December 31, 2016. The intent behind the bill is not only to facilitate promotional activities during conventions but also to attract such events to Louisiana, thereby boosting local economic activity.
Sentiment
The sentiment surrounding SB210 appears to be largely positive among proponents, particularly within the cigar industry and businesses that stand to benefit from increased promotional opportunities. Supporters argue that the bill will help promote Louisiana as a favorable destination for conventions and trade shows. Conversely, there may be some concern regarding potential loss of tax revenue, though these sentiments aren't prominently featured in the discussions linked to the bill’s progress.
Contention
While the bill seems to enjoy support for its intended economic benefits, it also raises questions about the implications of providing tax exemptions to specific industries. The clarity of the exemption period and criteria, along with how such exemptions may set precedents for future tax legislation, are notable points of contention. Critics might argue about fairness and sustainability concerning tax policies that favor specific events over broader taxation practices.
Extends the excise tax exemption for cigars or pipe tobacco products sampled during the Convention of the International Premium Cigar and Pipe Retailers Association (EN SEE FISC NOTE GF RV See Note)
Extends the tax exemption period for cigars and pipe tobacco products sampled at the Premium Cigar Association convention (EN SEE FISC NOTE GF RV See Note)
Provides for the name of the organization sampling cigars or pipe tobacco on the premises of certain convention facilities (OR NO IMPACT GF RV See Note)
Removes the sunset on a portion of the tax levied on cigarettes and increases the tax on cigars, cigarettes, smoking tobacco, and smokeless tobacco (OR +$121,900,000 GF RV See Note)
Provides that certain tobacco products sampled at convention facilities during professional meetings and trade shows shall be excepted from the intent and purposes of the tobacco tax
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)
Exempts from state excise and sales taxes certain items given free of charge as samples at conventions, trade shows, and similar events (EN +$555,779 GF EX See Note)