Louisiana House Bill HB235

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

Increases the tax on cigarettes and dedicates a portion of the proceeds of the tax

Impact

The implementation of this bill is expected to have significant implications for state laws regarding tobacco taxation and public health funding. By increasing the tobacco tax, the legislation aligns with broader public health strategies aimed at decreasing tobacco use by making it more expensive. Furthermore, the funds generated from this tax are earmarked for specific uses, including health care initiatives and local infrastructure maintenance, which could foster community development and health improvements. The establishment of the New Orleans Regional Planning Commission Tobacco Tax Fund signifies a targeted approach toward preserving and enhancing local public assets.

Summary

House Bill 235 proposes to increase the state tax on cigarettes from the existing rate of 36¢ per pack to a new rate of $1.41 per pack. This change not only raises the tax on tobacco products but also introduces the establishment of two new funds: the Tobacco Tax Health Care Fund and the New Orleans Regional Planning Commission Tobacco Tax Fund. The funding from the increased tobacco tax will be divided, with 75% allocated to the Tobacco Tax Health Care Fund and 25% going to the new fund dedicated specifically for maintaining the Crescent City Connection Bridge in New Orleans. The bill aims to address public health concerns related to smoking while simultaneously funding essential infrastructure in the region.

Sentiment

The sentiment surrounding HB 235 appears generally supportive among public health advocates and local government officials who recognize the dual benefit of increased healthcare funding and infrastructure support. However, there may be reservations expressed by business owners and some segments of the population who argue that higher taxes on cigarettes could disproportionately affect low-income smokers. Overall, the legislative discourse suggests a recognition of the importance of both public health and community maintenance, which has shaped a predominantly positive outlook on the bill.

Contention

While the bill has garnered support for its intended purposes, notable points of contention include the concerns raised about the potential economic impact on retailers and consumers. Critics of the increased tax argue it may lead to a decline in cigarette sales, affecting local businesses reliant on tobacco product sales. Additionally, there are broader discussions regarding the effectiveness of tax increases as a deterrent against smoking, with some opponents questioning whether the bill will achieve its public health goals without placing an undue burden on consumers.