Louisiana House Bill HB304

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

Increases the state tax levied on cigarettes (OR +$57,000,000 GF RV See Note)

Impact

If enacted, HB 304 will significantly alter the tax landscape related to tobacco products in Louisiana. It will result in higher retail prices for cigarettes, which could lead to a decrease in smoking rates among consumers. The revenue generated from this tax increase is intended to support various state-funded programs, including those focused on health and education. However, the bill's proponents believe that the financial benefits to the state must be balanced with the potential public health advantages gained from reducing tobacco use.

Summary

House Bill 304 proposes an increase in the state tax levied on cigarettes in Louisiana, raising the tax from 36 cents to 60 cents per pack. This increase is aimed at generating additional revenue for the state, which could amount to over $57 million annually. The bill reflects a broader trend in public health policy that seeks to discourage smoking and promote healthier lifestyles among residents by making tobacco products more expensive. The intention behind this legislation is not only to increase state revenue but also to reduce the consumption of tobacco products, thereby improving public health outcomes.

Sentiment

The sentiment surrounding HB 304 appears to be supportive among public health advocates and some legislators who view the bill as a positive step toward reducing smoking-related illnesses and their associated healthcare costs. However, there may be dissent among certain factions, including tobacco retailers and consumers who argue that higher taxes may drive smokers to seek cheaper alternatives or purchase tobacco products in neighboring states where taxes may be lower. Overall, the discourse reflects a tension between fiscal needs and public health priorities.

Contention

One notable point of contention in discussions around HB 304 centers on the potential impact of the increased tax on low-income smokers, who may find the additional burden particularly challenging. Critics have raised concerns that such tax hikes disproportionately affect this demographic, potentially leading to a decrease in disposable income for essential needs as individuals divert funds to maintain their smoking habits. Additionally, there may be debates over the effectiveness of the tax as a deterrent for smoking, particularly among habitual smokers who may be less influenced by price increases.