HLS 13RS-825 ORIGINAL
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Regular Session, 2013
HOUSE BILL NO. 417
BY REPRESENTATIVE RITCHIE
TAX/TOBACCO TAX: Increases the state tax on certain tobacco products and dedicates
the monies
AN ACT1
To amend and reenact R.S. 47:841(A), (C), and (E) and to enact R.S. 47:841(B)(6) and2
841.2, relative to the tobacco tax; to increase the tax on cigars, cigarettes, smoking3
tobacco, and smokeless tobacco; to establish the Louisiana Healthier Families Fund4
as a special treasury fund; to provide for the deposit, use, and investment of the5
monies in the fund; to require certain entities and agencies to submit reports to the6
legislature; to provide for an effective date; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 47:841(A), (C), and (E) are hereby amended and reenacted and R.S.9
47:841(B)(6) and 841.2 are 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
A. Cigars.16
(1) Upon cigars invoiced by the manufacturer at one hundred twenty dollars17
per thousand or less a tax of eight sixty-eight percent of the invoice price as defined18
in this Chapter.19 HLS 13RS-825 ORIGINAL
HB NO. 417
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(2) Upon cigars invoiced by the manufacturer at more than one hundred1
twenty dollars per thousand a tax of twenty sixty-eight percent of the invoice price2
as defined in this Chapter.3
B. Cigarettes.4
* * *5
(6) In addition to the taxes levied in Paragraphs (1), (2), (4), and (5) of this6
Subsection and in Paragraph (3) of this Subsection as continued in effect by Article7
7, Section 4.1 of the Constitution of Louisiana, there is hereby levied an additional8
tax of five and five-twentieths of one cent per cigarette.9
C. Smoking Tobacco. Upon smoking tobacco, a tax of thirty-three sixty-10
eight percent of the invoice price as defined in this Chapter.11
* * *12
E. Smokeless tobacco. Upon smokeless tobacco, a tax of twenty sixty-eight13
percent of the invoice price as defined in this Chapter.14
* * *15
§841.2. Louisiana Healthier Families Fund16
A. There is hereby created as a special fund within the state treasury the17
"Louisiana Healthier Families Fund", hereinafter referred to as the "fund". After18
satisfying the requirements of Article VII, Section 9(B) of the Constitution of19
Louisiana relative to the Bond Security and Redemption Fund and after a sufficient20
amount is allocated from that fund to pay all of the obligations secured by the full21
faith and credit of the state which becomes due and payable within any fiscal year,22
the state treasurer shall annually deposit into the fund an amount equal to the avails23
of the tax imposed under the provisions of R.S. 47:841(B)(6), an amount equal to24
sixty percent of the tax imposed under the provisions of R.S. 47:841(A)(1), an25
amount equal to forty-eight percent of the tax imposed under the provisions of R.S.26
47:841(A)(2) and (E), and an amount equal to thirty-five percent of the tax imposed27
under the provisions of R.S. 47:841(C).28 HLS 13RS-825 ORIGINAL
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B. All unexpended and unencumbered monies in the fund at the end of the1
fiscal year shall remain in the fund. The monies in the fund shall be invested by the2
state treasurer in the same manner as monies in the state general fund, and all3
earnings on investment of the fund shall be deposited into the fund.4
C. Monies appropriated from the fund shall be used solely as provided in this5
Subsection. Monies in the fund shall be subject to appropriation for the following6
purposes and in the following amounts:7
(1) Fifty-two percent of the monies in the fund shall be deposited into the8
Louisiana Medical Assistance Trust Fund to be used solely for the Louisiana9
Medicaid Program.10
(2) Ten percent of the monies in the fund shall be used solely to provide11
payments against the unfunded accrued liability of the Louisiana State Employees'12
Retirement System and the Teachers' Retirement System of Louisiana in proportion13
to the balance of such unfunded accrued liability of each such system, these funds14
shall be in addition to any payments required for the annual amortization of the15
unfunded accrued liability of the public retirement systems.16
(3) Five percent of the monies in the fund shall be used solely to provide17
funding for the office of state police, Department of Public Safety and Corrections.18
(4) Five percent of the monies in the fund shall be used solely to provide19
funding for the office of addictive disorders, Department of Health and Hospitals, for20
expenditure only on activities related to smoking cessation and prevention.21
(5) Five percent of the monies in the fund shall be used solely to provide22
funding for the office of mental health, Department of Health and Hospitals, for23
expenditure only on activities related to smoking cessation and prevention.24
(6) Five percent of the monies in the fund shall be used solely by the25
Louisiana State University Board of Supervisors to provide funding for the Louisiana26
State University Health Sciences Center in Shreveport, for expenditure only on27
activities related to cancer research or smoking cessation and prevention.28 HLS 13RS-825 ORIGINAL
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(7) Five percent of the monies in the fund shall be used solely by the1
Louisiana State University Board of Supervisors to provide funding for the2
Pennington Biomedical Research Center, for expenditure only on cancer research3
activities.4
(8) Three percent of the monies in the fund shall be used solely by the5
Louisiana State University Board of Supervisors to provide funding for the Greater6
New Orleans Biosciences Economic Development District, for expenditure only on7
activities related to cancer research or smoking cessation and prevention.8
(9) Three percent of the monies in the fund shall be used solely by the9
Louisiana State University Board of Supervisors to provide funding for the Louisiana10
Cancer Research Consortium.11
(10) Three percent of the monies in the fund shall be used solely by the12
Louisiana State University Board of Supervisors to provide funding for the Louisiana13
State University Health Sciences Center in New Orleans, for expenditure only on14
activities related to cancer research or smoking cessation and prevention.15
(11) Two percent of the monies in the fund shall be used solely to provide16
funding for the office of public health, Department of Health and Hospitals, for17
school-based health centers, for expenditure only on activities related to smoking18
cessation and prevention.19
(12) Two percent of the monies in the fund shall be used solely by the20
Southern University Board of Supervisors to provide funding to Southern University21
for smoking cessation and tobacco prevention programs.22
D. All entities or agencies receiving appropriations from the fund as23
provided for in this Section shall report to the legislature, no less than thirty days24
prior to the commencement of each regular session, describing the expenditure of25
such monies.26
E. No amount appropriated as required in this Section shall displace, replace,27
or supplant appropriations from the state general fund for the Department of Health28
and Hospitals, the Louisiana State University Board of Supervisors, or the Southern29 HLS 13RS-825 ORIGINAL
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University Board of Supervisors. This shall mean that no appropriation for any fiscal1
year from the Louisiana Healthier Families Fund shall be made for any purpose for2
which a general fund appropriation was made in the previous year unless the total3
appropriations for the fiscal year from the state general fund for such purpose exceed4
general fund appropriations for the previous year.5
Section 2. The increase in the cigarette and tobacco taxes levied by the provisions6
of this Act shall be effective for the period beginning on January 1, 2014.7
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. 417
Abstract: Increases the tax on cigars, cigarettes, smoking tobacco, and smokeless tobacco
and dedicates the revenue from the tax increase.
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 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 1,000 shall be 20% of the invoice price.
Proposed law increases the tax on cigars invoiced by the manufacturer at $120 per 1,000 or
less from 8% of the invoice price to 68% of the invoice price and increases the tax for cigars
invoiced by the manufacturer at more than $120 per 1,000 from 20% of the invoice price to
68% 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 $1.41 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 68%
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 68%
of the invoice price.
Present law provides for the establishment of the Tobacco Regulation Enforcement Fund to
support enforcement activities of the office of alcohol and tobacco control. Requires the
state treasurer to annually deposit an amount equal to the avails of one-quarter of one- HLS 13RS-825 ORIGINAL
HB NO. 417
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twentieth of one cent per cigarette from the tax on cigarettes into the fund for purposes of
tobacco regulation enforcement.
Proposed law retains present law.
Proposed law creates a special fund within the state treasury to be called the "Louisiana
Healthier Families Fund" in which the state treasurer shall annually deposit an amount equal
to the avails of the additional tax on cigarettes, an amount equal to 60% of the tax imposed
on cigars invoiced by the manufacturer at $120 per 1,000 or less, an amount equal to 48%
of the tax imposed on cigars invoiced by the manufacturer at more than $120 per 1,000 and
smokeless tobacco, and an amount equal to 35% of the tax imposed on smoking tobacco.
Proposed law requires the monies appropriated from the fund to be used solely for the
following purposes in the following amounts:
(1)52% to be deposited into the La. Medical Assistance Trust Fund to provide funding
for the La. Medicaid Program.
(2)10% to provide payments against the unfunded accrued liability of the Louisiana
State Employees' Retirement System and the Teachers' Retirement System of
Louisiana, which shall be in addition to any payments required for the annual
amortization of the unfunded accrued liability of the public retirement systems.
(3)5% to provide funding for the office of state police, Department of Public Safety and
Corrections.
(4)5% to provide funding for the office of addictive disorders within DHH for
expenditure on activities related to smoking cessation and prevention.
(5)5% to provide funding for the office of mental health within DHH for expenditure
on activities related to smoking cessation and prevention.
(6)5% to provide funding to the LSU Board of Supervisors for the LSU Health Sciences
Center in Shreveport, for expenditure on activities related to cancer research or
smoking cessation and prevention.
(7)5% to provide funding to the LSU Board of Supervisors for the Pennington
Biomedical Research Center, for expenditure on cancer research activities.
(8)3% to provide funding to the LSU Board of Supervisors for the Greater New Orleans
Biosciences Economic Development District, for expenditure on activities related
to cancer research or smoking cessation and prevention.
(9)3% to provide funding to the LSU Board of Supervisors for the Louisiana Cancer
Research Consortium.
(10)3% to provide funding to the LSU Board of Supervisors for the University Health
Sciences Center in New Orleans, for expenditure only on activities related to cancer
research or smoking cessation and prevention.
(11)2% to provide funding for the office of public health within DHH for school-based
health centers, for expenditure on activities related to smoking cessation and
prevention.
(12)2% to provide funding to the Southern University Board of Supervisors for Southern
University for smoking cessation and tobacco prevention programs. HLS 13RS-825 ORIGINAL
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Proposed law prohibits any amounts appropriated as required by proposed law from
displacing, replacing, or supplanting appropriations from the state general fund for DHH,
the LSU Board of Supervisors, or the Southern University Board of Supervisors. Further
provides that no appropriation for any fiscal year from the La. Healthier Families Fund shall
be made for any purpose for which a general fund appropriation was made in the previous
year unless the total appropriations for the fiscal year from the state general fund for such
purpose exceed general fund appropriations for the previous year.
Proposed law requires all entities or agencies receiving appropriations from the fund to
report to the legislature, no less than 30 days prior to the commencement of each regular
session, describing the expenditure of such monies.
Effective Jan. 1, 2014.
(Amends R.S. 47:841(A), (C), and (E); Adds R.S. 47:841(B)(6) and 841.2)