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)]
HB 119 Engrossed 2015 Regular Session Ritchie
Abstract: Levies an additional tax of 32¢ per pack of 20 cigarettes thereby increasing the total tax
per pack of 20 cigarettes from 36¢ to 68¢ per pack and dedicates the proceeds of the tax to
fund Medicaid.
Present law provides for the levy of a tax upon the sale, use, consumption, handling, or distribution
of all cigarettes. The amount of the tax per pack of 20 cigarettes is 36¢.
Proposed law retains present law but levies an additional tax upon cigarettes equal to one and
twelve-twentieths of 1¢ per cigarette thereby increasing the total tax per pack of 20 cigarettes from
36¢ per pack to 68¢ per pack of 20 cigarettes.
Proposed law establishes the Tobacco Tax Medicaid Match Fund as a special fund in the state
treasury, hereinafter referred to as the "fund". After satisfying the requirements of the Bond Security
and Redemption Fund, the state treasurer shall annually deposit into the fund an amount equal to the
avails of the tax imposed under proposed law. Further requires the monies in the fund to be
appropriated to DHH for the medical assistance program administered by the state, also known as
Medicaid.
Proposed law prohibits monies deposited into the fund from displacing or supplanting appropriations
from the state general fund for the DHH 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 provides that the additional tax shall apply to all cigarette products purchased by retail
dealers and wholesale dealers on and after July 1, 2015, but shall not apply to stamped products and
unused tax stamps in the possession of wholesale dealers prior to July 1, 2015. Requires all
wholesale and retail dealers to file an inventory with the Dept. of Revenue by Aug. 1, 2015, of all
cigarettes on hand prior to July 1, 2015.
Proposed law authorizes the Dept. of Revenue to adopt rules and regulations as to the filing of the
inventory report.
Effective July 1, 2015.
(Adds R.S. 47:841(B)(6) and 841.2) Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Reduce the amount of the additional tax on cigarettes from $1.18 per pack to 32¢ per
pack bringing the total tax per pack to 68¢.
2. Establish the Tobacco Tax Medicaid Match Fund as a special treasury fund and dedicates
the avails of the additional tax into the fund to be used by DHH for the medical
assistance program also known as Medicaid.