Levies an additional tax on cigarettes and tobacco products and dedicates the monies (OR +$214,000,000 SD RV See Note)
In terms of state law, HB 148 establishes the Louisiana Healthy Living Fund as a dedicated resource for funding higher education systems and specific health programs. Seventy percent of the fund will be directed to the Board of Regents for distribution among various university systems, while thirty percent is earmarked for smoking cessation activities through the Department of Health and Hospitals. This allocation ensures that the additional tax revenue will have a direct impact on education funding and public health initiatives, potentially leading to a long-term decrease in smoking rates and related health issues in Louisiana.
House Bill 148, introduced by Representative Badon, aims to increase the taxes on various tobacco products, including cigars, cigarettes, smoking tobacco, and smokeless tobacco. The proposed legislation significantly raises the tax rates: it increases the tax on cigars from 8% to 16% of the invoice price, raises the cigarette tax from $0.36 to $1.41 per pack, and doubles the taxes on smoking and smokeless tobacco from 33% and 20% to 66% and 40% respectively. The revenue generated from these tax increases is intended to be allocated toward the Louisiana Healthy Living Fund, designed to support health initiatives and education in the state.
The sentiment around HB 148 appears to be mixed, with support mainly from health advocates who view the increased taxes as a necessary step toward improving public health and reducing tobacco use. Proponents argue that higher taxes on tobacco products have been shown to deter smoking, particularly among younger populations. However, there is also opposition from certain industry representatives and taxpayers who are concerned about the financial burden of increased tobacco taxes and its impacts on consumers and businesses within the state.
Notable points of contention include the effectiveness of such tax increases in truly reducing smoking rates and whether the increased financial burden will disproportionately affect low-income populations, who may be more sensitive to price changes in tobacco products. Moreover, there are questions regarding the long-term management and transparency of funds raised through these new taxes, particularly in light of prohibitions against using these funds to displace existing appropriations from the state general fund.