Levies an additional tax on cigarettes and tobacco products and dedicates the monies (OR +$214,000,000 SD RV See Note)
Impact
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.
Summary
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.
Sentiment
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.
Contention
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.
(Constitutional Amendment) Levies an additional tax on cigarettes and other tobacco products and authorizes the dedication of such monies (OR +$64,000,000 GF RV See Note)
Removes the sunset on a portion of the tax levied on cigarettes and increases the tax on cigars, cigarettes, smoking tobacco, and smokeless tobacco (OR +$121,900,000 GF RV See Note)
Increases the tax levied on smokeless tobacco and dedicates a portion of avails of the tax into the Youth Cessation and Prevention Fund (OR +$8,900,000 GF RV See Note)
Increases the rate of the excise tax on vapor products and electronic cigarettes and dedicates a portion of the avails of such increase to payment of salaries and related benefits for La. State Police (EN -$5,000,000 GF RV See Note)
Establishes the Youth Cessation and Prevention Fund and dedicates a portion of the avails of the tax levied on smokeless tobacco to the fund (RE -$6,000,000 GF RV See Note)