HLS 15RS-1207 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 427
BY REPRESENTATIVES JACKSON, COX, GAINES, HALL, HUNTER, JAMES,
SMITH, AND ALFRED WILLIAMS
TAX/EXCISE: Levies an additional tax on certain tobacco products and levies a tax on
vapor products and electronic cigarettes
1 AN ACT
2To amend and reenact R.S. 47:841(introductory paragraph), (A), (C), (E), and (F) and to
3 enact R.S. 47:841(B)(6) and (G), relative to the tobacco tax; to provide with respect
4 to the rate of the tax levied on certain tobacco products; to increase the tax on certain
5 tobacco products; to levy a tobacco tax on certain vapor and cigarette products; to
6 provide with respect to the application of the tax on tobacco products in the
7 inventory of certain retail and wholesale dealers; to provide for an effective date; and
8 to provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:841(introductory paragraph), (A), (C), (E), and (F) are hereby
11amended and reenacted and R.S. 47:841(B)(6) and (G) are hereby enacted to read as follows:
12 §841. Imposition of tax
13 There is hereby levied a tax upon the sale, use, consumption, handling, or
14 distribution of all cigars, cigarettes, and smoking and smokeless tobacco, and vapor
15 products and electronic cigarettes as defined herein, within the state of Louisiana,
16 according to the classification and rates hereinafter set forth:
17 A. Cigars.
18 (1) Upon cigars invoiced by the manufacturer at one hundred twenty dollars
19 per thousand or less a tax of eight sixteen percent of the invoice price as defined in
20 this Chapter.
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1 (2) Upon cigars invoiced by the manufacturer at more than one hundred
2 twenty dollars per thousand a tax of twenty forty percent of the invoice price as
3 defined in this Chapter.
4 B. Cigarettes.
5 * * *
6 (6) In addition to the tax levied in Paragraphs (1), (2), (4), and (5) of this
7 Subsection and in Paragraph (3) of this Subsection as continued in effect by Article
8 7, Section 4.1 of the Constitution of Louisiana, there is hereby levied an additional
9 tax of three and twelve-twentieths of one cent per cigarette.
10 C. Smoking Tobacco. Upon smoking tobacco, a tax of thirty-three sixty-six
11 percent of the invoice price as defined in this Chapter.
12 * * *
13 E. Smokeless tobacco. Upon smokeless tobacco, a tax of twenty forty
14 percent of the invoice price as defined in this Chapter.
15 F. Vapor products and electronic cigarettes. Upon vapor products and
16 electronic cigarettes, a tax of five cents per milliliter of nicotine liquid solution or
17 other material containing nicotine that is depleted as a vapor product is used. For
18 purposes of this Subsection, "vapor products" shall include any noncombustible
19 product containing nicotine or other substances that employ a heating element, power
20 source, electronic circuit, or other electronic, chemical or mechanical means,
21 regardless of shape or size, used to produce vapor from nicotine in a solution or other
22 form. "Vapor products" include any electronic cigarette, electronic cigar, electronic
23 cigarillo, electronic pipe, or similar product or device and any vapor cartridge or
24 other container of nicotine in a solution or other form that is intended to be used with
25 or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or
26 similar product or device.
27 F.(1) G.(1) The Tobacco Regulation Enforcement Fund, hereinafter referred
28 to as the "fund", is hereby established in the state treasury as a special fund to
29 provide support for enforcement activities of the office of alcohol and tobacco
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1 control. The source of monies for the fund shall be a portion of the avails of the state
2 tax on cigarettes as provided herein.
3 (2) After compliance with the requirements of Article VII, Section 9(B) of
4 the Constitution of Louisiana relative to the Bond Security and Redemption Fund,
5 and after a sufficient amount is allocated from that fund to pay all of the obligations
6 secured by the full faith and credit of the state which become due and payable within
7 any fiscal year, the state treasurer shall annually deposit into the fund an amount
8 equal to the avails of one-quarter of one-twentieth of one cent per cigarette from the
9 tax on cigarettes imposed pursuant to this Section. Monies in the fund shall be
10 subject to appropriation by the legislature and then only to the office of alcohol and
11 tobacco control for purposes of tobacco regulation enforcement. All unexpended and
12 unencumbered monies in the fund shall be invested by the state treasurer in the same
13 manner as monies in the state general fund, and all earnings on investment of the
14 fund shall be deposited into the fund.
15 Section 2. The increase in the tobacco tax imposed by this Act shall apply to all
16tobacco products purchased by retail dealers and wholesale dealers on and after July 1, 2015,
17and shall not apply to stamped products and unused tax stamps in the possession of
18wholesale dealers prior to July 1, 2015. All wholesale and retail dealers shall file an
19inventory with the secretary of the Department of Revenue of all tobacco products on hand
20prior to July 1, 2015. The inventory shall be filed by August 1, 2015. The secretary shall
21have authority to adopt rules and regulations as to the filing of the inventory report.
22 Section 3. The increase in the tax on tobacco products levied by the provisions of
23this Act and the levy of the tax on electronic cigarettes and vapors pursuant to the provisions
24of this Act shall be effective for the period beginning on July 1, 2015.
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HB NO. 427
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 427 Original 2015 Regular Session Jackson
Abstract: Levies an additional tax on cigars, cigarettes, smoking tobacco, and smokeless
tobacco and levies a tax on vapor products and electronic cigarettes.
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 1,000 or less shall be 8% 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 16% of the invoice price.
Present law provides that 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 more than $120 per
1,000 from 20% of the invoice price to 40% 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 $1.08 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 66%
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 40%
of the invoice price.
Proposed law levies an excise tax equal to five cents per milliliter of nicotine liquid solution
on vapor products and electronic cigarettes. Proposed law defines "vapor products" as any
noncombustible product containing nicotine or other substances that employ a heating
element or other mechanical means used to produce vapor from nicotine in a solution.
Proposed law further defines "vapor products" as any electronic cigarette, cigar, or pipe and
any vapor cartridge or other container of nicotine in a solution that is intended to be used
with or in an electronic cigarette, cigar, or pipe.
Proposed law provides that the additional tax shall apply to all tobacco 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 tobacco products on hand prior to July 1, 2015.
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HB NO. 427
Proposed law authorizes the Dept. of Revenue to adopt rules and regulations as to the filing
of the inventory report.
Effective July 1, 2015.
(Amends R.S. 47:841(intro. para.), (A), (C), (E), and (F); Adds R.S. 47:841(B)(6) and (G))
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