HLS 15RS-332 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 487
BY REPRESENTATIVE LEGER
TAX/TOBACCO TAX: Levies an additional tax on cigarettes and dedicates the monies
1 AN ACT
2To enact R.S. 47:841(B)(6) and 841.2, relative to the tobacco tax; to provide with respect
3 to the rate of tax levied on certain tobacco products; to increase the rate of the tax
4 levied on cigarettes; to establish the Healthier Louisiana Fund as a special treasury
5 fund; to provide for the deposit, use, and investment of the monies in the fund; to
6 provide with respect to the application of the tax on cigarettes in the inventory of
7 certain retail and wholesale dealers; to provide for an effective date; and to provide
8 for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:841(B)(6) and 841.2 are hereby enacted to read as follows:
11 §841. Imposition of tax
12 There is hereby levied a tax upon the sale, use, consumption, handling, or
13 distribution of all cigars, cigarettes, and smoking and smokeless tobacco, as defined
14 herein, within the state of Louisiana, according to the classification and rates
15 hereinafter set forth:
16 * * *
17 B. Cigarettes.
18 * * *
19 (6) In addition to the tax levied in Paragraphs (1), (2), (4), and (5) of this
20 Subsection and in Paragraph (3) of this Subsection as continued in effect by Article
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HB NO. 487
1 7, Section 4.1 of the Constitution of Louisiana, there is hereby levied an additional
2 tax of three and twelve-twentieths of one cent per cigarette.
3 * * *
4 §841.2. Healthier Louisiana Fund
5 A. There is hereby created as a special fund in the state treasury the
6 "Healthier Louisiana Fund", hereinafter referred to as the "fund". After compliance
7 with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana
8 relative to the Bond Security and Redemption Fund, and after a sufficient amount is
9 allocated from that fund to pay all of the obligations secured by the full faith and
10 credit of the state which become due and payable within any fiscal year, the state
11 treasurer shall annually deposit to the fund an amount equal to the avails of the tax
12 imposed under the provisions of R.S. 47:841(B)(6).
13 B. All unexpended and unencumbered monies in this fund at the end of the
14 fiscal year shall remain in the fund. The monies in the fund shall be invested by the
15 state treasurer in the same manner as monies in the state general fund, and all
16 earnings on investment of the fund shall be deposited into the fund.
17 C. Monies appropriated from the fund shall be used solely as provided in this
18 Subsection. Monies in the fund shall be subject to appropriation for the following
19 purposes and in the following amounts:
20 (1) Seventeen and one-half percent of the monies in the fund shall be
21 deposited into the Louisiana Medical Assistance Trust Fund to be used solely for the
22 Medical Vendor Program.
23 (2) Sixteen and one-half percent of the monies in the fund shall be deposited
24 into the Workforce and Innovation for a Stronger Economy (WISE) fund and shall
25 be used solely as provided for in R.S. 17:3138.2.
26 (3) Ten percent of the monies in the fund shall be used solely by the
27 Louisiana State University Board of Supervisors to provide funding for the Louisiana
28 State University Health Sciences Center in Shreveport.
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HB NO. 487
1 (4) Ten percent of the monies in the fund shall be used solely by the
2 Louisiana State University Board of Supervisors to provide funding for the Louisiana
3 State University Health Sciences Center in New Orleans.
4 (5) Ten percent of the monies in the fund shall be used solely by the
5 Louisiana State University Board of Supervisors to provide funding for the
6 Pennington Biomedical Research Center.
7 (6) Ten percent of the monies in the fund shall be deposited into the
8 MediFund. The appropriation to the MediFund pursuant to the provisions of this
9 Paragraph shall be for four consecutive years beginning in Fiscal Year 2015-2016.
10 Thereafter, the ten percent appropriation pursuant to the provisions of this Paragraph
11 from the monies in the Healthier Louisiana Fund shall be used solely by the
12 Louisiana State University Board of Supervisors to provide funding for the Louisiana
13 Cancer Research Consortium. The appropriation made pursuant to this Paragraph
14 shall be in addition to the appropriation to the Cancer Research Consortium pursuant
15 to Paragraph (7) of this Subsection.
16 (7) Ten percent of the monies in the fund shall be used solely by the
17 Louisiana State University Board of Supervisors to provide funding for the Louisiana
18 Cancer Research Consortium.
19 (8) Four percent of the monies in the fund shall be used solely to provide
20 funding for the office of mental health, Department of Health and Hospitals.
21 (9) Three percent of the monies in the fund shall be used solely by the
22 Southern University Board of Supervisors to provide funding for the Southern
23 University Agricultural Research and Extension Center.
24 (10) Three percent of the monies in the fund shall be used solely by the
25 Louisiana State University Board of Supervisors to provide funding for the College
26 of Agriculture's AgCenter.
27 (11) Two percent of the monies in the fund shall be used solely by the
28 Louisiana State University Board of Supervisors to provide funding for Louisiana's
29 Flagship University in Baton Rouge, Louisiana.
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HB NO. 487
1 (12) One and one-half percent of the monies in the fund shall be used solely
2 by the Victims Reparations Fund to provide funding for emergency room medical
3 expenses for victims of rape.
4 (13) One and one-half percent of the monies in the fund shall be used solely
5 by the Mary Bird Perkins - Our Lady of the Lake Cancer Center to provide funding
6 fo cancer research.
7 (14) One percent of the monies in the fund shall be used solely by the Board
8 of Directors for the New Orleans BioInnovation Center to support growing
9 technology companies.
10 Section 2. The increase in the cigarette tax imposed by this Act shall apply to all
11cigarette products purchased by retail dealers and wholesale dealers on and after July 1,
122015, and shall not apply to stamped products and unused tax stamps in the possession of
13wholesale dealers prior to July 1, 2015. All wholesale and retail dealers shall file an
14inventory with the secretary of the Department of Revenue of all cigarettes on hand prior to
15July 1, 2015. The inventory shall be filed by August 1, 2015. The secretary shall have
16authority to adopt rules and regulations as to the filing of the inventory report.
17 Section 3. The increase in the cigarette tax levied by the provisions of this Act shall
18be effective for the period beginning on July 1, 2015.
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 487 Original 2015 Regular Session Leger
Abstract: Levies an additional tax of 72¢ per pack of 20 cigarettes thereby increasing the
total tax per pack of 20 cigarettes from 36¢ per pack to $1.08 per pack and dedicates
the monies from the additional tax into the Healthier Louisiana Fund.
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 three
and twelve-twentieths of 1¢ per cigarette thereby increasing the total tax per pack of 20
cigarettes from 36¢ per pack to $1.08 per pack of 20 cigarettes.
Proposed law creates a special fund within the state treasury to be called the "Healthier
Louisiana Fund" in which the state treasurer shall annually deposit an amount equal to the
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HB NO. 487
avails of the additional tax on cigarettes. Proposed law requires the monies appropriated
from the fund to be used solely for the following purposes in the following amounts:
(1)17.5 % to be deposited into the La. Medical Assistance Trust Fund to be used solely
for the Medical Vendor Program.
(2)16.5% to be deposited into the Workforce and Innovation for a Stronger Economy
(WISE) fund to be used as provided for in present law.
(3)10% to be used by the LSU Board of Supervisors to provide funding for the LSU
Health Sciences Center in Shreveport.
(4)10% to be used by the LSU Board of Supervisors to provide funding for the LSU
Health Sciences Center in New Orleans.
(5)10% to be used by the LSU Board of Supervisors to provide funding for the
Pennington Biomedical Research Center.
(6)10% to be deposited into the MediFund. This appropriation to the MediFund shall
be for four consecutive years beginning in FY 2015-2016. Thereafter, the 10%
appropriation shall be used by the LSU Board of Supervisors to provide funding for
the La. Cancer Research Consortium.
(7)10% to be used by the LSU Board of Supervisors to provide funding for the La.
Cancer Research Consortium.
(8)4% to be used to provide funding for the office of mental health, Department of
Health and Hospitals (DHH).
(9)3% to be used by the Southern University (SU) Board of Supervisors to provide
funding for the SU Agricultural Research and Extension Center.
(10)3% to be used by the LSU Board of Supervisors to provide funding for the College
of Agriculture's AgCenter.
(11)2% to be used by the LSU Board of Supervisors to provide funding for Louisiana's
Flagship University in Baton Rouge.
(12)1.5% to be used by the Victims Reparations Fund to provide funding for emergency
room medical expenses for victims of rape.
(13)1.5% to be used by the Mary Bird Perkins - Our Lady of the Lake Cancer Center to
provide funding fo cancer research.
(14)1% to be used by the Board of Directors for the New Orleans BioInnovation Center
to support growing technology companies.
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.
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HB NO. 487
(Adds R.S. 47:841(B)(6) and 841.2)
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