Louisiana House Bill HB77

Louisiana 2015 Regular Session

• Introduced: 3/11/15
• Refer: 3/11/15
• Refer: 4/13/15

Caption

(Constitutional Amendment) Levies an additional tax on cigarettes (OR +$250,000,000 GF RV See Note)

Impact

The passage of HB 77 would create a more substantial financial resource for the state, with potential annual revenue increases estimated to exceed $250 million. These funds could be directed towards health care initiatives, smoking cessation programs, and general state budgets. Additionally, the increase in cigarette pricing may contribute to reduced smoking rates, especially among adolescents and low-income populations, aligning with public health goals to diminish tobacco use.

Summary

House Bill 77 proposes a constitutional amendment to levy an additional tax on cigarettes, increasing the total tax from $0.36 to $1.54 per pack of 20 cigarettes. This bill aims to enhance state revenue through increased tobacco taxation, which proponents argue could significantly contribute to public health funding and discourage smoking. The additional tax is specified as five and eighteen-twentieths of one cent per cigarette, making the proposed changes impactful on both state revenue streams and public health initiatives.

Sentiment

The sentiment surrounding HB 77 appears to be mixed but leans more positively among health advocates and legislators who prioritize public health and state welfare. Supporters view this tax as a proactive measure in combating smoking-related health issues. However, there are concerns from small business owners and tobacco retailers about the potential decline in sales and the economic implications of increased taxation. In essence, while there is enthusiasm for funding health initiatives, there is trepidation about the economic impact on local businesses.

Contention

Notable points of contention regarding the bill include discussions about personal choice versus public health policy. Opponents argue that higher taxes disproportionately affect low-income consumers who smoke, leading to potential pushback against the legislation. Moreover, debates about the effectiveness of tax increases on modifying behavior are prevalent, with critics questioning whether such measures genuinely lead to reduced smoking rates or simply increase revenue while keeping smoking patterns stable among certain demographics.