HLS 161ES-47 ORIGINAL
2016 First Extraordinary Session
HOUSE BILL NO. 10
BY REPRESENTATIVE COX
TAX/TOBACCO TAX: Reduces the amount of the discount for licensed tobacco dealers
for accurately reporting and remitting excise taxes on certain tobacco products and
the amount of the discount for stamping cigarettes (Item #22)
1 AN ACT
2To amend and reenact R.S. 47:843(B) and (C)(3) and 851(B)(4)(b), relative to state excise
3 tax on tobacco; to provide relative to the discounts for the reporting and remitting of
4 excise taxes on cigarettes and certain tobacco product and the stamping of cigarettes;
5 to reduce the amount of the discounts for the reporting and remitting of excise taxes
6 on cigarettes and certain tobacco products and the stamping of cigarettes; to provide
7 for an effective date; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:843(B) and (C)(3) and 851(B)(4)(b) are hereby amended and
10reenacted to read as follows:
11 §843. Use of stamps or meter impression required; limitations
12 * * *
13 B. Discounts. The secretary of the Department of Revenue shall allow
14 wholesale tobacco dealers of other states who have a direct purchasing contract with
15 a manufacturer and serving a trade area of retail dealers in this state to purchase
16 Louisiana stamps with benefit of discount; provided however, in no instance shall
17 the discount be greater than that which is received by such wholesale tobacco dealers
18 in their state of domicile and further provided that regardless of the discount
19 extended by other states, the discount shall not exceed six three percent.
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HB NO. 10
1 C. Purchase of stamps.
2 * * *
3 (3) Cigarette tax stamps shall be sold by the secretary of the Department of
4 Revenue to bonded registered Louisiana tobacco dealers in the state of Louisiana
5 who hold a valid stamping agent designation in accordance with R.S. 26:902(2)(a)
6 and who have a direct purchasing contract with a manufacturer at a discount of six
7 three percent from the face value, when purchased in quantities of not less than one
8 hundred dollars face value, and the same provisions and discount shall apply where
9 the metered stamping machine or device is used.
10 * * *
11 §851. Dealers receiving unstamped and/or nontax paid cigarettes, cigars, and
12 smoking tobaccos required to file monthly reports and maintain records;
13 vending machine restrictions
14 * * *
15 B. Registered tobacco dealers and stamping agents.
16 * * *
17 (4)
18 * * *
19 (b) A six three percent discount is allowable for timely and accurately filing
20 such report only on those purchases made by registered tobacco dealers in Louisiana
21 who have a direct purchasing contract with a manufacturer. The secretary shall
22 allow wholesale tobacco dealers of other states serving a trade area of retail dealers
23 in this state who have a direct purchasing contract with a manufacturer to sell in this
24 state with the benefit of the discount provided, however, in no instance shall the
25 discount be greater than that which is received by such wholesale tobacco dealers in
26 their state of domicile and further provided that regardless of the discount extended
27 by other states, such discount shall not exceed six three percent, provided said
28 dealers meet the requirements of a wholesale dealer as set forth in R.S. 47:842(5).
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HB NO. 10
1 The transfer or disposal by a qualified dealer of any benefit herein conferred is
2 prohibited except in the case of the original recipient.
3 * * *
4 Section 2. This Act shall become effective upon signature by the governor or, if not
5signed by the governor, upon expiration of the time for bills to become law without signature
6by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
7vetoed by the governor and subsequently approved by the legislature, this Act shall become
8effective on the day following such approval.
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 10 Original 2016 First Extraordinary Session Cox
Abstract: Reduces the amount of the discount for the accurate reporting and timely
remittance of state excise taxes on tobacco products and the discount for stamping
cigarettes from 6% to 3%.
Present law requires cigarette tax stamps to be sold to bonded, registered La. tobacco dealers
who have a direct purchasing contract with a manufacturer at a discount of 6% from the face
value when purchased in quantities of not less than $100 face value. Further requires the
same discount to apply where metered stamping machines or devices are used.
Present law requires the secretary of the Dept. of Revenue to allow out-of-state wholesale
tobacco dealers who have a direct purchasing contract with a manufacturer and who serve
a trade area of retail dealers in this state to purchase La. stamps with the benefit of a discount
that shall not exceed 6% regardless of the discount extended by other states. Further
provides that the amount of the discount shall not exceed the discount received by wholesale
tobacco dealers in their states of domicile.
Proposed law reduces the amount of the discount for in-state wholesale tobacco dealers from
6% to 3% and the discount for out-of-state wholesale tobacco dealers from not to exceed 6%
to not to exceed 3% .
Present law requires every registered tobacco dealer receiving and handling cigars and
smoking tobaccos in this state in which the tax has not been previously paid, to file a report
of the total amount of cigars and smoking tobaccos received and handled during the
preceding month and to pay the taxes due within 20 days after the expiration of each month.
Further requires all out-of-state La. registered tobacco dealers to file a report disclosing all
sales of cigars and smoking tobaccos in this state during the preceding month and to pay the
taxes due.
Present law authorizes a 6% discount for timely and accurately filing the report on
purchases made by registered tobacco dealers in this state who have a direct purchasing
contract with a manufacturer.
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HB NO. 10
Proposed law reduces the amount of the discount for timely and accurately filing the report
on purchases made by registered tobacco dealers in this state from 6% to 3%.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:843(B) and (C)(3) and 851(B)(4)(b))
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are additions.