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 398 Original 2025 Regular Session Brass
Abstract: Increases the excise tax levied on smokeless tobacco from 20% of the invoice price to
33% of the invoice price and dedicates a portion of the avails of the tax levied on smokeless
tobacco to the Youth Cessation and Prevention Fund to be used to address youth and adult
prevention and cessation of tobacco product use.
Present law provides for the levy of a tax upon the sale, use, consumption, handling, or distribution
of all smokeless tobacco. The rate of tax is 20% of the invoice price of smokeless tobacco.
Proposed law increases the tax levied on smokeless tobacco from 20% of the invoice price to 33%
of the invoice price.
Proposed law establishes the "Youth Cessation and Prevention Fund", (fund) as a special fund in the
state treasury. After satisfying present constitution requirements relative to the Bond Security and
Redemption Fund, the state treasurer shall annually deposit into the fund an amount equal to 20%
of the avails of the tax imposed on smokeless tobacco
Proposed law requires monies in the fund to be spent on evidence-based practices addressing youth
and adult prevention and cessation of tobacco, nicotine, and e-cigarette product use. Further requires
monies to be appropriated from the fund as follows:
(1)40% to the La. Cancer Research Center.
(2)40% to the La. Dept. of Health, Office of Public Health, Bureau of Chronic Disease
Prevention and Healthcare Access, for the tobacco related disease program administered by
the Well-Ahead La. Program.
(3)10% to the Cancer Center of La. State University Health Sciences Center in Shreveport.
(4)10% to the Mary Bird Perkins Cancer Center in Gonzales.
Proposed law prohibits amounts appropriated to the fund from displacing, replacing, or supplanting
appropriations from the state general fund for the recipients of the fund.
Proposed law provides that the increase in the tax imposed on smokeless tobacco shall apply to all
smokeless tobacco products purchased by retail dealers and wholesale dealers on and after July 1,
2025, and shall not apply to stamped products and unused tax stamps in the possession of wholesale dealers prior to July 1, 2025. All wholesale and retail dealers are required to file an inventory with
the secretary of the Dept. of Revenue of all smokeless tobacco products on hand prior to July 1,
2025. The inventory shall be filed by Aug. 1, 2025.
Effective July 1, 2025.
(Amends R.S. 47:841(E); Adds R.S. 47:841.2)