Exempts cigars or smoking tobacco sampled at certain meetings, conventions, and trade shows from the tobacco tax (OR -$50,000 GF RV See Note)
Impact
The bill is expected to influence state revenue derived from tobacco taxes by reducing the taxable amount during specified events. Under existing legislation, all tobacco products, when distributed or sampled, are subject to taxation. However, by exempting these products at professional gatherings, HB 450 seeks to promote trade shows and conventions, possibly leading to an increase in marketing opportunities for tobacco vendors while simultaneously aligning with industry practices during such events.
Summary
House Bill 450, proposed by Representative Leger, aims to amend the existing tobacco tax law in Louisiana by creating an exemption for cigars and smoking tobacco that are sampled at designated meetings, conventions, and trade shows. These events must be produced or organized by tobacco-related businesses, trade show companies, or associations affiliated with the tobacco industry. The bill specifies that while the general excise tax on tobacco remains intact, this exemption would apply specifically during those particular events, thereby allowing sampling without the imposition of tobacco tax for that context.
Sentiment
The sentiment surrounding HB 450 reflects a mixture of support and concern. Supporters, primarily within the tobacco industry, view the bill positively as it could foster growth and attract more trade shows to Louisiana, providing a platform for showcasing their products. Opponents may argue about the potential public health implications of easing tobacco regulations, emphasizing that it sends a conflicting message about smoking and tobacco use, particularly in contexts where public health advocacy is critical.
Contention
Notable points of contention arise from the potential impacts on public health initiatives. Critics of HB 450 argue that exempting tobacco from taxes during these specific events may undermine ongoing efforts to reduce tobacco usage and its associated health risks. They contend that such exemptions could be interpreted as tacit support for tobacco consumption in professional settings, creating a contradiction with health campaigns aimed at mitigating tobacco dependency. The discussions around this bill underscore the ongoing debates between economic interests in the tobacco sector and public health priorities.
Temporarily exempts from tobacco tax cigars and smoking tobacco sampled during the Convention of the International Premium Cigar and Pipe Retailers. (8/15/11) (EN -$50,000 GF RV See Note)
Provides that certain tobacco products sampled at convention facilities during professional meetings and trade shows shall be excepted from the intent and purposes of the tobacco tax
Extends the tax exemption period for cigars and pipe tobacco products sampled at the Premium Cigar Association convention (EN SEE FISC NOTE GF RV See Note)
Provides for the name of the organization sampling cigars or pipe tobacco on the premises of certain convention facilities (OR NO IMPACT GF RV See Note)
Extends the excise tax exemption for cigars or pipe tobacco products sampled during the Convention of the International Premium Cigar and Pipe Retailers Association (EN SEE FISC NOTE GF RV See Note)
Exempts from state excise and sales taxes certain items given free of charge as samples at conventions, trade shows, and similar events (EN +$555,779 GF EX See Note)
Suspends, from Aug. 10, 2010, through Aug. 13, 2010, the state excise tax on cigars and smoking tobacco given away by a dealer (EN -$45,000 GF RV See Note)
Removes the sunset on a portion of the tax levied on cigarettes and increases the tax on cigars, cigarettes, smoking tobacco, and smokeless tobacco (OR +$121,900,000 GF RV See Note)
Continues a portion of the excise tax levied on cigarettes in statute and authorizes a reduced excise tax rate on certain tobacco products (OR DECREASE GF RV See Note)