Louisiana House Bill HB623

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

Increases the state tax on certain tobacco products (OR +$64,000,000 GF RV See Note)

Impact

If enacted, HB 623 will modify the state's current taxation scheme for tobacco products, enhancing state revenue significantly. The projected revenue increase is estimated at around $64 million, which may be allocated to various public health initiatives and programs within Louisiana. Proponents of the bill argue that such increases are essential for addressing the state's public health concerns related to tobacco use, emphasizing that higher taxes could deter usage and contribute to improved health outcomes in the community.

Summary

House Bill 623, sponsored by Representative Katrina Jackson, seeks to amend existing legislation regarding the taxation of tobacco products in Louisiana. Specifically, the bill proposes an increase in taxes levied on certain cigars and cigarettes, adjusting the tax rate on cigars invoiced by manufacturers for $120 per thousand or less from 8% of the invoice price to 15%. Furthermore, the tax on cigarettes would rise from 36 cents to 68 cents per pack. This bill aims to generate additional revenue for the state while also potentially influencing public health outcomes by discouraging tobacco use through higher costs.

Sentiment

The sentiment surrounding HB 623 is mixed, with supporters viewing it as a positive step towards enhancing public health and generating necessary state revenue. Advocates cite the potential benefits of reducing smoking rates among residents and addressing the economic costs associated with tobacco-related health issues. Conversely, some legislators and stakeholders express concerns about the burden that increased taxes may place on consumers, particularly those who are already economically disadvantaged, leading to potential pushback from certain population groups.

Contention

Notable points of contention among legislators focus on balancing public health objectives against economic implications. While many legislators support the health benefits associated with increased tobacco taxes, there is significant concern regarding how these taxes may disproportionately affect low-income populations who rely on tobacco products. Additionally, the debate touches on the effectiveness of taxation as a means to influence behavior and whether the increased revenue will effectively translate into enhanced public health programs or services.