House Bill No. 325, introduced by Representative Bryant, amends the tax structure for certain cigars in Louisiana. The bill modifies the tax rate on cigars invoiced by manufacturers at more than $120 per thousand. Until January 1, 2026, the tax will remain at 20% of the invoice price. However, from January 1, 2026, through December 31, 2027, the tax will change to a flat rate of 50 cents per cigar. After December 31, 2027, the tax will revert to 20% of the invoice price. Additionally, the bill requires retail and wholesale dealers to file an inventory of all cigars on hand as of December 31, 2025, by February 1, 2026.

The effective date for these changes is set for January 1, 2026. The bill retains the existing tax structure for cigars invoiced at $120 per thousand or less, which remains at 8% of the invoice price. The legislation aims to adjust the tax rates to potentially increase revenue from cigar sales while ensuring compliance from dealers regarding their inventory.

Statutes affected:
HB325 Original: 47:841(A)(2)
HB325 Engrossed: 47:841(A)(2)