House Bill No. by Representative Bryant proposes an amendment to the tobacco tax law in Louisiana, specifically targeting the tax rate on certain cigars. The bill changes the tax levied on cigars invoiced by manufacturers at more than $120 per 1,000 from 20% of the invoice price to a flat rate of 50 cents per cigar. This adjustment aims to simplify the tax structure for higher-priced cigars while retaining the existing tax rate of 8% for cigars invoiced at $120 per 1,000 or less.

The new tax rate will take effect on July 1, 2025, and will apply to all cigar products purchased by retail and wholesale dealers from that date forward. However, it will not affect stamped products and unused tax stamps held by wholesale dealers prior to this date. Additionally, all wholesale and retail dealers are required to file an inventory of their cigar stock with the Department of Revenue by August 1, 2025, to ensure compliance with the new tax regulations.

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