This bill amends R.S. 47:841(A)(2) to modify the tax rates applied to certain cigars in Louisiana. Specifically, it establishes a tiered tax structure for cigars invoiced by manufacturers at different price points. Before January 1, 2026, a tax of twenty percent will be levied on cigars priced over one hundred twenty dollars per thousand. From January 1, 2026, to December 31, 2027, cigars priced between one hundred twenty and two thousand five hundred dollars per thousand will continue to be taxed at twenty percent, while those priced at two thousand five hundred dollars or more will incur a tax of fifty cents per cigar. After January 1, 2028, the tax will revert to twenty percent for cigars priced over one hundred twenty dollars per thousand.

Additionally, the bill requires all wholesale and retail dealers to file an inventory of all cigars on hand as of December 31, 2025, by February 1, 2026. This inventory will help ensure compliance with the new tax structure that takes effect on January 1, 2026. The Secretary of the Department of Revenue is granted the authority to adopt rules and regulations regarding the inventory report filing process.

Statutes affected:
HB325 Original: 47:841(A)(2)
HB325 Engrossed: 47:841(A)(2)
HB325 Reengrossed: 47:841(A)(2)
HB325 Enrolled: 47:841(A)(2)
HB325 Act 266: 47:841(A)(2)