House Bill No. by Representative Brass proposes an increase in the tax on smokeless tobacco from 20% to 33% of the invoice price. This bill also establishes the "Youth Cessation and Prevention Fund" as a special fund in the state treasury, which will receive 20% of the avails from the newly imposed tax. The fund is intended to support evidence-based practices aimed at preventing and assisting with the cessation of tobacco, nicotine, and e-cigarette use among youth and adults. The appropriations from this fund will be allocated as follows: 40% to the Louisiana Cancer Research Center, 40% to the Louisiana Department of Health for its tobacco-related disease program, and 10% each to the Cancer Center of Louisiana State University Health Sciences Center and the Mary Bird Perkins Cancer Center.

The bill outlines that the increased tax will apply to all smokeless tobacco products purchased by retail and wholesale dealers starting July 1, 2025, while exempting stamped products and unused tax stamps in possession prior to that date. Additionally, all dealers are required to file an inventory of smokeless tobacco products on hand before the tax takes effect. The bill aims to enhance public health initiatives related to tobacco use and ensure that funding for these initiatives does not replace existing state general fund appropriations.

Statutes affected:
HB398 Original: 47:841(E)