House Bill No. by Representative Brass proposes an increase in the excise 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 within the state treasury, which will receive 20% of the tax revenues generated from the smokeless tobacco tax. The funds will be allocated to various organizations focused on tobacco prevention and cessation efforts, including the Louisiana Cancer Research Center and the Louisiana Department of Health's tobacco-related disease program.

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 must file an inventory of smokeless tobacco products on hand before the tax increase by August 1, 2025. The legislation aims to enhance public health initiatives related to tobacco use among youth and adults while ensuring that appropriations from the fund do not replace existing state general fund allocations for the same purposes.

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