House resurrects proposal for higher state tax on tobacco
It is a second go-around for a bill that would raise the tax on tobacco products sold in Louisiana.
House Bill 889 will go before the House Ways and Means committee on Monday, after initially getting rejected in April.
The bill, called the “Louisiana Healthier Families Act,” would affect tobacco products sold in the state raising the tax by 50 cents.
“We’re hopeful it’s going to come through,” said Terry Birkhoff, with the Louisiana American Cancer Society.
The bill’s current version is a far cry from the bill’s previous incarnation, which would have raised the tax by one dollar.
Speaker Pro Tem Karen Carter Peterson said the tax could reduce the smoking rate among young people by seven percent and generate upwards of $127 million a year. Peterson said the money could be used in other areas of the state budget that are now facing cuts.
“It is becoming increasingly clear that our state cannot sustain the vital needs of our Louisianans in the areas of health care and higher education,” she said.
However, Roger Villere, chairman of the Louisiana Republican party, said the tax could hurt small businesses, like independent gas stations and smaller grocery stores.
“We don’t have an income problem, we don’t have a money problem, we have a spending problem in Louisiana – and I think we have to address that first, before we look at any taxes,” Villere said.
He also questioned whether the tax would actually raise the estimated $127 million that supporters say it will.
“Every state that has added these cigarette taxes, it hasn’t raised nearly the amount of money they thought it would raise,” Villere said. “She’s figuring a tax on “nobody’s going to quit smoking.” What I think people are going to do is, some people are going to quit smoking, but some people are going to go out of state and buy their cigarettes in other states where the tax is cheaper.”
Six other states have recently passed similar tobacco tax bills, including Mississippi and Arkansas.
“The bottom line is, it’s going to prevent youth initiation and reduce consumption, so that gives you better health care outcomes and will generate additional money for health care and possibly higher education,” Birkhoff said. “I don’t know how you could be against a bill like this.”
A House committee is set to hear the bill at 9 a.m. on Monday at the state capitol.
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