Bill > HB325

This bill modifies the tax rates on cigars in Louisiana, introducing a new tiered structure for cigar taxation that will take effect on January 1, 2026. Currently, cigars invoiced by manufacturers at over $120 per thousand are taxed at 20% of the invoice price. The bill establishes a new tax scheme with different rates based on the manufacturer's invoice price: from January 1, 2026, through December 31, 2027, cigars invoiced between $120 and $2,500 per thousand will continue to be taxed at 20% of the invoice price, while cigars invoiced at $2,500 or more per thousand will be taxed at a flat rate of 50 cents per cigar. Beginning January 1, 2028, the tax will revert to the original 20% rate for cigars invoiced at more than $120 per thousand. The bill also requires wholesale and retail dealers to file an inventory of cigars on hand as of December 31, 2025, with the Department of Revenue by February 1, 2026, allowing the department to establish rules for this reporting process.

Budget and Finance

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB325&sbi=y