Bill > HB668

This bill amends Louisiana's tobacco tax laws by continuing an existing excise tax on cigarettes and introducing new provisions for tax rates on modified risk tobacco products. Specifically, the bill maintains the current multi-tiered cigarette tax structure, which imposes taxes ranging from sixteen-twentieths to two and ten-twentieths of one cent per cigarette. The bill introduces a novel tax reduction mechanism for certain tobacco products approved by the U.S. Food and Drug Administration (FDA), offering a 60% tax rate reduction for products issued a risk modification order and a 25% reduction for products with an exposure modification order. Additionally, the bill updates numerous definitions related to tobacco products, including expanding the definition of "cigarette" to include rolls for smoking or heating, and clarifies terms like "invoice price" and "trade discounts". The bill also provides detailed guidance on how tobacco taxes should be calculated, particularly for promotional incentives and different types of tobacco products. The new tax provisions will become applicable to taxable periods beginning on or after July 1, 2025, ensuring a clear implementation timeline for businesses and tax authorities.