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HB 390

TAX/TOBACCO TAX: Levies an additional tax on cigarettes (OR +$50,000,000 GF RV See Note)

2025 Regular Session Introduced by Mandie Landry

Louisiana HB 390 imposes additional cigarette excise tax projected to generate $50 million in state revenue while increasing tobacco product costs for consumers.

Read by title, under the rules, referred to the Committee on Ways and Means.
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Bill Summary · HB 390

Legislative bill overview

HB 390 proposes an additional excise tax on cigarettes in Louisiana, with an estimated general fund revenue of $50 million. The bill was prefiled in early April 2025 and is currently under committee review in Ways and Means, the standard pathway for tax legislation.

Why is this important

Tobacco taxes directly affect consumer behavior and public health outcomes while generating state revenue. At $50 million in projected revenue, this would represent a significant new income stream for Louisiana's general fund, though it would increase the cost of cigarettes for consumers and potentially impact retail tobacco sales.

Potential points of contention

  • Regressivity concern: Tobacco taxes disproportionately burden lower-income individuals who have higher smoking rates, raising fairness questions about how revenue is raised
  • Economic impact on retailers and manufacturers: Increased taxes may reduce sales volume, affecting tobacco retailers, convenience stores, and potentially state tax collection if elasticity is high
  • Revenue reliability: Declining smoking rates nationally mean projections may overestimate long-term revenue, creating budget planning uncertainty

Compiled from official sources — confirm details with the bill’s official record.

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