Press Releases

New Tobacco Tax Rate Effective July 1, 2000

Act 32 raises the tax on cigarettes and smokeless tobacco

June 29, 2000

BATON ROUGE - A higher tax rate on cigarettes and smokeless tobacco goes into effect on July 1, 2000, according to Department of Revenue Secretary Cynthia Bridges.

Bridges says that Act 32 of the 2000 Regular Session of the Louisiana Legislature increases the tax on individual cigarettes by four-twentieths of one cent (four cents per pack). She adds that the new tax rate on smokeless tobacco is 20 percent of the manufacturer''s invoice price as invoiced to the Louisiana Tobacco dealer. Act 32 goes into effect Saturday, July 1, 2000.

Although Act 32 goes into effect July 1, it provides that the cigarette tax increase is not to be applicable to stamped products and unused tax stamps that are in the possession of wholesale dealers prior to August 1, 2000. Bridges says this means that the tax increase on cigarettes really won''t take effect until August 1 because the Act states the tax will apply only to tobacco products purchased by retail dealers and wholesale dealers on or after August 1, 2000. However, Bridges stresses that the new tax rate on smokeless tobacco does go into effect on July 1 when the act becomes effective.

Dealers should note that the Act does not require a floor stock tax, so an inventory is not required, other than the normal monthly inventory noted on the tobacco tax return that is filed with the Department of Revenue monthly. Bridges says her Department will supply new schedules (Form R-5604B) to wholesale dealers prior to the August 21, 2000 due date.

Information about the new tobacco tax rates may be obtained by contacting the Excise Taxes Division of the Louisiana Department of Revenue at (225) 925-7656.