Louisiana Committee Approves Tobacco Tax Renewal

Despite a veto threat, a Louisiana Senate tax committee backs a proposal to renew a 4-cent per pack state cigarette tax.

June 02, 2011

BATON ROUGE, LA - Despite facing opposition from Gov. Bobby Jindal, Louisiana€™s Senate tax committee easily passed a proposal to extend 4 cents of Louisiana€™s cigarette tax, which is set to expire in 2012.

State Rep. Harold Ritchie, sponsor of the tax renewal, said the House-approved extension would help fund health care needs that arise from tobacco use in the state.

"I think it's important to our young people," Ritchie said. "I think it's important to our budget."

The 4-cent tax generates $12 million annually for the state. Without the renewal, the state€™s cigarette tax would drop to 32 cents per pack.

Jindal has characterized the proposal as a tax increase and promised to veto it if it passes the Legislature.

"By reenacting this portion of the tax, we would be increasing the tax burden on Louisiana citizens," said Rina Thomas, a policy adviser for the governor. "In addition, we have been concerned and remain concerned that this bill could become a vehicle for additional tax increases."

Over the governor€™s objections, the Senate Revenue and Fiscal Affairs Committee backed the proposal in a 7 to 2 vote.

Proponents of the tax renewal hope to speed the measure through the Legislature, allowing sufficient time to override the governor€™s expected veto before the legislative session ends. Otherwise, they would have to call a special veto session.

The bill next heads to the Senate for full debate where it needs a two-thirds vote to pass.

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