HB 325: TAX/TOBACCO TAX: Provides for the rate of tax levied on certain cigars (EN -$10,000,000 GF RV See Note) - Louisiana

HB325 Original → HB325 Act 266 · 4 edits

MODERATE

HB 325 was enacted as Act 266, transitioning from a draft bill to an approved law by adding sponsors and official signatures. The core policy change involves a significant restructuring of the cigar tax schedule, introducing a three-tiered system based on invoice price that takes effect on January 1, 2026, replacing the previous single high-tier tax rate.

Scope change

The bill's scope expanded to include four new sponsors (Representatives Deshotel, Jackson, McCormick, and Newell) and the law was formally enrolled and signed into effect by the Governor, moving it from a proposed session bill to an enacted statute.

TIMELINE

The effective date for the new tax structure was moved from July 1, 2025, to January 1, 2026, and the inventory filing deadline was adjusted to December 31, 2025, with reports due by February 1, 2026.

REQUIREMENT

The tax on cigars invoiced over $120 per thousand was replaced with a graduated schedule: a 20% tax for prices between $120 and $2,500 per thousand, a flat $0.50 tax for prices of $2,500 or more, and a return to 20% for prices over $120 starting in 2028.

The inventory filing requirement was updated to count cigars on hand as of December 31, 2025, rather than prior to July 1, 2025.

TECHNICAL

Official legislative metadata was added, including the list of additional sponsors, the Act number (266), and signatures from the Speaker, Senate President, and Governor.

HB325 Enrolled → HB325 Original · 4 edits

MODERATE

HB 325 fundamentally changes the tax structure on high-priced cigars by replacing a percentage-based tax with a flat fee per unit. This shift simplifies the calculation for retailers and potentially reduces the tax burden on expensive cigars while increasing it on cheaper ones. The law also accelerates the effective date from January 2026 to July 2025 and adjusts the inventory filing deadline accordingly.

Scope change

The bill modifies the specific tax rate applied to cigars invoiced at more than $120 per thousand, changing the calculation method from a percentage of the invoice price to a flat fee per cigar.

FISCAL

The tax rate on cigars invoiced over $120 per thousand changed from 20% of the invoice price to a flat fee of 50 cents per cigar.

TIMELINE

The effective date of the new tax rates was moved forward from January 1, 2026, to July 1, 2025.

REQUIREMENT

The deadline for dealers to file an inventory of existing cigars was advanced from February 1, 2026, to August 1, 2025, to align with the new effective date.

ELIGIBILITY

The new tax rules explicitly exempt stamped products and unused tax stamps that were in the possession of wholesale dealers before July 1, 2025.

HB325 Reengrossed → HB325 Enrolled · 3 edits · Jun 11, 2025

MINOR

HB 325 was finalized as an enrolled bill, confirming its passage into law. The core policy changes regarding tobacco taxes remain intact, establishing a two-tiered tax system for cigars based on their manufacturer invoice price. These taxes will take effect on January 1, 2026, and include a new requirement for dealers to file an inventory of their stock by February 1, 2026.

Scope change

The bill's scope regarding tax rates and effective dates remains unchanged from the reengrossed version; the change is purely procedural, moving the document from a draft state to the final enacted version.

TECHNICAL

Removed the 'Reengrossed' status and replaced it with 'Enrolled', indicating the bill has been signed by the Governor and is now official law.

Updated the pagination at the bottom of the document from 'Page 1 of 3' to 'Page 1 of 2', reflecting the final consolidation of the bill text.

Deleted the 'Summary of Amendments Adopted by House' section, which previously listed the specific committee and floor amendments that led to this final version.

HB325 Engrossed → HB325 Reengrossed · 4 edits · Jun 4, 2025

MODERATE

This bill updates the tax structure on high-priced cigars, introducing a tiered system based on the manufacturer's invoice price. It adds a new category for cigars priced between $120 and $2,500 per thousand, which will be taxed at 20% of the invoice price, while raising the threshold for the flat $0.50 per cigar tax to apply only to cigars costing $2,500 or more per thousand.

Scope change

The bill expands the scope of the tax by creating a new middle tier for mid-priced cigars that were previously taxed at the lower rate, while simultaneously raising the price threshold for the highest tax rate.

FISCAL

The tax rate for cigars invoiced between $120 and $2,500 per thousand was modified from a flat $0.50 per cigar to 20% of the invoice price.

The tax rate for cigars invoiced at $2,500 or more per thousand was modified from 20% of the invoice price to a flat $0.50 per cigar.

TIMELINE

The new tax tiers apply to cigars invoiced on or after January 1, 2026, replacing the previous single-tier structure.

SCOPE

The bill now distinguishes between three price tiers based on manufacturer invoice prices: under $120, between $120 and $2,500, and $2,500 or more.

TAX/TOBACCO TAX: Provides for the rate of tax levied on certain cigars (EN -$10,000,000 GF RV See Note)

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