TAX/TOBACCO TAX: Increases the tax levied on smokeless tobacco and dedicates a portion of avails of the tax into the Youth Cessation and Prevention Fund (OR +$8,900,000 GF RV See Note)

HB 398 increases the Louisiana tax on smokeless tobacco from 20% to 33% of the invoice price. It creates the Youth Cessation and Prevention Fund, dedicating 20% of the new tax revenue to this special fund in the state treasury. The fund will allocate 40% to the Louisiana Cancer Research Center, 40% to the Louisiana Department of Health’s Well-Ahead Louisiana Program, and 10% each to two cancer centers, all for evidence-based tobacco prevention and cessation programs targeting youth and adults. The tax increase applies to smokeless tobacco purchased after July 1, 2025, with inventory reporting required for dealers before that date.