La. Senate committee approves tobacco tax renewal

A proposal to extend 4 cents of Louisiana's tobacco tax, which is set to expire in 2012, easily passed the Senate's tax committee Tuesday despite continued opposition from Gov. Bobby Jindal.

Rep. Harold Ritchie, D-Bogalusa, 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 told the Senate Revenue and Fiscal Affairs Committee. "I think it's important to our budget."

Revenue raised through the tax would be used to leverage additional federal health care funds.

The 4-cent tax applies to cigars, cigarettes, and smokeless tobacco. It generates $12 million annually for the state. Without the renewal, Louisiana's cigarette tax would drop to 32 cents per pack.

Jindal, a Republican, has called it a tax increase and said if the bill passes the Legislature, he will veto it.
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."

Ritchie vowed to oppose any amendments that would increase taxes.

Over Jindal's objections, the Senate Revenue and Fiscal Affairs Committee backed the proposal in a 7-2 vote.

Supporters of the tax renewal are hoping to speed the measure through the Legislature and get it to the governor's desk before the legislative session ends, so they can attempt to override his veto while still in session, without having to call a special veto session.

The House-backed bill heads next to the full Senate for debate. It will need a two-thirds vote to pass - and it would take a two-thirds vote to override a Jindal veto.

Besides the argument the renewal would be a tax hike, critics also say the tax won't keep smokers away from the deadly habit. Some argue that a total ban on tobacco use would be more effective.

"Why wouldn't you have a smoking bill that said tobacco is illegal?" said Buddy Shaw, a Republican from Shreveport.

Ritchie said a ban would be impossible to pass. He and other supporters say increasing the tax would help keep young people from picking up the habit, but Ritchie earlier this session scrapped a bill that would have raised Louisiana's cigarette tax, in addition to renewing the existing tax.

"Anything we can do to deter smoking is really important, especially for our young people," said Sen. Yvonne Dorsey, D-Baton Rouge.