The senate finance committee inserted an amendment to raise the tax, which the legislative conference committee removed. 

By John B. VIrata

The International Premium Cigar and Pipe Retailers Association last week announced that it has defeated a 5 percent tax increase on premium cigars in Louisiana. Cigars in the Bayou state are currently taxed at 20 percent of their wholesale price. The state legislature initially considered a bill to add an additional 5 percent to the 20 percent tax , but the legislature didn’t include it in the 2015-2016 fiscal year.

House Bill 119 had an amendment included that the Senate Finance Committee added that would have taxed cigars in Louisiana at 25 percent. The state’s legislative conference committee, under pressure from the Cigar Association of America and the International Premium Cigars & Pipe Retailers association removed the cigar tax from the final version of the bill. Cigarettes however will be subject to a $0.50 tax hike. The bill is now on Louisiana Gov. Bobby Jindal’s desk, which he is expected to sign.