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Senate approves measure clarifying cigarette tax language and defining heated tobacco products after tax-change amendment fails
Summary
The Louisiana Senate passed a bill that reaffirms the state cigarette excise tax in statute and adds a statutory definition for heated (modified-risk) tobacco products. An amendment to impose a reduced excise rate on the FDA-authorized product failed after extended questioning about youth use and fiscal impacts.
The Louisiana State Senate passed House Bill 6 69 on third reading after a lengthy debate over how to tax and define heated tobacco products, a category that includes FDA-authorized devices marketed as reduced- risk alternatives to combustible cigarettes.
Senator Kathy, sponsor of the amendment proposals and speaking for the bill on the Senate floor, said the measure moves the existing cigarette excise tax language into statute and — by amendment — would create a statutory category for “modified tobacco products” that heat tobacco without burning it. “This amendment simply puts an excise tax at 75% of what we currently charge cigarettes today because this, again, is not a cigarette,” Senator Kathy said while explaining a proposed reduced rate for the FDA-authorized product.
The debate centered on two issues: whether the bill should allow a new, FDA-authorized heated tobacco product to be sold in Louisiana and, if so, at what excise rate. Opponents questioned the public-health implications and the sufficiency of available evidence. Senator Edmonds said he was not ready to support rapid adoption given vaping’s history and concerns about youth uptake: “I do feel like in my profession we have seen an overwhelming amount of problems as it was late to vaping … so today I'm gonna check for that reason,” he said.
Senators also discussed technical constraints tied to the Master Settlement Agreement and state tax law. Senator Kathy told colleagues the master settlement requires an excise tax on any tobacco product sold in the state and said the agreement currently yields about $190,000,000 annually. She also described the bill’s baseline tax treatment: “The bill in itself just deals with the tax on regular cigarettes,” she said, noting the existing excise rate referenced on the floor as $1.08 per pack and an “extra 4¢” placement in statute.
On procedure, the Senate voted first on Senator Kathy’s amendment to set the excise tax for FDA-authorized heated tobacco products at 75% of the current cigarette excise rate. That amendment failed in a roll call, 13 in favor and 22 opposed. A subsequent amendment that added a statutory definition for heated tobacco products was adopted on the floor. After additional technical amendments asked for by the Department of Revenue were accepted, the Senate moved the bill to third reading and passed it unanimously on the third-reading vote, 36-0.
Supporters argued the change permits an FDA-authorized product that is marketed as a smoking-cessation or reduced-risk alternative to enter the Louisiana market under a clear tax and regulatory framework; opponents urged caution given uncertainties about long-term public-health effects and potential youth appeal. The bill’s passage places the statutory language and definitions into state law; implementation details and any regulatory actions will depend on subsequent work by state agencies and the effect of federal FDA authorizations.
The Senate did not adopt the tax-reduction amendment, and senators who raised questions said available data on long-term effects and youth exposure were not yet sufficient to justify lowering the tax. The measure now proceeds according to the Legislature’s calendar and statutory processes for enrollment and return to the House as required.
