Revenue committee reports a slate of bills favorable, from sports-wagering tax rise to tobacco prevention funding

Today the Senate Committee on Revenue and Fiscal Affairs reported a number of bills favorable after hearings that ranged from brief presentations to extended debate.

Top outcomes in brief: House Bill 639 (online sports wagering tax increase) was reported favorable after the sponsor and industry negotiators described a compromise increase in the effective tax rate on online sports wagering from 15% to 21.5%. House Bill 669 (statutory cleanup on taxation authority for tobacco products) was reported favorable while advocates and industry representatives discussed definitions for modified-risk products. House Bill 163 (restructuring and renaming the Exploited Children’s Fund as the Survivor Special Fund) was reported favorable on a unanimous voice vote. The committee also advanced measures on inventory tax credits (HB 383), a vape prevention and cessation funding dedication (HB 517) and multiple insurance and tobacco-related items. Several of the measures were carried forward by unanimous consent; one recorded vote advanced a cigar-tax change.

Key bills and committee actions (selected):

- House Bill 639 — sports wagering tax (Representative Reiser): The bill raises the tax on online sports wagering. Reiser said the negotiated change lifted the tax rate from 15% to 21.5% while leaving promotional caps untouched. Senator Katz and others praised the university athletic directors for agreeing on an allocation methodology. Committee action: reported favorable by unanimous consent.

- House Bill 669 — tobacco taxation/statutory cleanup (Representative Reiser): Sponsor described the bill as restoring statutory language inadvertently removed during a special session and as enabling taxation that maintains compliance with the Master Settlement Agreement. Philip Morris representative Jake Jacobs testified about industry products seeking a clear statutory definition and excise treatment for modified-risk tobacco products; health groups (American Cancer Society, American Lung Association) recorded opposition cards and said they would provide information if requested. Committee action: reported favorable by unanimous consent.

- House Bill 163 — Survivor Special Fund (Representative Dickerson): The bill renames and restructures the Exploited Children’s Fund as the Survivor Special Fund and dedicates mandatory assessment revenue into a new distribution: administrative cap of up to 10% for the governor’s Office of Human Trafficking and Prevention and the remainder to frontline services (child advocacy centers, the state domestic violence coalition, and accredited sexual assault centers). Testimony from the Governor’s Office on Human Trafficking and partners emphasized that funds are not from general revenue but from assessments on certain convictions. Committee action: reported favorable by unanimous consent.

- House Bill 383 — inventory tax credit phaseout (Representative Brass): The bill would prevent an immediate fiscal cliff when the inventory tax credit sunsets in 2026 by creating a short runway. The committee adopted an amendment shortening industry’s requested runway to a one-year phase-out (the committee-level compromise preserves a transition). The fiscal office projected phased impacts across filings; sponsors said they would continue work with local governments and stakeholders. Committee action: reported favorable as amended by consent.

- House Bill 517 — vaping/tobacco prevention fund (Representative Brass): The bill would dedicate a share (20%) of smokeless tobacco and related revenues to evidence-based prevention and cessation programs (40/40/10/10 distribution among identified state programs and agencies). Advocates (Louisiana Public Health Institute, American Lung Association) said Louisiana’s youth vaping rate is among the highest in the nation and urged dedicated funding. Senators raised questions about oversight, reporting, audits and the program’s size; sponsors signaled willingness to add reporting and watchdog language. Committee action: reported favorable by consent; members asked the sponsor to continue work on audit and reporting provisions and offered a possible reduced initial appropriation as a compromise.

- House Bill 325 — premium cigars taxation (Representative Bryant): The measure would change tax treatment for premium cigars, replacing an ad-valorem approach with a flat per-cigар charge intended to capture online purchases and align Louisiana with other states. Public health groups (American Lung Association, American Cancer Society) opposed the bill, arguing tax reductions on tobacco increase use and related health costs. The committee recorded a roll-call vote: the substitute motion to report the bill favorable carried (5 yeas, 4 nays); the committee recorded the tally on the record.

- House Bill 600 / HB 495 / HB 518 — energy/severance package (Representative Guymon and related bills): Committee members heard a multi-bill package that would reduce the oil severance rate for newly drilled oil wells while shortening the horizontal-drilling exemption for gas wells (from 24 months to 18 months) and address audit/implementation language. Supporters said the package is intended to improve competitiveness for new investment and to balance revenue impacts across a five-year forecast; local officials and industry representatives supported parts of the package as a path to retain and attract investment. Senators stressed the complexity and long-term fiscal uncertainty, asked about audit provisions and permitted a technical amendment tying the effective dates of the companion bills. Committee action: the bills were reported as amended (package language and a technical “tie” amendment were adopted).

Other committee business: The committee also approved convenience-fee requests from the Department of Agriculture and Forestry and the Louisiana Board of Veterinary Medicine to allow online payments with a merchant convenience charge; both were approved by unanimous consent.

What to watch: Several bills were advanced with requests to refine reporting, auditing, and sunset or phase-in language before floor consideration. Senators repeatedly asked for clearer fiscal offsets on revenue-shifting measures and for explicit audit and accountability language on dedicated funds.

Ending: Members said they will continue negotiations on technical language and fiscal offsets as bills move from committee to floor calendars; sponsors were generally receptive to added reporting and audit language where senators requested it.