$1.54 Cigarette Tax Proposed In Louisiana

State Rep. Harold Ritchie has proposed a $1.54 cigarette tax in Louisiana, which is more than 4 times what the tax is now.

The current tax on cigarettes is 36 cents per pack, the third lowest taxation in the nation.

Louisiana is struggling to close the gap on a $1.6 billion state budget hole. Rep. Ritchie, who is a smoker, both proposed constitutional amendment, and a separate statutory law change to hike the tax to the national average of $1.54.

Constitutional amendments require a two-thirds vote of approval by the Legislature, and then submission to the voters for approval. Gov. Bobby Jindal opposes tax increases, but a constitutional amendment is veto proof from him.

A statutory law would need a simple majority vote for passing, but Jindal would be allowed to veto.

The Budget Project said raising the tax by $1.25 a pack would generate $230 million that could be used “to stave off state budget cuts.”

“More importantly, it would help encourage 46,000 adults to quit smoking and keep 36,700 teenagers from taking up the habit. That would lead to $1.57 billion in long-term health care savings, including more than $500 million for Medicaid.”

In Louisiana alone, cigarette smoking costs tax payers almost $700 million. That's equivalent to roughly $403 per household.