Louisiana To Introduce 50-Cent Tax Cap For Premium Cigars
The Bayou State is set to ease the burden on the wallets of cigar smokers. The Louisiana State Legislature recently passed H.B. 325—which was subsequently signed into law by Gov. Jeff Landry last week—that will institute a 50-cent tax cap on the purchase of handmade cigars. The new law will go into effect January 1, 2026.
The bill was sponsored by State Rep. Marcus Bryant, a Democrat representing District 96. The bill states, “Beginning January 1, 2026, through December 31, 2027, upon cigars invoiced by the manufacturer at two thousand five hundred dollars or more per thousand, a tax of fifty cents per cigar.” This effectively means that any cigar with a wholesale price of $2.50 or more will be taxed at 50 cents, and no more. Cigars of a lower value will be taxed at a 20 percent rate. However, as few handmade cigars sell for less than $2.50 wholesale the end result is a tax cap of 50 cents for just about all premium cigars sold in the state.
“Once again, the local leadership of PCA’s retail partners have produced positive legislation that will benefit Louisiana small businesses, and their customers alike,” says Glynn Loope, the Premium Cigar Association’s (PCA) director of state advocacy. PCA also commended a group of local Louisiana tobacconists and distributors, who played an important role in lobbying and advocacy efforts.
PCA also provided testimonial support for the bill to a Louisiana Senate committee. “This positive development in Louisiana is yet another indicator of how the state is supporting its small business community and their patrons,” says PCA executive director Joshua Habursky. PCA, of course, currently has a more vested interest in the state of Louisiana in particular, as it held its annual trade show in New Orleans this year and is scheduled to return to the city next April 17 through 20.
Louisiana is now the third state in the south to recently enact a cigar tax cap, following Arkansas and North Carolina.
