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Senators Fire Volley Over Cigarette Tax

The Legislature is challenging Gov. Bobby Jindal’s pledge to veto the renewal of a 4-cents-a-pack cigarette tax that would expire in 2012.

Senators voted 29-8 Thursday to approve HB591 by Rep. Harold Ritchie, D-Bogalusa, which House members earlier approved 70-30. A two-thirds vote (26 in the Senate, 70 in the House) is the minimum vote required for a tax bill to pass.

Jindal has labeled it a tax increase and, through spokesman Kyle Plotkin, renewed his intention to reject the measure. Many lawmakers disagree with the governor’s interpretation that it’s an increase.

“This is the right thing to do. This is the right time to do it,” said Senate President Joel Chaisson, D-Destrehan, who handled Ritchie’s bill on the Senate floor.

The tax produces about $12 million a year that currently goes into the state general fund. As amended by the House, the bill dedicates the revenue to health care programs that are eligible for federal matching funds.

“We’re talking about $50 million for health care simply by renewing a tax that’s to expire,” Chaisson said.

Asked about the governor’s veto threat, Chaisson answered “We are a co-equal branch of government. What he will or will not do has nothing to do with what is the right thing to do.”

Jindal has 10 days from when he formally receives the legislation to either veto or sign the bill.

With the Legislature in session until June 23, that would give lawmakers at least a week to assemble forces in an attempt to override the governor’s veto.

An override would require the same two-third vote that the bill took to be approved.
The bill passed with three votes to spare in the Senate, but it was approved with not a vote to spare in the House, so that’s the likely place for failure. The governor’s office is certain to be rallying support to uphold the veto.

Only one veto override attempt has been successful.

Legislators overrode former Gov. Buddy Roemer’s veto of an abortion bill that was later thrown out by the U.S. Supreme Court.

Sen. Robert Adley, R-Benton, was among the senators who opposed renewing the tax that was originally adopted 11 years ago.

“I understand the need for this tax,” Adley said. But he couldn’t vote for the renewal because “I voted no the first time” the tax was approved. “It was a temporary tax.”

Ritchie said that if the bill is vetoed and the Legislature doesn’t override, Louisiana will be the only state to lower its cigarette tax.

At the current 36 cents a pack, Louisiana has the third lowest rate in the nation. Without the renewal, it would drop to 32 cents, just 2 cents more than Virginia and 15 cents more than Missouri, by far the lowest in the nation, but $1.12 a pack less than the national average. It would be 16.5 cents less than the average in the major cigarettes-producing states.

In the region, Louisiana has the lowest cigarette tax. Texas assesses $1.12 a pack, Arkansas $1.15 and Mississippi 68 cents.

The $12 million generated by the 4-cent tax that would have to be cut out of the budget to be considered a year from now if Jindal vetoes the bill.

Ritchie said he believes failure to renew the tax would make cigarettes more attractive to young people.

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