Key points:

• Louisiana House Bill 517 proposes increasing the excise tax on vapor products and electronic cigarettes from $0.15 per milliliter to 33% of the invoice price.​
• Proponents argue the tax hike aims to reduce youth vaping rates, while opponents express concerns about potential economic impacts and cross-border sales.​
• The bill has passed the House Ways and Means Committee and is scheduled for floor debate on April 28, 2025.

The Louisiana House of Representatives is set to debate House Bill 517, legislation that would significantly increase taxes on vapor products and e-cigarettes. The bill, sponsored by Rep. Ken Brass, seeks to raise the excise tax from the current $0.15 per milliliter to 33% of the invoice price. ​

Supporters of the bill, including public health officials, argue that higher prices could deter youth from using vaping products. Eric Weinzettle, director of advocacy for the American Lung Association in Louisiana, testified that a 10% price increase could lead to a 13% to 22% decrease in youth consumption. ​

However, some lawmakers and industry representatives express skepticism about the effectiveness of the tax increase. Rep. Jay Galle stated, “Addictions are rarely deterred by an increase in price.”

Business owners also voice concerns about the potential economic impact. Mike Donahue, CEO of ShopRite, warned that the tax could drive consumers to neighboring states without similar taxes, such as Texas and Mississippi. Amer Elhindi, manager of iRepair & Vape in New Orleans, noted that customers may be unwilling to pay higher prices, potentially affecting sales.​

The bill has passed the House Ways and Means Committee with a 9-6 vote and is scheduled for floor debate on April 28, 2025.

If enacted, the new tax rate would take effect on July 1, 2025. Retailers and wholesalers would be required to file an inventory of all vapor products on hand prior to this date with the Department of Revenue by August 1, 2025.

Louisiana currently ranks 38th in the U.S. for traditional cigarette tax rates, with a tax of $1.08 per pack.