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New Orleans Cigar Tax Increase Bill Fails

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A bill in the Louisiana State Legislature that would have allowed Orleans Parish to charge an additional tax on cigars failed by a 6-7 vote in the House Municipal, Parochial and Cultural Affairs Committee on Wednesday afternoon. House Bill 1120, which was introduced by State Rep. Helena Moreno, D-New Orleans, would have allowed the parish to tack on an 80-cent tax to the sale of each tobacco product, with estimates that it would have generated upwards of $27 million per year in additional revenue that would have been used to broadly fund projects and policies under the direction of New Orleans Mayor Mitch Landrieu and his administration. Landrieu has sought tax increases in two additional areas, including a 1.75 increase in the occupancy tax rates on hotels and motels in New Orleans, as well as a 1 mill increase on property taxes to fund pay for fire and police workers. The hotel tax passed the committee and now heads to the house floor, while the property tax bill is scheduled for a vote on Thursday.  

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