RS 924 - Issuance of minimum price of cigarettes
A. The commissioner shall post on the website maintained by the office of alcohol and tobacco control the minimum wholesale and retail prices schedule of each cigarette brand within five business days of the effective date of the manufacturer's, importer's, or sales entity affiliate's price change.
B. Every manufacturer, importer, or sales entity affiliate of cigarettes sold within Louisiana shall notify the commissioner, in writing, of any price change to any cigarette brand resulting from trade discounts, rebates, or coupons by the twenty-eighth day of the month preceding the effective date of the price changes resulting from trade discounts, rebates, or coupons and any such price change shall be valid for at least thirty days. Any price change not provided to the commissioner as required herein shall not be included in the commissioner's price schedule and shall not be computed in determining the minimum retail prices for the product. No wholesale or retail dealer shall sell any cigarette brand at any price less than allowed in the minimum pricing schedule provided by the commissioner.
C. The minimum wholesale and retail price of all cigarettes sold within Louisiana shall be computed as follows:
(1) "Cost to the wholesaler" means the invoice cost or the replacement cost of the merchandise to the wholesaler, whichever is lower:
(a) Less all trade discounts except customary discounts for cash and discounts from the state or any governmental agency allowed for the payment of collection of any taxes;
(b) Plus the cost of doing business by the wholesaler, including freight charges and cartage costs presumed to be one percent of the invoice cost of cigarettes, and any fraction of cent shall be rounded to the next highest cent;
(c) Plus any existing tobacco stamp excise tax;
(d) Plus a markup of three percent; and
(e) Less any coupons or rebates, as defined in this Chapter which are required, either directly or indirectly, to be passed on to the retail dealer.
(2) "Cost to the retailer" means the invoice cost or the replacement cost of the merchandise to the retailer, whichever is lower:
(a) Less all trade discounts;
(b) Plus the cost of doing business by the retailer including freight charges and cartage, presumed to be one percent of the invoice cost of cigarettes, and any fraction of cent shall be rounded to the next highest cent;
(c) Plus a markup of six percent; and
(d) Less any coupons, rebates, or other incentives, as defined in this Chapter, which are required, either directly or indirectly, to be passed on to the retail dealer and are ultimately refunded to the retailer by the manufacturer, importer, sales entity affiliate, or wholesale dealer.
(3) In determining "cost to the retailer" in those cases where the retailer buys at wholesale and receives the wholesalers' profits and discounts on merchandise to be sold at retail, both the wholesale markup of three percent and the retail markup of six percent, in the absence of proof of a lesser cost, shall be added to cover a proportionate part of the cost of doing business.
(4) When one or more items are advertised, offered for sale, or sold with one or more other items at a combined price, or are advertised, offered as a gift, or given with the sale of one or more items, each and all of the items shall for the purposes of this Subsection be considered, advertised, offered for sale, or sold, and the price of each item shall be governed by the provisions set forth herein.
(5) "Cost to the retailer" and "cost to the wholesaler" as defined by this Chapter means bona fide costs. Purchases made by retailers and wholesalers at prices which cannot be justified by prevailing market conditions within this state shall not be used in determining "cost to the retailer" and "cost to the wholesaler".
(6) Failure to comply with these provisions may result in penalties up to and including the suspension or revocation of the wholesale or retail dealer's permit.
Acts 1997, No. 1370, §2, eff. Oct. 1, 1997; Acts 2006, No. 454, §1, eff. June 15, 2006; Acts 2015, No. 406, §1.