§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 chan
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§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.