Bill Text: MS HB1675 | 2019 | Regular Session | Introduced


Bill Title: Cigarettes; increase excise tax on.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2019-02-27 - Died In Committee [HB1675 Detail]

Download: Mississippi-2019-HB1675-Introduced.html

MISSISSIPPI LEGISLATURE

2019 Regular Session

To: Public Health and Human Services; Ways and Means

By: Representative Lamar

House Bill 1675

AN ACT TO AMEND SECTION 27-69-13, MISSISSIPPI CODE OF 1972, TO INCREASE THE EXCISE TAX ON CIGARETTES; TO AMEND SECTION 27-69-75, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A PORTION OF THE REVENUE DERIVED FROM THE EXCISE TAX ON CIGARETTES SHALL BE DEPOSITED INTO THE SPECIAL ACCOUNT IN THE STATE TREASURY TO THE CREDIT OF THE DIVISION OF MEDICAID; TO STATE THE INTENTION OF THE LEGISLATURE THAT BEGINNING WITH FISCAL YEAR 2021, THE AMOUNT OF THE GENERAL FUND AND/OR STATE SUPPORT SPECIAL FUNDS APPROPRIATION TO THE DIVISION OF MEDICAID SHALL BE REDUCED BY AN AMOUNT EQUAL TO THE AMOUNT OF CIGARETTE EXCISE TAX REVENUE DEPOSITED INTO THE SPECIAL ACCOUNT TO THE CREDIT OF THE GOVERNOR'S OFFICE - DIVISION OF MEDICAID; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Section 27-69-13, Mississippi Code of 1972, is amended as follows:

     27-69-13.  There is hereby imposed, levied and assessed, to be collected and paid as hereinafter provided in this chapter, an excise tax on each person or dealer in cigarettes, cigars, stogies, snuff, chewing tobacco, and smoking tobacco, or substitutes therefor, upon the sale, use, consumption, handling or distribution in the State of Mississippi, as follows:

          (a)  On cigarettes, the rate of tax shall be * * *Three and Four‑tenths Cents (3.4¢) Five and Nine-tenths Cents (5.9¢) on each cigarette sold with a maximum length of one hundred twenty (120) millimeters; any cigarette in excess of this length shall be taxed as if it were two (2) or more cigarettes.  Provided, however, if the federal tax rate on cigarettes in effect on June 1, 1985, is reduced, then the rate as provided herein shall be increased by the amount of the federal tax reduction.  Such tax increase shall take effect on the first day of the month following the effective date of such reduction in the federal tax rate.

          (b)  On cigars, cheroots, stogies, snuff, chewing and smoking tobacco and all other tobacco products except cigarettes, the rate of tax shall be fifteen percent (15%) of the manufacturer's list price.

     No stamp evidencing the tax herein levied on cigarettes shall be of a denomination of less than One Cent (1¢), and whenever the tax computed at the rates herein prescribed on cigarettes shall be a specified amount, plus a fractional part of One Cent (1¢), the package shall be stamped for the next full cent; however, the additional face value of stamps purchased to comply with taxes imposed by this section after June 1, 1985, shall be subject to a four percent (4%) discount or compensation to dealers for their services rather than the eight percent (8%) discount or compensation allowed by Section 27-69-31.

     Every wholesaler shall purchase stamps as provided in this chapter, and affix the same to all packages of cigarettes handled by him as herein provided.

     The above tax is levied upon the sale, use, gift, possession or consumption of tobacco within the State of Mississippi, and the impact of the tax levied by this chapter is hereby declared to be on the vendee, user, consumer or possessor of tobacco in this state; and when said tax is paid by any other person, such payment shall be considered as an advance payment and shall thereafter be added to the price of the tobacco and recovered from the ultimate consumer or user.

     SECTION 2.  Section 27-69-75, Mississippi Code of 1972, is amended as follows:

     27-69-75.  All taxes levied by this chapter shall be payable to the commissioner in cash, or by personal check, cashier's check, bank exchange, post office money order or express money order, and shall be deposited by the commissioner in the State Treasury on the same day collected.  No remittance other than cash shall be a final discharge of liability for the tax herein assessed and levied, unless and until it has been paid in cash to the commissioner.

     Except as otherwise provided in this section, all tobacco taxes collected, including tobacco license taxes, shall be deposited into the State Treasury to the credit of the General Fund.  Forty-two percent (42%) of the revenue collected from the excise tax imposed on cigarettes under Section 27-69-13 shall be deposited into the special account in the State Treasury to the credit of the Governor's Office - Division of Medicaid authorized in Section 43-13-113.

     Wholesalers who are entitled to purchase stamps at a discount, as provided by Section 27-69-31, may have consigned to them, without advance payment, such stamps, if and when such wholesaler shall give to the commissioner a good and sufficient bond executed by some surety company authorized to do business in this state, conditioned to secure the payment for the stamps so consigned.  The commissioner shall require payment for such stamps not later than thirty (30) days from the date the stamps were consigned.

     SECTION 3.  It is the intention of the Legislature that beginning with fiscal year 2021, and for each fiscal year thereafter, the amount of the General Fund and/or state support special funds appropriation to the Division of Medicaid shall be reduced by an amount equal to the amount of funds deposited under Section 27-69-75 into the special account in the State Treasury to the credit of the Governor's Office - Division of Medicaid authorized in Section 43-13-113.

     SECTION 4.  This act shall take effect and be in force from and after July 1, 2019.


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