Mississippi House Bill HB1096

Mississippi 2022 Regular Session

• Introduced: 1/17/22
• Refer: 1/17/22
• Failed: 2/23/22

Caption

Cigarettes; increase excise tax on.

Impact

The increase in cigarette tax is intended to discourage cigarette consumption and improve public health outcomes by providing a financial disincentive against smoking. Moreover, the revenue generated from this tax increase could potentially be allocated toward health care initiatives and anti-smoking campaigns. One of the notable impacts of the bill is its consideration of the broader implications on tobacco users and the state’s fiscal health.

Summary

House Bill 1096 proposes an amendment to Section 27-69-13 of the Mississippi Code of 1972, specifically aiming to increase the excise tax levied on cigarettes. Currently, the bill outlines that the tax on cigarettes will rise to Five and Nine-tenths Cents (5.9) per cigarette sold. This adjustment in tax is predicated on enhancing state revenue through increased taxation on tobacco products, which is hoped to contribute financially to various state programs.

Contention

While the bill presents a means to increase funding for state programs, it may invite contention particularly from tobacco retailers and users who may view the increase as excessive or punitive. The balance between generating state revenue and addressing public health issues related to smoking will likely be a critical point of discussion among legislators. Critics of increases in cigarette taxes often argue that such measures disproportionately affect low-income individuals who rely on tobacco products.