Tobacco; increase excise tax on all products except cigarettes.
The potential effects of HB 855 on state laws are significant, particularly in how it funds public health initiatives. By increasing tobacco taxes, the state expects to generate additional revenue, which could be allocated toward smoking cessation programs and health treatment services related to tobacco use. Supporters of the bill argue that higher tobacco taxes have a proven track record of decreasing consumption rates and improving public health outcomes. Critics, however, might argue that such increases disproportionately impact low-income individuals who are more likely to use these products and could lead to a reduction in sales for local businesses that sell tobacco items.
House Bill 855 aims to amend Section 27-69-13 of the Mississippi Code of 1972 by increasing the excise tax on all tobacco products, except for cigarettes. According to the proposed amendment, the new tax rate for cigars, cheroots, stogies, snuff, chewing tobacco, and other smoking tobacco will be escalated from the current rate of fifteen percent (15%) to twenty-two and one-half percent (22.5%) of the manufacturer's list price. This change seeks to align the taxation of these products more closely with public health goals that discourage tobacco consumption, particularly among young people and other vulnerable populations.
Throughout the legislative process, notable points of contention may center on the balance between increasing state revenue and addressing public health issues, versus the economic impact on tobacco retailers and users. Supporters of the tax increase will likely emphasize the importance of reducing tobacco use for health reasons, while opponents may raise concerns about the financial burden placed on consumers and the tobacco industry. The discussions may also engage with the broader implications of state tax policies and public health legislation, including whether such measures effectively lead to lower rates of tobacco-related illnesses.