Cigarettes; increase excise tax on.
The passage of HB856 is designed to impact public health positively by potentially reducing cigarette consumption in Mississippi, as higher prices are often associated with decreased tobacco use. As the state government imposes stiffer taxes on cigarettes, advocates believe that there will be a corresponding drop in smoking rates, particularly among younger populations. This initiative aligns with public health goals to reduce smoking-related diseases and healthcare costs associated with tobacco use. The bill could directly generate additional revenue for the state, aiding in funding health programs aimed at combating the effects of tobacco consumption.
House Bill 856 proposes a significant amendment to Section 27-69-13 of the Mississippi Code of 1972, aimed at increasing the excise tax on cigarettes. The new tax rate is set to rise to five and nine-tenths cents (5.9) per cigarette sold, up from the previous rate of three and four-tenths cents (3.4). This increase places a financial burden on cigarette retailers and is expected to affect consumers directly due to higher retail prices. The bill also stipulates that any cigarette exceeding 120 millimeters in length will be taxed as if it were multiple cigarettes, further expanding the tax implications of the legislation. The bill is set to take effect on July 1, 2024, if passed.
Notably, there may be contention surrounding the bill, particularly among tobacco retailers and consumers who oppose increased taxes. Retailers argue that this tax hike will disproportionately target lower-income individuals who are more sensitive to price hikes on essential goods. Additionally, the legislation might face pushback from advocacy groups representing tobacco interests, who could argue that such tax measures infringe on consumers' choices and disproportionately affect certain demographic segments. The debate may center on the balance between generating state revenues and protecting public health against the backdrop of individual freedoms and economic implications.