Smokers Beware: Cigarettes Taxes May Quadruple

Senate OKs cigarette tax increase

By Laura Hipp
lhipp@clarionledger.com

The Mississippi Senate approved a 57-cent per pack tax increase on cigarettes today while slicing the tax rate on groceries to 4.5 percent starting in July.After almost four hours of debate, senators approved the measure with a 36-15 vote.

"This is a tax reduction for 100 percent of the people that buy groceries in the state," Senate Finance Committee Chairman Tommy Robertson, R-Moss Point, said.

Sen. Terry Brown, R-Columbus, held the bill for reconsideration.

Senate Bill 2310 reduces the 7 percent sales tax on groceries in phases over eight years. Meanwhile, the per pack tax on cigarettes jumps from 18 cents to 75 cents in July and to $1 a year later.

Lt. Gov. Amy Tuck proposed the hike on cigarette taxes after opposing such an increase last year. Tuck has said her plan is "revenue neutral" by offering a tax cut.

Several fellow Republicans spoke against the increase in a cigarette tax.

"We need to control spending ... not put a tax on our people just for the sake of putting a tax on the people," said Sen. Merle Flowers, R-Southaven.

Money from the cigarette tax increase would be diverted into a special fund to compensate cities for the loss of grocery sales taxes.

Mississippi Municipal League officials say they are still assessing the bill's effect on communities.

Gov. Haley Barbour has said he opposes any tax increases.