Cigarette Tax Pending in Mississippi

Mississippi lawmakers return to the Capitol today to debate a cigarette tax that many hope will prevent a surge in car-tag costs in the state.

 

The House and Senate have been stalled on a decision about the tax, with the Senate proposing a 64-cent cigarette tax–the average of the surrounding states–and the House suggesting 75 cents.

 

The lawmakers will listen to officials with the state tax commission regarding a substantial hike in car-tag costs that could go into effect this summer unless something is done to offset the state’s legislative tag credit fund, such as the proposed cigarette tax.

 

House lawmakers have come down 25 cents since the $1-per-pack increase that passed through the House earlier in the session. A 62-cent federal increase that became effective last month is reportedly one reason the Senate is unwilling to accept the offer by the House. A decision is not expected by this evening, although both sides have said they are committed to doing something to stop the drastic increase in vehicle registration fees.

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