House Passes Tobacco Tax

Mississippi House members are sending to the Senate legislation that would increase the states cigarette tax to one-dollar per pack. House members passed the bill with the hopes of putting a dent into the state’s deficit, which could reach 300 million dollars. MPB’s Stephen Koranda reports.

During the nearly two hours of debate Wednesday, legislators argued the merits of an increase. Standing before the chamber, bill author Percy Watson of Hattiesburg told lawmakers they had a tough decision to make.

“We can either sit here as members of the Legislature, and let all kinds of cuts be made.” said Watson. “Or we can attempt to address that shortage.”

The increase could bring in around 70 million dollars in the current fiscal year, and 200 million in coming years. Watson and other proponents argue increasing the cost of cigarettes could help reduce tobacco related deaths and healthcare costs. While questioning Watson, Representative Philip Gunn of Clinton said he wasn’t convinced.

“There are better ways to address those issues than through this bill,” Gunn said. “We could introduce legislation to address teen smoking, to address the consequences of smoking.”

Gunn pointed to his west central district as one that could have its finances hurt by a tobacco tax increase.

“My people, my constituents believe that they are currently benefitting from the people coming across the state line to make their purchases in Vicksburg,” said Gunn. “Not only will those people stop coming, but the people in Vicksburg and Warren County are going to start going over there to make purchases.”

During the debate, a challenge was brought to the floor by Bobby Howell of Kilmichael. He presented an amendment to lower the proposed total tax from from 1 dollar to 60 cents.

“I’m trying to maximize what we could get,” said Howell. “Without affecting those other areas, retailers, wholesalers that may go out of business because of this.”

Watson told the members they shouldn't settle for the lower tax, because they might not get another chance.

“We probably won’t get a chance to address it for another 20 years,” said Watson. “We’re trying to create additional revenue for these two years, but also for future generations.”

The bill faces an uncertain future. The tax increase is significantly larger than one proposed by Governor Haley Barbour. The bill could also meet opposition in the Senate, where leaders have said they’d like tax cuts to help offset any tobacco tax increase.