Lawmakers Try to Compromise on Cigarette Tax Increase

A compromise this week could put the final touches on legislation to increase Mississippi’s cigarette tax. MPB’s Stephen Koranda reports.

Members of the House and Senate have been working in conference to hammer out differences between legislation that passed the chambers. The House passed an 82 cent increase, the Senate a 31 cent increase. Senate Finance Committee Chairman Dean Kirby of Pearl says the federal government increasing their cigarette tax is making the task more difficult.

“Since they had their 61 cents and also the manufacturers went up on the price at the same time, we’ve already had a dollar increase. It’s hard to go up another dollar as the house wanted. It’s just a little too much at one time.”

There’s also the sticking point of where the money would go. The Senate bill would put around 25 million dollars into a fund that helps reduce the price of car tag. Now the fund is dwindling and car tag costs could as much as double. House Ways and Means Committee Chairman Percy Watson of Hattiesburg says he’ll offer a compromise that would tackle the car tag issue, but it will require the Senate to be flexible on the cigarette tax increase.

“If we’re going to present a long-term solution to the car tag issues, surely it will be necessary for us to have as much revenue as we can because we cannot go and pass another cigarette tax increase next year. It is going to be something that we’re going to have to do maybe one time in the next fifteen, twenty years.”

Watson wouldn't give any details on the compromise. He'll present it to Senate members on Wednesday when the cigarette tax conferees meet.