Still No Agreement on Tobacco Tax

Lawmakers are continuing to work on a compromise to increase the state's cigarette tax. As MPB's Stephen Koranda reports, recently the focus has been on using some of the money to prevent an increase in the cost of car tags.

Lawmakers met for two hours yesterday and spent most of the meeting discussing the issue of car tag costs, which could rise in MS starting July 1st. A state fund that reduces car tag prices through a legislative credit is running out of cash. It’s funded by new car sales, which are down sharply. Senate Finance Committee Chair Dean Kirby of Pearl says cigarette tax negotiations have been made more difficult by including the car tag issue.

“If we do something to help keep the millage from going up from now to July, that’s one thing, but what are we going to do next year? If we don’t do the right thing there’s no doubt about it, the next year the millage will go up and people’s property taxes will increase as well as their car tag. We don’t want that to happen, and we’re not going to let it happen.”

House conferees offered a proposal to increase the state’s cigarette tax to 75 cents, and provide money for the car tag fund for the next two fiscal years. Senator Kirby said an increase that large wouldn't pass on the Senate Floor. The Senate’s most recent offer would increase the current 18 cent cigarette tax to 64 cents per pack. House Ways and Means Committee Chair Percy Watson of Hattiesburg, hopes a solution to the car tag issue will garner support for the bill in the Senate.

“I believe that the Senate would follow the leadership, and they would pass this bill once we agree upon it. So we’re confident that whatever comes out of the conference committee will be adopted by both the House and the Senate.”

In the next few days, lawmakers will be working to find out what could pass both chambers. They could meet again as soon as Friday.