Tobacco; increase excise tax on all products except cigarettes.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Evans

HOUSE BILL NO. 758

AN ACT TO AMEND SECTION 27-69-13, MISSISSIPPI CODE OF 1972, 1
TO INCREASE THE EXCISE TAX ON ALL TOBACCO PRODUCTS EXCEPT 2
CIGARETTES; AND FOR RELATED PURPOSES. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 4
SECTION 1. Section 27-69-13, Mississippi Code of 1972, is 5
amended as follows: 6
27-69-13. There is hereby imposed, levied and assessed, to 7
be collected and paid as hereinafter provided in this chapter, an 8
excise tax on each person or dealer in cigarettes, cigars, 9
stogies, snuff, chewing tobacco, and smoking tobacco, or 10
substitutes therefor, upon the sale, use, consumption, handling or 11
distribution in the State of Mississippi, as follows: 12
(a) On cigarettes, the rate of tax shall be Three and 13
Four-tenths Cents (3.4¢) on each cigarette sold with a maximum 14
length of one hundred twenty (120) millimeters; any cigarette in 15
excess of this length shall be taxed as if it were two (2) or more 16
cigarettes. Provided, however, if the federal tax rate on 17
cigarettes in effect on June 1, 1985, is reduced, then the rate as 18
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provided herein shall be increased by the amount of the federal 19
tax reduction. Such tax increase shall take effect on the first 20
day of the month following the effective date of such reduction in 21
the federal tax rate. Heated tobacco products shall not be taxed 22
as cigarettes under this paragraph (a); however, this exclusion 23
shall not affect heated tobacco products for any purposes related 24
to Section 27-70-1 et seq. 25
(b) On cigars, cheroots, stogies, snuff, chewing and 26
smoking tobacco and all other tobacco products except cigarettes 27
and heated tobacco products, the rate of tax shall be * * * 28
twenty-two and one-half percent (22.5%) of the manufacturer's list 29
price. 30
(c) On heated tobacco products, the rate of tax shall 31
be * * * one and eighty-seven one-hundredths cents (1.87¢) on each 32
disposable heated tobacco unit or stick sold to be used for 33
consumption by insertion into a heated tobacco product heating 34
system device. 35
No stamp evidencing the tax herein levied on cigarettes shall 36
be of a denomination of less than One Cent (1¢), and whenever the 37
tax computed at the rates herein prescribed on cigarettes shall be 38
a specified amount, plus a fractional part of One Cent (1¢), the 39
package shall be stamped for the next full cent; however, the 40
additional face value of stamps purchased to comply with taxes 41
imposed by this section after June 1, 1985, shall be subject to a 42
four percent (4%) discount or compensation to dealers for their 43
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ST: Tobacco; increase excise tax on all
products except cigarettes.
services rather than the eight percent (8%) discount or 44
compensation allowed by Section 27-69-31. 45
Every wholesaler shall purchase stamps as provided in this 46
chapter, and affix the same to all packages of cigarettes handled 47
by him as herein provided. 48
The above tax is levied upon the sale, use, gift, possession 49
or consumption of tobacco within the State of Mississippi, and the 50
impact of the tax levied by this chapter is hereby declared to be 51
on the vendee, user, consumer or possessor of tobacco in this 52
state; and when said tax is paid by any other person, such payment 53
shall be considered as an advance payment and shall thereafter be 54
added to the price of the tobacco and recovered from the ultimate 55
consumer or user. 56
SECTION 2. This act shall take effect and be in force from 57
and after July 1, 2026. 58