House Bill 1713 Summary

• Establishes a health impact tax of $1.25 per cigarette on all cigarettes subject to existing state tax, increasing annually by the greater of 3% or the Consumer Price Index.

• Exempts cigarettes from the health impact tax if the manufacturer makes tobacco settlement agreement payments exceeding the tax amount, with the Commissioner maintaining a list of exempt brands.

• Exempts cigarettes sold, purchased, or distributed in Mississippi for sale outside the state from the health impact tax, but requires those transported out of state to comply with the destination state's tax stamp or excise tax requirements.

• Imposes the health impact tax on each cigarette distributor with payment due by the 15th day of the following month; allows credits for cigarettes sold to other distributors or that were returned.

• Establishes penalties of $1,000 per violation for improper reporting or payment, with permit revocation possible for a second violation; repeals previous sections imposing fees on nonsettling manufacturers.