MS SB3188

Imposes a health impact tax of 1.25 cents per cigarette on all cigarettes subject to existing tobacco tax, with annual increases of the greater of 3% or the Consumer Price Index increase.

Exempts from the health impact tax cigarettes manufactured by companies making tobacco settlement agreement payments, if their annual settlement payments exceed the tax owed on their cigarettes.

Clarifies that the health impact tax does not apply to cigarettes sold in Mississippi for distribution outside the state, but requires persons transporting cigarettes across state lines to affix the destination state's tax stamp or pay its excise tax unless prohibited by that state.

Establishes that the health impact tax is imposed on cigarette distributors, due by the 15th of the month following the month cigarettes are sold or distributed in Mississippi, with penalties up to $1,000 per violation and possible permit revocation for second violations.

Repeals sections 27-70-7, 27-70-11, 27-70-13, 27-70-15, 27-70-17 and 27-70-21 relating to fees on nonsettling cigarette manufacturers.