MS HB174

Increases the excise tax on cigarettes from the current rate to 5.9 cents per cigarette, with cigarettes exceeding 120 millimeters in length taxed as two or more cigarettes.

Maintains the existing 15% excise tax on cigars, stogies, snuff, chewing tobacco, smoking tobacco, and other tobacco products (non-cigarette).

Reduces the dealer discount or compensation on stamps purchased after June 1, 1985 from 8% to 4% for services related to the new tax.

Declares the tax burden falls on the consumer, with any tax paid by retailers or wholesalers considered an advance payment to be recovered from the ultimate user.

Takes effect July 1, 2011.