MS SB2939

Imposes a health impact tax of $0.0135 per cigarette on all cigarettes subject to Mississippi's existing tobacco tax, effective July 1, 2011.

Tax increases annually on July 1 by the greater of 3% or the Consumer Price Index increase for all Urban Consumers.

Exempts cigarettes manufactured by parties to the tobacco settlement agreement and cigarettes sold for distribution outside Mississippi from the health impact tax.

Establishes that distributors must report the tax monthly by the 15th of the following month and are eligible for credits on returned cigarettes; imposes $1,000 penalty per violation and potential permit revocation for non-compliance.

Repeals previous fees on nonsettling cigarette manufacturers and allows wholesalers ceasing business in Mississippi to obtain refunds on tax-paid cigarettes in their possession.