MS SB3020

Creates a new tobacco equity tax of $0.0135 per cigarette imposed on distributors (instead of manufacturers) for cigarettes not made by tobacco settlement agreement signatories, effective July 1, 2011.

Tax increases annually on July 1 by the greater of 3% or the Consumer Price Index increase, with revenue deposited to the State General Fund.

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

Requires distributors to report and pay the tax by the 15th of the month following the month cigarettes are sold, with $1,000 per violation penalties and permit revocation for second violations.

Repeals existing nonsettling manufacturer fee provisions (Sections 27-70-7, 27-70-11, 27-70-13, 27-70-15, 27-70-17, and 27-70-21) and allows wholesalers who cease business to receive refunds on unsold stamped cigarettes.