MS SB2642

Creates the Sweetened Beverages and Syrups Tax Law requiring distributors to obtain permits from the Department of Revenue before selling sweetened beverages, syrups, or powder/base products in Mississippi.

Imposes an excise tax of $2.56 per gallon (or 2 cents per ounce) on distributors for selling sweetened beverages, syrups, and powder or base products to retailers; tax amounts adjust annually based on Consumer Price Index.

Establishes the Children's Health Promotion Fund receiving 20% of excise tax revenue, with allocations of 20% to the Department of Health for obesity prevention programs, 35% for community-based programs, 10% for medical interventions, and 35% to schools for nutrition and physical activity initiatives.

Exempts from taxation sales to the federal government, American Indian tribes, out-of-state resales, and inter-distributor sales; does not apply to beverages sweetened with noncaloric sweeteners, 100% natural juices, plain milk, coffee/tea without added sweetener, infant formula, or plain water.

Imposes penalties including 50% of unpaid taxes, 12% annual interest, and criminal misdemeanor charges for violations such as operating without a permit, nonpayment, or failure to maintain required records; effective July 1, 2012.