MS SB2950

Increases the tobacco equity tax on cigarettes from the current rate to $0.026 per cigarette, imposed on distributors of cigarettes manufactured by companies not party to the tobacco settlement agreement.

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

Revenue from the tax is deposited into the State General Fund.

Cigarettes manufactured by tobacco settlement agreement signatories are exempt from this tax.

Effective July 1, 2012.