MS HB906

Increases the tobacco equity tax on cigarettes from $0.0135 per cigarette to 3.4 cents per cigarette, effective July 1, 2018.

Mandates annual tax increases on July 1st of each year by whichever is greater: 3 percent or the percentage increase in the Consumer Price Index for all Urban Consumers.

Exempts cigarettes manufactured by companies party to the tobacco settlement agreement from the tobacco equity tax.

Requires distributors to pay the tax by the 15th day of the month following when tax stamps are affixed, with monthly returns detailing cigarette quantities, brand families, and out-of-state shipments.

Deposits all collected revenue into the State General Fund and allows distributors a credit for previously taxed cigarettes that are returned.