MS SB2701

Increases excise tax on cigarettes from 3.4 cents to 10.9 cents per cigarette, effective July 1, 2018.

Creates the "Medicaid Program Tobacco Cessation Fund" with 7.5 cents of the new tax dedicated to this fund, while 3.4 cents continues to the General Fund.

Prioritizes fund use for: (1) Medicaid program deficits as certified by the Department of Finance and Administration, (2) Medicaid administration costs, and (3) tobacco cessation programs with any unexpended funds.

Requires the Division of Medicaid to apply the tax increase as a state contribution for federal Medicaid matching funds.

Maintains the tax rate adjustment provision where the rate increases by any amount the federal cigarette tax is reduced below its June 1, 1985 level.