MS SB2536

Increases the excise tax on cigarettes from 3.4 cents to 10.9 cents per cigarette, effective July 1, 2019.

Creates the "Medicaid Program Tobacco Cessation Fund" and dedicates 7.5 cents per cigarette from the new tax to this fund.

Directs fund usage in priority order: first to cover Medicaid program deficits, second to cover Medicaid administration costs, and third to fund tobacco cessation programs with any unexpended balance.

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

Maintains the remaining 3.4 cents per cigarette in the General Fund and leaves tobacco taxes on other products at 15% of manufacturer's list price.