House Bill 208

AN ACT TO AMEND SECTION 27-69-13, MISSISSIPPI CODE OF 1972, TO INCREASE THE EXCISE TAX ON CIGARETTES; TO AMEND SECTION 27-69-75, MISSISSIPPI CODE OF 1972, SHALL BE DEPOSITED INTO SPECIAL FUNDS IN THE STATE TREASURY TO THE CREDIT OF THE UNIVERSITY OF MISSISSIPPI MEDICAL CENTER, THE DEPARTMENT OF FINANCE AND ADMINISTRATION, THE DEPARTMENT OF PUBLIC SAFETY, THE STATE VETERANS AFFAIRS BOARD, THE STATE DEPARTMENT OF EDUCATION, THE BOARD OF TRUSTEES OF STATE INSTITUTIONS OF HIGHER LEARNING, THE STATE BOARD FOR COMMUNITY AND JUNIOR COLLEGES, THE DEPARTMENT OF MENTAL HEALTH AND THE MISSISSIPPI DEVELOPMENT AUTHORITY, AND INTO THE RURAL FIRE TRUCK FUND; TO SPECIFY THE PURPOSES FOR WHICH THE MONIES IN SUCH SPECIAL FUNDS MAY BE EXPENDED; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 27-69-13, Mississippi Code of 1972, is amended as follows:

27-69-13. (1) There is hereby imposed, levied and assessed, to be collected and paid as hereinafter provided in this chapter, an excise tax on each person or dealer in cigarettes, cigars, stogies, snuff, chewing tobacco, and smoking tobacco, or substitutes therefor, upon the sale, use, consumption, handling or distribution in the State of Mississippi, as follows:

(a) On cigarettes, the rate of tax shall be Eighteen-twentieths of One Cent (18/20 of 1¢) on each cigarette sold with a maximum length of one hundred twenty (120) millimeters; any cigarette in excess of this length shall be taxed as if it were two (2) or more cigarettes. * * * However, if the federal tax rate on cigarettes in effect on June 1, 1985, is reduced, then the rate as provided in this paragraph (a) shall be increased by the amount of the federal tax reduction. Such tax increase shall take effect on the first day of the month following the effective date of such reduction in the federal tax rate.

(b) (i) In addition to the excise tax levied by paragraph (a), there is levied an excise tax of Two and One-half Cents (2-1/2¢) on each cigarette sold with a maximum length of one hundred twenty (120) millimeters; any cigarette in excess of this length shall be taxed as if it were two (2) or more cigarettes.

(ii) On or before August 15, 2006, and each succeeding month thereafter, the revenue derived from the excise tax on cigarettes that is levied by subparagraph (i) of this paragraph shall be deposited into the appropriate funds in the State Treasury as provided in Section 27-69-75.

(c) On cigars, cheroots, stogies, snuff, chewing and smoking tobacco and all other tobacco products except cigarettes, the rate of tax shall be fifteen percent (15%) of the manufacturer's list price.

(2) No stamp evidencing the tax * * * levied on cigarettes by this section shall be of a denomination of less than One Cent (1¢), and whenever the tax computed at the rates * * * prescribed on cigarettes in this section is a specified amount, plus a fractional part of One Cent (1¢), the package shall be stamped for the next full cent. However, the additional face value of stamps purchased to comply with taxes imposed by this section after June 1, 1985, shall be subject to a four percent (4%) discount or compensation to dealers for their services rather than the eight percent (8%) discount or compensation allowed by Section 27-69-31.

(3) Every wholesaler shall purchase stamps as provided in this chapter, and affix the same to all packages of cigarettes handled by him as * * * provided in this section.

(4) The * * * tax levied by this chapter is levied upon the sale, use, gift, possession or consumption of tobacco within the State of Mississippi, and the impact of the tax levied by this chapter is hereby declared to be on the vendee, user, consumer or possessor of tobacco in this state. When the said tax is paid by any other person, such payment shall be considered as an advance payment and shall thereafter be added to the price of the tobacco and recovered from the ultimate consumer or user.

SECTION 2. Section 27-69-75, Mississippi Code of 1972, is amended as follows:

27-69-75. (1) All taxes levied by this chapter shall be payable to the commissioner in cash, or by personal check, cashier's check, bank exchange, post office money order or express money order, and shall be deposited by the commissioner in the State Treasury on the same day collected. No remittance other than cash shall be a final discharge of liability for the tax * * * assessed and levied under this chapter, unless and until it has been paid in cash to the commissioner.

(2) The revenue derived from the taxes levied in Section 27-69-13(1)(b) shall be deposited into the State Treasury, as follows:

(a) Fourteen percent (14%) of the revenue collected shall be deposited into the special fund to the credit of the University of Mississippi Medical Center that is created by Section 3(1) of this act.

(b) Eight percent (8%) of the revenue collected shall be deposited into the special fund to the credit of the Department of Finance and Administration that is created by Section 3(2) of this act.

(c) Three percent (3%) of the revenue collected shall be deposited into the special fund to the credit of the University of Mississippi Medical Center that is created by Section 3(3) of this act.

(d) Two percent (2%) of the revenue collected shall be deposited into the special fund to the credit of the Department of Public Safety, Division of Mississippi Highway Safety Patrol, that is created by Section 3(4) of this act.

(e) One percent (1%) of the revenue collected shall be deposited into the special fund to the credit of the Department of Public Safety, Division of Crime Laboratories, that is created by Section 3(5) of this act.

(f) One percent (1%) of the revenue collected shall be deposited into the special fund to the credit of the Department of Public Safety, Bureau of Narcotics, that is created by Section 3(6) of this act.

(g) Two percent (2%) of the revenue collected shall be deposited into the special fund to the credit of the State Veterans Affairs Board that is created by Section 3(7) of this act.

(h) Twenty percent (20%) of the revenue collected shall be deposited into the special fund to the credit of the State Department of Education that is created by Section 3(8) of this act.

(i) Twenty percent (20%) of the revenue collected shall be deposited into the special fund to the credit of the Board of Trustees of State Institutions of Higher Learning that is created by Section 3(9) of this act.

(j) Twenty percent (20%) of the revenue collected shall be deposited into the special fund to the credit of the State Board for Community and Junior Colleges that is created by Section 3(10) of this act.

(k) One percent (1%) of the revenue collected shall be deposited into the special fund to the credit of the Department of Mental Health that is created by Section 3(11) of this act.

(l) Four percent (4%) of the revenue collected shall be deposited into the special fund to the credit of the Mississippi Development Authority that is created by Section 3(12) of this act.

(m) Four percent (4%) of the revenue collected shall be deposited into the Rural Fire Truck Fund created in Section 17-23-1.

(3) All tobacco taxes collected, including tobacco license taxes, except for those revenues required to be deposited into the special fund as provided in subsection (2) of this section, shall be deposited into the State Treasury to the credit of the General Fund.

(4) Wholesalers who are entitled to purchase stamps at a discount, as provided by Section 27-69-31, may have consigned to them, without advance payment, those stamps, if and when the wholesaler * * * gives to the commissioner a good and sufficient bond executed by some surety company authorized to do business in this state, conditioned to secure the payment for the stamps so consigned. The commissioner shall require payment for those stamps not later than thirty (30) days from the date the stamps were consigned.

SECTION 3. (1) (a) There is created in the State Treasury a special fund to the credit of the University of Mississippi Medical Center, which shall be comprised of the monies required to be deposited into the fund under Section 27-69-75(2)(a), and any other funds that may be made available for the fund by the Legislature.

(b) Monies in the fund shall be expended by the University of Mississippi Medical Center, upon appropriation by the Legislature, to pay the costs of medical services provided by the center for which it does not receive compensation or reimbursement from any other source.

(c) Unexpended amounts remaining in the special fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the special fund shall be deposited to the credit of the special fund.

(2) (a) There is created in the State Treasury a special fund to the credit of the Department of Finance and Administration, which shall be comprised of the monies required to be deposited into the fund under Section 27-69-75(2)(b), and any other funds that may be made available for the fund by the Legislature.

(b) Monies in the fund shall be expended by the Department of Finance and Administration, upon appropriation by the Legislature, to aid in the construction, furnishing, equipping and operating of a comprehensive burn center for the State of Mississippi.

(3) (a) There is created in the State Treasury a special fund to the credit of the University of Mississippi Medical Center, which shall be comprised of the monies required to be deposited into the fund under Section 27-69-75(2)(c), and any other funds that may be made available for the fund by the Legislature.

(b) Monies in the fund shall be expended by the University of Mississippi Medical Center, upon appropriation by the Legislature, to aid in the construction, furnishing, equipping and operating of the University Medical Center Cancer Institute.

(4) (a) There is created in the State Treasury a special fund to the credit of the Department of Public Safety, Division of Mississippi Highway Safety Patrol, which shall be comprised of the monies required to be deposited into the fund under Section 27-69-75(2)(d), and any other funds that may be made available for the fund by the Legislature.

(b) Monies in the fund shall be expended by the Department of Public Safety, upon appropriation by the Legislature, for the purpose of defraying the expenses of a Highway Patrol Trooper Training Class for the fiscal year beginning July 1, 2006, and ending June 30, 2007, and for the support and maintenance of the Division of Mississippi Highway Safety Patrol.

(5) (a) There is created in the State Treasury a special fund to the credit of the Department of Public Safety, Division of Crime Laboratories, which shall be comprised of the monies required to be deposited into the fund under Section 27-69-75(2)(e), and any other funds that may be made available for the fund by the Legislature.

(b) Monies in the fund shall be expended by the Department of Public Safety, upon appropriation by the Legislature, for the support and maintenance of the Division of Crime Laboratories.

(6) (a) There is created in the State Treasury a special fund to the credit of the Department of Public Safety, Bureau of Narcotics, which shall be comprised of the monies required to be deposited into the fund under Section 27-69-75(2)(f), and any other funds that may be made available for the fund by the Legislature.

(b) Monies in the fund shall be expended by the Department of Public Safety, upon appropriation by the Legislature, for the support and maintenance of the Bureau of Narcotics.

(7) (a) There is created in the State Treasury a special fund to the credit of the State Veterans Affairs Board, which shall be comprised of the monies required to be deposited into the fund under Section 27-69-75(2)(g), and any other funds that may be made available for the fund by the Legislature.

(b) Monies in the fund shall be expended by the State Veterans Affairs Board, upon appropriation by the Legislature, for operating and maintaining the state veterans homes.

(8) (a) There is created in the State Treasury a special fund to the credit of the State Department of Education, which shall be comprised of the monies required to be deposited into the fund under Section 27-69-75(2)(h), and any other funds that may be made available for the fund by the Legislature.

(b) Monies in the fund shall be expended by the State Department of Education, upon appropriation by the Legislature, for the support of public education in kindergarten through Grade 12.

(9) (a) There is created in the State Treasury a special fund to the credit of the Board of Trustees of State Institutions of Higher Learning, which shall be comprised of the monies required to be deposited into the fund under Section 27-69-75(2)(i), and any other funds that may be made available for the fund by the Legislature.

(b) Monies in the fund shall be expended by the Board of Trustees of State Institutions of Higher Learning, upon appropriation by the Legislature, for the support of state institutions of higher learning.

(10) (a) There is created in the State Treasury a special fund to the credit of the State Board for Community and Junior Colleges, which shall be comprised of the monies required to be deposited into the fund under Section 27-69-75(2)(j), and any other funds that may be made available for the fund by the Legislature.

(b) Monies in the fund shall be expended by the State Board for Community and Junior Colleges, upon appropriation by the Legislature, for the support of community and junior colleges.

(11) (a) There is created in the State Treasury a special fund to the credit of the Department of Mental Health, which shall be comprised of the monies required to be deposited into the fund under Section 27-69-75(2)(k), and any other funds that may be made available for the fund by the Legislature.

(b) Monies in the fund shall be expended by the Department of Mental Health, upon appropriation by the Legislature, to provide funds to Hope for Children in Meridian, Mississippi, for the purpose of providing residential and therapeutic care for abused and neglected children who are or are at risk of being emotionally disturbed because of abuse or neglect they have suffered.

(12) (a) There is created in the State Treasury a special fund to the credit of the Mississippi Development Authority, which shall be comprised of the monies required to be deposited into the fund under Section 27-69-75(2)(l), and any other funds that may be made available for the fund by the Legislature.

(b) Monies in the fund shall be expended by the Mississippi Development Authority, for the purpose of making grants or loans to municipalities and counties to aid in infrastructure-related improvements as determined by the Mississippi Development Authority, the purchase of equipment and in the purchase, construction or repair and renovation of public facilities.

SECTION 4. This act shall take effect and be in force from and after July 1, 2006.