Mississippi - tobacco tax increase may pass this time..

January 30, 2009 - Senate, which is where the cigarette tax increase died last session, voted Thursday 42-7 margin to boost the tax 31 cents per pack to 49 cents.
Earlier this session, the House approved an 82-cent increase to $1 per pack. The legislation now goes back to the House, where it can accept the Senate proposal or invite negotiations.

In recent years, the House has passed a cigarette tax increase, but it has been killed by the Republican leadership in the Senate or by Gov. Haley Barbour. With state tax collections dipping because of the poor economy, Barbour and the Senate leadership have voiced support for a cigarette tax increase.

Under the Senate bill, the $25 million generated this year (if enacted by March 1,2009) would be used to replenish a fund that helps local governments cut the cost of motor vehicle tags. The House has voiced support for using the tobacco tax money to offset education cuts.

Reference: Senate approves cigarette tax hikeby BOBBY HARRISON, Daily Journal Jackson Bureau, 1/30/2009.

Related news brief: U.S. States Considering Tobacco Tax Increase..; Mississippi the poorest state in the union.."; States Need Quick Influx of Revenue – Think Tobacco Tax...