Mississippi Information
Tobacco Taxes
Mississippi's excise tax per pack of cigarettes: $0.180
Mississippi's excise tax collection for the
fiscal year ending June 2002: $47,071,000
Sales tax on tobacco products: 7.00%
Federal excise tax per pack of cigarettes: $0.39
Total federal excise tax collections in fiscal year 2002: $7,512,700,000
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Comparing Excise Taxes on Cigarettes, Beer and Wine
click for larger view |
Number of six-packs of beer that must be sold in Mississippi to produce the same state excise tax revenue generated by one carton of cigarettes: 7.5 |
click for larger view |
Number of bottles of wine that must be sold in Mississippi to produce the same state excise tax revenue generated by one carton of cigarettes: 26 |
Mississippi Smokers' Contributions
to the State Economy - 2001
Mississippi smokers comprise only 23.5% of the adult population in the state. Here is what they already pay because they choose to buy a legal product:
Smokers Pay Excise Taxes1 |
$ |
48,346,560 |
Smokers Pay Sales Taxes1 |
$ |
56,404,320 |
Smokers Pay Tobacco Settlement Payments2 |
$ |
203,800,000 |
|
$ |
308,550,880 |
Smokers' Economic/Tax Profile
Mississippi smokers' median income 2000 |
$ |
25,274 |
- Median Income Smoker Mississippi State Tax Liability
Annual state income tax liability for a couple |
$ |
297 |
Annual state income tax liability for a couple with two children |
$ |
177 |
- Smoker Excise Tax/Sales Tax/Tobacco Settlement Payments Liability
Total average paid per Mississippi smoker in excise and sales taxes |
$ |
215 |
Cost per Mississippi smoker for settlement payments to Mississippi |
$ |
417 |
Total annual payment to Mississippi per smoker |
$ |
632 |
Mississippi Smoker Facts
- Mississippi smoker payments in 2001 were nearly eight times as large as state excise taxes on alcoholic beverages of $39.3 million.4
- Mississippi smoker payments were larger than net corporate income taxes of $210.8 million, and eleven and one-half times larger than Mississippi death and gift tax revenues of $27.6 million in 2001.4
- Mississippi smoker payments could supply all the funds the state spent in 2001 on:4
- The Judiciary and Justice ($69 million)
PLUS
- The Education Department's vocational and technical school programs ($80.4 million)
PLUS
- Support for Mississippi State Hospital ($112.2 million)
OR
- Agriculture, Commerce, and Economic Development combined ($218.2 million)
PLUS
- Environmental Quality ($80.8 million)
OR
- The Corrections Department ($258.2 million).
- In 1997, smokers supported 14,600 Mississippi jobs and paid $6,103,458 in personal income and corporate taxes.5
TOTAL SMOKER CIGARETTE PAYMENTS TO MISSISSIPPI |
|
Per year: |
$ |
308,550,880 |
Per day: |
$ |
844,766 |
Per hour: |
$ |
35,199 |
Per minute: |
$ |
587 |
Per second: |
$ |
10 |
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CIGARETTES DON'T PAY TAXES -
MISSISSIPPI SMOKERS DO!!
- Mississippi Department of Revenue
- Campaign for Tobacco-Free Kids
- Centers for Disease Control
- U.S. Census Bureau and Mississippi budget documents.
- Economic Impact of Tobacco - 1997
Separately Settled Payments To Date
$669,001,000 in calculated, estimated payments have been paid to Mississippi as part of a separate settlement agreement. The provisions of that settlement were similar to those in individual settlements previously reached with the four states (Florida, Minnesota, Mississippi and Texas) that did not participate in the Master Settlement Agreement.
A summary of Mississippi state law is provided below
(for specific questions regarding state law, contact your legal advisor.)
Minimum Age |
Customers must be 18 years or older to purchase tobacco products. |
Restricted Products |
Any substance that contains tobacco including, but not limited to, cigarettes, cigars, pipes, snuff, smoking tobacco smokeless tobacco or cigarette rolling papers (effective July 1, 2002). |
Acceptable Forms of Identification |
Any government-issued photographic identification establishing the age of the prospective purchaser. |
Fine/Penalty Schedule for Selling to Minors |
Violation is punishable by a fine of $50 for the first offense, $75 and enrollment in a retailer education program for the second offense and $150 for all subsequent violations. Third and subsequent violations also subject the retailer to license suspension and revocation. The failure of a seller of tobacco products to request and examine photographic identification from a person under eighteen (18) year of age prior to the sale to such person if the individual is not known to the seller to be over the age of eighteen (18) years, shall be construed against the seller and form a conclusive basis for the seller’s violation.
Every person involved in the business of selling tobacco products at retail shall notify each employee of the requirements of state law and employees must sign a statement acknowledging those requirements, substantially stating: "I understand that state and federal law prohibit the sale or distribution of tobacco products to persons under the age of eighteen (18) years and out-of-package sales, and requires that proof of age be demanded from a prospective purchaser or recipient under eighteen (18) years of age if the individual is not known to the seller, barterer, deliverer or giver of the tobacco product to be over the age of eighteen (18) years. I promise, as a condition of my employment, to observe this law." Violation is punishable by a fine of $50 - $100. Retailers who so instruct employees shall not be liable for violations committed by such employees. |
Affirmative Defense |
Proof that the seller checked proof of age is a defense. |
Minor Possession |
The purchase of tobacco products by minors is prohibited. A minor who misrepresents his or her age in order to obtain tobacco products is subject to a fine of $25 - $200 and/or at least 30 days of community service. |
Sign Requirement
 |
Retailers are required to post warning signs of at least 93 square inches at each point of sale that state:
STATE LAW PROHIBITS THE SALE OF TOBACCO PRODUCTS TO PERSONS UNDER THE AGE OF 18 YEARS. PROOF OF AGE REQUIRED. Failure to post the required sign is punishable by a fine of up to $100. |
Compliance Checks |
As a condition of receiving federal substance abuse block grant funds, federal law requires the State of Mississippi to conduct random, unannounced inspections of tobacco outlets to determine compliance rates. The attorney general’s office or local law enforcement may enlist minors, as long as the minor’s parent or legal guardian has given prior written consent. The Office of the Attorney General coordinates the inspections. |
DISCLAIMER: This information summary is provided as a service of the Coalition, but is not intended to provide legal advice or analysis. These summaries are not intended to be complete representations of state law, which may contain additional rules and restrictions relating to tobacco products not mentioned in this summary, as well as retailing prohibitions related to matters including, but not limited to, state required training, minimum pack size, the sale of loose cigarettes and other restrictions. Retailers should not rely on these summaries as complete or accurate descriptions of applicable federal, state or local law. Users with questions about the law should seek the advice of counsel. Each state law is unique and possibly represents multiple legislative or regulatory acts. Local laws may differ. Check with local authorities for variations from state law. These summaries are not intended to be complete representations of state law. |
The reprinting of this information from the Coalition, does not constitute a representation or admission by RJRT that such information is accurate, complete, or a proper characterization of the laws concerned. The Coalition for Responsible Tobacco Retailing is a cooperative effort among retailers, wholesalers and manufacturers who share a common goal: to do all they can to prevent tobacco sales to minors.
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