CIGARETTES IN MISSISSIPPI SHALL BE TAXED ADDITIONALLY AT 40 PERCENT OF THE NATIONAL CIGARETTE TAX AVERAGE AND EARMARKED FOR MEDICAID
BODY
There is hereby created a Mississippi Medicaid Cigarette Tax to provide funding assistance for Medicaid in Mississippi.
The Mississippi Medicaid Cigarette Tax shall be levied, per pack, at 40 percent of the National Cigarette State-Tax Average Rate and shall be added to, or in addition to, Mississippi's excise tax, general sales tax, and any other State, Federal, County, Municipal, and any other taxes on cigarettes.
The National cigarette State-Tax Average Rate shall be computed by the Commissioner of Revenue on December 31st of each year. The National Cigarette State-Tax Average Rate shall be the sum of all rates of excise tax on cigarettes levied by the various States computed on a per pack basis divided by two and then rounded to the next highest whole number to arrive at the appropriate tax rate. The tax so determined shall be levied and collected by the Commissioner of Revenue beginning on July 1st of each successive year.
Andy Funds generated by the Medicaid Cigarette Tax shall be collected by the Commissioner of Revenue and divided and distributed under the following guidelines.
A) 2% of the funds shall be retained by the Commissioner of Revenue and used for administrative and compliance purposes.
B) 98% of the funds shall be directed to the Office of the Governor, Division of Medicaid, for further distribution as follows:
i) 92% of the funds shall be directed to the Office of the Governor, Division of Medicaid, for distribution, exclusively, to healthcare providers licensed by the Mississippi State Board of Health.
ii)3% of the funds shall be directed to the Office of the Governor, Division of Medicaid, for distribution, exclusively, to guard and combat any Medicaid fraud and/or abuse.
iii) 1% of the funds shall be directed to the Office of the Governor, Division of Medicaid, for distribution, exclusively, for tobacco cessation programs.
iv) 2% of the funds shall be used by the Office of the Governor, Division of Medicaid, for administrative or other purposes as necessary.
The Mississippi Legislature shall provide other provisions necessary to implement and maintain the additional tax on cigarettes, and the intentions of this law, known as the Mississippi Medicaid Cigarette Tax.
Pursuant to Article 15 Section 273 (4) of the Mississippi Constitution, there is no amount of current revenue required to implement the initiative; this initiative would be self-funding.
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