MCA Chapter 70

in effect

Miss. Code Ann. § 27-70-1 Purpose.

The purpose of this chapter is to: Prevent nonsettling manufacturers from undermining this state’s policy of discouraging underage smoking by offering cigarettes at prices that are substantially below the prices of cigarettes of other manufacturers; Protect the tobacco settlement agreement, and funding, which has been reduced because of the growth of sales of nonsettling-manufacturer cigarettes, for programs that are funded wholly or partly by payments to this state under the tobacco settlement agreement and recoup for this state settlement payment revenue lost because of sales of nonsettling-manufacturer cigarettes; Provide funding to enforce and administer this chapter and any legislation relating to nonsettling manufacturers; and Provide funding for any other purpose the Legislature determines.

Miss. Code Ann. § 27-70-3 Definitions.

As used in this chapter: “Brand family” means each style of cigarettes sold under the same trademark and differentiated from one another by means of additional modifiers, including “menthol,” “lights,” “kings” and “100s.” The term includes any style of cigarette products that has a brand name, trademark, logo, symbol, motto, selling message, recognizable pattern of colors, or other indication of product identification that is identical to, similar to, or identifiable with a previously known brand of cigarettes. “Cigarette” means any product that contains nicotine and is intended to be burned or heated under ordinary conditions of use. The term includes: A roll of tobacco wrapped in paper or another substance that does not contain tobacco; Tobacco, in any form, that is functional in a product that, because of the product’s appearance, the type of tobacco used in the filler, or the product’s packaging and labeling, is likely to be offered to or purchased by a consumer as a cigarette; or A roll of tobacco wrapped in any substance containing tobacco that, because of the product’s appearance, the type of tobacco used in the filler, or the product’s packaging and labeling, is likely to be offered to or purchased by a consumer as a cigarette. “Commissioner” means the Commissioner of Revenue of the Department of Revenue and his authorized agents and employees. “Mail” means placing the document or item referred to in first-class United States mail, postage prepaid, addressed to the person to whom the document or item is to be sent at the last known address of that person. “Manufacturer” means a person that manufactures, fabricates or assembles cigarettes for sale or distribution. For purposes of this chapter, the term includes a person that is the first importer into the United States of cigarettes manufactured outside the United States. “Tobacco settlement agreement” means any settlement agreement entered into by this state and one or more cigarette manufacturers in the case of Mike Moore, Attorney General, ex rel. State of Mississippi v. The American Tobacco Company et al., Chancery Court of Jackson County, Mississippi, Cause No. 94-1429, and all subsequent amendments thereto. “Distributor” shall have the same meaning ascribed to that term in Section 27-69-3.

Miss. Code Ann. § 27-70-5 Tobacco equity tax; exemption; applicability; tax to be in addition to any other tax; tax imposed, levied and assessed on distributor of cigarettes; credit for tax paid on cigarettes returned to distributor.

In addition to the tax imposed under Section 27-69-13, and except as provided by subsection (2) of this section, there is imposed a tobacco equity tax in the amount of One and Thirty-five One Hundredths Cent ($0.0135) per cigarette on all cigarettes subject to the tax imposed under Section 27-69-13. On July 1 of each year, the tax prescribed by subsection (1) of this section shall increase by the greater of: Three percent (3%); or The percentage increase in the most recent annual revised Consumer Price Index for all Urban Consumers, as published by the Federal Bureau of Labor Statistics of the United States Department of Labor. The revenue collected from the tax imposed by this section shall be deposited into the State General Fund. The cigarettes manufactured by any manufacturer which is a party to the tobacco settlement agreement shall be exempt from the imposition of the tobacco equity tax provided for herein. The tax imposed by this chapter does not apply to cigarettes that are sold, purchased or otherwise distributed in this state for sale outside of this state. A person may not transport or cause to be transported from this state such cigarettes for retail sale in another state without first affixing to the cigarettes the stamp required by the state in which the cigarettes are to be sold or by paying any other excise tax on the cigarettes imposed by the state in which the cigarettes are to be sold; however, a person shall not be required to affix a tax stamp of another state or pay the excise tax of another state prior to transporting the cigarettes out of this state if the other state prohibits that action or if the cigarettes are being sold to a wholesaler licensed by that state. The tax imposed by this chapter is in addition to any other privilege, license, fee, assessment or tax required or imposed by state law, including, but not limited to, the taxes levied by Section 27-69-13. The tax imposed by this chapter is imposed, levied and assessed on each distributor of cigarettes. The tax shall be due and payable on or before the fifteenth day of the month next succeeding the month in which the stamp is required to be affixed to the cigarettes under the Tobacco Tax Law. The distributor shall make a return showing the number of such cigarettes, the brand family, and the manufacturer. The return shall also include the quantity of cigarettes, by brand family, transported or caused to be transported outside of Mississippi in the preceding month as well as the name and address of the recipient of the cigarettes transported outside of Mississippi. The distributor is eligible for a credit if cigarettes for which the distributor had previously paid the tax under this chapter were returned to the distributor.

Miss. Code Ann. § 27-70-7 Repealed.

Repealed by Laws of 2011, ch. 520, § 6, effective from and after July 1, 2011. § 27-70-7 . [Laws, 2009, 2nd Ex Sess, ch. 85, § 4, eff from and after July 1, 2009.] Editor’s Notes — Former § 27-70-7 imposed a fee on nonsettling cigarette manufacturers. Laws of 2011, ch. 520, § 7, effective July 1, 2011, provides: “SECTION 7. Nothing in this act shall affect or defeat a distributor’s duty to comply with Section 27-70-9 as it was in effect prior to the effective date of this act for any month concluding prior to the effective date of this act. Nothing in this act shall affect or defeat any liability of any nonsettling manufacturer for any fee due pursuant to Section 27-70-1 et seq. for any month ending prior to the effective date of this act. Nothing in this act shall affect or defeat any assessment of, or the authority of the commissioner to assess, any fee imposed on the sale, use consumption or distribution of nonsettling-manufacturer cigarettes under Section 27-70-1 et seq. for any month concluding prior to the effective date of this act.”

Miss. Code Ann. § 27-70-9 Report requirement; contents; enforcement.

A distributor required to file a monthly report under Section 27-69-35, shall, in addition to the information required by that section, include in the report the following information: The number and denominations of stamps affixed to individual packages of nonsettling-manufacturer cigarettes during the preceding month; The number of individual packages of nonsettling-manufacturer cigarettes sold or purchased in this state or otherwise distributed in this state for sale in the United States; and Any other information the commissioner considers necessary or appropriate to determine the amount of the fee imposed by this chapter or to enforce this chapter. The information required by subsection (1)(a) and (b) of this section must be itemized for each place of business and by manufacturer and brand family. The requirement to report information under this section shall be enforced in the same manner as the requirement to deliver to or file with the commissioner a report required under the Tobacco Tax Law. The commissioner may also require that this report be filed electronically as provided under Section 27-3-83. The information obtained from the distributors under subsection (1) of this section regarding nonsettling-manufacturer cigarettes of a particular nonsettling manufacturer may be disclosed by the commissioner to that particular nonsettling manufacturer and/or to the authorized representative of the nonsettling manufacturer.

Miss. Code Ann. § 27-70-11 Repealed.

Repealed by Laws of 2011, ch. 520, § 6, effective from and after July 1, 2011. § 27-70-11 . [Laws, 2009, 2nd Ex Sess, ch. 85, § 6, eff from and after July 1, 2009.] § 27-70-13 . [Laws, 2009, 2nd Ex Sess, ch. 85, § 7, eff from and after July 1, 2009.] § 27-70-15 . [Laws, 2009, 2nd Ex Sess, ch. 85, 8, eff from and after July 1, 2009.] § 27-70-17 . [Laws, 2009, 2nd Ex Sess, ch. 85, § 9, eff from and after July 1, 2009.] Editor’s Notes — Former § 27-70-11 provided for the computation, rate of increase and notice of fee to manufacturers. Former § 27-70-13 required manufacturers to certify their compliance with the fee requirement and required the Attorney General to develop and maintain a directory of certified cigarette manufacturers. Former § 27-70-15 required certain cigarette manufacturers to prepay a fee. Former § 27-70-17 required certain cigarette manufacturers to register with the Attorney General. Laws of 2011, ch. 520, § 7, effective July 1, 2011, provides: “SECTION 7. Nothing in this act shall affect or defeat a distributor’s duty to comply with Section 27-70-9 as it was in effect prior to the effective date of this act for any month concluding prior to the effective date of this act. Nothing in this act shall affect or defeat any liability of any nonsettling manufacturer for any fee due pursuant to Section 27-70-1 et seq. for any month ending prior to the effective date of this act. Nothing in this act shall affect or defeat any assessment of, or the authority of the commissioner to assess, any fee imposed on the sale, use consumption or distribution of nonsettling-manufacturer cigarettes under Section 27-70-1 et seq. for any month concluding prior to the effective date of this act.”

Miss. Code Ann. § 27-70-19 Penalties for noncompliance with chapter; applicability of Mississippi sales tax law to this chapter.

If any distributor subject to the provisions of this chapter shall be found to have failed to properly report or pay the tax required under this chapter, or to have violated any of the provisions of this chapter or any rules or regulations promulgated by the commissioner under the authority of this chapter, there shall be collected from such distributor, in addition to the tax that may be due, a penalty of One Thousand Dollars ($1,000.00) per violation, and the commissioner or his duly authorized representative may make immediate demand upon the distributor for the payment of all such taxes and penalties. If there is a second violation by a distributor of this chapter or any rule or regulation promulgated by the commissioner under the authority of this chapter, the commissioner, in addition to any other penalty, may revoke any permit which may have been issued to the distributor. All administrative provisions of the Mississippi Sales Tax Law, including those which fix damages, penalties and interest for nonpayment of taxes and for noncompliance with the provisions of that law, and all other requirements and duties imposed upon taxpayers, shall apply to all persons liable for the taxes under this chapter, and the commissioner shall exercise all the power and authority and perform all duties with respect to taxpayers under this chapter as are provided under the Mississippi Sales Tax Law, except where there is a conflict, in which case this chapter shall control.

Miss. Code Ann. § 27-70-21 Repealed.

Repealed by Laws of 2011, ch. 520, § 6, effective from and after July 1, 2011. § 27-70-21 . [Laws, 2009, 2nd Ex Sess, ch. 85, § 11, eff from and after July 1, 2009.] Editor’s Notes — Former § 27-70-21 required certain cigarette manufacturers to register with the Attorney General. Laws of 2011, ch. 520, § 7, effective July 1, 2011, provides: “SECTION 7. Nothing in this act shall affect or defeat a distributor’s duty to comply with Section 27-70-9 as it was in effect prior to the effective date of this act for any month concluding prior to the effective date of this act. Nothing in this act shall affect or defeat any liability of any nonsettling manufacturer for any fee due pursuant to Section 27-70-1 et seq. for any month ending prior to the effective date of this act. Nothing in this act shall affect or defeat any assessment of, or the authority of the commissioner to assess, any fee imposed on the sale, use consumption or distribution of nonsettling-manufacturer cigarettes under Section 27-70-1 et seq. for any month concluding prior to the effective date of this act.”

Miss. Code Ann. § 27-70-23 Disclosure of information to determine compliance with and enforce chapter.

The commissioner is authorized to disclose to the Attorney General any information or document received or generated under this chapter and requested by the Attorney General for purposes of determining compliance with and enforcing the provisions of this chapter. The commissioner and Attorney General shall share with each other the information and documents received under this chapter, and may share the information and/or documents with other federal or state agencies but only for purposes of enforcement of this chapter or the corresponding laws of other states.