Legislation raising tobacco taxes is expected to face more debate today, but despite early optimism Tuesday, there is no consensus on how high the tax should be or how the money should be spent.
Negotiations between House and Senate leaders that appeared promising ended Tuesday with no agreement. Senate leaders had warmed to a bigger increase than they had previously wanted, but changed their minds after learning the state may receive money from a federal bailout. They also shared concerns with Gov. Haley Barbour over what impact a proposed federal cigarette tax hike would have on Mississippi’s plan.
As a result, Senate Finance Committee Chairman Dean Kirby said he will offer a significantly lower tax increase than the 82-cent hike that cleared the House recently. Kirby, R-Pearl, also wants some of the revenue used to offset car tag costs that are in danger of rising.
Asked to describe the state of negotiations, House Ways and Means Committee Chairman Percy Watson said discussions “are not near to any type of compromise.” Lawmakers plan to continue meeting, though.
