Mississippi lawmakers are considering House Bill 758, a proposal that would increase the state cigar tax from 15% to 22.5%, a 50% tax hike on premium cigars!
This significant increase would harm small businesses across Mississippi, many of which already operate on thin margins. Premium cigar shops are typically locally owned, employ local workers, and contribute to downtown economies. Raising the tax burden on these businesses threatens their ability to stay open and competitive.
Higher cigar taxes also drive consumers to purchase out of state, resulting in lost in-state sales and reduced tax revenue, not increased collections. Mississippi has seen this effect before with other excise taxes, where higher rates pushed consumers elsewhere instead of generating sustainable revenue.
House Bill 758 would not impact large corporations. It would fall hardest on local retailers, their employees, and adult consumers who choose legal, regulated products.
We urge Mississippi lawmakers to oppose House Bill 758and reject this unnecessary and harmful tax increase. Protect local businesses, jobs, and consumer choice by keeping Mississippi’s cigar tax fair and competitive.
Take action today. Contact your state legislators and ask them to vote NO on HB 758.