Treasurer Says Tobacco Payments Declined

By: The Associated Press
By: The Associated Press

Mississippi Treasurer Tate Reeves says the state's latest tobacco settlement collection was more than $8 million below expectations. Reeves sent Gov. Haley Barbour a letter about the shortfall Wednesday.

Several tobacco companies transfer money to Mississippi each year as payment for the massive lawsuit the state filed against cigarette makers in the 1990s.

The annual payments are based on national tobacco usage and other factors. Reeves says the payment received last month was more than $8 million less than the previous year.

Reeves says lawmakers should consider revising recommendations for next year's spending plan based on 2009 collections.

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  • by anonymous Location: Meridian on Jan 7, 2010 at 04:14 AM
    A large percentage of people quit smoking. Those that continue have found cheaper brands other than their usual that can be purchased in bulk. When these cheaper products catch up or exceed the cost of their regular brand, more people will quit which in turn the expected amount collected on taxes will be less than it is now.
  • by I For Get Location: Some Where on Jan 6, 2010 at 11:17 PM
    Well Go Figure. They have finally taxed their selves out of money. Was the tax hike worth it? Did it bring in more than the $8 million that was lost due to the tax hike? And the thing is they will not get it back. When the tabacco tax was raised. A majority of tobacco users quit. Because they couldn't afford the tax increase.I'm willing to bet that this time next year. That the amount lost will be a lot more than the $8 million? If i'm correct the tobacco settlement. Takes into account how much was sold in the state and pays out according to that? Not a set amount? ie: less tobacco sold, less payout to state. More tobacco sold, more of a pay out to the state. Some please correct me if i'm wrong. But I think that's how it works. Great job guys in Jackson. Now figure out how your gonna get back that much in revenue for the budget.
  • by Anonymous on Jan 6, 2010 at 06:50 PM
    oh and this is a shock see sue all raise taxes push people to quite.... talk about looking for money tree.. all this was.. about...
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