n The cigarette tax increase, which failed, was supposed to offset it.

By Bobby Harrison

Daily Journal Jackson Bureau

JACKSON - How to hold down the cost of car tags became perhaps the dominant legislative issue Thursday, the day after a cigarette tax increase died.

The Legislature had planned to use revenue from a cigarette tax increase to replenish a fund that provides money to local governments to hold down the cost of car tags.

The fund is sustained through revenue from the tax on vehicles sales. But with cars not selling in the recession, the fund is dwindling and unless about $25 million is placed in it by May 1 the cost of car tags will rise in all counties and could nearly double in some.

On Thursday, some House members filed a resolution to suspend the rules to revive the cigarette tax legislation that died when House and Senate leaders could not agree on how much to raise it.

Ways and Means Chairman Percy Watson, D-Hattiesburg, one of the lead House negotiators, said another option would be to take the $25 million out of the state's $375 million rainy day fund. Some members also were expected to file that resolution today.

Of the car tag issue, Watson said, "We don't have the option of leaving the session without taking care of it."

But currently the Legislature is planning on finishing as early as Tuesday and coming back on May 4, after the car tag increase is put in place, to work on the budget.