Following a contentious process that involved contrasting pieces of legislation, fundamental differences by top leaders in both chambers of the Mississippi legislature, and an errant decimal point that was promptly taken advantage of, Republican Gov. Tate Reeves officially signed a bill on Thursday to eliminate the state’s income tax, lower the grocery tax, and provide recurring funding for infrastructure projects.
A bevy of lawmakers gathered at the Governor’s Mansion in downtown Jackson to watch Reeves sign House Bill 1 into law. The legislation, authored by Rep. Trey Lamar, R-Senatobia, serves to reduce the personal income tax from 4% to 3% by 2030 with plans for full elimination by 2037 , drop the sales tax on groceries from 7% to 5% this summer, add a fifth benefits tier to the state’s public employees’ retirement system, and create a stream of annual dollars flowing into capacity projects.
Reeves, who made it clear when seeking a second term in office that his top priority was to eliminate the state income tax, was able to fulfill that plan by inking his signature on an official piece of legislation that does just that — but over time.
“This is more than a policy victory. This is a transformation. And it’s a transformation that I have believed in, fought for, and worked toward for many years,” Reeves said.
“From my days as lieutenant governor to my first campaign for this office – and every legislative session since – I have made this my mission because I believe in a simple idea: that government should take less so that you can keep more, that our people should be rewarded for hard work, not punished, and that Mississippi has the potential to be a magnet for opportunity, for investment, for talent, and for families looking to build a better life.”
Though the bill made it to the finish line, the process featured drama, infighting between legislative leaders on social media, and an opportunistic capitalizing of a typo that would ultimately minimize guard rails to prevent tax cuts.
After sending a countering tax reform bill to the other side of the
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