Mississippians could soon pay less in income and grocery taxes while paying more in gas taxes under a bill that both chambers of the Legislature have now approved.
The current version of the legislation, House Bill 1, combines earlier tax reduction plans that the Senate and House passed earlier this year. The Senate passed an amended version of H.B. 1 on March 18 that included provisions from the upper chamber’s own tax bill, S.B. 3095.
In addition to cutting grocery and income taxes, the bill would also prevent liabilities from growing in the Public Employees’ Retirement System by reducing benefits for future employees.
“Creating a path to responsibly eliminate the income tax while not raising sales tax and stabilizing the PERS system has been a priority for Senate leadership. We cannot discuss eliminating the state’s second-largest revenue source without addressing our $26.5 billion unfunded liability as recommended by the PERS board,” Lt. Gov. Delbert Hosemann, a Republican, said at a March 17 press conference. “Our top goal remains delivering tax relief for all Mississippians while making fiscally wise decisions.”
@media ( min-width: 300px ){.newspack_global_ad.scaip-1{min-height: 99px;}}@media ( min-width: 320px ){.newspack_global_ad.scaip-1{min-height: 99px;}}@media ( min-width: 728px ){.newspack_global_ad.scaip-1{min-height: 90px;}}
The Mississippi House agreed to concur with the Senate’s revised version of the legislation on March 20 by an overwhelming 92-27 vote. That same day, Rep. Trey Lamar, R-Senatobia, Rep. Karl Oliver, R-Winona, and Rep. Jody Steverson, R-Ripley, entered a motion to reconsider the legislation in an attempt to push for more immediate income tax elimination.
“Let’s end the tax on work once and for all in the State of Mississippi,” Lamar said on the House floor on March 20.
The House also amended the Senate plan, though the Senate has not since brought that bill back up for concurrence. Lawmakers have not said what they will do with S.B. 3095 now that both chambers have approved the amended House bill.
Income and Grocery Taxes Decrease
Under the amended House Bill 1, income tax rates for Mississippians who make more than $10,000 would fall from 4.4% in 2025 to 4% in 2026; the rate
Read original article by clicking here.