🎧 Listen to This Article
Mississippi lawmakers have approved a sweeping tax overhaul that includes a gradual reduction of the state’s individual income tax and an increase in fuel taxes, with a significant portion of the additional revenue directed toward transportation funding. The bill, HB1, has passed both the House and Senate and is now headed to Gov. Tate Reeves’ desk.
Key elements of the bill include a phased reduction of the 4.4% income tax rate to 3% by 2030, which is expected to result in a $400 million revenue loss. Additionally, the bill will raise the state’s fuel excise tax by nine cents per gallon over the next several years, with the extra revenue directed primarily to the Mississippi Department of Transportation. The fuel tax increase is set to be implemented starting July 1, 2025, and will support the state’s infrastructure needs.
The bill also includes a revision of the sales tax on groceries, lowering it from 7% to 5%, along with adjustments to other sales taxes to balance the budget. Lt. Gov. Delbert Hosemann called the passage a “transformative tax relief” for the state, but critics argue that it may strain the budget and impact vital public services.
For further details, clarification, contributions, or any concerns regarding this article, please contact us at [email protected]. We value your feedback and are committed to providing accurate and timely information. Please note that our privacy policy will handle all inquiries
