JACKSON, Miss. (WJTV) – House Speaker Jason White (R-Miss.) said State Rep. Trey Lamar (R-District 8) has amended Senate Bill 3095 with a revised House Bill 1 in order to eliminate the income tax.

“The revisions in this bill stem from negotiations with the Senate, the demand of Mississippi taxpayers to eliminate the income tax, and opportunities the House identified to bring the most significant tax relief to Mississippians. The amendment that passed out of the House Ways and Means Committee today and heads to the full voting body provides for an immediate net tax cut for all Mississippians,” said White.

The House Speaker said the bill would do the following:

• Income tax rates will be cut from 4% to 3.5% in 2027 and then progressively decrease to complete elimination by 2037.
• The sales tax on groceries would immediately reduce from 7% to 5%, a change from the phase-in period in the original HB 1.
• Over two years, Sales Tax would increase from 7% to 8%. White said the revenue from this tax will distribute $48 million annually to the State Aid Road Fund, and the remaining funds will be deposited into the General Fund.
• An amendment changes Mississippi’s Use Tax from 7% to 8% to simply mirror the House’s proposed state Sales Tax. The revenue collected from the Use Tax increase will be used for the Homestead Exemption Reimbursement Fund created in this amendment to provide property tax relief in the form of a $200 annual credit to those over the age of 65.
• The Excise Tax on fuel would increase five cents a year for three years, a change from the fuel sales tax presented in original HB 1 but still provides significant and stable funding for our state’s infrastructure through MDOT and the Strategic Multi-Modal Investments Fund.
• As proposed in original HB 1, lottery proceeds of $100 million will be allocated to PERS until it reaches an 80% funded ratio, and the remaining funds will be deposited into the Education Enhancement Fund.
• $300 million will be transferred from the Capitol Expense Fund to the Budget Contingency Fund.