Mississippi’s New Tax Proposal Eliminates Income Tax, Reduces Grocery Tax – Increases Taxes on Alcohol, Music, Gaming, Ring Tones, and Other Sales – Magnolia State Live

Mississippi House is working on a proposal to phase out state income tax, reduce sales tax on groceries, and increase sales tax on many other items.

The House Ways and Means Committee on Tuesday adopted the first draft of the proposal, Bill 531. The bill will be presented to the entire House for further debate.

Republican House Speaker Philip Gunn has said eliminating income tax is his priority this legislative session because he believes the change will make Mississippi more competitive with states like Texas, Florida. and Tennessee which does not tax income.

The House’s proposal would reduce the tax on groceries from 7% to 4%. The change would occur over six years, starting in July.
The proposal would also increase several taxes from 7% to 8.5%, an increase of more than 21% of that rate. This would include general sales tax; the sales tax on alcohol; and the tax on music, games, cell phone ringtones and other products delivered electronically.

If the general sales tax were to increase by the suggested amount, for example, a person buying $ 100 of clothing would pay $ 8.50 in sales tax instead of the current $ 7. The increased tax amount would apply to purchases in person or online.

Republican Lieutenant Governor Delbert Hosemann, who chairs the Senate, has said he wants some kind of tax cut this session, but he did not say what kind.

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