JACKSON, Miss.–A plan to gradually do away with Mississippi’s income tax and to reduce the state’s grocery tax was introduced to the Mississippi House Friday, and was championed by some central Mississippi lawmakers.
The plan would begin by reducing the state income tax immediately. It would be reduced in .3 percent increments, with the final reduction to zero in 2037.
“We will build up Mississippi by eliminating the income tax to further our state’s competitive advantage and award our workforce,” said Mississippi Speaker of the House Jason White, a Republican from West.
In his post on Twitter, White said cutting both taxes is a priority for the House this year.
“We will build up Mississippi by cutting the grocery tax in half to boost the pocketbook of Mississippians. We will build up Mississippi by developing a dedicated source of revenue for our critical infrastructure with maintenance and capacity projects. We will build up Mississippi by securing and stabilizing our state employee retirement plan,” he said
The plan to cut the grocery tax involves a cut to 4.5 percent in 2026, and incremental reductions to 2.5 percent in 2036.
Rep. Scott Bounds, a Republican from Neshoba County, is one of the authors of the bill.
The cuts would be made up in several ways, including allowing cities and counties to add 1.5 percent to local sales taxes to make up for the tax revenue they currently derive from the grocery tax. Those additions would be allowed beginning in July 2026.
An addition to the state’s gas tax is also possible.
The bill will have to go through committees, pass the House and Senate and be signed by the governor to become law, a process that could take months.