JACKSON, Miss. (WJTV) – The 2025 Mississippi Legislative Session will resume on Thursday, January 16 with a House vote pending on a massive tax reform bill.
House Bill 1 remains in play after it was passed by the House Ways and Means Committee on Tuesday, January 14. Supporters of the bill emphasize saving money for working Mississippians, but others worry that such a cut in revenue will drain funding for essential services.
“It affects your bond rating. The last tax cut, our bond rating lowered, and this is going to lower it even more, which means it’s harder to borrow. Money is harder, harder for us to bond projects. And so, I’m concerned about that because the number one thing that people sent us here to do is to provide services. They want good public schools,” said Rep. Robert Johnson III, House Minority Leader (D-District 94).
Rep. Trey Lamar’s (R-District 8) “Build Up Mississippi Act” would result in an estimated $1.1 billion income tax cut for Mississippians in the next 10 years. The ultimate goal is to eliminate the income tax completely.
The bill creates a new 5% sales tax on motor fuels, generating $400 million annually for the Mississippi Department of Transportation (MDOT).
“They want good roads and bridges. They want to have good public safety, good policemen and firemen, and pay them well. We’ve done studies that show that 5% that you pay more at the pump, you’ll actually have a net saving because your road will be improved. You will use as much gas going out of the way of bad roads and bridges,” said Johnson.
“Not since 1987 have we had a real conversation on properly funding transportation with recurring revenue. HB1 grants us this opportunity, and, for that, we are very grateful to Speaker Jason White, Chairman Trey Lamar and Chairman Steve Massengill. HB1 accomplishes a significant net tax cut for the people of Mississippi while still taking strides to make our transportation dollars both reliable and adequate. We look forward to working with our partners in the transportation arena to help see this legislation through the process, hopefully culminating with a positive outcome for the people of Mississippi,” said MDOT Executive Director Brad White.
State House lawmakers adjourned on Wednesday without a floor vote on the bill.
“We’d like more time to be able to sit down with the leadership that they have not taken the time to do with people on both sides of the aisle to give us an opportunity to say these are things we’re concerned about. Let’s see if we can have some common, common ground,” Johnson states.
House lawmakers will reconvene at 2:00 p.m. on Thursday.
