JACKSON, Miss. (WJTV) – The Mississippi Senate Finance Committee cleared a bill that would reduce the income tax, cut grocery taxes and provide a six-month gas tax suspension.
According to Lt. Governor Delbert Hosemann (R-Miss.), the amended House Bill 531 includes no tax increases or growth triggers, and it would be implemented in eight years.
The proposal includes:
- An immediate reduction in the grocery tax from 7 percent to 5 percent, at a cost of about $118.4 million
- A 2022 rebate of up to $1,000 for all citizens with tax liability, which totals about $130 million
- A reduction of the 5 percent tax bracket over the next four years to 4.6 percent, at a cost of $136 million
- The elimination of the 4 percent tax bracket over four years after the reduction of the 5 percent bracket is finally implemented, at a cost of $185 million
- A six-month suspension of the 18.4-cent gas tax, which totals about $215 million
“Inflation is through the roof and Mississippians need help with household expenses now. The grocery tax cut, gas tax suspension, and rebate in the Senate’s proposal all provide direct and immediate relief to our citizens. A reduction in the income tax makes us very competitive with and lower than other states without compromising the budget,” said Hosemann. “We have needs in the state, but we also have a surplus. We need to return money to taxpayers this year.”