Mississippi House Passes Major Tax Reform Bill

The Mississippi House of Representatives has passed the Build Up Mississippi Act, a comprehensive tax reform bill that aims to phase out the state income tax over ten years while reducing the grocery tax from 7% to 2.5% and implementing a new 5% gas tax. The legislation, which has received significant support from House Republicans and Governor Tate Reeves, also introduces a 1.5% local sales tax to compensate municipalities for the loss of diverted sales tax revenue. Proponents argue that the economic growth spurred by the tax cuts will offset the projected $1.1 billion reduction in state revenue, while critics express concern over potential budget shortfalls. The revenue from the new gas tax is earmarked for road and bridge infrastructure improvements, reflecting a long-standing need for increased transportation funding. The bill's passage represents a significant step toward major fiscal changes in Mississippi, but it must still pass the Senate to become law.