House income tax plan in limbo, policy analyst says legislature could still pass bill

by

Desare Frazier

• Published on March 25, 2021 • Last modified on March 24, 2021 • Comments

Rep. Trey Lamar discussing income tax phase out plan on House Floor, Mar. 16.
Mississippi Legislature

In the final days of the Mississippi legislative session, a House proposal to phase out the state’s income tax may not pass the legislature this year. But, a last minute agreement between the House and Senate could happen.

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A House proposal to phase out the income tax over at least 11 years is in limbo. The Senate killed the House bill and in response the chamber put a revised plan into a Senate bill. Changes to the bill now call for eliminating the state income tax for singles making $37,000 or less and couples earning $75,000 or less. Then the Senate passed a bill to study the issue over the summer. Jameson Taylor with the Mississippi Center for Public Policy says both chambers are jockeying for position over the issue.

I have never taken the speaker’s tax plan as simply take it or leave it. I think he put it out there to start the conversation. And there are many ways in which that bill could be amended. And so what we’re seeing now is a continuing dialogue about what should the state’s longer term tax policy look like,” said Taylor.

The House also wants to cut the grocery tax from 7 to 3.5 percent and increase the sales tax from 7 to 9.5 percent. Last year the state income tax brought in $1.8 billion. The session is scheduled to end April 4.