The January passage of House Bill 1, the Build Up Mississippi Act in the state’s House of Representatives will be looked back on by future generations as one of the most historic economic moments in our history.
This isn’t hyperbole, given what the Bill proposes coupled with the powerful economic roll our state has been on here of late, especially in the past two years. With bipartisan support, the Build Up Mississippi Act will phase out the state income tax while also reducing sales tax on groceries, the highest in the entire nation at seven percent. It is always a good thing when Mississippians can keep more of their money in their own pockets; hopefully, now they’ll be able to do just that.
Under HB1, every municipality will receive more funding under the local option of 1.5 percent sales tax than the current amount, or diversion. A proposed consumption-based model will help Mississippi keep grocery sales taxes lower and much more competitive than other Southern states. HB1 also revises exemption for motor fuel sales to include a 5 percent retail fuel sales tax, a fairly small amount.
This, in turn, will bring in and enhance revenue for the Mississippi Department of Transportation’s Maintenance and Capacity Projects Fund, which will be used to work on and address so many of our critical infrastructure needs in the state. Additionally, our PERS system will be stabilized and essential services will remain adequately funded.
The bottom line is that every resident of Mississippi will see real and tangible tax relief and the state’s coffers will not suffer as a result. This is great news for our state and credit must be given to Governor Reeves, Lt. Governor Hoseman, Speaker White and our other state representatives who took the bold step of passing HB1.
The largest cut in our state’s history will be seen as our leaders taking care of their own. It is a message that we are prioritizing the current quality of life for our residents while also priming the pump for an economy to continue thriving for many generations to come.
I hope the Senate builds upon the momentum the House leaders have started to bring this Bill home. Literally. Build Up Mississippi is more than just a nice sounding slogan: it can be the truth if all parties and leaders come together and make history for our state and life better for its residents.
We hope you enjoy this edition of the Delta Business Journal.