The Mississippi House of Representatives recently passed House Bill 1, also known as the Build Up Mississippi Act, by an 88-24 vote. This bill aims to completely overhaul the state tax system by gradually phasing out the state’s income tax and reducing the grocery tax, currently the highest in the country at 7%. Additionally, the bill proposes an increase in the gas tax to 5% from the current flat rate of 18 cents per gallon.
House Speaker Jason White hailed the passage of HB 1 as a monumental step towards enacting the largest tax cut in Mississippi’s history. He emphasized that this move prioritizes the quality of life for all citizens while setting the stage for a thriving economy that will benefit future generations. Governor Tate Reeves has expressed his support for the bill, highlighting the elimination of the state’s income tax as his top priority for the 2025 legislative session.
While the bill has received overwhelming support in the House, it still needs to pass through the Senate before becoming law. If successful, the Build Up Mississippi Act could bring significant changes to the state’s tax system and have long-term implications for residents and the economy. The full text of the bill is available for review, as the state awaits further legislative action on this important issue.
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