House and Senate leaders on Monday evening unveiled new plans to eliminate the state income tax and raise gasoline taxes — charting a path to more negotiations over the most notable legislative debate of the 2025 session. 

Monday marks the first time the Senate leadership has proposed a plan to eliminate the income tax, a significant move from its previous position wanting only to cut the tax that accounts for nearly one-third of the state budget.

Republican House Ways and Means Chairman Trey Lamar said the move could bring the chambers closer to reaching a final agreement. 

“I can’t underestimate the importance of the Senate placing into written form and out in the open public that they are agreeing to eliminate the income tax,” Lamar said. “We’re willing to work with them. We are not willing to compromise on total elimination of the income tax and taking care of some the infrastructure needs we have.”

The House also changed its position Monday on a few key provisions. It agreed to increase the state’s net sales tax from 7% to 8%, down from the eventual 8.5% target the chamber had originally proposed. The revenue from this tax increase would provide $48 million annually to pay for infrastructure improvements via the State Aid Road Fund. The remaining funds would go into the state’s general fund.

It also changed what had been a new 5% sales tax on gasoline to a 15-cents-a-gallon excise tax increase, phased in at 5 cents a year over a three-year period. That would bring in approximately $23 million a year once fully phased in, Lamar said. This would be added to the current 18.4-cents-a-gallong excise Mississippi motorists currently pay.

The House plan would also cut the sales tax on groceries from 7% to 5%.

The new House plan would also create a new fund that gives those over the age of 65 property tax credits of $200 a year. This provision is designed to allay the concerns of senior citizens, who stood to benefit little from income tax elimination because Mississippi exempts retirement and Social Security income from state income taxes. 

However, the most surprising development was in the GOP-majority Senate, which finally answered calls from House leadership and Republican Gov. Tate Reeves to propose a plan that eliminates the income tax. 

READ MORE: Mississippi lawmakers struggle to reach tax agreement as federal cuts loom

Senators proposed phasing out the tax over an undefined period, but it would most likely take longer than the House has proposed. The House held to its position that the income tax must be eliminated by 2037.

Republican Lt. Gov. Delbert Hosemann called the Senate plan fiscally responsible, while House leaders said a quicker timeline is needed for abolishing the tax to ensure that economic growth for the state. 

The Senate plan would decrease the 4% income tax rate — already among the lowest in the nation — by .25% each year from 2027 to 2030 and leave it at 3% in 2030. Afterward, the income tax would be reduced with “growth triggers” or at a proportional rate depending on the difference between the state’s revenue and spending plans that year. 

READ MORE: How soon we forget: Mississippi House push for record tax cuts revives fear of repeat budget crises

“We’re going to basically let our economy dictate the rate and how progressive we are in reducing the income tax on citizens in our state while protecting the core functions of government that we’re supposed to provide,” Senate Finance Chairman Josh Harkins said. 

Lamar said the Senate’s language on triggers, which he had not seen as of Monday afternoon, would be crucial to reaching a final agreement.

“The last thing we want to do is mislead the Mississippi citizens to have them believe they’re going to get their income tax eliminated and not (have it) actually work,” Lamar said. “So that trigger language will be key.”

The Senate plan also immediately reduces the sales tax on groceries from 7% to 5%, increases the gasoline tax by 9 cents over three years to fund infrastructure projects and overhauls the state public employee retirement system. 

Many Democrats are expected to oppose either plan. Democratic Sen. Hob Bryan of Amory said the new Senate plan marks a “sad day” in the state’s history because it forsakes the government’s responsibility to provide key services in one of the poorest states in the nation.

READ MORE: Legislature stumbles into final weeks of session in a tax-fight funk: Legislative recap

Bryan and others have warned that cutting revenue and upending the state’s tax structure in uncertain economic times — with potential massive cuts in federal money Mississippi relies on — is foolhardy.

“I know the snake oil salesman who showed up in Mississippi selling this bill of goods must be happy,” Bryan said. 

Despite the new offers from each side, the two chambers are still far apart in their negotiations and the Republican leadership of each has continued criticizing the other as the 2025 legislative session is scheduled to end in roughly two weeks.

Lawmakers will likely conduct negotiations on a final tax cut proposal in a conference committee. The deadline for them to reach a final agreement is March 29. If they don’t meet that deadline, they could try to suspend their rules. 

If the two chambers can’t reach an agreement, the governor could call them into a special session and try to pressure the two chambers to find a way to abolish what he and others call the “tax on work.” 

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

As the Mississippi Legislature stumbles into what is supposed to be the final few weeks of its 2025 session, it’s in a funk, caused primarily by the continuing standoff between Republican House and Senate leaders over cutting/eliminating/increasing taxes.

It doesn’t help that wild, whiplashing policies and economic omens are coming out of Washington, making proceeding with any major tax structure overhaul in one of the poorest states a more risky gambit.

“Trump said, I heard this morning, be prepared for a recession,” Senate President Protem Dean Kirby said as he and Republican House Rep. Gene Newman, both Republicans from Pearl, spoke last week on the city of Pearl’s podcast.

Newman said: “The biggest concern that I have personally is what is the federal government going to do about Medicaid? Because some of the ideas I’ve heard talked about would really hurt Mississippi. The amount of money we get from the federal government to run Medicaid is nuts, and it would really hurt us in a large way to lose that money, the way the hospitals are already screaming because we didn’t (expand Medicaid) … It’s going to be kind of hard to just go in there and do away with the income tax completely and do all that stuff the way we are talking about doing it.”

At this point, it appears the House is standing pat that any plan include the elimination of the state’s already low personal income tax, not just cuts, and on eliminating it within a decade or so.

The Senate, which has urged a more cautious approach — further cuts without total elimination — reportedly offered concession last week: eliminate the income tax over 20 years, but with growth triggers: It would be reduced each year over 20 years provided the state met revenue growth numbers.

The Senate also appears firm against the House proposal to allow local governments to add a 1.5% sales tax, on top of the current 7%. Senate leaders are also reportedly calling for the House to help revive its proposal to overhaul the state employee retirement system, including offering less benefits to people hired in the future, as part of any larger deal on taxation.

The Senate also appears to be standing firm that the House help revive its state employee retirement system overhaul that it killed. The Senate had passed changes including more austere benefits for people hired in the future, saying the system must be shored up financially for the future. Over last weekend, Lt. Gov. Delbert Hosemann and House Speaker Jason White exchanged barbs on social media over the PERS standoff.

READ MORE: PERS overhaul sputters: Securing the future, or giving new state employees ‘worst of both worlds’?

Both chambers appear to still want a gasoline tax increase to help pay for state roadwork, but with differences — the House would put a 5% sales tax on fuel; the Senate a 9 cents-a-gallon increase, imposed 3-cents-a-year over three years, then future increases based on an index of construction costs.

The session hasn’t reached a total deadlock on passage of legislation over the tax debate as some had feared, but it has crawled along and the House and Senate have killed much of each others’ major policy proposals. To date, providing paid parental leave to state employees and allowing Mississippians to mail-order wine are the hallmarks of this year’s session.

There is still talk around the Capitol about lawmakers remaining at an impasse and not reaching a deal on taxes before the clock runs out on the session in April. Some speculate lawmakers would pass a budget, triage what other legislation they can, and go home and tackle tax changes again next year.

Others speculate Gov. Tate Reeves would force lawmakers back into special session and make them try again on taxes. That’s unclear. Reeves has said eliminating the income tax is a top priority of his, but he hasn’t offered his own plan or fully endorsed the House’s, nor has he made any real effort to help lawmakers reach compromise. He’s mainly lobbed bombs from the sidelines on social media.

Kirby, on his hometown podcast, appeared to try to use lemons from this session to make lemonade or, as it were, wine.

“It’s been a good session,” Kirby said. “We’ve accomplished a lot. The folks who like wine are happy.”

WATCH: Former Governor Haley Barbour on the strength of the Democratic Party in MS

Quote of the Week

“No need to send a milk toast, very lame Senate Education agenda back to the House, it’s not even worthy of discussion …” — House Speaker Jason White, on social media Tuesday night. He later corrected the post to “milquetoast,” instead of the tasty economical breakfast popular in the 19th Century.

In Brief

Prenatal care for poor women bill sent to governor

A bill to help poor women access prenatal care passed the full Legislature on Wednesday. It now heads to the governor to be signed into law. 

The policy was signed into law last year, but never went into effect because of administrative hiccups. Rep. Missy McGee, R-Hattiesburg, re-worked the bill this year to match federal guidelines so the program can take effect. 

Presumptive eligibility for pregnant women allows low-income women who become newly eligible for Medicaid once pregnant to receive immediate coverage as soon as they find out they’re pregnant – even if their Medicaid application is still pending. The program is especially effective in states that have not expanded Medicaid.  

Mississippi is currently one of only three states with neither expansion or presumptive eligibility for pregnant women. 

Expectant mothers will be eligible if they make below 194% of the federal poverty level. That’s about $29,000 annually for an individual, or $50,000 annually for a family of three.  – Sophia Paffenroth

Immunity for those who report abuse or assault debated

A measure that will provide immunity to people who possess alcohol while underage or small amounts of drugs if they report instances of sexual abuse or sexual assault to law enforcement authorities will head to a conference committee for final negotiations. 

The House and Senate passed different versions of House Bill 861, which passed both chambers with broad support. The House speaker will appoint three House members, and the lieutenant governor will appoint three senators to negotiate the final version. 

Proponents of the measure say a law is needed to give some level of protection to college students at a party where drugs were present who might be worried they would receive punishment from law enforcement if they were a survivor or a witness to sexual assault.  – Taylor Vance

Legislative redistricting awaiting court approval

Three federal judges will have the final say on how many legislative districts will be required to participate in a special election this November. 

The Mississippi Legislature last week approved two maps that redraw five House districts and ten Senate districts. Two of the Senate districts in the maps contain no incumbents. But if a federal court agrees, the remaining 13 districts will require incumbents to run in a special election and allow challengers to compete against them. 

The NAACP is the plaintiff in the case, and they have objected to portions of the Legislature’s map. The Court will soon rule if they agree with the Legislature’s map or if more changes are needed. – Taylor Vance

Turkey stamp bill heads to governor’s desk

A bill requiring hunters to obtain a turkey stamp before harvesting the wild birds will head to Gov. Tate Reeves’ desk for consideration. 

The Legislature passed Senate Bill 2280, which requires in-state hunters to purchase a $10 turkey stamp and out-of-state hunters to pay a $100 fee for the stamp. In addition to the new stamp, the law still requires hunters to obtain a normal hunting licence. 

Proponents of the measure said the fees generated from the stamps will be used to maintain and improve turkey-hunting lands around the state.

Another measure, which would have required hunters to report deer they kill online or by phone, died in Senate committee without a vote. – Taylor Vance

Lawmakers debating intoxicating hemp ban

Lawmakers continue to argue the regulation or banning of intoxicating hemp products, such as drinks or candy, being sold in convenience stores.

The Senate last week after much debate and amendment, passed HB 1502. It would still allow some beverages with low amounts of THC to be sold in convenience or grocery stores to people 21 or older. Some lawmakers are pushing for an outright ban of the products. – Geoff Pender

By the Numbers

6, and 118-0

House Bill 1063, pending the governor signs it into law, would provide six weeks of paid parental leave to state employees, except school teachers, who adopt or give birth to a child and serve as primary caregiver. The House passed the bill on to the governor last week with a vote of 118-0.

Full Legislative Coverage

Are House leaders rubber stamping some bills without apparent committee support?

In recent years, particularly in the House, publicly held committee hearings and votes have become pro forma. Real decisions appear to be hashed out, and straw polled, in closed door Republican Caucus meetings. Read the story.

‘Not COVID. It’s Trump’: Lawmakers prepare for tumultuous Trumpenomics by … upending state tax structure

But staring down the barrel of potential economic chaos or calamity, Mississippi lawmakers are not drastically cutting spending, hoarding tax dollars or even proceeding with caution. Their main focus this legislative session is a total overhaul of the state’s tax structure including massive tax cuts combined with fairly massive tax increases — an unprecedented economic experiment betting that the state’s fortunes will rise and cover the spread. Read the story.

‘How can we stand by?’: Moms worry Medicaid cuts will hurt their children

Advocates, Medicaid recipients and their family members gathered outside the Capitol Tuesday to urge both state and federal lawmakers to “protect and expand Medicaid now.”  Read the story.

Anti-DEI bill would impact K-12 schools, put university ‘efficiency’ taskforce on hold

Mississippi lawmakers are poised to ban diversity, equity and inclusion programs from K-12 schools in addition to universities, while the creation of a taskforce to study “efficiency” in the state’s higher education system would likely be delayed. Read the story.

Mississippi Legislature again fails to replace statues of white supremacists in U.S. Capitol 

Mississippi remains an outlier for its statues, even among other Southern states. The Magnolia State is currently the only state in the nation to honor two Confederate leaders in the National Statuary Hall Collection.  Read the story.

‘A good start’: Senate passes pharmacy benefit manager reform bill

The bill’s passage came after a strong showing of support for reform from independent pharmacists, who have warned that if legislators do not pass a law this year to regulate pharmacy benefit managers, which serve as middlemen in the pharmaceutical industry, some pharmacies may be forced to close. Read the story.

‘A good start’: Senate passes pharmacy benefit manager reform bill

The bill’s passage came after a strong showing of support for reform from independent pharmacists, who have warned that if legislators do not pass a law this year to regulate pharmacy benefit managers, which serve as middlemen in the pharmaceutical industry, some pharmacies may be forced to close. Read the story.

Legislature sends paid family leave bill to governor

Mississippi women who work in government don’t get a single day of paid time off after giving birth or adopting a child. That’s about to change. Read the story.

Mississippi lawmakers struggle to reach tax agreement as federal cuts loom

House and Senate negotiations over proposals to drastically overhaul Mississippi’s tax code appear to be at a standstill as lawmakers weigh the impact federal spending cuts could have on one of the nation’s poorest and most federally-dependent states. Read the story.

Podcast: Is the Mississippi Legislature any closer to a tax cut/elimination/increase deal?

Senate Finance Chairman Josh Harkins gives an update on where negotiations stand on tax overhaul proposals in the Mississippi Legislature, and his thoughts on the differing Senate and House proposals that would include cutting or eliminating the personal income tax and raising taxes on gasoline. Listen to the podcast.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

by Jerry Mitchell, Mississippi Today
March 17, 2025

March 17, 1933

Myrlie Beasley Evers was born on St. Patrick’s Day in Vicksburg, Mississippi. She had visions of being a concert pianist, but Jim Crow conspired against her and she wound up attending what is now Alcorn State University, which offered a minor in music. 

On her first day on campus, she met Medgar Evers. The two married. He became the Mississippi NAACP’s first field secretary, and she became his secretary. 

After he was assassinated, her husband’s killer, Byron De La Beckwith, was tried twice, but walked free when the juries couldn’t reach a verdict. She pushed for his reprosecution, which finally took place in 1994 when he was convicted of murder and received a life sentence. 

A year later, she was elected chair of the national NAACP, helping rescue the civil rights organization from the brink of bankruptcy. A dynamic speaker, she became the first woman and first layperson to deliver the prayer at the presidential inauguration in 2013. 

“I have never been in this world one day without love,” she said, “and it has carried me through everything I have been through to this point, and it will carry me off.”

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.