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Mississippi among states where sales tax is largest revenue source

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Study: Mississippi among minority of states most dependent on sales tax

The individual income tax, which House Speaker Philip Gunn, Gov. Tate Reeves and others want to eliminate in Mississippi, is the largest source of revenue in 33 states.

Mississippi is among 14 states where sales tax is the largest source of revenue, according to a recent by the Pew Charitable Trust, which researches and offers assistance to governmental entities on various policy issues.

Recent reports by Pew reveal that most states, including Mississippi, are experiencing significant increases in revenue collections and those increases are fueled by strong collections of most general taxes, including the income tax and the sales tax.

โ€œTax revenue is one factor that helps explain recent widespread budget surpluses,โ€ according to a report from Pew.

Currently, according to data compiled by Pew, tax collections are robust both in states that rely primarily on the sales tax and those that are dependent on the income tax.

Mississippi is no exception. With one month of data still to collect before the fiscal year ends on June 30, tax collections in Mississippi are nearly $1.3 billion above the official estimate. The official estimate represents the amount of money legislative projected would be available during the to build a budget for the upcoming fiscal year beginning July 1. Money above the official estimate goes into reserve funds.

During the 2022 session, the appropriated $951.1 million in reserve funds. The bulk of that went for a litany of one-time projects โ€“ such as on buildings repair, renovation and construction, and on tourism projects across the state.

Based on revenue collections through May, the Legislature also will have a substantial amount of reserve funds for the 2023 session.

In addition to being almost $1.3 billion above the official estimate, tax collections also are $615 million or 10.25% above the amount collected during the first 11 month of the previous fiscal year. Through 11 months of the fiscal year, the personal income tax collections are up $276.7 million or 13.8% while the general sales tax collections are up $291.4 million or 14.4%. Other elements of the sales tax, such as the tax levied on out of state purchases, also are up.

In the coming years, Mississippi will be even more reliant on the sales tax. During the 2022 session the Legislature reduced the state income tax โ€“ beginning in the 2023 calendar year โ€“ by eliminating the state’s 4% tax bracket on people’s first $5,000 of taxable income. The 5% tax on remaining income will drop to 4.7% for 2023, then 4.4% for 2025 and 4% starting in 2026. The changes will reduce state income tax revenue by $525 million when fully enacted in 2026.

Both Gunn and Reeves have expressed for fully eliminating the income tax in the coming years.

โ€œWe have talked a lot about moving toward a full elimination of the income tax. I believe that is still the goal. We want to make sure we continue that fight,โ€ Gunn said during the 2022 session earlier this year.

Such action would further position Mississippi among the minority of states more dependent on the sales tax for revenue than the income tax. The sales tax is viewed as a regressive tax that places a larger tax burden on low-income than does the income tax.

According to research by Pew, Mississippi currently garners 45.2% of its revenue from its general sales tax, which is 7% on most retail items. This would also include the excise tax levied on out-of-state purchases, primarily those made via the internet. The personal income tax accounts for 26.9% of the state’s revenue, according to Pew.

But that number will decline in the coming years as the income tax is reduced, with the hope by some, of eventually eliminating the tax.

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

Mississippi News

Mississippi sees 5th largest increase in fatal crashes: study

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www.wjtv.com – Garret Grove – 2024-11-02 12:25:00

SUMMARY: A recent study highlights a troubling rise in road fatalities in Mississippi, with a nearly 31% increase in fatal accidents from 2012 to 2021, ranking it fifth highest in the country. The reported a spike during the 2024 Labor Day , responding to seven fatal crashes resulting in 15 deaths, to only three crashes and six deaths in 2021. Additionally, a 2023 showed Mississippi had the highest per capita fatal crashes during the Christmas period. Young drivers are particularly affected, as Mississippi ranks fifth for teenage driving fatalities nationwide.

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Mississippi News

Vicksburg man charged with assaulting woman in domestic dispute

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www.wjtv.com – Kaitlin Howell – 2024-11-02 11:33:00

SUMMARY: In Vicksburg, Mississippi, a domestic assault led to the hospitalization of a man and woman on November 2. were alerted by Merit Region after a 28-year-old man, Daron Evans, arrived with a stab wound. Authorities dispatched to the scene found the woman, who had also been assaulted. After receiving treatment, Evans was and charged with aggravated assault domestic violence; he is held without bond until his court appearance. The woman is in stable at the . An investigation is ongoing.

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Mississippi News

Cloudy and humid weekend – Home – WCBI TV

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www.wcbi.com – Sadie Morris – 2024-11-02 10:13:00

SUMMARY: In Columbus, Mississippi, humid and cloudy weather is expected, with temperatures remaining above average in the lower 80s for the upcoming . Rain is forecasted for Election Day on Tuesday, continuing into the week with isolated showers likely. This Saturday will see patchy fog in the morning, clearing by midday, with a high around 80 degrees. Sunday will bring similar humidity, with a high in the lower 80s and mild overnight lows in the mid-60s. Throughout the week, expect persistent clouds and humidity alongside mild temperatures.

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