House Bill 1439

AN ACT TO CREATE THE MISSISSIPPI TAX FREEDOM ACT OF 2021; TO AMEND SECTION 27-7-21, MISSISSIPPI CODE OF 1972, TO INCREASE THE AMOUNT OF THE PERSONAL EXEMPTIONS UNDER THE STATE INCOME TAX LAW FOR SINGLE INDIVIDUALS, MARRIED INDIVIDUALS AND HEAD OF FAMILY INDIVIDUALS AND TO PROVIDE FOR THE ANNUAL ADJUSTMENT OF THE AMOUNTS OF SUCH PERSONAL EXEMPTIONS; TO AMEND SECTION 27-65-17, MISSISSIPPI CODE OF 1972, TO INCREASE THE SALES TAX RATE ON THE SALE OF TANGIBLE PERSONAL PROPERTY; TO INCREASE THE SALES TAX RATE ON RETAIL SALES OF FARM TRACTORS AND PARTS AND LABOR USED TO MAINTAIN OR REPAIR SUCH TRACTORS WHEN MADE TO FARMERS FOR AGRICULTURAL PURPOSES; TO INCREASE THE SALES TAX RATE ON RETAIL SALES OF FARM IMPLEMENTS SOLD TO FARMERS AND PARTS AND LABOR USED TO MAINTAIN OR REPAIR SUCH IMPLEMENTS; TO INCREASE THE SALES TAX RATE ON SALES OF EQUIPMENT USED IN LOGGING, PULPWOOD OPERATIONS OR TREE FARMING, AND PARTS AND LABOR USED TO MAINTAIN OR REPAIR SUCH EQUIPMENT; TO INCREASE THE SALES TAX RATE ON RETAIL SALES OF AIRCRAFT, AUTOMOBILES, TRUCKS, TRUCK-TRACTORS, SEMITRAILERS AND MANUFACTURED AND MOBILE HOMES; TO INCREASE THE SALES TAX RATE ON SALES OF MANUFACTURING MACHINERY AND MACHINE PARTS; TO INCREASE THE SALES TAX RATE ON SALES OF MACHINERY AND MACHINE PARTS WHEN MADE TO A TECHNOLOGY INTENSIVE ENTERPRISE FOR PLANT USE ONLY WHEN THE MACHINERY AND MACHINE PARTS WILL BE USED EXCLUSIVELY AND DIRECTLY WITHIN THIS STATE FOR INDUSTRIAL PURPOSES; TO INCREASE THE SALES TAX RATE ON SALES OF MATERIALS FOR USE IN TRACK AND TRACK STRUCTURES TO A RAILROAD WHOSE RATES ARE FIXED BY THE INTERSTATE COMMERCE COMMISSION OR THE MISSISSIPPI PUBLIC SERVICE COMMISSION; TO INCREASE THE SALES TAX RATE ON SALES OF TANGIBLE PERSONAL PROPERTY TO ELECTRIC POWER ASSOCIATIONS FOR USE IN THE ORDINARY AND NECESSARY OPERATION OF THEIR GENERATING OR DISTRIBUTION SYSTEMS; TO INCREASE THE SALES TAX RATE ON SALES OF THE FACTORY-BUILT COMPONENTS OF MODULAR HOMES, PANELIZED HOMES AND PRECUT HOMES, AND PANEL CONSTRUCTED HOMES CONSISTING OF STRUCTURAL INSULATED PANELS; TO INCREASE THE SALES TAX RATE ON SALES OF MATERIALS USED IN THE REPAIR, RENOVATION, ADDITION TO, EXPANSION OR IMPROVEMENT OF BUILDINGS AND RELATED FACILITIES USED BY DAIRY PRODUCERS; TO REDUCE THE SALES TAX RATE ON RETAIL SALES OF FOOD FOR HUMAN CONSUMPTION NOT PURCHASED WITH FOOD STAMPS BUT WHICH WOULD BE EXEMPT FROM SALES TAX IF PURCHASED WITH FOOD STAMPS; TO AMEND SECTION 27-65-19, MISSISSIPPI CODE OF 1972, TO INCREASE THE SALES TAX RATE ON SALES OF UTILITIES AND TELECOMMUNICATIONS SERVICES; TO AMEND SECTION 27-65-20, MISSISSIPPI CODE OF 1972, TO INCREASE THE SALES TAX RATE ON SALES OF MACHINERY, MACHINE PARTS AND EQUIPMENT TO AN OPERATOR OR LESSEE OF COUNTY PORT AUTHORITY OR COUNTY DEVELOPMENT COMMISSION STRUCTURES, FACILITIES AND LANDS; TO AMEND SECTION 27-65-21, MISSISSIPPI CODE OF 1972, TO INCREASE THE SALES TAX RATE ON AMOUNTS INCLUDED IN THE CONTRACT PRICE OR COMPENSATION RECEIVED REPRESENTING THE SALE OF MANUFACTURING OR PROCESSING MACHINERY FOR A MANUFACTURER OR CUSTOM PROCESSOR; TO AMEND SECTION 27-65-22, MISSISSIPPI CODE OF 1972, TO INCREASE THE SALES TAX RATE ON AMUSEMENT AND ENTERTAINMENT ADMISSIONS; TO AMEND SECTION 27-65-23, MISSISSIPPI CODE OF 1972, TO INCREASE THE SALES TAX RATE ON VARIOUS SERVICES; TO AMEND SECTION 27-65-25, MISSISSIPPI CODE OF 1972, TO INCREASE THE SALES TAX RATE ON RETAIL SALES OF ALCOHOLIC BEVERAGES; TO AMEND SECTION 27-65-26, MISSISSIPPI CODE OF 1972, TO INCREASE THE SALES TAX RATE ON THE SALE, RENTING OR LEASING OF SPECIFIED DIGITAL PRODUCTS; TO AMEND SECTION 27-65-201, MISSISSIPPI CODE OF 1972, TO INCREASE THE SALES TAX RATE ON CASUAL SALES OF MOTOR VEHICLES; TO AMEND SECTION 27-65-75, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE STATE SALES REVENUE COLLECTED FROM INCREASES TO SALES TAX RATES UNDER THIS ACT SHALL BE DEPOSITED, WITHOUT DIVERSION, INTO THE STATE TREASURY TO THE CREDIT OF THE GENERAL FUND, EXCEPT THAT A PORTION OF SUCH REVENUE SHALL BE TEMPORARILY DEPOSITED INTO A SPECIAL FUND CREATED IN THE STATE TREASURY AS THE "BUDGET STABILIZATION FUND"; TO REVISE THE DISTRIBUTION OF STATE SALES TAX REVENUE COLLECTED FROM RETAIL SALES OF FOOD FOR HUMAN CONSUMPTION NOT PURCHASED WITH FOOD STAMPS BUT WHICH WOULD BE EXEMPT FROM SALES TAX IF PURCHASED WITH FOOD STAMPS; TO AMEND SECTION 27-67-31, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE STATE USE TAX REVENUE COLLECTED AS A RESULT OF THE INCREASES TO SALES TAX RATES UNDER THIS ACT SHALL BE DEPOSITED, WITHOUT DIVERSION, INTO THE STATE TREASURY TO THE CREDIT OF THE GENERAL FUND, EXCEPT THAT A PORTION OF SUCH REVENUE SHALL BE TEMPORARILY DEPOSITED INTO A SPECIAL FUND CREATED IN THE STATE TREASURY AS THE "BUDGET STABILIZATION FUND"; TO AMEND SECTION 27-65-241, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES CERTAIN MUNICIPALITIES TO LEVY A MUNICIPAL SPECIAL SALES TAX, TO CONFORM TO THE PROVISIONS OF THIS ACT; TO AMEND SECTIONS 27-69-3, 27-69-13 AND 27-69-75, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF THE TERM "TOBACCO" UNDER THE TOBACCO TAX LAW; TO INCREASE THE RATE OF THE TOBACCO TAX ON CIGARETTES AND OTHER TOBACCO; TO PROVIDE THAT TOBACCO TAXES COLLECTED FROM THE INCREASES TO TOBACCO TAX RATES UNDER THIS ACT SHALL BE TEMPORARILY DEPOSITED INTO A SPECIAL FUND CREATED IN THE STATE TREASURY AS THE "BUDGET STABILIZATION FUND"; TO CREATE THE "BUDGET STABILIZATION FUND" AS A SPECIAL FUND IN THE STATE TREASURY; TO PROVIDE THAT MONIES IN THE FUND SHALL ONLY BE APPROPRIATED BY THE LEGISLATURE TO FURTHER THE PURPOSES OF THIS ACT; TO AMEND SECTION 27-7-5, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT FROM AND AFTER JANUARY 1 OF THE NEXT SUCCEEDING YEAR AFTER THE DATE THAT THE COMMISSIONER OF REVENUE CERTIFIES THAT THE REDUCTION IN REVENUE MANDATED BY SECTION 27-7-21, MISSISSIPPI CODE OF 1972, EQUALS OR EXCEEDS THE REMAINING REVENUE PRODUCED BY THE INDIVIDUAL INCOME TAX, THE INDIVIDUAL INCOME TAX SHALL BE REPEALED; TO BRING FORWARD SECTION 27-7-3, MISSISSIPPI CODE OF 1972, WHICH DEFINES CERTAIN TERMS UNDER THE STATE INCOME TAX LAW, FOR THE PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 27-7-27, MISSISSIPPI CODE OF 1972, WHICH RELATES TO THE INCOME TAXATION OF ESTATES AND TRUSTS; TO BRING FORWARD SECTIONS 27-7-22.5, 27-7-22.15, 27-7-22.21, 27-7-22.22, 27-7-22.31, 27-7-22.32, 27-7-22.33, 27-7-22.37, 27-7-22.39, 27-7-22.41 AND 27-7-207, MISSISSIPPI CODE OF 1972, WHICH PROVIDE FOR VARIOUS INCOME TAX CREDITS, FOR THE PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTIONS 27-7-312, 57-62-5, 57-62-9, 57-62-11 AND 57-62-13, MISSISSIPPI CODE OF 1972, WHICH RELATE TO THE MISSISSIPPI ADVANTAGE JOBS ACT, FOR THE PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTIONS 57-89-3 AND 57-89-7, MISSISSIPPI CODE OF 1972, WHICH ARE SECTIONS OF THE MISSISSIPPI MOTION PICTURE INCENTIVE ACT, FOR THE PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTIONS 57-99-1, 57-99-3, 57-99-5, 57-99-7, 57-99-21, 57-99-23, 57-99-25 AND 57-99-27, MISSISSIPPI CODE OF 1972, WHICH RELATE TO THE MISSISSIPPI MAJOR ECONOMIC IMPACT WITHHOLDING REBATE INCENTIVE PROGRAM, FOR THE PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTIONS 37-148-3 AND 37-148-5, MISSISSIPPI CODE OF 1972, WHICH ARE SECTIONS OF THE STRENGTHENING MISSISSIPPI ACADEMIC RESEARCH THROUGH BUSINESS ACT, FOR THE PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 57-105-1, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES INCOME TAX AND INSURANCE PREMIUM TAX CREDITS FOR TAXPAYERS HOLDING CERTAIN QUALIFIED EQUITY INVESTMENTS, FOR THE PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTIONS 27-25-503 AND 27-25-505, MISSISSIPPI CODE OF 1972, WHICH ARE SECTIONS OF THE STATE OIL SEVERANCE TAX LAW, FOR THE PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTIONS 27-25-703 AND 27-25-705, MISSISSIPPI CODE OF 1972, WHICH ARE SECTIONS OF THE STATE GAS SEVERANCE TAX LAW, FOR THE PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTIONS 27-65-101, 27-65-103, 27-65-105, 27-65-107 AND 27-65-111, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZE VARIOUS SALES TAX EXEMPTIONS, FOR THE PURPOSES OF POSSIBLE AMENDMENT; TO AMEND SECTION 37-19-7, MISSISSIPPI CODE OF 1972, TO REVISE THE MINIMUM TEACHER SALARY SCALE BY INCREASING THE MINIMUM SALARY; TO AMEND SECTION 37-21-7, MISSISSIPPI CODE OF 1972, TO INCREASE THE MINIMUM ANNUAL SALARY FOR TEACHER ASSISTANTS; AND FOR RELATED PURPOSES.

In the House of Representatives

• Philip Gunn

  Sponsor

• House of Representatives floor amendmentAdopted

  Adopted Feb 23

l9n doesn't hold this bill's text yet.

In the House of Representatives Feb 22 – Feb 23

1. Feb 22Referred to the House committee on Ways and Means
2. Reported from committee in the House: title sufficient, do pass
3. Feb 23Amended in the House
4. Passed the House as amended

In the Senate Feb 24 – Mar 16

1. Feb 24Sent to the Senate
2. Mar 5Referred to the Senate committee on Finance
3. Mar 16Died in committee in the Senate