House Bill 1

AN ACT TO AMEND SECTION 27-7-5, MISSISSIPPI CODE OF 1972, TO REDUCE THE TAX ON ALL TAXABLE INCOME IN EXCESS OF $10,000.00 TO 3.75% FOR 2027, 3.5% FOR 2028, 3.25% FOR 2029, AND 3% FOR 2030 AND ALL SUBSEQUENT YEARS; TO PROVIDE FOR THE ADDITIONAL REDUCTION OF THE TAX ON ALL TAXABLE INCOME IN EXCESS OF $10,000.00, BEGINNING IN 2031, WHEN THE WORKING CASH-STABILIZATION RESERVE FUND IS FULLY FUNDED, AND THE ADJUSTED GENERAL FUND REVENUE COLLECTIONS FOR A FISCAL YEAR EXCEED CERTAIN APPROPRIATIONS FOR THE FOLLOWING FISCAL YEAR BY AT LEAST 0.85% OF THE COST OF A 1% INCOME TAX REDUCTION; TO AMEND SECTION 27-65-17, MISSISSIPPI CODE OF 1972, TO TAX RETAIL SALES OF GROCERIES AT 5% FROM AND AFTER JULY 1, 2025; TO AMEND SECTION 27-65-241, MISSISSIPPI CODE OF 1972, TO CONFORM; TO BRING FORWARD SECTION 27-67-5, MISSISSIPPI CODE OF 1972, WHICH REQUIRES THE IMPOSITION OF A USE TAX, FOR THE PURPOSE OF POSSIBLE AMENDMENT; TO AMEND SECTIONS 27-55-11, 27-55-519 AND 27-55-521, MISSISSIPPI CODE OF 1972, TO INCREASE THE EXCISE TAXES ON GASOLINE AND CERTAIN SPECIAL FUELS TO 21¢ PER GALLON FROM JULY 1, 2025, THROUGH JUNE 30, 2026, 24¢ PER GALLON FROM JULY 1, 2026, THROUGH JUNE 30, 2027, AND 27¢ PER GALLON FROM JULY 1, 2027, UNTIL THE FIRST DAY OF THE MONTH IMMEDIATELY FOLLOWING THE DATE UPON WHICH THE MISSISSIPPI TRANSPORTATION COMMISSION AND THE STATE TREASURER MAKE CERTAIN CERTIFICATIONS; TO PROVIDE FOR THE INDEXING OF SUCH TAXES; TO AMEND SECTIONS 27-55-12 AND 27-55-523, MISSISSIPPI CODE OF 1972, TO CONFORM; TO AMEND SECTIONS 27-5-101 AND 27-65-75, MISSISSIPPI CODE OF 1972, TO ADJUST THE DISTRIBUTION OF REVENUE FROM CERTAIN GASOLINE AND SPECIAL FUEL TAXES; 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 ADJUST THE DISTRIBUTION OF USE TAX REVENUE TO MUNICIPALITIES AND COUNTIES FOR INFRASTRUCTURE; TO AMEND SECTION 27-67-35, MISSISSIPPI CODE OF 1972, TO AUTHORIZE MUNICIPALITIES TO EXPEND MONIES IN A SPECIAL FUND CONSISTING OF USE TAX REVENUE DISTRIBUTIONS FOR THE ACQUISITION AND/OR REHABILITATION OF BUILDINGS; TO CREATE A NEW TIER IN THE MISSISSIPPI PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF MISSISSIPPI FOR EMPLOYEES BECOMING MEMBERS OF THE SYSTEM ON OR AFTER MARCH 1, 2026, WHICH SHALL CONSIST OF A DEFINED BENEFIT COMPONENT AND A DEFINED CONTRIBUTION COMPONENT; TO SPECIFY THAT THE DEFINED CONTRIBUTION COMPONENT SHALL BE A PLAN UNDER SECTION 401(A) OF THE INTERNAL REVENUE CODE; TO PROVIDE THAT A PORTION OF THE EMPLOYEE'S CONTRIBUTIONS SHALL BE DEPOSITED INTO THE EMPLOYEE'S DEFINED CONTRIBUTION ACCOUNT, AND IN ADDITION, THE EMPLOYER MAY ELECT TO CONTRIBUTE AN AMOUNT UP TO THE MAXIMUM PRETAX AMOUNT ALLOWABLE UNDER FEDERAL LAW; TO PROVIDE THAT MEMBERS SHALL BE VESTED IMMEDIATELY IN THE DEFINED CONTRIBUTION PLAN; TO AMEND SECTION 25-11-103, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF "AVERAGE COMPENSATION" FOR MEMBERS IN THE NEW TIER TO MEAN THE AVERAGE OF THE EIGHT HIGHEST CONSECUTIVE YEARS OF EARNED COMPENSATION, OR OF THE LAST 96 CONSECUTIVE MONTHS OF EARNED COMPENSATION, WHICHEVER IS GREATER; TO AMEND THE DEFINITION OF "MEMBER" TO PROVIDE THAT, IF A PERSON WITHDRAWS FROM STATE SERVICE AND RECEIVES A REFUND BEFORE MARCH 1, 2026, AND REENTERS STATE SERVICE ON OR AFTER MARCH 1, 2026, THE MEMBER SHALL BE CONSIDERED TO HAVE BECOME A MEMBER OF THE SYSTEM ON OR AFTER MARCH 1, 2026, AND NO PRIOR SERVICE SHALL BE CREDITED; TO AMEND SECTION 25-11-109, MISSISSIPPI CODE OF 1972, TO LIMIT THE CIRCUMSTANCES FOR WHICH CREDITABLE SERVICE MAY BE AWARDED FOR EMPLOYEES BECOMING MEMBERS OF THE SYSTEM ON OR AFTER MARCH 1, 2026; TO AMEND SECTION 25-11-111, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT MEMBERS IN THE NEW TIER WHO HAVE COMPLETED AT LEAST EIGHT YEARS OF MEMBERSHIP SERVICE SHALL BE ENTITLED TO RECEIVE A RETIREMENT ALLOWANCE UPON WITHDRAWAL FROM SERVICE AT THE AGE OF 62, AND MEMBERS WHO HAVE COMPLETED AT LEAST 35 YEARS OF CREDITABLE SERVICE SHALL BE ENTITLED TO RECEIVE A RETIREMENT ALLOWANCE UPON WITHDRAWAL FROM SERVICE REGARDLESS OF AGE; TO PROVIDE THAT MEMBERS IN THE NEW TIER WHO WITHDRAW FROM SERVICE BEFORE AGE 62 AND HAVE COMPLETED AT LEAST EIGHT YEARS OF MEMBERSHIP SERVICE AND HAVE NOT RECEIVED A REFUND OF THEIR CONTRIBUTIONS SHALL BE ENTITLED TO RECEIVE A RETIREMENT ALLOWANCE UPON ATTAINING THE AGE OF 62; TO PROVIDE THAT THE MEMBER'S ANNUAL RETIREMENT ALLOWANCE FROM THE DEFINED BENEFIT PLAN SHALL CONSIST OF A MEMBER'S ANNUITY, WHICH SHALL BE EQUAL TO 1% OF THE AVERAGE COMPENSATION FOR EACH YEAR OF CREDITABLE SERVICE; TO PROVIDE THAT THE ANNUAL RETIREMENT ALLOWANCE OF A MEMBER WHO HAS ATTAINED THE AGE OF 62 BUT HAS NOT COMPLETED AT LEAST 30 YEARS OF CREDITABLE SERVICE SHALL BE REDUCED BY AN ACTUARIAL EQUIVALENT FACTOR FOR EACH YEAR OF CREDITABLE SERVICE BELOW 30 YEARS OR THE NUMBER OF YEARS IN AGE THAT THE MEMBER IS BELOW AGE 65, WHICHEVER IS LESS; TO AMEND SECTION 25-11-112, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THERE SHALL BE NO ANNUAL COST-OF-LIVING ADJUSTMENT FOR THE RETIREMENT ALLOWANCE APPLICABLE TO THE NEW TIER, ALTHOUGH THE LEGISLATURE MAY PROVIDE AN ADDITIONAL BENEFIT FOR A SPECIFIC YEAR; TO AMEND SECTION 25-11-114, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT WITH RESPECT TO RETIREMENT ALLOWANCES FOR DEATH BEFORE RETIREMENT OR DEATH OR DISABILITY IN THE LINE OF DUTY; TO AMEND SECTION 25-11-115, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A MEMBER IN THE NEW TIER SHALL NOT BE ELIGIBLE FOR A PARTIAL LUMP-SUM DISTRIBUTION; TO AMEND SECTION 25-11-117, MISSISSIPPI CODE OF 1972, TO CONFORM; TO AMEND SECTION 25-11-123, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT, FOR MEMBERS IN THE NEW TIER, THE EMPLOYEE'S CONTRIBUTION SHALL BE 9% OF EARNED COMPENSATION, 4% OF WHICH SHALL BE DEPOSITED INTO THE ANNUITY SAVINGS ACCOUNT APPLICABLE TO THE DEFINED BENEFIT PORTION OF THE RETIREMENT ALLOWANCE, WITH THE REMAINING 5% TO BE DEPOSITED INTO THE EMPLOYEE'S DEFINED CONTRIBUTION ACCOUNT; TO PROVIDE THAT, FOR MEMBERS IN THE NEW TIER, THE EMPLOYER'S CONTRIBUTION SHALL BE APPLIED TO THE SYSTEM'S ACCRUED LIABILITY CONTRIBUTION FUND; TO AMEND SECTION 25-11-305, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT MEMBERSHIP IN THE SUPPLEMENTAL LEGISLATIVE RETIREMENT PLAN SHALL APPLY ONLY TO THOSE STATE LEGISLATORS AND PRESIDENTS OF THE SENATE WHO WERE ELECTED BEFORE MARCH 1, 2026; TO PROVIDE THAT, IF A MEMBER OF THE SUPPLEMENTAL LEGISLATIVE RETIREMENT PLAN WITHDRAWS FROM STATE SERVICE AND RECEIVES A REFUND BEFORE MARCH 1, 2026, AND REENTERS STATE SERVICE ON OR AFTER MARCH 1, 2026, THE MEMBER SHALL BE CONSIDERED TO HAVE BECOME A MEMBER OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER MARCH 1, 2026, AND NO PRIOR SERVICE SHALL BE CREDITED; TO AMEND SECTION 25-11-401, MISSISSIPPI CODE OF 1972, TO MAKE A MINOR TECHNICAL CHANGE; TO BRING FORWARD SECTION 25-11-409, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; TO AMEND SECTION 25-11-411, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT EACH PARTICIPANT IN THE OPTIONAL RETIREMENT PROGRAM SHALL CONTRIBUTE MONTHLY TO THE OPTIONAL RETIREMENT PROGRAM 9% OF THE PARTICIPANT'S TOTAL EARNED COMPENSATION; TO REALLOCATE THE EMPLOYER'S CONTRIBUTION TO THE OPTIONAL RETIREMENT PROGRAM; TO PROVIDE THAT AN AMOUNT EQUAL TO 14.9%, FOR EMPLOYEES HIRED BEFORE JULY 1, 2025, OR UP TO 9%, FOR EMPLOYEES HIRED ON OR AFTER JULY 1, 2025, OF THE PARTICIPANT'S TOTAL EARNED COMPENSATION SHALL BE APPLIED TO THE PARTICIPANT'S CONTRACTS OR ACCOUNTS; TO PROVIDE THAT UP TO 0.2% OF THE PARTICIPANT'S TOTAL EARNED COMPENSATION SHALL BE APPLIED TO THE EXPENSE FUND OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM TO DEFRAY THE COST OF ADMINISTERING THE OPTIONAL RETIREMENT PROGRAM; TO PROVIDE THAT THE REMAINDER SHALL BE REMITTED TO THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM FOR APPLICATION TO THE ACCRUED LIABILITY CONTRIBUTION FUND; TO REPEAL SECTION 25-11-415, MISSISSIPPI CODE OF 1972, WHICH PROVIDES THAT THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM MAY DEDUCT NOT MORE THAN 2% OF ALL EMPLOYERS' CONTRIBUTIONS AND TRANSFER SUCH DEDUCTIONS TO THE EXPENSE FUND OF THE SYSTEM TO DEFRAY THE COST OF ADMINISTERING THE OPTIONAL RETIREMENT PROGRAM; AND FOR RELATED PURPOSES.

In the House of Representatives

• John Thomas "Trey" Lamar, III

  Sponsor

• House of Representatives committee amendmentPending

• House of Representatives floor amendmentPending

• House of Representatives floor amendmentPending

• House of Representatives floor amendmentPending

• House of Representatives floor amendmentPending

• Senate committee amendmentPending

• Senate floor amendmentPending

• Senate floor amendmentPending

• Senate floor amendmentPending

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

In the House of Representatives Jan 10 – Jan 16

1. Jan 10Referred to the House committee on Ways and Means
2. Jan 14Reported from committee in the House: title sufficient, do pass as amended
3. Jan 16Amended in the House
4. Passed the House as amended

In the Senate Jan 17 – Mar 18

1. Jan 17Sent to the Senate
2. Feb 17Referred to the Senate committee on Finance
3. Mar 17Reported from committee in the Senate: title sufficient, do pass as amended
4. Mar 18Amended in the Senate
5. Passed the Senate as amended

Back in the House of Representatives Mar 18 – Mar 21

1. Mar 18Motion in the Senate to reconsider entered
2. Mar 19Motion in the Senate to reconsider tabled
3. Returned to the House to concur in the Senate's amendments
4. Mar 20Point of order raised in the House
5. Point of order not well taken in the House
6. Concurred in the House in the Senate's amendments
7. Motion in the House to reconsider entered (Oliver, Lamar and Steverson)
8. Mar 21Motion in the House to reconsider tabled
9. Enrolled bill signed in the House

To the Governor Mar 21 – Mar 27

1. Mar 21Enrolled bill signed in the Senate
2. Mar 27Approved by the Governor