Bill > HB1024

This bill proposes a gradual phase-out of sales tax on retail food sales that are not purchased with food stamps. Starting July 1, 2025, the bill will progressively reduce the sales tax rate on these food items over a six-year period. In the first year, the tax rate will be 6%, and it will decrease by approximately 1% each subsequent year until July 1, 2031, when these food sales will become completely exempt from sales tax. The exemption will apply to food items that would typically be tax-exempt if purchased with food stamps, such as groceries and other food for human consumption. This phased approach allows for a gradual reduction in sales tax on food, potentially making groceries more affordable for Mississippi residents over time. The bill specifically amends Sections 27-65-17 and 27-65-111 of the Mississippi Code to implement these changes, with the new provisions taking effect on July 1, 2025.

Budget and Finance

https://billstatus.ls.state.ms.us/2025/pdf/history/HB/HB1024.xml