Bill > SB2570

This bill modifies Mississippi's sales tax laws to provide an exemption for food and drink eligible for purchase with food stamps and gives municipalities new authority to levy a local sales tax on food purchases. Specifically, the bill removes state sales tax on retail sales of food or drink that can be purchased with food stamps issued by the United States Department of Agriculture. Additionally, the bill allows municipalities to levy a local sales tax of up to 1% on food or drink purchases, but only when those items are purchased without food stamps. Municipalities can choose to implement this tax either by resolution or by holding a public election, and they have discretion to adjust or repeal the tax using the same process. The tax would be collected by the Department of Revenue, which can retain 3% of the proceeds to cover collection costs, with the remainder paid to the municipal governing authorities. Before implementing the tax, municipalities must adopt a resolution specifying details such as the tax rate, effective date, and the municipal fund where proceeds will be deposited. The bill provides flexibility for municipalities in implementing and managing this local food sales tax, giving them a new potential revenue source while protecting food stamp recipients from additional taxation.

Budget and Finance

https://billstatus.ls.state.ms.us/2025/pdf/history/SB/SB2570.xml