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House Chamber Passes Comprehensive Tax Plan
House Bil 1
"The Build Up Mississippi Act”
On Thursday, January 16, 2025, The Mississippi House of Representatives passed House Bill 1 by a vote of 88 to 24. This measure consists of 13 Sections. Currently, Section 1 would be the only section that would take effect July 1st, 2025. All other sections would take effect July 1st, 2026.
Of the various sections, MAS has identified key sections that will have an impact on county government. This measure has two key components that address key MAS issues. Those issues are additional infrastructure funding for State Aid and revenue to help sustain the PERS Retirement System. The following are those sections:
Section 2: Establish a 1.5% sales tax in addition to the existing 7% tax within the county’s unincorporated areas to 8.5%.
- Counties may opt out before July 1, 2026 (must spread on minutes)
- Opting out means the county will not receive revenue from the new State Aid Funding in accordance with 65-9-17
- The Dept. of Revenue will collect the tax for the county and distribute it the Office of State Aid Road Fund.
Section 10: Line 2499 strikes lottery funds going back to the state in 2028 and moved it up to go back to the state in 2026.
- From and after July 1, 2026, $100 million of the net proceeds of the state lottery SHALL be paid into the PERS retirement system until the funded ratio for the system 80% at the end of a fiscal year and thereafter, for each month after that fiscal year such net proceeds SHALL be paid into the State General Fund.
- All such monies deposited into the Lottery Proceeds Fund over $100 million SHALL be transferred as follow: 50% into the Education Enhancement Fund for the purpose of Early Childhood Learning Collaborative, the Classroom Supply Fund and/or other educational purposes and 50% into the Strategic Multi-Model Investments Funds Created in 65-1-703
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