image credit: Unsplash

Mississippi House Passes Massive Sales Tax Increase on Business Inputs

February 24, 2021

Within a 24 hour period, the Mississippi House of Representatives introduced and passed a bill to repeal the individual income tax, but at a cost of massive increases in sales taxes imposed on business inputs. H.B. 1439 would phase out the individual income tax by gradually increasing the personal exemption over an undefined period of time based on a complex formula taking into account general fund revenue growth, but would leave the corporate income tax in place. If passed, any business income generated by pass-through entities such as partnerships and LLCs, as well as trusts and estates, would be exempt. The bill also would gradually reduce the sales tax on groceries from the current 7% to 3.5%, which may be the only favorable sales tax change in the bill.

Read More on National Law Review