Mississippi House votes to overhaul several state taxes

Mississippi

Speaker Philip Gunn, R-Clinton, left, and Speaker Pro Tempore Jason White, R-West, confer prior to the start of the first day of the 2021 Mississippi Legislature at the Capitol, Tuesday, Jan. 5, 2021, in Jackson, Miss. (AP Photo/Rogelio V. Solis)

JACKSON, Miss. (AP) — The Mississippi House has voted to phase out most of the state’s personal income tax, cut the grocery tax in half and increase many other taxes.

House Bill 1439 passed 85-34 Tuesday. It will go to the Senate for more work in coming weeks. The bill would increase the general sales tax from 7% to 9.5%.

It also would increase other sales tax rates on items including cars, trucks, mobile homes, cigarettes, alcohol and farm equipment.

Critics say increasing the sales tax rate disproportionally affects people with lower incomes, but Republican House Speaker Philip Gunn says it puts consumers in control.

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