House of Representatives Maintains Momentum on Tax Cut Legislation
March 17, 2025
Jackson, MS – Speaker Jason White issues the following statement on the status of tax reform legislation.
“To maintain the momentum of the greatest tax cut in Mississippi history, Chairman Trey Lamar has amended SB 3095 with a revised HB 1. The revisions in this bill stem from negotiations with the Senate, the demand of Mississippi taxpayers to eliminate the income tax, and opportunities the House identified to bring the most significant tax relief to Mississippians. The amendment that passed out of the House Ways and Means Committee today and heads to the full voting body provides for an immediate net tax cut for all Mississippians:
- The House of Representatives will not waver on our commitment to eliminating the income tax as quickly and responsibly as possible. Similar to the original House Bill, income tax rates will be cut from 4% to 3.5% in 2027 and then progressively decrease to complete elimination by 2037.
- The sales tax on groceries would immediately reduce from 7% to 5%, a change from the phase-in period in the original HB 1.
- Over two years, Sales Tax would increase from 7% to 8%. The revenue from this tax will distribute $48 million annually to the State Aid Road Fund, and the remaining funds will be deposited into the General Fund.
- Not included in original HB 1 was a change to our Use Tax. Similar to Sales Tax, however, Use Tax is designed to ensure that people who purchase goods and services from out-of-state vendors or online retailers pay the same amount of tax as they would if they purchased the goods or services locally. This amendment changes Mississippi’s Use Tax from 7% to 8% to simply mirror our proposed state Sales Tax. The revenue collected from the Use Tax increase will be used for the Homestead Exemption Reimbursement Fund created in this amendment to provide property tax relief in the form of a $200 annual credit to those over the age of 65.
- The Excise Tax on fuel would increase five cents a year for three years, a change from the fuel sales tax presented in original HB 1 but still provides significant and stable funding for our state’s infrastructure through MDOT and the Strategic Multi-Modal Investments Fund.
- As proposed in original HB 1, lottery proceeds of $100 million will be allocated to PERS until it reaches an 80% funded ratio, and the remaining funds will be deposited into the Education Enhancement Fund.
- $300 million will be transferred from the Capitol Expense Fund to the Budget Contingency Fund.
We are on the cusp of bringing all Mississippians the most significant tax cut in state history. This cut would provide a tax credit to seniors on their property taxes, reward our workforce, and relieve the tax burden at the grocery store while also stabilizing PERS, dedicating a source of revenue to infrastructure, and enhancing our economic development opportunities. The Mississippi House of Representatives continues working hard to make our great state the best place to work, worship, and raise a family.”
Jackson, MS – Speaker Jason White issues the following statement on adjourning the Special Session Sine Die. “Early this morning, the House concluded our work on the state budget and adjourned the Special Session Sine Die. I am proud of our House Appropriation Chairs, who worked extremely hard to come forward with a conservative budget that reflects the priorities of the state and funds our core functions of government. We are disappointed in the Senate leadership for not supporting worthy projects for cities and counties. We believe Mississippians find their tax dollars well spent when bridges are built, roads are repaired, and sewage issues are addressed in their hometown. The House will not go along to get along with establishment politicians. Instead of hand-selecting projects that stand out on a campaign push card, the House will continue to work hard to meet the demands and necessities of Mississippi's local communities. Some were frustrated that the budgetary process went into a Special Session this year. The House communicated clearly and consistently with the Senate that the budget would not be finalized in the last few days of session with little oversight. In the 2026 Legislative Session, the House will maintain its stance that the budget should be developed early and in an orderly manner with transparency. To address the necessity for transparency in the condensed timeline of a Special Session, the House shared the final budget summary with House members on the morning of Tuesday, May 27th, prior to the Governor's official proclamation. The following morning, ahead of gaveling in, a hard copy of the budget summary was at the desk of each House member on Wednesday, May 28th, when the Special Session began. When I was elected Speaker, I stated my goal was to bring more order and timeliness to the budget chaos while allowing all House members time to read and review the spending bills before they are asked to vote on them. While we may not have perfected that process yet, as Speaker, I will maintain the goal of transparency and working in an orderly fashion. We are pleased to conclude our work with the budget, allowing us to direct our focus on our priorities for the 2026 Legislative Session. One of those priorities will be addressing the Public Employees’ Retirement System. As the Governor reiterated a House position in his press conference on Tuesday, a one-time cash infusion to PERS does very little to address the retirement system's financial challenges. The House has proposed an annual dedicated stream of revenue for PERS for the last two years, and we will continue to push policies that stabilize and secure our commitment to current and future state retirees. Perhaps 2026 will be the year we find consensus with our Senate counterparts. In addition to addressing the long-term stability of PERS, the House will dedicate much of this off-season to studying and preparing for Education Freedom in Mississippi. Our education priorities align directly with President Trump's Executive Order, which promotes the concept of school choice, enabling families to select educational settings that best suit their children, thereby improving overall student outcomes and success. The House introduced this effort during the 2025 Legislative Session, but it was never brought up for a vote in the Senate's Education Committee. When we talk about Education Freedom, this idea does not stop at school choice but extends to eliminating red tape and reducing the amount of mandated student testing, allowing our public school teachers the freedom to do what they do best – educate our children. In Mississippi, we must prioritize our children's future by empowering parents to ensure that every child has access to a quality education. Our education system should work for our parents, children, and teachers, not the other way around. The Mississippi House of Representatives has a track record of identifying challenges and opportunities within our state, studying those issues, bringing the players to the table, and building support to allow a bill to become law for the betterment of her people. As Mississippi has seen with HB 1, the Build Up Mississippi Act, which eliminates the state income tax, and the Mississippi Student Funding Formula, an overhaul of how our public schools are funded and a historic investment in public education, the House will continue to pursue commonsense, conservative legislation vigorously. We are already at work and focused on the 2026 Legislative Session.”
Jackson, MS – Speaker Jason White issues the following statement on adjourning Sine Die for the 2025 Legislative Session. “Yesterday, the House proudly adjourned Sine Die. We came into the 2025 Legislative Session prepared and persistent to disrupt the status quo. With the conclusion of this session, we have set the bar for other states and marked a historic milestone in our state’s future with the elimination of the income tax, the most significant tax cut in Mississippi’s time. I especially thank the 91 House members who voted to Build Up Mississippi and decided it was time to be bold and to set a new course for our people. With that vote, they have created an environment that attracts investment and fosters long-term economic success for all Mississippians, and we are continuing to signal that Mississippi is indeed, open for business. In the summer of 2024, the House named four Select Committees to study tax reform, certificate of need laws, prescription drugs, and the revitalization of the metro Jackson area. All four of those committees produced robust legislation, three of which all went on to the Governor. These are four challenging topics that were tough to tackle, and I have to applaud the Chairmen and House Committee members that drove meaningful policy with defined purpose. The House’s legislative priorities were clear from the start and I am proud of our hard-earned success. With other legislative victories this session such as parental leave for state employees, judicial redistricting, and banning DEI in public schools and universities, the House has proven to initiate and confront impactful policy for Mississippians. With the conclusion of the 2025 Regular Legislative Session, it is concerning that the legislature was unable to agree and pass a state budget. The House maintains its commitment that the budgeting process should be transparent and orderly, giving every member in the legislature the opportunity to review and vet government spending. There are major differences on only a few budgetary items, but they are key differences, including the creation of a dedicated stream of revenue to PERS to address the deficit. We will continue these discussions with the Senate to produce a budget that reflects our commitment to smaller government with focused spending, while meeting the core functions and responsibilities to the taxpayers of Mississippi. If I have any regrets this session, it is not getting PBM reform across the finish line to truly help our independent pharmacists. In addition, the House’s efforts to address education freedom did not find common ground with the Senate, but I commend my House colleagues for embracing school choice with courage for the sake of Mississippi’s most valuable resource – our children. I look forward to returning next session ready to tackle these two issues. We are not done rocking this boat. Your Mississippi House of Representatives will continue to find comfort in being uncomfortable. Thank you to my fellow House colleagues for allowing me the opportunity to lead this chamber, to my staff for your tireless support, and to our mighty Mississippi and all her people who elected us to serve and represent the best state to work, worship, and raise a family.”
Today, the Speaker’s Office continued meeting with independent pharmacists, the Board of Pharmacy, and the business community to work out an agreement that would provide for much-needed and overdue support for independent pharmacists while also protecting employers and consumers. PBM reform has been a priority in the House for many years. We have led the charge on numerous pieces of PBM legislation that were never able to make it all the way through the legislative process, but the time is now. This summer, the House named several Select Committees to focus on specific priority areas, Prescription Drugs being one of them. As a result of the hearings, research, and discussions in that Select Committee and the many years of working on PBM reform, the House presented HB 1123 this session, which intends to provide the necessary transparency that has been demanded from the pharmacist community. The Senate also came forward with its approach to PBM reform in SB 2677. The House is actively working with our Senate counterparts to assemble the most meaningful and impactful legislation to reform the multi-faceted prescription drug industry. It is a priority in the House of Representatives to support independent pharmacists who are such an essential part of Mississippi’s communities and protect consumers from heightened drug costs at the checkout line, while also guarding against increased health insurance and premium prices for our state’s businesses and citizens. I thank my personal pharmacist, David Hudson, who runs an independent pharmacy in my hometown of Kosciusko. He has a unique perspective in that he is not only an independent pharmacist but also serves on the State Board of Pharmacy—his expertise and perspective has been invaluable in creating a solution. I also want to thank Representative Hank Zuber and Senator Hob Bryan for their dedication to getting PBM reform done this session while creating a win-win for independent pharmacists and Mississippi businesses.
Jackson, MS – Speaker Jason White issues the following statement on seven key education bills passing out of the House Education Committee. “As of today’s legislative committee deadline, the House Education Committee has advanced seven bills that finally give parents, not the government, real options for their child’s education while also bringing transparency and needed reforms for our current systems. The House’s education priorities in this session directly align with President Trump’s “Expanding Educational Freedom and Opportunity for Families” Executive Order, which promotes the idea of school choice, allowing families to select educational settings that best fit their children, thereby improving overall student outcomes and success. President Trump’s Executive Order states, “When our public education system fails such a large segment of society, it hinders our national competitiveness and devastates families and communities.” In Mississippi, we must prioritize our children’s future by empowering parents to ensure that every child has access to a quality education. Our education system should work for our parents and children, not the other way around. The seven bills now on the House floor for consideration are: HB 1078 Equal Opportunity for Students with Special Needs Act: ESA Reform HB 1431 The Education Efficiency Act: Path to Consolidation HB 1432 Charter School Reform HB 1433 The FREE Act (Flexible and Rightful Education Enrollment): School Choice HB 1434 AGENTS of Excellence (Aeronautics, Geospatial, Engineering, Nursing and Technical Skills): Campus Schools HB 1435 The FLEX Act (Families Leading the Enrollment Experience): Portability HB 1439 Accountability Dashboard Program By championing these seven key bills, we can provide families the freedom to select the best educational environment for their children. Implementing school choice enhances individual student achievement and fosters healthy competition among schools, driving improvements across the board. This approach has gained traction in several states, showcasing that when families can direct their children’s education, we see positive outcomes that benefit students, families, and communities alike. All of Mississippi’s surrounding southern states offer some form of enrollment progress. We constantly talk about competing with our neighboring states—this is an opportunity to be advantageous and further turn Mississippi’s competitive dial towards economic attractiveness. Following last session’s historic education investment and funding formula rewrite with INSPIRE, Education Chairman Rob Roberson and Representatives Kent McCarty and Jansen Owen have been working diligently and with great dedication to create an education landscape in Mississippi that ensures every child has the opportunity to thrive. By focusing the House’s efforts on meaningful education policy, we can build a stronger future for our state and its most valuable resource—our children.”
Jackson, MS – Speaker Jason White issues the following statement on the passage of House Bill 1063, Mississippi State Employees Paid Parental Leave Act. “In a 114-0 vote, the Mississippi House of Representatives passed the Mississippi State Employees Paid Parental Leave Act, which would provide state employees eight weeks of 100% paid leave as the primary caregiver after the birth or adoption of a child and two weeks for the secondary caregiver. As a pro-life state, Mississippi is in a critical position to meet the needs for healthier outcomes for parents and children and to support families in our state's workplace. With our fellow southern states offering some form of parental leave, and Mississippi currently offering no paid parental leave to their state employees, we too can reflect our commitment to the well-being of families, as well as utilize this benefit as an employee recruitment and retention tool. The Mississippi State Employees Paid Parental Leave Act sets a positive example for encouraging the private sector to adopt similar measures that foster a supportive environment for working families. I applaud Representative Kevin Felsher for championing this legislation, and I commend my fellow House members for their unity on this opportunity. The passage in the House is a significant step in the legislative process as it now heads to the Senate for consideration.”
Jackson, MS – Speaker Jason White issues the following statement on the passage of House Bill 1, the Build Up Mississippi Act, in the Mississippi House of Representatives. “Today, the Mississippi House of Representatives took a transformative positive step by passing House Bill 1, the Build Up Mississippi Act, with bipartisan support. This crucial legislation paves the way for a brighter economic future for our state, delivering a comprehensive tax reform package designed to uplift Mississippians, support our infrastructure and PERS system, and empower local governments. By phasing out the state income tax and significantly reducing sales tax on groceries, we alleviate the financial strain on Mississippians and create an environment ripe for robust economic growth. Under HB 1, every municipality will receive more funding under the local option, 1.5% sales tax, than the current diversion. With Build Up Mississippi’s proposed consumption-based model, Mississippi will maintain a lower sales tax and remain more competitive than our surrounding states. The bill also revises exemptions for motor fuel sales to include a retail fuel sales tax of 5%; this modest sales tax aims to enhance revenue for the Maintenance and Capacity Projects Fund at MDOT. HB 1 is not a “tax swap” but a strategic move to attract economic development opportunities, stimulate local governments to address critical infrastructure needs, and foster real tax relief, ultimately benefiting every resident in our great state and finally eliminating the personal income tax. Moreover, $100 million of revenue from lottery proceeds will be redirected towards our commitment to a stable retirement plan for our state employees which showcases our unwavering determination to build a stronger Mississippi. The remaining lottery proceeds will be allocated for the Education Enhancement Fund and Multi-Modal Transportation: our state’s ports, harbors, airports, rails, and transit system. By prioritizing essential services and safeguarding the PERS system, we are investing in the long-term well-being of our communities and reinforcing confidence in our state’s economic stability. With the passage of HB 1 in the House, we have taken a monumental step towards enacting the largest tax cut in Mississippi's history. This is a powerful message that we prioritize the quality of life for all our citizens while laying the groundwork for a thriving economy that will uplift generations to come. As the #1 priority in the House, we are thankful for the overwhelming support we have received from cities, county officials, statewide elected officials, and the Mississippi business community. I urge the Senate to now take a close look at HB 1 and be open to collaboration to bring sweeping tax reform to our great state. Together, we can Build Up Mississippi where everyone can prosper.”
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Jackson, MS – Speaker Jason White announces a fourth Select Committee and its appointments to study Capital and Metro Revitalization. Speaker Jason White shares, “The Select Committee on Capital and Metro Revitalization is comprised of House members that are passionate and dedicated to improving Mississippi’s Capital City for the betterment of the Jackson Metro Area and our entire state. I look forward to this Committee’s work as they seek strategic and innovative ways to improve and partner with the citizens and leadership of the Metro Area, recognizing the unique importance a vibrant Capital City means for all Mississippians.” Select Committee on Capital and Metro Revitalization: CO-CHAIR: Clay Mansell CO-CHAIR: Shanda Yates Chris Bell Lawrence Blackmon Angela Cockerham Ronnie Crudup Jill Ford Stephanie Foster Justis Gibbs Jonathan McMillan Fabian Nelson Gene Newman Brent Powell Fred Shanks Lance Varner Price Wallace Grace Butler Washington Lee Yancey Hank Zuber
Jackson, MS – Speaker Jason White names appointments for PEER Committee, Select Committee on Healthcare Reform: Certificate of Need, Select Committee on Prescription Drugs, Select Committee on Tax Reform, and Joint Legislative Committee on Compilation, Revision, and Publication. Speaker Jason White shares, “With the appointments made to these Committees, I feel confident that the Mississippi House of Representatives will thoroughly study current state laws and tax structures to make informed recommendations for the 2025 Legislative Session. The House will continue its pursuit of bold initiatives and policies to improve our great state, focusing on the betterment of Mississippi and all of her citizens.” PEER Committee Donnie Bell Kevin Ford Becky Currie Kevin Felsher Cedric Burnett Casey Eure Stacey Wilkes Joint Legislative Committee on Compilation, Revision and Publication: Jason White Manly Barton Fred Shanks Jansen Owen Shanda Yates Justis Gibbs Noah Sanford Select Committee on Healthcare Reform: Certificate of Need CO-CHAIR: Sam Creekmore CO-CHAIR: Hank Zuber Clay Mansell Missy McGee Kevin Felsher Doc Harris Joey Hood Jon Lancaster Tamarra Grace Butler-Washington Timaka James-Jones Fabian Nelson Robert Sanders Omeria Scott Ricky Thompson Donnie Scoggin Jim Estrada Brent Anderson Select Committee on Prescription Drugs CO-CHAIR: Jerry Turner CO-CHAIR: Beth Luther Waldo Andy Stepp Stacey Wilkes Chris Bell Andy Boyd Justis Gibbs Greg Holloway Jimmy Fondren Rodney Hall Stephanie Foster Tracy Arnold Gene Newman Jeffrey Harness Steve Lott Brad Mattox Zakiya Summers Elliott Burch Select Committee on Tax Reform CO-CHAIR: Trey Lamar CO-CHAIR: Scott Bounds Jansen Owen Karl Oliver Shane Aguirre Clay Deweese Angela Cockerham Billy Adam Calvert Kevin Felsher Randy Rushing Lee Yancey Hester McCray Dana McLean Ronnie Crudup, JR Otis Anthony Lawrence Blackmon Justin Keen Tracey Rosebud