There have been many questions about House Bill 1 Senate Strike All Amendment and my decision for supporting the bill. This legislation brings meaningful benefits to the citizens of Mississippi. Below is a breakdown of what the bill accomplishes:
» The grocery tax will decrease from 7% to 5%, helping residents save money on everyday purchases. At the same time, our cities and towns will see an increase in the percentage of tax diversion they receive, ensuring they don’t lose funding.
» State personal income tax will be phased out over a 10-year period. Starting in July 2025, all citizens who are employed and have state income tax taken out, will see an increase in their take-home pay. To ensure financial stability, the bill includes triggers to pause or slow the phase-out if state revenue declines significantly.
» The bill secures the PERS system, ensuring current retirees' monthly payments and their 13th check are protected. Protecting their pay and retirement benefits is a top priority.
» The bill increases the fuel/use tax by 3 cents per year for three years, totaling a 9-cent increase. This funding will generate about $200 million annually for the Mississippi Department of Transportation to improve roads and bridges.
» A portion of the fuel tax revenue will be allocated to county infrastructure projects. In Tallahatchie County, funding increases from $2.13 million to $4.2 million every four years. In Bolivar County, it increases from $2.29 million to $4.59 million, and in Sunflower County, it's nearly doubling from $2.93 million to $5.8 million. These investments will improve infrastructure, making travel safer and boosting local economies.
» The bill also adjusts Diversion Use Tax policies, allowing municipalities to use these funds to renovate or replace publicly owned facilities, ensuring communities can maintain essential services without increasing property taxes.
I am pleased to have supported this legislation because it offers meaningful, lasting benefits for our citizens. This is a balanced, responsible plan that not only strengthens our economy but also prioritizes the well-being of our communities.
This legislation provides financial relief for hardworking families by securing retiree benefits, increasing take-home pay, lowering grocery taxes, and investing in infrastructure, all while ensuring a stable future for our state.
It also provides funding needed to modernize transportation infrastructure. Mississippi hasn’t raised its fuel tax since 1989, leading to deteriorating highways and bridges. Our highways and bridges desperately need repairs to improve safety and prevent vehicle damage.
This means long-overdue improvements will make travel safer and more reliable for everyone. Strong infrastructure isn’t just about roads, it’s about supporting local businesses, creating jobs, and keeping our communities connected. This investment is a big win for the Mississippi Delta.
In addition, the legislation doubles the state aid provided to counties and cities, allowing local governments to repair roads, upgrade infrastructure and improve public services. It also allows municipalities to use tax funds for city-owned facility improvements, helping to keep property taxes low for residents.
I believe this bill is a step in the right direction, paving the way for growth, stability, and prosperity for all Mississippians.
