JACKSON (Office of Speaker Jason White) – Speaker Jason White issued 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 MultiModal 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.”