Mississippi News
Mississippi among states where sales tax is largest revenue source
Study: Mississippi among minority of states most dependent on sales tax
The individual income tax, which House Speaker Philip Gunn, Gov. Tate Reeves and others want to eliminate in Mississippi, is the largest source of revenue in 33 states.
Mississippi is among 14 states where sales tax is the largest source of revenue, according to a recent report by the Pew Charitable Trust, which researches and offers assistance to governmental entities on various policy issues.
Recent reports by Pew reveal that most states, including Mississippi, are experiencing significant increases in revenue collections and those increases are fueled by strong collections of most general taxes, including the income tax and the sales tax.
“Tax revenue is one factor that helps explain recent widespread state budget surpluses,” according to a report from Pew.
Currently, according to data compiled by Pew, tax collections are robust both in states that rely primarily on the sales tax and those that are dependent on the income tax.
Mississippi is no exception. With one month of data still to collect before the fiscal year ends on June 30, tax collections in Mississippi are nearly $1.3 billion above the official estimate. The official estimate represents the amount of money legislative leaders projected would be available during the session to build a budget for the upcoming fiscal year beginning July 1. Money above the official estimate goes into reserve funds.
During the 2022 session, the Legislature appropriated $951.1 million in reserve funds. The bulk of that funding went for a litany of one-time projects – such as on government buildings repair, renovation and construction, and on tourism projects across the state.
Based on revenue collections through May, the Legislature also will have a substantial amount of reserve funds for the 2023 session.
In addition to being almost $1.3 billion above the official estimate, tax collections also are $615 million or 10.25% above the amount collected during the first 11 month of the previous fiscal year. Through 11 months of the fiscal year, the personal income tax collections are up $276.7 million or 13.8% while the general sales tax collections are up $291.4 million or 14.4%. Other elements of the sales tax, such as the tax levied on out of state purchases, also are up.
In the coming years, Mississippi will be even more reliant on the sales tax. During the 2022 session the Legislature reduced the state income tax – beginning in the 2023 calendar year – by eliminating the state’s 4% tax bracket on people’s first $5,000 of taxable income. The 5% tax on remaining income will drop to 4.7% for 2023, then 4.4% for 2025 and 4% starting in 2026. The changes will reduce state income tax revenue by $525 million when fully enacted in 2026.
Both Gunn and Reeves have expressed support for fully eliminating the income tax in the coming years.
“We have talked a lot about moving toward a full elimination of the income tax. I believe that is still the goal. We want to make sure we continue that fight,” Gunn said during the 2022 session earlier this year.
Such action would further position Mississippi among the minority of states more dependent on the sales tax for revenue than the income tax. The sales tax is viewed as a regressive tax that places a larger tax burden on low-income residents than does the income tax.
According to research by Pew, Mississippi currently garners 45.2% of its revenue from its general sales tax, which is 7% on most retail items. This would also include the excise tax levied on out-of-state purchases, primarily those made via the internet. The personal income tax accounts for 26.9% of the state’s revenue, according to Pew.
But that number will decline in the coming years as the income tax is reduced, with the hope by some, of eventually eliminating the tax.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi News
Events happening this weekend in Mississippi: July 11-13
SUMMARY: From July 11-13, Mississippi offers a variety of events for all ages. In Jackson, enjoy the season finale of “Late Night with Rita Brent,” Disney’s The Lion King, Jr., and exhibitions at the Mississippi Children’s Museum. Pearl hosts the Mississippi Mud Monsters with fireworks and a Back 2 School Bash. Ridgeland features the Wildflower Field, Art Park, Renaissance Christmas in July sales, and a Fairy Garden Workshop. Natchez and Vicksburg offer farmers markets and local entertainment. Hattiesburg presents Po Boy Fest, Clue: The Musical, and outdoor movies. Activities include rodeos, ice cream tastings, run clubs, and community tennis events across the state.
The post Events happening this weekend in Mississippi: July 11-13 appeared first on www.wjtv.com
Mississippi News
Death toll from catastrophic Texas flooding passes 100
SUMMARY: Catastrophic flooding in Texas over the July Fourth weekend killed at least 104 people, including 28 children, mostly near Camp Mystic, a century-old girls’ summer camp in Kerr County. Search-and-rescue teams continue to search swollen rivers for dozens still missing; officials expect the death toll to rise as more rain threatens the saturated area. Many victims were swept from cabins by flash floods early Friday, some clinging to trees. Authorities will investigate warnings and evacuation delays, noting poor cellphone service hindered alerts. Despite warnings issued before the flood, some residents didn’t receive them. President Trump plans to visit the state.
The post Death toll from catastrophic Texas flooding passes 100 appeared first on www.wjtv.com
Mississippi News
LIVE: Officials give updates on Texas floods
SUMMARY: Crews in central Texas continue searching for victims after catastrophic July Fourth weekend flooding killed over 80 people, including 27 campers and counselors at Camp Mystic along the Guadalupe River. The floods, some of the worst in decades, struck overnight, sweeping away tents and cabins. With more rain forecast, authorities warn the death toll may rise as many remain missing. Survivors described clinging to trees or fleeing to attics. Officials face scrutiny over flood warnings and emergency response. President Trump declared Kerr County a disaster area, pledging support while criticizing FEMA’s performance.
The post LIVE: Officials give updates on Texas floods appeared first on www.wjtv.com
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