House leaders want to raise Mississippi sales tax. Here's how neighboring states stack up. [View all]

[TexasTowelie]

The Mississippi House of Representatives passed a sweeping proposal Tuesday that would completely phase out the personal income tax over 10 years and immediately, starting on July 1, put in place the largest statewide sales tax in the nation at 9.5% on most retail items, excluding groceries.

Mississippi already has the second highest statewide sales tax at 7%, trailing only California at 7.25%, according to the Tax Foundation. But most states, including California, either have a lower sales tax on groceries or completely exempt the tax on groceries. In Mississippi, the current full 7% tax applies to groceries.

The bill, beginning July 1, would lower the rate on food to 4.5% and over a five-year period reduce it to 3.5%.

And, importantly, Mississippi in most cases prevents local governments from imposing an additional sales tax. Jackson has a 1% tax and Tupelo has a .25% tax, but other local governments have no authority to levy a sales tax with the exception of a so-called tourism tax on restaurants and hotels.

Read more: https://mississippitoday.org/2021/02/24/house-leaders-want-to-raise-mississippi-sales-tax-heres-how-neighboring-states-stack-up/