Mississippians next week will start paying higher taxes at the gas pump but lower taxes at the grocery store.
A new state law that raises Mississippi’s gasoline tax by 3 cents a gallon and cuts the state grocery tax by 2% will take effect on Tuesday, along with other statutes the Legislature passed and governor signed into law earlier this year.
Mississippi currently has a flat 18.4 cents a gallon excise tax on fuel, one of the lowest gas taxes in the nation. The law will raise the tax to 21.5 cents a gallon this year, then increase it three cents a year until July 1, 2027. At completion, the state gas tax will be 27.4 cents a gallon, a 9-cent total increase.
Proceeds from the tax will go toward building and maintaining state roads specified by the Mississippi Department of Transportation.
Mississippi also has a 7% sales tax on non-prepared food, commonly called the grocery tax. The tax, the highest of its kind in the nation, will be reduced to 5% in July. Municipalities around the state receive a portion of this sales tax. The new law ensures cities will receive a larger diversion rate, and be “made whole” from the cut.
“The decrease is part of House Bill 1 that passed during this year’s Regular Session of the Mississippi Legislature,” Revenue Commissioner Chris Graham said in a press release. “We are excited to be able to administer this reduction to help provide relief on the cost of groceries to Mississippi families.”
Sweeping Mississippi tax overhaul passed … by mistake. Gov. Reeves eager to sign typo tax swap into lawMississippians will also see a reduction in the state income tax rate because state officials are still phasing in a 2022 law that is reducing the income tax to 4%. The Legislature this year passed a new law that will reduce the 4% tax rate in 2027 to 3% over four years. Starting in 2031, the remaining 3% tax will be eliminated over time, based on economic growth triggers.
In addition to the tax overhaul, other laws will also go into effect on July 1, including:
Direct wine shipment
A new law legalizes shipping some wines to Mississippians’ homes. Supporters pushed to allow direct wine shipment for over a decade before they succeeded this session. Mississippi was one of only a handful of states that didn’t allow direct shipment.
Under the new law, shippers must obtain a permit from the Department of Revenue to ship wine, and they are capped at 12 nine-liter cases of wine annually to any one address. The measure also restricts citizens to ordering only certain specialty or rare wines that may not be available at Mississippi package stores. The law aims to generate taxes by enacting a 15.5% tax on direct wine shipments. Some of the tax revenue will fund mental health programs.
Kratom banned for people under 21
Mississippi will limit kratom purchases to people 21 and older and outlaw more potent forms of the herbal substance. The new law institutes fines for people under 21 who buy or possess kratom and retailers that sell it to them. The measure also bans synthetic kratom extracts, which are considered more dangerous than “pure” forms of the herbal substance because of their higher potency.
More than thirty counties and cities in Mississippi already restrict or ban kratom products, which can be found widely in gas stations and tobacco or vape shops. Any ordinances that have been adopted by municipalities or counties to regulate or ban kratom will remain in effect.
Rape kit mandate
Mississippi hospitals will now be required to perform rape kits on sexual assault victims who come to their ERs. A new law mandates all hospitals stock rape kits, have a provider available to perform a rape kit, and that they do not turn rape victims away.
Crime lab sees increase in rape kits following new lawThe legislation was inspired by several cases where survivors did not receive routine treatment at hospitals, according to sexual assault advocacy organizations.
Turkey stamps
Mississippi hunters must obtain a turkey stamp before harvesting the wild birds, a new state law requires. The measure requires in-state hunters to purchase a $10 turkey stamp and out-of-state hunters to pay a $100 fee for the stamp. In addition to the new stamp, the law still requires hunters to obtain a normal hunting license.
Proponents of the measure said the stamp fees would be used to maintain and improve turkey-hunting lands around the state.
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