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A plan to eliminate the state income tax passed the House on Thursday but was held up by a motion to reconsider it before heading to Gov. Tate Reeves's desk.
The motion is a tactic in the House by tax cut negotiators to continue talking about provisions of the tax cut plan.
In an unprecedented move, the Mississippi House voted to concur with a Senate tax cut plan, which seeks to eliminate the income tax, cut the grocery tax to 5% from 7%, raise the gas tax by nine cents over three years and also establish a new set of hybrid public-private sector retirement benefits for public employees.
The measure passed, 92-27, in the chamber. It was then held by a motion by Rep. Karl Oliver, a Republican.
Both Lt. Gov. Delbert Hosemann and House Speaker Jason White's offices declined to comment on the passage of the bill or the motion to reconsider.
"Let's end the tax on work once and for all in the state of Mississippi," House Ways and Means Chairman and tax cut advocate Trey Lamar, R-Senatobia, said before the vote.
Lamar later told the Clarion Ledger via text he is hoping to continue talks with the Senate.
"We are continuing negotiations with the Senate regarding the issues debated in HB 1 and will have a detailed press release at the proper time," Lamar said.
Before the vote, Rep. John Hines, D-Greenville, urged House members not to pass the bill, noting that it would have a negative ripple effect on the state's ability to fund government services.
"It will be the legislature's fault," Hines said.
The passage of the bill was unexpected, with differing tax cut packages having passed the Senate and House on Tuesday, and leadership on both sides indicating further negotiations would be needed before a final deal was reached.
Tax plans: New tax cut plans pass Senate, House as fears over federal funding loom. see details
While Lamar said that talks are certainly still under way, Senate Finance Chairman Josh Harkins, R-Flowood, said the measure is the Senate's "final product", and he does not expect to further negotiate with Lamar or other members of House leadership.
"(The House) passed the negotiated version," Harkins told reporters. "I think that's the final version that you're going to see. That was a product of our talks and our discussions."
The Senate plan, which is now facing just one hurdle before being sent to Reeves, would:
Take income tax from 4% to 0%, with triggers put into the plan to activate cuts down to 0% based on the health of the economy and the yearly appropriations doled out by the legislature.
Reduce sales tax on groceries from 7% to 5%.
Raise the gas tax by nine cents over three years, and the bill would designate those funds to road, bridges and highway infrastructure.
Establish a hybrid public-private public retiree benefits package with the goal of reducing funding liability within the Public Employment Retirement System of Mississippi.
Senate tax plan: MS tax cuts stalled. At issue are different philosophies on fixing state retirement system
This is a developing story, and it will be updated.
Grant McLaughlin covers the Legislature and state government for the Clarion Ledger. He can be reached at gmclaughlin@gannett.com or 972-571-2335
Rep. Trey Lamar, R-Senatobia, discusses the House's new tax cut plan, Senate Bill 3095, in the House Chamber at the Mississippi State Capitol in Jackson, Miss., on Tuesday, March 18, 2025.
This article originally appeared on Mississippi Clarion Ledger: MS tax cut plan passes House but held up. See why
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