Mississippi

Could Mississippi get rid of its state income tax? What Mid-South residents should know

Published

12 months ago

January 22, 2025

Could Mississippi get rid of its state income tax? What Mid-South residents should know

The Mississippi House of Representatives passed a tax cut that would eliminate the state income tax among other measures.

There is uncertainty as to whether the Senate will pass the Bill, as leadership there is considering a different approach to tax cuts. House Bill 1, referred to as the Build Up Mississippi Act, would not go into effect until Fiscal Year 2027 if passed this year.

Here’s what to know about the state’s income tax and what would come of HB 1.

Mississippi state income tax

House Bill No. 1, dubbed the Build Up Mississippi Act, passed with 88 votes. Of them, at least nine were Democrats and two were independents. There were 24 no votes, consisting only of Democrats.

If the Bill is passed by both committees, it would:

Eliminate $2.2 billion in income tax revenues over 10 years. The cut would become active once the state’s income tax is phased down to 4% by Fiscal Year 2027.
Reduce state sales tax on groceries from 7% to 2.5% while adjusting tax structure on other items to offset the costs.
Removes state sales tax diversions to municipalities and replaces it with a local-option 1.5% local sales tax. Cities will have the option to opt-out of this tax structure. Lamar said this will result in local tax revenue increases across the state.
Sales tax collected at 1.5% in counties will be diverted to road and bridge infrastructure needs at the county level.
Add a fuel sales tax of 5% on retail sale of gasoline. This would be in addition to the state fuel tax already imposed. Lamar said this would add $400 million to the state budget, and all of those additional funds would go to the Mississippi Department of Transportation for road and bridge projects.
The $80 million that was going to MDOT per year from gambling revenue will now be headed toward the Public Employee Retirement Systems of Mississippi to address a $25 billion deficit in future retirement benefits.
Establishes a “budget stabilization fund” that will act as a secondary rainy-day fund.

The bill, however, will not include an income tax cut for sex workers in Mississippi, who will be taxed at 5% of their income once the tax cut is fully phased in.

Before voting on the bill, several Democrats questioned whether the tax package would actually end up costing the state more money down the road and causing revenue shortfalls. They also questioned whether moving to a consumption-based economy would result in poorer people paying more money out of pockets because of increases in costs due to the new gas tax and sales tax model.

After 2016 when the state passed several tax cuts, revenue shortfalls ensued, causing former Gov. Phil Bryant to make emergency budget cuts several times. Numerous county Mississippi State Department of Health County offices closed and state grant matches for federally funded infrastructure projects were put at risk.

Under the House plan, sales taxes excluding groceries would essentially amount to 8.5%, which still puts Mississippi at a lower sales tax than its neighbors. Mississippi has an average sales tax of 7.06% when combining state and local taxes.

Arkansas and Tennessee taxes

Arkansas has a state income tax between 2% and 4.40%. Depending on how much a person earns, they can pay more or less in taxes. Here, the sales tax is 6.5%. Combined, local and state sales taxes come out to be about 9.45% which makes it the third most expensive for sales tax. Arkansas’ grocery tax is 0.125% making it the lowest grocery tax of the 13 states that still have one.

Tennessee does not have a state income tax and is one of eight states to not have one. The sales tax in Tennessee is 7% but ends up being about 9.55% when coupled with local sales taxes. This makes Tennessee the second for most expensive sales taxes in the country behind Louisiana with 9.56%. The grocery tax is 4% in Tennessee making it the fifth most expensive state for groceries.

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Mississippi

Jackson City Council presses Judge Wingate on JXN Water ahead of rate ruling

Published

10 hours ago

January 6, 2026

Press Room

Jackson City Council presses Judge Wingate on JXN Water ahead of rate ruling

The Jackson City Council approved a resolution Tuesday morning urging U.S. District Judge Henry Wingate to “consider” taking a series of actions related to JXN Water operations, billing practices and financial oversight.

The vote occurred one day before Wingate is set to rule on whether Jackson residents will receive a second water rate increase, something that Interim Third Party Water Manager and leader of JXN Water Ted Henifin has been pushing for nearly a year now.

While the vote carries no legal force — only Wingate can issue binding orders governing JXN Water — it formally lays out the council’s priorities and frustrations as the seemingly never-ending dispute between the city and JXN Water intensifies.

The council voted 4–1 to approve the resolution. Ward 1 Councilman Ashby Foote voted against it, while Ward 2 Councilwoman Tina Clay and Ward 3 Councilman Kenneth Stokes were not in attendance.

The resolution urges Wingate to:

Extend the court’s billing amnesty order through April 30, 2026.
Require walk-in, in-person customer service without appointments, Monday through Saturday.
- JXN Water currently handles most customer service issues through its call center.
Direct JXN Water and the city to assign staff to address billing system problems.
Order an affordability study, rather than a rate study, to guide future decisions.
Compel JXN Water to immediately remit sanitation fees owed to the city and to do so on a quarterly basis going forward.
- City officials say JXN Water is withholding roughly $14 million in sanitation fees that are typically transferred monthly to help pay the city’s long-term residential garbage collection contract with Richard’s Disposal Inc. The utility has held the funds since spring 2025.
Credit the city for bond debt and water loss charges the council says should be the responsibility of JXN Water.
Prohibit the court-appointed monitor from publicly commenting on the city’s efforts to secure alternative funding sources.
Ensure equitable billing for Byram and other non-Jackson users.
- Those areas receive water from Jackson, but any rate increase would require approval from the Mississippi Public Service Commission, which has not occurred.
Remove JXN Water employees from the city payroll.
Align JXN Water’s fiscal year with the city’s Oct. 1–Sept. 30 budget cycle.

One amendment was made to the resolution to soften its language. According to Ward 7 Councilman Kevin Parkinson, the title was changed from urging Wingate “to take certain actions” related to JXN Water instead to urging him “to consider” those actions.

Parkinson said the council made the change “out of deference to the judge.”

“We believe in the substance of the issue, but we don’t think it’s our place to tell a federal judge anything,” Parkinson said. “We ask the judge to please consider the items.”

JXN Water’s response

In a Tuesday afternoon statement to the Clarion Ledger, JXN Water Spokesperson Aisha Carson said the utility “is aware of the resolution introduced by the City of Jackson and believes it is important to provide context as the matter proceeds in court.”

“For years, the City of Jackson and members of the City Council had the opportunity to responsibly manage and invest in the water system and failed to do so. JXN Water exists because of that failure,” the statement reads. “Now, after the system is working well — delivering water and keeping raw sewage off the streets — and after the system was removed from the City’s control by the federal courts, the Council is attempting to direct the very entity tasked with fixing what they did not.

“In addition, the unfounded and erroneous claims made about JXN Water’s billing system undermine public trust and weaken collection efforts without acknowledging the conditions we inherited or the progress already made. While Council members continue to advocate on behalf of their constituents, JXN Water must apply its policies consistently to sustain the system for all customers. The full record and legal arguments will be addressed in court.”

The looming decision on water rates

It’s unclear whether Wingate will take up any of the council’s requests or keep the hearing focused on the proposed water rate increase. But anyone who has spent time in Wingate’s courtroom knows the discussion can veer wherever the judge sees fit. As Henifin put it last week, “there is no predicting what will come up during the hearing.”

The proposed water rate increase would raise the average residential water bill from about $76 to $85 per month — roughly a 12% increase — to help cover operating costs and debt service. Henifin has argued the increase is necessary to stabilize the system financially.

Henifin wanted the increase rate to take affect in Dec. 15, 2025, but Wingate temporarily blocked the rate increase in November.

In a Dec. 22 filing, City Attorney Drew Martin argued that a second increase would unfairly burden paying customers, noting that tens of millions of dollars remain uncollected each year.

“The City simply asks that the Court order JXN Water to do what the City must do and what every citizen and ratepayer must do: live within its means,” Martin wrote.

Along with the council, Jackson Mayor John Horhn is opposed to the rate hike. He previously told the Clarion Ledger that JXN Water should first improve collections and cut costs. Roughly 20-30% of customers remain delinquent, according to city estimates.

Horhn could not be reached for further comment regarding the council’s resolution. Jackson spokesperson Nic Lott did not respond to a request for comment.

The council’s action also follows last week’s vote to temporarily cover more than $2 million in trash-collection bills from the city’s general fund after JXN Water withheld sanitation fees residents already paid on their water bills. Henifin has said the utility is withholding the money because the city owes millions in unpaid water bills, largely tied to leaks at the Jackson Zoo.

Wingate previously pressed Henifin on his legal authority to withhold those funds. Henifin acknowledged he had none but said the money would be released once the city settles its debt.

Why Foote voted no

Foote was the lone vote against the resolution. While he has voiced some criticism of JXN Water in the past, Foote has generally declined to support council resolutions aimed at the federally managed utility.

In October, when the council approved another resolution stating that Jackson’s water and sewer systems should be returned to the city and out of JXN Water’s hands, Foote was also the lone vote against.

He explained his reasoning after the meeting.

“I thought the City was better off not making a big news headline with a Resolution confronting a Federal Judge about the operations of JXN Water during the opening week of the Legislative Session, when our focus needs to be the many issues the City has with things we control such as crime, blight, squatters and the ongoing exodus of citizens out of Jackson,” Foote said.

He used one of his familiar lines that “the main thing is to keep the main thing the main thing.”

“Squabbling publicly with JXN Water distracts from the Mayor’s narrative of Jackson Rising,” Foote said.

Charlie Drape is the Jackson beat reporter. Contact him at cdrape@gannett.com.

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Mississippi

These restaurants, schools, in, near, Jackson fail December health inspections

Published

22 hours ago

January 6, 2026

Press Room

These restaurants, schools, in, near, Jackson fail December health inspections

Four food service facilities in the Jackson area received failing health inspection grades in December 2025.
Common violations cited were inadequate hand-washing facilities and unclean food-contact surfaces.
As of early January, three of the four locations had corrected their violations and passed follow-up inspections.

In the Jackson area, four restaurants and food service facilities received failing health inspection grades in December 2025, according to the Mississippi State Department of Health.

As of Jan. 5, three of the four facilities have conducted follow-up inspections and rectified the failing grade.

Below are the restaurants and food-service facilities in District V, which includes Hinds, Madison and Rankin counties, that received a failing grade of “C.”

Hinds County

Powell Middle School, temporarily housed in the former Brinkley Middle School located at 3535 Albemarle Road in Jackson, received a failing grade during a scheduled inspection on Dec. 10. In 2023, Brinkley Middle School was consolidated into Lanier High School. Powell Middle School then moved into the former Brinkley building while the school is being renovated. The inspection notes a lack of a certified manager and inadequate hand-washing facilities. The grade was rectified in a follow-up inspection on Dec. 17. Brinkley Middle School previously received one other failing grade in 2021, which was rectified in a follow-up inspection.
Oak Forest Elementary School, located at 1831 Smallwood St. in Jackson, received a failing grade during a scheduled inspection on Dec. 8. The inspection notes inadequate hand-washing facilities and improperly washed hands. As of Jan. 5, Oak Forest Elementary has not conducted a follow-up inspection. The school previously received one other failing grade in 2024, which was rectified during a follow-up inspection.

Madison County

Penn’s Fish House, located at 1859 Main St. in Madison, received a failing grade during an inspection following a complaint on Nov. 18. The restaurant then failed the corrective follow-up on Dec. 1. Penn’s rectified the grade during a second follow-up inspection on Dec. 15. The Nov. 18 inspection notes several violations, including a lack of a certified manager and inadequate hand-washing facilities. The notes also cite violations in food storage and preparation, including unclean food-contact surfaces and improper holding temperatures. By Dec. 1, the restaurant had corrected most of the violations, but still had unclean food contact surfaces, according to the inspection notes. This Penn’s location previously received two failing grades in 2013 and 2021, both of which were rectified during follow-up inspections.

Rankin County

Golden Corral, located at 988 Top St. in Flowood, received a failing grade during an inspection following a complaint on Dec. 12. The inspection notes several violations, including inadequate hand-washing facilities, unclean food contact surfaces and improper food-holding temperatures, date marking and disposition. The restaurant rectified the grade during a follow-up inspection on Dec. 17. In November 2025, this Golden Corral location received a failing grade for several of the same violations listed in the Dec. 12 inspection. The restaurant rectified the November failing grade during a follow-up inspection on Nov. 14. This Golden Corral location previously received a failing grade in 2023, which was then corrected in a follow-up inspection.

Health inspection grading system

The MSDH grades health inspections on an A, B and C scale, with C considered a failing grade.

The MSDH website states the following regarding the grading scale:

A rating: “The facility inspection found no critical violations. Critical violations of the state Food Code are those more likely to lead to food contamination, illness, or other health risk.”
B rating: “Critical violations were found, but corrected under the supervision of the inspecting environmentalist. No further corrective actions are required.”
C rating: “Critical violations were found, but some or all were not corrected during the inspection. The facility will be re-inspected, and all violations must be corrected in a time period not to exceed 10 days. The re-inspection date is posted on the graded report. If violations are not corrected in the specified time, steps are taken to suspend the facility’s permit to operate. A grade of C is also given if critical violations are repeated from the last inspection, even if they were corrected at that time.”

Got a news tip? Contact Mary Boyte at mboyte@jackson.gannett.com

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Mississippi

Mississippi lawmakers to tackle school choice, PERS reform as session begins

Published

1 day ago

January 5, 2026

Press Room

BILOXI, Miss. (WLOX) – Mississippi lawmakers will address school choice legislation, PERS reform, and Gulf Coast Restoration Fund distribution when the legislative session begins Tuesday, according to political analyst Frank Corder with the Magnolia Tribune.

School choice

Corder said school choice will likely be the first major issue addressed, with House Speaker Jason White making it one of his main agenda items this session.

School choice policies would let families use public funds to enroll their children in schools outside their assigned local option, including private schools.

“It wouldn’t surprise me if the first week or two, we don’t see a bill dropped and by the end of January, there’s some kind of action on that bill,” said Corder.

The Senate will likely take a more measured approach to school choice legislation, Corder said. Lt. Gov. Delbert Hosemann has said he supports opening up public-to-public transfers but not necessarily allowing money to follow students from public to private schools.

ALSO READ: Lt. Gov. targets chronic absenteeism, supports limited school choice options

Corder expects Mississippi will pass some form of public-to-public transfer system that allows parents to choose schools outside their assigned district, though he is uncertain whether universal school choice will advance this session.

Gulf Coast Restoration Fund

This session, lawmakers will look at how Gulf Coast Restoration Funds are distributed, Corder said. The fund operates as an advisory body that makes recommendations to the Mississippi Development Authority, which then sends proposals to lawmakers for funding decisions.

Corder said Coast lawmakers have typically been unified in their requests, but when they are not, funding has lagged.

“I do expect them to maybe revamp how things are done this time. If it doesn’t happen, I’ll be surprised,” he said.

ALSO READ: 16 projects recommended for Gulf Coast Restoration Funds

Corder believes focus will shift toward larger, coastwide projects spanning from Jackson County to Hancock County, including infrastructure improvements and coastal restoration projects.

PERS reform

The Public Employees’ Retirement System (PERS) will also likely receive attention this session.

Corder said lawmakers could consider changes to Tier 5 that would reduce the 35-year work requirement for law enforcement officers and firefighters before retirement.

In March 2025, the state legislature passed House Bill 1, which changed PERS to require 35 years of service for full retirement benefits, regardless of age, starting March 1, 2026.

ALSO READ: Mississippi first responders unite to propose separate state retirement tier

Corder believes lawmakers will also consider injecting resources into PERS to improve its financial stability.

Vote 2026

Corder also weighed in on the midterm elections happening this year. Last week, candidates filed paperwork to qualify.

Sen. Cindy Hyde-Smith will face a Republican primary challenge from Sarah Adlakha of the Gulf Coast. Corder said Hyde-Smith has advantages as the incumbent with an established “campaign war chest,” while Adlakha appears to be self-financing her campaign.

ALSO READ: MS candidates file for federal election qualification

In the 4th Congressional District, Rep. Mike Ezell faces challenges from Republican Sawyer Walters. On the Democratic side, State Rep. Jeffery Hulum and two others are running along with one Independent.

“That could be an interesting race to watch,” said Corder.

Rep. Bennie Thompson also has a Democratic challenger, Evan Turnage, who previously served as chief counsel for Senate Majority Leader Chuck Schumer.

Congressional primaries are scheduled for Tuesday, March 10.

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