SB3119

Mississippi SB3119 would reduce the sales tax on groceries to 0.5% and adjust revenue distribution to maintain municipal funding.

Mississippi SB3119 proposes to amend the state's sales tax code by reducing the tax rate on retail sales of groceries to 0.5% starting July 1, 2026. The bill also includes provisions to adjust the distribution of sales tax revenue to ensure municipalities receive the same level of funding as if the grocery tax had not been reduced. This adjustment aims to maintain the financial stability of local governments despite the lower tax rate on groceries. The bill details specific allocations for various funds and projects, ensuring that the overall impact on municipal budgets is minimized.