Legislative Update Week of February 22nd, 2021

After dealing with winter weather in Jackson and across the state last week, the House met in person to
conduct legislative business. Last week, the House met in session and committees via teleconference,
similar to what occurred earlier in the session. Wednesday, Feb. 24 marked the deadline for House
appropriations and revenue bills to be introduced and passed.
With general House bills out of the way, representatives began working on House appropriations Bills,
which will determine how much money is given to various state agencies.
The House was responsible for looking at the preliminary budgets of about 50 state agencies, including
the Departments of Insurance, Health, Transportation and Education. These bills represent half of the
state’s budget; the other half is currently being considered by the Senate and will be sent to the House
for consideration later in the legislative session.
Budgets include reverse repealers, a clause which ensures that a bill cannot become law before going to
a conference committee for further revisions. With reverse repealers in place, many appropriations bills
were voted on en bloc to help speed up the process.
The House Ways and Means committee also took up several bills on the floor this week, most notably
House Bill 1439.
House Bill 1439, or the Mississippi Tax Freedom Act of 2021, would make several changes to current
Mississippi tax laws including immediately eliminating the state income tax on $50,000 of individual
income and $100,000 for married couples’ income; phasing out the state income tax entirely over a ten-
year period; cutting the grocery tax from 7% to 4.5% immediately, then to 3.5% by FY 2027; and
increasing the sales tax from 7% to 9.5%. After much debate, HB 1439 passed the House by a vote of
85-34.
The next deadline for House members is next Tuesday, March 2, when all general bills originating in the
Senate must be passed out of committee to begin work before the House as a whole. Working on
Senate bills will continue until Wednesday, March 10. After this deadline, both houses will have to
concur on a bill or go to conference committee to finish working on a bill.