Senate committee reports out broad tax package that cuts income and grocery taxes and raises fuel levies

Senate Bill 30 95, presented to the committee by Senator Johnson, is a multi‑part tax package that would phase down the individual income tax, cut the grocery sales tax, and increase excise taxes on gasoline and special fuels while creating formulas to apportion additional fuel tax revenue to road funds.

Johnson summarized the bill’s key provisions: a phased reduction in the individual income tax rate beginning in 2027, a reduction of the grocery sales tax from 7% to 5% effective July 1, 2025, and incremental increases in the gasoline excise tax of three cents per year through 2027 with indexing thereafter. He told the committee that a portion of excise tax revenue above 18 cents per gallon would be distributed as follows: 23.25% to state aid road construction, 2.75% to the Strategic Multimodal Investment Fund, and 74% to the Mississippi Department of Transportation for projects listed in MDOT’s…