MS SB2643

Reduces Mississippi state income tax rates effective January 1, 2016 by eliminating the 5% tax bracket on income over $10,000.

Changes the tax structure from three brackets (3%, 4%, 5%) to two brackets: 3% on the first $5,000 of taxable income and 4% on all income exceeding $5,000.

Applies the new rate structure to calendar year 2016 and all taxable years thereafter for residents, corporations, associations, trusts, and estates.

Provides a transition rule for taxpayers with fiscal years beginning in 2015 and ending after January 1, 2016, requiring a blended calculation of taxes under both the old and new rates based on the number of months in each calendar year.

Takes effect July 1, 2015, though the actual rate reduction applies starting with 2016 tax years.