Senate Bill 2289 Summary

• Removes the phase-out provisions for income tax on the first $5,000 of taxable income that were scheduled to begin January 1, 2019, restoring a flat 3% tax rate on this income bracket.

• Eliminates the deduction allowing self-employed individuals to deduct a percentage of federal self-employment taxes from their Mississippi state income (17% for 2017, 34% for 2018, and 50% for 2019 and thereafter).

• Cancels the scheduled phase-out of the corporation franchise tax that was set to gradually reduce from $2.50 per $1,000 of capital value down to $0.25 by January 1, 2028.

• Repeals Section 5 of Chapter 499, Laws of 2016, which had authorized the complete elimination of the corporation franchise tax on January 1, 2028.

• Takes effect January 1, 2019.