MS HB737

Phases out Mississippi's 7% sales tax on grocery food for human consumption (items that would be tax-exempt if purchased with food stamps) over a six-year period beginning July 1, 2021

Reduces the grocery tax rate by 1% annually: 6% (2021-2022), 5% (2022-2023), 4% (2023-2024), 3% (2024-2025), 2% (2025-2026), 1% (2026-2027)

Eliminates the sales tax on qualifying grocery food entirely from and after July 1, 2027

Applies only to food eligible for the existing food stamp exemption, not to prepared foods, restaurant meals, or other taxable food items

Preserves the state's right to collect taxes due or accrued before the act's effective date