MS HB1237

Phases out sales tax on retail food for human consumption (not purchased with food stamps) over six years, starting July 1, 2024, with rates declining from 6% to 0% by July 1, 2030.

Tax rates decrease annually: 6% (2024-2025), 5% (2025-2026), 4% (2026-2027), 3% (2027-2028), 2% (2028-2029), 1% (2029-2030), and full exemption beginning July 1, 2030.

Applies only to food items that would be exempt from sales tax if purchased with federal food stamps, as specified in existing Section 27-65-111(o).

Adds new exemption (Section 27-65-111(bbb)) making food purchased without food stamps fully exempt from sales tax effective July 1, 2030, to align with the phase-out completion.

Effective date is July 1, 2024.