MS HB1456

Reduces sales tax rate from 7% to 3.5% on retail sales of food for human consumption not purchased with food stamps but that would qualify for exemption if purchased with food stamps, effective July 1, 2024.

Revises distribution of sales tax revenue from the reduced-rate food sales: municipalities receive 37% (instead of being excluded), state institutions of higher learning receive 37%, and education funds receive specified percentages of the revenue collected under this provision.

Excludes the new food sales tax revenue from certain other tax revenue diversions while maintaining existing diversion percentages for other revenue categories.

Applies to food items that would be exempt under Section 27-65-111(o) if purchased with food assistance benefits, creating parity in tax treatment for cash purchases of staple groceries.