MS HB4076

Municipalities may impose a local sales tax up to 1.5% on activities taxed at 7% statewide, effective July 1, 2024, subject to revenue growth limitations.

Reduces sales tax on food for human consumption from 7% to 3.5% (except items purchased with food stamps), and imposes a 4% tax on motor fuels, with revenue deposited into transportation maintenance and capacity project funds.

Phases out individual income tax on taxable income over $10,000 beginning in 2024, reducing rates from 5% to 0% by 2038.

Revises state sales tax distributions to municipalities and educational institutions to exclude revenues from the reduced food tax rate and motor fuel tax.

Changes to Section 27-65-111 expand motor fuel exemption for agricultural, maritime, and industrial uses that do not involve public road operation.