MS SB3095

Reduces individual income tax on all taxable income over $10,000 in phases: 3.75% (2027), 3.5% (2028), 3.25% (2029), and 2.99% (2030 and thereafter).

Taxes retail sales of groceries at 5% effective July 1, 2025 (previously exempt as food stamps-eligible items).

Increases excise taxes on gasoline and special fuels: 21¢ per gallon (July 1, 2025 through June 30, 2026), 24¢ (July 1, 2026 through June 30, 2027), and 27¢ (July 1, 2027 onward), with annual indexing adjustments beginning July 1, 2029 tied to National Highway Construction Cost Index.

Adjusts distribution of fuel tax revenue above 18¢ per gallon: 23.25% to state aid roads, 2.75% to Strategic Multi-Modal Investments Fund, and 74% to Mississippi Department of Transportation.

Revises allocation of grocery sales tax revenue to municipalities (25.9%) and counties based on infrastructure needs; increases deposits to State Aid Road Fund with enhanced amounts starting September 15, 2025.