Bill Text: MS SB3031 | 2026 | Regular Session | Introduced
Bill Title: Income tax; suspend reductions until PERS is funded at 80%.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Failed) 2026-02-25 - Died In Committee [SB3031 Detail]
Download: Mississippi-2026-SB3031-Introduced.html
MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Finance
By: Senator(s) Blount
Senate Bill 3031
AN ACT TO AMEND SECTION 27-7-5, MISSISSIPPI CODE OF 1972, TO SUSPEND THE REDUCTION OF THE TAX ON ALL TAXABLE INCOME OF INDIVIDUALS IN EXCESS OF $10,000.00 UNTIL AN INDEPENDENT ACTUARY HIRED BY THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF MISSISSIPPI ISSUES A WRITTEN DETERMINATION THAT THE UNFUNDED ACTUARIAL ACCRUED LIABILITY OF THE SYSTEM IS LESS THAN 20%; TO STATE THE INTENT OF THE LEGISLATURE TO CONSIDER, BEFORE THE INCOME TAX RATE DECREASES TO 3%, WHETHER THE RATE WILL BE FURTHER DECREASED BELOW 3%; TO REPEAL SECTION 27-7-5.1, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR THE FURTHER REDUCTION OF THE TAX ON ALL TAXABLE INCOME OF INDIVIDUALS IN EXCESS OF $10,000.00 UNDER CERTAIN FISCAL CONDITIONS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-5, Mississippi Code of 1972, is amended as follows:
27-7-5. (1) (a) Except as otherwise provided in this section, there is hereby assessed and levied, to be collected and paid as hereinafter provided, for the calendar year 1983 and fiscal years ending during the calendar year 1983 and all taxable years thereafter, upon the entire net income of every resident individual, corporation, association, trust or estate, in excess of the credits provided, a tax at the following rates:
(i) 1. Through calendar year 2017, on the first Five Thousand Dollars ($5,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
2. For calendar year 2018, on the first One Thousand Dollars ($1,000.00) of taxable income there shall be no tax levied, and on the next Four Thousand Dollars ($4,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
3. For calendar year 2019, on the first Two Thousand Dollars ($2,000.00) of taxable income there shall be no tax levied, and on the next Three Thousand Dollars ($3,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
4. For calendar year 2020, on the first Three Thousand Dollars ($3,000.00) of taxable income there shall be no tax levied, and on the next Two Thousand Dollars ($2,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
5. For calendar year 2021, on the first Four Thousand Dollars ($4,000.00) of taxable income there shall be no tax levied, and on the next One Thousand Dollars ($1,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
6. For calendar year 2022 and all taxable years thereafter, there shall be no tax levied on the first Five Thousand Dollars ($5,000.00) of taxable income;
(ii) On taxable income in excess of Five Thousand Dollars ($5,000.00) up to and including Ten Thousand Dollars ($10,000.00), or any part thereof, the rate shall be four percent (4%); and
(iii) On all taxable income in excess of Ten Thousand Dollars ($10,000.00), the rate shall be five percent (5%).
(b) (i) For calendar year 2023 and all calendar years thereafter, there shall be no tax levied under subparagraph (ii) of paragraph (a) of this subsection on the taxable income of individuals in excess of Five Thousand Dollars ($5,000.00) up to and including Ten Thousand Dollars ($10,000.00), or any part thereof; and
(ii) For calendar year 2024 and all calendar years thereafter, the tax imposed under subparagraph (iii) of paragraph (a) of this subsection upon all taxable income of individuals in excess of Ten Thousand Dollars ($10,000.00), shall be at the following rates:
1. For calendar year 2024, on such taxable income, the rate shall be four and seven-tenths percent (4.7%);
2. For calendar year 2025, on such taxable income, the rate shall be four and four-tenths percent (4.4%);
4. For the
first calendar year * * * 2027 after the effective date of this act, on such
taxable income, the rate shall be three and three-quarters percent (3.75%);
5. For the
second calendar year * * * 2028 after the effective date of this act, on such
taxable income, the rate shall be three and one-half percent (3.5%);
6. For the
third calendar year * * * 2029 after the effective date of this act, on such
taxable income, the rate shall be three and one-quarter percent (3.25%); and
It is the intent of the Legislature that before the rate in item 7 of this subparagraph (ii) goes into effect, the Legislature will consider whether the revised tax rates provided for in this subparagraph (ii) will be further decreased. If the revised tax rates provided for in this subparagraph (ii) are further decreased to the extent that there is no tax levied on the taxable income of individuals under this subparagraph (ii), the individual income tax shall stand repealed.
(2) An S corporation, as defined in Section 27-8-3(1)(g), shall not be subject to the income tax imposed under this section.
(3) A like tax is hereby imposed to be assessed, collected and paid annually, except as hereinafter provided, at the rate specified in this section and as hereinafter provided, upon and with respect to the entire net income, from all property owned or sold, and from every business, trade or occupation carried on in this state by individuals, corporations, partnerships, trusts or estates, not residents of the State of Mississippi.
(4) In the case of taxpayers having a fiscal year beginning in a calendar year with a rate in effect that is different than the rate in effect for the next calendar year and ending in the next calendar year, the tax due for that taxable year shall be determined by:
(a) Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year in which the fiscal year begins; and
(b) Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year in which the fiscal year ends; and
(c) Applying to the tax computed under paragraph (a) the ratio which the number of months falling within the earlier calendar year bears to the total number of months in the fiscal year; and
(d) Applying to the tax computed under paragraph (b) the ratio which the number of months falling within the later calendar year bears to the total number of months within the fiscal year; and
(e) Adding to the tax determined under paragraph (c) the tax determined under paragraph (d) the sum of which shall be the amount of tax due for the fiscal year.
SECTION 2. Section 27-7-5.1, Mississippi Code of 1972, which provides for the reduction of the tax on all taxable income of individuals in excess of Ten Thousand Dollars ($10,000.00) under certain fiscal conditions, is repealed.
SECTION 3. This act shall take effect and be in force from and after the first July 1 following a written determination by an independent actuary hired by the Public Employees' Retirement System of Mississippi that the unfunded actuarial accrued liability of the system is less than twenty percent (20%).
