Senate Unveils Tax Cut/Road Funding Plan
Lawmakers tackle general bills and now move into fiscal phase of session…
Lt. Gov. Delbert Hosemann, the presiding officer of the state Senate, unveiled a plan to reduce Mississippi’s income tax and as well as sales taxes collected on groceries, setting the stage for negotiations with House leaders who have their own tax-cut plan. Hosemann’s plan was unveiled last week as Mississippi lawmakers near the mid-way point of the 90-day legislative session set to adjourn the first week in April.
Hosemann’s proposal, a $326 million tax cut, lowers the state income tax rate and reduces the grocery sales tax while also implementing a phased gas tax increase to fund road improvements. The House’s plan, backed by Speaker Jason White, would eliminate the state income tax entirely over the next decade while increasing sales taxes to offset the revenue loss.
Hosemann and Senate leaders have framed their plan as a more cautious, sustainable approach, while House leaders argue that full income tax elimination would create long-term economic growth. Negotiations between the two chambers will determine whether Mississippi residents see tax relief this year and, if so, in what form.
General Bills Debated
Ballot Initiative Process Stalls
That tax debate unfolded as lawmakers spent the week on the House and Senate floor, debating hundreds of bills that faced a deadline of Thursday Feb. 13th for first consideration. Bills that were adopted now move to the opposite chamber and in the coming week will be assigned to committees again. Committees have until March 4th to adopt or kill those bills.
A proposal to restore the ballot initiative process has officially died after House Constitution Chairman Price Wallace chose not to bring it up for a vote before the deadline. Chairman Wallace felt certain the bill didn’t have a chance in the Senate. The initiative process was struck down by the state Supreme Court in 2021, and despite broad public interest in restoring it, lawmakers have been unable to reach a compromise. Some legislators feared that a revived initiative process could be influenced by out-of-state money, while others argued that voters should have a way to bypass the Legislature on key issues. While this year’s bill is dead, the debate over reinstating the process is likely to continue in future sessions.
Mississippi Senate Passes Direct Wine Shipment Bill
After killing direct shipments of wine, the Senate reversed course Friday and passed SB 2145, a bill allowing the direct shipment of wine to Mississippi residents. The measure was reconsidered Friday morning after supporters worked overnight to secure more votes, ultimately passing 24-14. The bill had faced concerns over the number of cases a household could receive, but an amendment limiting shipments to 12 cases per year per address helped gain the necessary support. Additional safeguards were also added to protect local package stores, addressing concerns raised during earlier debates. With Mississippi being one of only three states that still bans direct wine shipments, supporters argue the state is missing out on millions in tax revenue, but locally owned liquor stores have long opposed the measure. The bill now heads to the House, where it will face further debate.
House votes to expand Charter Schools into C-Rated Districts
HB 1432 which would expand charter schools into C-rated districts passed the House last week, a move supporters say will offer families more educational options. Under current law, charter schools are only allowed in D and F-rated districts, meaning this expansion could significantly increase their reach. Advocates argue that charter schools provide alternatives for students in struggling public school systems, pointing to improved test scores in some existing charter programs. Critics, however, worry that the expansion could siphon funding away from traditional public schools, especially in districts that are already struggling with declining enrollment. The bill now heads to the Senate, where amendments and further debate are expected before a final decision is made.
The Charter bill advanced even as other major school choice legislation died. House leaders said growing opposition to and questions over a proposal to let students move between school districts stalled the bill on the floor, even though the House Education Committee had adopted the measure.
Senate Passes Early Voting
The Senate has approved SB 2654, a bill that would allow 15 days of no-excuse early voting, bringing Mississippi in line with 47 other states. Supporters argue the measure would expand voter access, reduce long lines on Election Day, and improve election security by streamlining ballot processing. However, opposition remains strong, with Governor Tate Reeves voicing concerns about potential security risks. The bill now moves to the House for consideration.
House Passes Bill to Protect Property Owners from Squatters
A bill aimed at preventing squatters from unlawfully occupying private property passed the House with overwhelming support. The legislation, HB 1200 outlines a streamlined process for property owners to remove unauthorized occupants, requiring law enforcement to serve notice within 24 hours and allowing squatters three days to challenge eviction. If they fail to respond, they can be removed immediately, and their belongings may be forfeited. The bill also includes penalties for individuals who falsely claim a legal right to a property, ensuring that both property owners and law enforcement have clear legal guidance. The measure now moves to the Senate, where similar efforts in past years have stalled, but strong bipartisan support could push it forward this time.
Free Community College for High-Demand Jobs? House Says Yes
The House passed HB 1556 , which would provide tuition-free community college for students pursuing careers in high-demand fields such as skilled trades and technical jobs. The program would cover any remaining tuition costs after scholarships and financial aid are applied, but recipients would be required to work in Mississippi for a set number of years after graduation. Supporters argue that this initiative is crucial for addressing the state’s workforce shortages, particularly in industries like manufacturing, healthcare, and IT. A similar Senate bill, SB 2527 takes a broader approach by not limiting free tuition to specific job fields, setting up a likely negotiation between the two chambers. If enacted, the program could be a game-changer for students looking for affordable paths to stable, well-paying careers.
Opioid Settlement Fund Committee
HB 848 has passed the House and is now headed to the Senate for further discussion. The bill establishes the Opioid Settlement Fund Committee, which would be responsible for overseeing and allocating opioid settlement funds. It sets clear guidelines for the committee’s structure, responsibilities, and reporting requirements, with an emphasis on transparency and accountability. The goal is to ensure these funds are directed toward public health initiatives, addiction treatment, and prevention efforts that address the opioid crisis in Mississippi.
Certificate of Need Revisions and Healthcare Facility Regulations
SB 2681 has passed the Senate and now moves to the House for further consideration. The bill makes changes to regulations governing healthcare facilities, adjusting requirements for establishing, operating, and relocating certain services. It also provides clearer guidelines for reopening long-dormant facilities and modifies aspects of the Certificate of Need (CON) process. HB 922, the House’s version of CON reforms, would remove CON requirements for many non-hospital level facilities, including behavioral health facilities. It is now pending in the Senate Public Health Committee. Supporters argue reducing the CON restrictions can improve healthcare access while maintaining regulatory oversight, with added flexibility for providers dealing with natural disasters or specific regional healthcare needs.
Senate Advances Equal Custody Bill for Fathers
The Senate passed SB 2484 which would create a legal presumption that joint custody and equal parenting time are in the best interest of a child unless proven otherwise. Supporters of the bill say it addresses a long-standing issue where fathers often receive less parenting time in custody rulings. Critics worry that the measure could have unintended consequences, particularly in cases where one parent is better suited to primary custody. The bill also requires courts to document any decision that does not award equal parenting time, adding a new layer of accountability. The proposal now moves to the House, where similar legislation has faced challenges in the past.
PERS Overhaul: Senate Approves New State Employee Retirement Tier
The Senate passed SB 2439, introducing a “Tier 5” to the Public Employees Retirement System (PERS), which would apply to newly hired state employees. Under this plan, future hires would contribute to a mix of a traditional pension and a 401(k)-style savings account, a shift meant to address the system’s growing unfunded liabilities. Current employees and retirees would not be affected, but new hires would no longer receive automatic cost-of-living adjustments (COLA), meaning their retirement income would be less predictable. Supporters argue this move strengthens the long-term stability of the system, while critics say it places too much risk on employees rather than the state. The bill now heads to the House, where lawmakers will have to decide if this new approach is the right fix for Mississippi’s pension challenges.
Mississippi Hemp Act Dies on the CalendarSB 2706 which proposed expanded oversight and regulatory measures for Mississippi’s hemp industry, died on the senate calendar last week. The bill sought to establish clearer guidelines for licensing, reporting, and tax collection while promoting consumer safety. With its failure to pass, the current regulatory framework remains in place, and any future changes to hemp product oversight will require new legislative action.
A note from Clare: Legislative Matriarch Mary Ann Stevens
When I first began lobbying, these Capitol halls were packed with male legislators, lobbyists and media. One of the few exceptions was state Representative Mary Ann Stevens of West. Mary Ann Stevens was a stalwart in Mississippi politics – a Steel Magnolia who was at once graceful and unwavering and a modern pioneer that blazed a path. She counseled speakers and governors, controlled major legislation but also focused keenly on her own community and befriended and inspired countless women like me.
As one of the first women to serve as both a mayor and state legislator, she broke barriers with sharp political insight and a tenacious spirit, never taking no for an answer. Her influence shaped my own path, and I will always be grateful for the wisdom, kindness, and courage she shared with those lucky enough to know her.
Ms. Mary Ann passed away on February 14, leaving behind a legacy of strength, service and determination that I and so many more will always cherish. When Mary Ann retired from the Mississippi legislature she was honored with a resolution for her service, you may read the full resolution and more about the remarkable woman she was here.
Please keep Mary Ann’s family in your prayers, including her daughter Liz Welch, the highly respected executive director of the Department of Finance and Administration and Mary Ann’s grandson, Matthew Majure, who is a valued member of our Capitol Resources’ team.
Sincerely,
Clare Hester
Next Deadline: Money bills Lawmakers this week will begin moving the state’s budget and discussing tax and bond issues as they face a Feb. 26 deadline to adopt the first versions of appropriations and revenue bills. Full deadline calendar can be found here.
