Desoto County, Mississippi — In what could be a historic week for Mississippi, all eyes will be on the state capitol and Governor Tate Reeves, who is expected to sign a bill that eliminates the state income tax, which could have a significant impact on cities like Hernando.
“I believe that lowering income taxes and grocery taxes is always the best thing for a community. We just have to figure out how to do things that the citizens want within the constraints of losing those revenues,” said Hernando Mayor Chip Johnson. Mayor Johnson recently appeared on WREG to discuss whether eliminating the state income tax is a good idea for his city, which has nearly 19,000 residents.
“I think if we move the income tax down or get rid of it completely, it’s going to be a lot easier on people’s pocketbooks that live in Hernando or might want to move to Hernando and maybe aren’t moving there because there’s an income tax,” he told me.
The state income tax proposal would also reduce the grocery tax from 7%, the highest in the nation, to 5% in a one-time cut effective July 1.
To compensate for the funding cut, the gas tax will gradually rise by nine cents per gallon, from 18 cents now to 27 cents in July 2027.
Some state lawmakers are concerned about the bill’s impact on state services.
“So, I’m concerned about that because the primary reason people sent us here was to provide services. They want quality public schools. They want good roads and bridges. “They want good public safety, good police officers and firefighters, and they want to be well compensated,” said Mississippi Representative Robert Johnson (D).
Last Friday, Governor Tate Reeves took to social media to congratulate the Mississippi Legislature for passing the measure, calling it a great day for Mississippi taxpayers.
