- Mississippi is reducing its sales tax on groceries from 7 percent to 5 percent starting July 1.
- A family of four with a $1,000 monthly grocery bill will save $20 per month or $240 annually.
- The reduction is part of House Bill 1, signed into law by Governor Tate Reeves.
- Groceries are defined as food or drink eligible for purchase with food stamps.
- Items bought with food stamps remain exempt from sales tax; non-eligible items remain taxable at 7 percent.
- Retailers are advised to adjust their systems for the new tax rate.
- The sales tax reduction is expected to cut $127 million annually for the state.
- The diversion rate for grocery tax collections to municipalities increased from 18.5 percent to 25.9 percent to support city budgets.
Source: magnoliatribune.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
