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Rep. Noah Sanford
The 2025 legislative session came to an end last week, with the House adjourning on Wednesday and the Senate on Thursday.
The most consequential bill to clear the several hurdles it takes to become law was House Bill 1, dubbed the “Build Up Mississippi Act.” The bill would phase out the state income tax over several years, immediately cut the sales tax on groceries from 7% to 5%, and raise the fuel tax three cents per year for three years.
When fully phased in, it would be a net tax cut of $1.9 billion. The fastest-growing states in the Southeast—Tennessee, Texas, and Florida—have no income tax, and many proponents of HB 1 argue that the plan will help attract corporate investment to Mississippi.
House Bill 1 also provided for a new retirement structure for government employees who begin working after March 1, 2026. Those employees would have a hybrid retirement system—part guaranteed, (like PERS) and part in a 401(k)-type plan in which employees could control their own investments. The federal government and a handful of states have adopted hybrid retirement models, as such systems provide more flexibility for employees and are usually less costly in the long run.
Several bills were passed aimed at assisting with problems that have plagued the capital and other cities. Laws to prohibit encampment on public property and squatting on private property, as well as to incentive development of blighted properties, all passed overwhelmingly.
A handful of bills passed one chamber or the other but failed to make it all the way through the process. Among the most notable of these were proposals to provide educational choices to parents and students, as well as those to clamp down on run-amok PBMs (pharmacy benefit managers). Just as in the 2024 session, PBM reform faced serious pushback from businesses, both large and small, that argued the proposals would raise health insurance premiums for their employees. There were also those who claimed that only the federal government could legally regulate most activity of PBMs. President Trump has vowed to “knock out” PBMs, and I hope he follows through on that promise.
The House and Senate failed to agree on final budget numbers for some state agencies, necessitating a special session before July 1, when the next fiscal year begins. Only the Governor can call a special session, and Gov. Reeves has signaled that he will do so and that he may add additional matters to the agenda to be considered. In anticipation of a special session being called, the House adjourned four days before our scheduled adjournment in order to prevent additional cost to the taxpayers.
As always, I appreciate the opportunity to serve. Please contact me if I may be of assistance or if you have questions or concerns.
Noah Sanford represents parts of Covington, Simpson, Jefferson Davis, Forrest, and Jones Counties in the Mississippi House of Representatives. He can be reached at NSanford@house.ms.gov.
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