The first half of the 2021-22 budget year which began July 1 has been good for Mississippi and local municipalities. Senatobia and Coldwater have enjoyed a windfall in tax revenue the last six months and that is reflected in the statewide increase.
Mississippi government collected more money during the first half of this budget year than it did during the same period a year earlier.
New figures from the Legislative Budget Office show overall state revenue increased nearly 11% from July through December, compared to the same six months in 2020. Corporate tax collections increased 26%, and sales tax collections increased nearly 22%.
Tax collections on gambling were up, but those from tobacco, liquor, beer, and wine were down. Revenue from car tags also decreased, possibly reflecting a drop in the sale of new vehicles during the economic uncertainty of the coronavirus pandemic.
Senatobia has collected $1,124,781 in sales tax during the current fiscal year, a 5.5% boost from the $1,063,884 it amassed the previous year.
Coldwater has enjoyed a 22.8% jump in revenue this fiscal year. The town has generated $138,840 in sales tax collections thus far in 2021 in comparison to $107,237 in the first half of the 2020-21 fiscal year.
Mississippi legislative leaders say they want to approve tax cuts during the current three-month session that runs through early April, but it’s not clear whether they will agree on a plan.
Republican House Speaker Philip Gunn said last week that he will renew an effort to eliminate the income tax. Republican Lt. Gov. Delbert Hosemann has not said whether he will agree to that, and he has not offered a specific tax cut proposal.
During the 2021 legislative session, the House proposed phasing out the income tax and increasing other taxes, including the sales tax. The Senate did not agree.
