The largest tax cut in Mississippi history will be put in place in the coming weeks.
The tax cut will see a revenue loss for the current fiscal year.
Kathy Waterbury, Associate Commissioner with the Department of Revenue says Mississippians will not actually start to see the effect of the tax cut until January when the second half of the current 2017-2018 fiscal year begins.
“We expect the loss to be about 18 million dollars between January and June of the next year,” said Waterbury.
Waterbury adds that there are three components that the taxpayer should be aware of.
“There will be a phase out on the three percent income tax for over five years,” said Waterbury. “The phase out of the franchise tax is over 10 years.”
Mississippians will start to see changes in their income taxes as well.
“For anyone that is paying the personal income tax in Mississippi, you pay your first 5,000 dollars of taxable income at three percent,” said Waterbury. “After the five-year phase out, that will mean $150 for each person that is in that bracket. For the first year, it would be $30 dollars, so it will be an additional $30 for calendar 2018 taxes. It will be $30 added to that the next year and by the time the five year phase out has ended, it will be $150 dollars.”