Mississippi state legislature are due to put measures in place which will subsequently issue a sales taxes exemption on the soon to be rolled-out Mississippi lottery tickets.
If the bill is passed, the state will receive between three and five per cent of the income tax generated by state lottery. The bill us still waiting approval from the state’s lawmakers, and is hoped to clarify the state’s position on the state lottery.
Jackson Mayor Chokwe Antar Lumumba had previously expected to benefit from the proposed one per cent sales tax, having planned to issue further cuts to the state’s sales tax, but with this new announcement, this will no longer be the case.
Revenue Commissioner Herb Frierson raised the question as to whether the new bill was necessary: “I don’t think you need a bill.
“It’s considered a service, not tangible personal property. It’s evidence of a bet is all it is. Why would you tax evidence of a bet?”
The Mississippi House of Representatives approved a bill in August which paved the way for a state lottery. But despite facing major opposition from lobby groups within the state, including the Church, the bill was signed into state law by Governor Phil Bryant.
“Our understanding when we passed the bill last year was that the sales tax component of the bill was critical to get the bill passed,” Jackson lobbyist Quincy Mukoro said, as he expects a change in the bill.