Mississippi lottery to be exempt from sales taxes

The state Legislature will pass a measure to set a sales taxes exemption on the soon to be rolled Mississippi lottery tickets.

US.- Mississippi lawmakers are expected to pass a measure in order to clarify a sales taxes exemption on the state lottery tickets. However, the state will still get a piece of the business as the business will be taxed on income, at a scale of 3 to 5%.

Jackson Mayor Chokwe Antar Lumumba expected to benefit from a 1% sales tax in the city, but was slapped with the announcement. He planned to get a further cut on to the state sales tax (7 cents), and expected to get up to US$4 million a year from it.

The bill (HB1576) is still pending but is expected to pass and set the record straight for lottery tickets’ sales.

“I don’t think you need a bill,” Revenue Commissioner Herb Frierson said. “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?”

“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.

The Mississippi House of Representatives finally passed a bill back in August in order to create a state lottery. After facing major opposition – mainly from churches – the bill made it through the Legislature and was sent to Governor Phil Bryant to be signed into Law.

Several lawmakers like Republican Rep. Bill Denny or Democratic Rep. Greg Holloway praised the bill’s approval and said that people in the state were craving to get a lottery and urge them to approve the segment. “My people have contacted me,” Holloway said. “They want the lottery and I want them to have what they want.”