Sales tax; phase out on retail sales of certain food.

HB 1024 phases out the sales tax on retail food items that would be tax-exempt if purchased with food stamps (like most groceries), starting July 1, 2025. It gradually reduces the tax rate over three years: 6% for 2025-2026, 5% for 2026-2027, and then eliminates the tax entirely. This directly affects grocery stores and retailers selling qualifying food items not bought with food stamps. The bill amends Mississippi’s tax code to align the tax treatment of these foods with their tax-exempt status when purchased using federal food assistance.