Sales tax; reduce to 1/2% for groceries, and adjust distribution to avoid impact on municipalities.

SB 3119 reduces Mississippi's sales tax rate on groceries from 7% to 0.5% effective July 1, 2026, directly lowering costs for residents purchasing food. The bill also amends revenue distribution rules (Section 27-65-75) to ensure municipalities receive the same total sales tax revenue they would have if the grocery tax rate had not changed. This adjustment prevents local governments from losing funding due to the tax reduction. The policy change applies immediately to all grocery purchases within the state.