The Legislature is expected to pass a measure clarifying that tickets for Mississippi’s soon to be rolling lottery are exempt from sales taxes.
But the state tax man will still get his cut on lottery winnings in Mississippi: They will be taxed as income, at the same scaled rate of 3 percent to 5 percent as any other income.
This is a blow to Jackson, where Mayor Chokwe Antar Lumumba had been counting on lottery ticket revenue from a 1-cent sales tax in the city tacked on to the 7-cent state sales tax. Lumumba late last year had estimated the city would receive about $4 million a year from it’s share of state sales taxes plus the 1-cent sales tax on tickets beyond money the city expects to receive from state lottery proceeds earmarked for local infrastructure by the Legislature.
House Bill 1576, pending in the Legislature and expected to pass, makes clear lottery tickets are exempt from sales taxes in Mississippi — as they are in all other states in the U.S. that have a lottery.
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by geoff pender
february 26, 2019