(1) As used in this section:(a) “Adjusted General Fund Revenue Collections” means State General Fund revenue collections adjusted by removing any nonrecurring State General Fund revenue collections, which figure shall be provided annually to the commissioner by the Legislative Budget Office on or before October 1 for the prior fiscal year (beginning October 1, 2029, for fiscal year 2029 revenue collections) and presented at the next meeting of the Joint Legislative Budget Committee.(b) “Appropriations” means the total amount contained in all deficit appropriations bills that are recurring expenses in State Support Funds and all General Fund appropriation bills passed into law, but not including any additional appropriations in excess of statutory required employer rate for the Public Employees’ Retirement System of Mississippi, which figure shall be provided annually to the commissioner by the Legislative Budget Office on or before October 1 for the current fiscal year (beginning October 1, 2029, for fiscal year 2030 appropriations) and presented at the next meeting of the Joint Legislative Budget Committee.(c) “Cost of a one percent (1%) cut” means the reduction in individual income tax collections that would result from a one percent (1%) reduction in the tax on all taxable income of individuals in excess of Ten Thousand Dollars ($10,000.00), which figure shall be provided annually by the commissioner to the Legislative Budget Office on or before December 15, based on data from the prior calendar year (beginning December 15, 2029, for calendar year 2028); however, if any filing extensions were granted by the commissioner under Section 27-7-50, the commissioner shall provide the Legislative Budget Office with an updated cost of a one percent (1%) cut before the end of the next regular legislative session.
(a) “Adjusted General Fund Revenue Collections” means State General Fund revenue collections adjusted by removing any nonrecurring State General Fund revenue collections, which figure shall be provided annually to the commissioner by the Legislative Budget Office on or before October 1 for the prior fiscal year (beginning October 1, 2029, for fiscal year 2029 revenue collections) and presented at the next meeting of the Joint Legislative Budget Committee.
(b) “Appropriations” means the total amount contained in all deficit appropriations bills that are recurring expenses in State Support Funds and all General Fund appropriation bills passed into law, but not including any additional appropriations in excess of statutory required employer rate for the Public Employees’ Retirement System of Mississippi, which figure shall be provided annually to the commissioner by the Legislative Budget Office on or before October 1 for the current fiscal year (beginning October 1, 2029, for fiscal year 2030 appropriations) and presented at the next meeting of the Joint Legislative Budget Committee.
(c) “Cost of a one percent (1%) cut” means the reduction in individual income tax collections that would result from a one percent (1%) reduction in the tax on all taxable income of individuals in excess of Ten Thousand Dollars ($10,000.00), which figure shall be provided annually by the commissioner to the Legislative Budget Office on or before December 15, based on data from the prior calendar year (beginning December 15, 2029, for calendar year 2028); however, if any filing extensions were granted by the commissioner under Section 27-7-50, the commissioner shall provide the Legislative Budget Office with an updated cost of a one percent (1%) cut before the end of the next regular legislative session.
(2) For calendar year 2031 and any calendar year thereafter, if the Working Cash-Stabilization Reserve Fund is fully funded as provided in Section 27-103-213, the tax imposed under Section 27-7-5(b)(ii) on all taxable income of individuals in excess of Ten Thousand Dollars ($10,000.00) shall be reduced by a percentage as indicated below, depending on the percentage by which the Adjusted General Fund Revenue Collections for a fiscal year (beginning with fiscal year 2029) exceed the Appropriations for the following fiscal year (beginning with fiscal year 2030):(a) If the excess is at least eighty-five one-hundredths percent (0.85%), but less than one percent (1%), of the cost of a one percent (1%) cut, the tax shall be reduced by two-tenths percent (0.2%);(b) If excess is at least one percent (1%), but less than one and fifteen one-hundredths percent (1.15%), of the cost of a one percent (1%) cut, the tax shall be reduced by one-quarter percent (0.25%); and(c) If excess is at least one and fifteen one-hundredths percent (1.15%) of the cost of a one percent (1%) cut, the tax shall be reduced by three-tenths percent (0.3%).
(a) If the excess is at least eighty-five one-hundredths percent (0.85%), but less than one percent (1%), of the cost of a one percent (1%) cut, the tax shall be reduced by two-tenths percent (0.2%);
(b) If excess is at least one percent (1%), but less than one and fifteen one-hundredths percent (1.15%), of the cost of a one percent (1%) cut, the tax shall be reduced by one-quarter percent (0.25%); and
(c) If excess is at least one and fifteen one-hundredths percent (1.15%) of the cost of a one percent (1%) cut, the tax shall be reduced by three-tenths percent (0.3%).
(3) The tax reduction provided for in this section shall be effective for the calendar year beginning after the close of the fiscal year pertaining to the Appropriations figure used in the calculation for subsection (2) of this section.
(4) When the application of the tax reduction provided for in this section results in a tax of zero percent (0%) on all taxable income of individuals in excess of Ten Thousand Dollars ($10,000.00), such tax shall be eliminated.