Mississippi House Bill HB1151

Mississippi 2023 Regular Session

• Introduced: 1/16/23
• Refer: 1/16/23
• Failed: 2/22/23

Caption

Sales tax; exempt certain sales of tangible personal property and services to churches.

Impact

If enacted, HB 1151 will officially update Mississippi's tax laws to ensure clarity concerning the sales tax exemptions granted to churches and other similar religious organizations. This change is intended to provide these institutions with greater financial flexibility to conduct their operations, enhance their community services, and further support their religious missions.

Summary

House Bill 1151 aims to amend Section 27-65-111 of the Mississippi Code to exempt certain sales of tangible personal property or services to churches that are exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code. This exemption is specifically for purchases made for use in the propagation of the church's creed or in carrying out its customary nonprofit activities. The bill emphasizes the right of churches to engage in typical community and outreach efforts without the burden of sales tax on necessary purchases.

Contention

The bill has drawn attention and some contention during discussions, primarily revolving around the implications of providing tax exemptions to religious organizations. Critics occasionally raise concerns about fairness and revenue impacts, positing that broad tax exemptions may reduce the state's tax base. Proponents argue that supporting religious organizations through tax relief is essential for fostering their contributions to social welfare and community moral fabric.