Mississippi Senate Leadership Says Internet Sales Tax Bill Is Unconstitutional

JACKSON, Miss. (WCBI-TV) – Leadership in the Mississippi Senate made a statement Monday saying the internet sales tax proposal will not make it past Tuesday’s deadline for committee action.

Lieutenant Governor Tate Reeves’ office says the Senate will no longer consider House Bill 480, which is in the Senate Finance Committee. Reeves says because a 1992 U.S. Supreme Court decision says states do not have the authority to tax internet sales, the bill is unconstitutional.

House Bill 480 would have required companies with $250,000 a year or more in online sales in Mississippi to collect a 7 percent “use tax.” Lawmakers have said they want that money to go to road and bridge repairs in the state.