Besides reaching an agreement Sunday night on a tax cut proposal legislative leaders also hammered out an accord on bonds to fund construction projects and on tax credits, such as for the development of historic properties.
The bond package totals $249.6 million and includes funds of $750,000 to help with the construction at Tupelo Veterans Park of a replica of the Vietnam War Memorial located in Washington, D.C.
The tax cut plan will eliminate the 3 percent tax people pay on their first $5,000 of taxable income over a five year period, beginning in 2018. When fully phased in the tax cut will take about $150 million out of the state revenue collections in today’s dollars. The franchise tax, which provides about $265 million in today’s dollars to the state general fund, will be phased out over 10 years, starting in 2018. The only impact on the budget for the upcoming year will be a $3 million reduction in a small business tax.