Income tax; exclude full-time law enforcement officer compensation up to $20,000.00 from definition of "gross income."
Summary
SB 2815 amends Mississippi’s income tax statute to create a new exclusion from “gross income” for compensation received by a full-time, state-certified law enforcement officer, capped at $20,000 per tax year. The bill inserts this exclusion into the list of income items that are not subject to state income tax, while leaving the rest of the gross-income framework intact. It is written as an amendment to Section 27-7-15 of the Mississippi Code and is scheduled to take effect on January 1, 2025.
In practical terms, the bill would reduce taxable income for eligible law enforcement officers and lower their state income tax liability on up to $20,000 of compensation each year. The change applies only to full-time officers who are state-certified, so it does not extend to all public employees or to part-time or uncertified officers. The bill does not alter tax treatment for other existing exemptions, deductions, or categories of income already listed in the statute.
Impact
The bill would modify Mississippi’s definition of “gross income” under Section 27-7-15 by adding a new exclusion for compensation paid to full-time, state-certified law enforcement officers, up to $20,000 annually. This would directly affect the calculation of state income tax for qualifying officers and would require the Department of Revenue to administer the new exemption beginning with tax years after the effective date. The bill does not create a new tax credit or deduction; it changes the base used to compute taxable income.
Sentiment
The available context suggests generally favorable treatment of the bill, or at least no recorded opposition in the materials provided. The caption frames the measure as a targeted tax benefit for law enforcement, which typically indicates support for public safety personnel. However, there are no committee transcripts or recorded votes in the provided context, so the level of support or any formal debate cannot be assessed from the record here.
Contention
The main policy issue is the targeted nature of the tax break: it benefits only full-time, state-certified law enforcement officers and only up to a capped amount, which may raise questions about fairness relative to other public employees or whether the state should use the tax code to provide occupation-specific compensation. Another possible point of discussion is fiscal impact, since excluding up to $20,000 of compensation per eligible officer would reduce state income tax collections. No specific objections or competing viewpoints are documented in the provided transcripts or vote history.