The Mississippi House on Wednesday approved legislation to exempt name, image and likeness compensation for college athletes from the state income tax, voting 76-32 to advance the measure to the Senate, lawmakers said.
Rep. Jonathan McMillan, R., a first-term lawmaker, authored HB 4014. The bill defines NIL compensation as “any money, goods, or services provided to an intercollegiate athlete, while enrolled at a postsecondary educational institution located in Mississippi, in exchange for the use of the athlete’s name, image, or likeness including revenue-sharing or name, image, and likeness payments from a postsecondary educational institution or a third-party,” according to the bill text.
Rep. Trey Lamar, R., chairman of the House Ways and Means Committee, told the chamber that states without an income tax are using that advantage to recruit players. “NIL is something that’s taken the country kinda by storm in the college sports arena the last few years,” Lamar said. “There’s other states doing it. I believe Mississippi needs to remain competitive in that arena.”
Lawmakers voiced mixed views during debate. Independent Rep. Shanda Yates said she supported helping athletes but thought the exemption should be broader. Rep. Daryl Porter, D., questioned how continued exemptions would affect state revenue. Rep. Dan Eubanks, R., asked why college athletes would not be taxed “like any other employee,” saying he saw no reason for special treatment.
The bill now moves to the state Senate for consideration. Supporters pointed to similar moves in other states, and lawmakers cited recent recruiting messages from universities in no-income-tax states such as Florida and Texas that highlighted their tax structures on social media. Lawmakers in Arkansas voted in 2025 to exempt certain NIL earnings, supporters noted as a precedent.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
