Mississippi Senate panel declines to take up NIL tax exemption bill

A Mississippi Senate Finance Committee on Tuesday opted not to take up a House-approved bill that would have exempted student-athletes’ name, image and likeness deals from state income tax, effectively ending the measure’s prospects for this legislative session, the committee said.

House Bill 4014 passed the House on a 76-32 vote. Backers said the exemption was meant to help Mississippi’s universities compete for athletes, noting that Ole Miss and Mississippi State are members of the Southeastern Conference and that Florida, Tennessee and Texas have no state income tax. Supporters also pointed to a recent Arkansas action to protect NIL earnings, they said.

Opponents and some lawmakers said the proposal would single out athletes for special treatment. Sen. Jeremy England, R-Vancleave, said he understood the goal of helping colleges attract athletes but called it poor policy to exempt high-earning athletes when other residents still pay income tax.

Rep. Trey Lamar, R-Senatobia, defended the House action, saying Mississippi has been phasing out the income tax and must stay competitive in college sports. Gov. Tate Reeves, a longtime opponent of income taxation, also supported the idea, saying eliminating income tax would help the state catch up with its regional peers.

The bill’s fiscal note estimated the state would forgo just under $4 million in revenue, supporters said. They argued that amount was small compared with the economic impact of college athletics; supporters cited about $325 million in economic activity from Ole Miss home football games in 2024. Media reports have also described recent large NIL agreements in the state, including a reported more-than-$5 million deal for Ole Miss quarterback Trinidad Chambliss. Though the measure is not officially dead until the session ends, lawmakers said it is unlikely the Legislature will revisit the exemption this year.

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