The Mississippi House has passed a bill to exclude NIL earnings from the state's income tax, which will be phased out for all Mississippians over the next decade.
As reported by the Clarion Ledger of Jackson, the provision would make Mississippi an attractive destination for top athletes and give the state's college coaches another recruiting perk, according representative Trey Lamar, a Republican from Senatobia.
"NIL is taking the country and coming by storm," he said. "Other states are doing it, and I believe it's time that Mississippi starts doing this as well."
Per the reporting of Bea Anhuci, several states with competing universities have eliminated income tax altogether, including Florida, Texas and Tennessee. Additionally, Arkansas passed a bill in 2025 to exempt NIL money from income taxes, meaning that five SEC schools have a notable advantage when it comes to recruiting.
Mississippi schools, Lamar said, should be able to offer that same perk.
"Lamar was also concerned about students receiving huge amounts of money at a very young age ... and incurring serious civil and criminal penalties, because they didn't understand how to handle their money," Anhuci wrote.
While acknowledging that the bill could attract athletes to Mississippi schools, fellow Republican Dan Eubanks from Walls said he didn't understand why they should receive any special treatment under the law.
Criticism crossed party lines during open debate, before the passed the chamber, according to Anhuci.
"Why would they not be taxed like any other employee?" Eubanks asked Lamar in the House. "Is the only incentive for us doing this because other states are doing it? I just don't know why they're being treated different than anyone else in the world."
