A bill allowing student-athletes to strike name, image, and likeness (NIL) deals without having to pay state taxes on the money they receive has cleared a major legislative hurdle in Mississippi.
House Bill 4014 passed its originating chamber on a 76-32 vote with support and dissent from both Democrats and Republicans alike. The legislation, authored by Republican Rep. Jonathan McMillan, would revise existing state law to allow student-athletes at Mississippi’s colleges and universities to acquire NIL compensation without being taxed on it at the state level.
The move follows similar legislation passing in Arkansas and schools in Florida, Tennessee, and Texas, flexing their lack of a state income tax as a means of giving them a competitive advantage in reeling in highly-touted athletes.
“NIL is something that has taken the country kind of by storm in the college sports arena over the last few years,” Republican House Ways and Means Committee Chairman Rep. Trey Lamar said. “There are other states doing it. I believe Mississippi needs to remain competitive in that arena. We’ve made a policy decision over the last 10 years, which finalized last year, in exempting all income tax.”
Mississippi is no stranger to seeing large NIL deals being doled out. Ole Miss quarterback Trinidad Chambliss, who recently won a legal battle against the NCAA in seeking an extra year of eligibility, reportedly etched an agreement totaling more than $5 million to compete for the Rebels in the 2026-27 campaign. Eliminating the 4% tax assessed by the state would save him hundreds of thousands of dollars.
Proponents of the bill, like Lamar, believe the measure would help schools like Ole Miss and Mississippi State have a better shot at competing against counterparts in the SEC and other power conferences in both landing and keeping the most talented recruits. Supporters also believe that the economic impact of successful college sports, and specifically football, yields great economic benefits in Mississippi.
Opposition to the bill stemmed from the notion that college athletes, especially those agreeing to revenue-sharing deals with their schools’ athletics departments, should be taxed just like all other employees in Mississippi. Other concerns stemmed from Mississippi missing out on a new revenue source through taxation of lucrative NIL deals.
HB 4014 has been received in the Senate but not referred to a specific committee. The bill will have to clear its respective committee before being considered for a floor vote.