Legislation aimed at making Mississippi universities more competitive in college athletics by exempting name, image, and likeness deals for student-athletes from state income taxes will not become law.
During a meeting on Tuesday, the Mississippi Senate’s Finance Committee elected not to take up a House-approved measure that allowed student-athletes to strike NIL deals without having to worry about paying state income taxes.
A controversial proposal that garnered mixed reactions from the public — with sports fans arguing it would benefit in-state schools and detractors contending that it’s unfair to exclusively give tax breaks to one group, especially in an impoverished state like Mississippi — House Bill 4014 passed in its originating chamber on a 76-32 vote with support and dissent from both Democrats and Republicans alike, though it failed to make it to a floor vote in the Senate.
The bill was likely pointed toward Ole Miss and Mississippi State, who are members of the Southeastern Conference, one of the most competitive leagues in college athletics. Currently, three states with SEC members (Florida, Tennessee, and Texas) do not have a state income tax, and another (Arkansas) recently preceded Mississippi in an effort, albeit a successful one, to safeguard NIL earnings.
Lawmakers in Mississippi displayed split reactions to exempting NIL deals from state income taxes, with the two legislative chambers’ differing approaches to HB 4014 highlighting the divide. In the House, Rep. Trey Lamar, R-Senatobia, contended that the state is already phasing out the income tax and that the benefits of exempting NIL deals outweigh any potential ramifications.
“NIL is something that has taken the country kind of by storm in the college sports arena over the last few years,” 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.”
Meanwhile, Sen. Jeremy England, R-Vancleave, offered a differing viewpoint from his House counterpart. His opinion is that offering special treatment to athletes – especially those set to strike six- or seven-figure deals – while the rest of the workforce pays state income taxes is bad policy.
“While I understand the House’s intention in making our colleges and universities more attractive to athletes during this new NIL era, it is my opinion that we should not provide additional special treatment for these athletes while the rest of Mississippians continue to pay income taxes,” England said.
The House had an ally in Republican Gov. Tate Reeves, a staunch opponent of income taxation. Mississippi’s highest elected official said eliminating what he’s called a tax on work would allow the Magnolia State to catch up to or surpass its southeastern peers both on and off the field.
“Our college athletics is important to us. Being competitive and ensuring that we don’t have laws on the books that make it to where our universities are at a competitive disadvantage, I certainly understand the thought process there,” Reeves said. “My view is, we shouldn’t have any income tax on anybody. We’ve been pushing for that for years.”
On the financial side of things, Mississippi would forego just south of $4 million in estimated taxes by exempting NIL deals. That figure pales in comparison to the amount of money college athletics generates in the towns that host the state’s largest universities. For example, in 2024, Ole Miss football home games had a $325 million economic impact on the city of Oxford.
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 for the 2026-27 season. Eliminating the 4% tax assessed by the state would save him hundreds of thousands of dollars and would be a financial incentive to reel in other high-profile athletes.
Though no bill is truly dead until the legislative session wraps up, the general belief is that the envelope won’t be pushed on NIL tax exemption this year.