State Capitol in Jackson.

July 1 is not only the start of the new fiscal year in the state of Mississippi; it is also when most of the new laws passed during the 2025 legislative session take effect.

Here is a rundown of some of the most talked-about new laws you should be aware of that went into effect Tuesday.

Tax reforms

Mississippi’s sales tax on groceries fell by 2 percent, from 7% to 5% as part of the tax reform package aimed at phasing out individual state income tax. The income tax was also reduced by 0.25 percent while the gas tax increased 3 cents, from 18 to 21 cents per gallon.

PERS 

A Tier 5 in the Public Employees Retirement System for newly-hired government workers has been created based on recommendations from the PERS Board. This does not impact existing workers or employees. The new tier will not go into effect until March 2026, however.

DEI ban 

A new state law prevents universities, community colleges, public schools and charter schools from using Diversity, Equity and Inclusion practices when selecting faculty, providing academic opportunities, and offering student engagement. The State Board of Education and Institutes of Higher Learning have already approved new policies related to the law. A federal lawsuit has been filed challenging implementation of the new law, but as of this publication, no action has been taken.

Paid parental leave 

Lawmakers agreed to provide up to six weeks of paid parental leave for new parents working in state government. This also affects primary caregivers when giving birth to a child or adopting one. 

Vaping registry 

A new law requires a listing or registry of all vape products sold within the state. Retailers must exclusively offer e-cigarettes from only three manufacturers. The law also bans virtually all flavored vape products.

Wine shipping 

Mississippi residents can have up to 12 cases of wine shipped directly to their address within a calendar year. Mississippi was one of only three states to previously prohibit this.

Camping on public property 

Camping is outlawed on certain publicly-owned property. Campsites are “a location on any property owned or controlled by a municipality, county or state, state agency or political subdivision of the state where camping materials are placed.”

Kratom 

The opioid-like substance kratom is not taxed at a 25% rate, 10 percent higher than the tobacco tax. It is also restricted for purchase only by persons over the age of 21. 

Panhandling permits 

Anyone wishing to panhandle must now apply for a permit from their local governing body. Permit fee is not to exceed $25. Limits are set on when and where panhandling can occur.

Squatting 

A legal process was established to have squatters removed from private property by the owners. This a growing nationwide trend lawmakers sought to cut off before it took hold in Mississippi.

Impersonating an officer 

The act of impersonating a law enforcement officer is now a felony.

Paying college athletes 

College athletes may now be paid directly by state institutions of higher learning while maximizing the athlete’s name, image and likeness opportunities. This was done to fall in line with changes at the NCAA level.

Voting assistance 

Failing to properly submit a ballot when assisting a voter will now be a misdemeanor. Improperly transmitting a ballot could result in up to one year in prison and a $1,000 fine.

Grooming 

A new law creates a felony crime of “grooming” a child for exploitation. Anyone convicted under this law will not have to register as a sex offender because no physical actions took place.

Seafood labeling 

Seafood and crawfish must be labeled as “Domestic” or “Imported” by all grocery stores, markets, restaurants, and food trucks, to enhance seafood transparency.