Mississippi lawmakers had a chance to give their state’s college programs a real recruiting edge. They decided against it.
The state senate voted down a proposal Tuesday that would’ve exempted Name, Image, and Likeness income from state taxes – a move that could’ve helped Ole Miss, Mississippi State, and other in-state schools compete with programs in Florida, Texas, and Tennessee, where there’s no state income tax at all.
The rejection was unanimous.
Here’s how it would’ve worked: Mississippi schools could offer smaller NIL deals to recruits and transfers while still matching what players would take home in states with no income tax. A $100,000 offer in Mississippi would’ve netted the same as a higher offer elsewhere once taxes were factored in.
“I don’t know about the rest of you on this committee, but I’ve had several constituents that have called me that are not happy at all about this bill,” Sen. Dean Kirby said of the legislation.
The state house had passed the proposal last month. Supporters argued Mississippi needed to level the playing field – that schools in the state were losing recruiting battles because athletes were doing the math on take-home pay.
State representative Trey Lamar didn’t hide what the bill was really about when it first came up.
“NIL is taking the country and coming by storm. Other states are doing it, and I believe it’s time that Mississippi starts doing this as well.”
But the pushback came quickly. Teachers, medical professionals, and other Mississippi residents weren’t thrilled about college athletes getting a tax break they couldn’t access themselves.
According to Bea Anhuci of the Clarion Ledger, that criticism resonated with senators, who struck down the bill without a single vote in favor.
The competitive disadvantage remains. While Mississippi collects state income tax, athletes at schools in Florida, Texas, and Tennessee keep more of their NIL money – sometimes significantly more, depending on the deal size. For a recruit weighing similar offers, that difference adds up.
Ole Miss coach Pete Golding and Mississippi State’s Jeff Lebby probably aren’t celebrating the senate’s decision. Neither are the other coaches across the state who’ll continue making their pitch against programs with a built-in financial advantage.
The fairness argument won out, but it leaves Mississippi schools in the same spot they were before – trying to recruit against states where the tax code works in their favor.