sports

Mississippi House passes no tax on NIL earnings

The Mississippi House has passed a bill that would exclude athletes’ NIL earnings from the state’s income tax, providing a recruiting advantage for Ole Miss and Mississippi State. The bill now moves its way to the state Senate before going to the desk of Gov. Tate Reeves.

Arkansas passed a bill in 2025 to exempt NIL money from income taxes. Florida, Texas and Tennessee are other states with SEC institutions that have no income tax.

“NIL is taking the country and coming by storm,” Rep. Trey Lamar said, via the Clarion Ledger. “Other states are doing it, and I believe it’s time that Mississippi starts doing this as well.”

Ole Miss quarterback Trinidad Chambliss agreed to a new deal with the Rebels in January, which is valued at upwards $4 million. The NCAA denied his waiver appeal, but he was recently granted a preliminary injunction against the NCAA, which will allow him to play the 2026 season.

Mississippi is just the latest state to craft a bill that would put its universities and athletes at an advantage against the NCAA. Institutions across the country are operating under a patchwork of state laws. Lawmakers in Missouri and Texas have passed bills in recent years to prevent the NCAA from launching investigations into NIL activities. Missouri’s NIL law even allows high school recruits to enter into NIL deals and start earning endorsement money as soon as they sign with in-state colleges.

NCAA President Charlie Baker and college sports leaders continue lobbying lawmakers on Capitol Hill for a federal NIL bill. U.S. President Donald Trump has called for a presidential roundtable on college sports for this Friday in Washington, D.C., with over 30 stakeholders and celebrities expected to attend. Sources tell On3 as of Monday that the roundtable is still scheduled as of now, although they cautioned that the odds of it happening this week are 50-50 at best.


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