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H. B. No. 1331 *HR26/R2079* ~ OFFICIAL ~ G1/2
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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Zuber
HOUSE BILL NO. 1331
AN ACT TO AMEND SECTION 27-65-231, MISSISSIPPI CODE OF 1972, 1
TO REVISE THE DISTRIBUTION OF STATE SALES TAX REVENUE COLLECTED 2
FROM PERSONS ENGAGING OR CONTINUING IN THIS STATE IN THE BUSINESS 3
OF RENTING MOTOR VEHICLES UNDER RENTAL AGREEMENTS WITH A TERM OF 4
NOT MORE THAN THIRTY CONTINUOUS DAYS EACH; TO PROVIDE THAT A 5
PORTION OF SUCH TAX REVENUE SHALL BE DEPOSITED INTO THE 6
MISSISSIPPI ECONOMIC DEVELOPMENT AND INFRASTRUCTURE FUND; AND FOR 7
RELATED PURPOSES. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 9
SECTION 1. Section 27-65-231, Mississippi Code of 1972, is 10
amended as follows: 11
27-65-231. (1) In addition to the sales tax imposed in 12
Section 27-65-23, Mississippi Code of 1972, there is hereby levied 13
upon every person engaging or continuing in this state in the 14
business of renting motor vehicles under rental agreements with a 15
term of not more than thirty (30) continuous days each, a tax at 16
the rate of six percent (6%) of the gross proceeds of such 17
business derived from the rental of motor vehicles, except that 18
motor vehicles with a gross vehicle weight exceeding ten thousand 19
(10,000) pounds shall be excluded from the measure of this tax. 20
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(2) All administrative provisions of the Mississippi Sales 21
Tax Law, including those which fix damages, penalties and interest 22
for nonpayment of taxes, failure to file returns, and for other 23
noncompliance with the provisions of said chapter, and all other 24
requirements and duties imposed upon taxpayers, shall apply to all 25
persons liable for taxes under the provisions of this section, and 26
the commission shall exercise all the power and authority and 27
perform all the duties with respect to taxpayers under this 28
section as are provided in said Sales Tax Law, except that in 29
cases of conflict, then the provisions of this section shall 30
control. 31
(3) On or before February 15 of each year, the proceeds of 32
the tax imposed by this section on business rental activities 33
shall be paid by the * * * Department of Revenue in the amount of 34
One Million Dollars ($1,000,000.00) per year to the Economic 35
Development and Infrastructure Fund created in Section 57-1-501, 36
and the remaining proceeds shall be paid to the county in which 37
such proceeds were collected. Within seven (7) days after receipt 38
of the tax proceeds, the county shall apportion and pay such tax 39
proceeds as follows: The situs of the rental transactions from 40
which tax proceeds were derived shall first be determined, and 41
then the tax proceeds collected at a situs shall be distributed 42
among the county, municipality and school district of the situs, 43
as appropriate, in the same proportion and in the same manner that 44
motor vehicle ad valorem taxes would be distributed among such 45
H. B. No. 1331 *HR26/R2079* ~ OFFICIAL ~
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ST: Sales tax; deposit portion of revenue
derived from certain motor vehicle rentals into
the Economic Development and Infrastructure
Fund.
taxing districts (based on their respective millage rates) if 46
collected at the same time as the receipt of such proceeds and 47
paid by a motor vehicle owner located at the same address as the 48
situs of the rental transaction. 49
(4) The governing authorities of the counties, 50
municipalities and school districts may expend the proceeds of 51
such tax for any lawful purposes. 52
(5) The revenues received by counties and municipalities 53
under subsection (3) of this section shall be deposited in the 54
general fund of the counties and municipalities, and the revenues 55
received by the school districts shall be deposited in any fund 56
designated by the school district. 57
(6) The revenues received by counties, municipalities and 58
school districts under subsection (3) of this section shall be 59
included and considered as proceeds of ad valorem taxes for the 60
purposes of the growth limitation on ad valorem taxes under 61
Sections 27-39-321 and 27-39-305. 62
(7) The tax authorized herein shall be in addition to any 63
other tax authorized by law to be levied on the business 64
activities described in this section. 65
SECTION 2. This act shall take effect and be in force from 66
and after July 1, 2026. 67