Sales tax; deposit portion of revenue into the Mississippi Outdoor Stewardship Trust Fund.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Kinkade

HOUSE BILL NO. 1364

AN ACT TO AMEND SECTION 27-65-75, MISSISSIPPI CODE OF 1972, 1
TO PROVIDE THAT A PORTION OF THE STATE SALES TAX REVENUE DERIVED 2
FROM SALES OF BUSINESSES WITH A CERTAIN NORTH AMERICAN INDUSTRY 3
CLASSIFICATION SYSTEM CODE SHALL BE DEPOSITED INTO THE MISSISSIPPI 4
OUTDOOR STEWARDSHIP TRUST FUND; TO AMEND SECTION 49-39-7, 5
MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED 6
PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Section 27-65-75, Mississippi Code of 1972, is 9
amended as follows: 10
27-65-75. On or before the fifteenth day of each month, the 11
revenue collected under the provisions of this chapter during the 12
preceding month shall be paid and distributed as follows: 13
(1) (a) On or before August 15, 1992, and each succeeding 14
month thereafter through July 15, 1993, eighteen percent (18%) of 15
the total sales tax revenue collected during the preceding month 16
under the provisions of this chapter, except that collected under 17
the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 18
business activities within a municipal corporation shall be 19
allocated for distribution to the municipality and paid to the 20
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municipal corporation. Except as otherwise provided in this 21
paragraph (a), on or before August 15, 1993, and each succeeding 22
month thereafter through August 15, 2025, eighteen and one-half 23
percent (18-1/2%) of the total sales tax revenue collected during 24
the preceding month under the provisions of this chapter, except 25
that collected under the provisions of Sections 27-65-15, 26
27-65-19(3), 27-65-21 and 27-65-24, on business activities within 27
a municipal corporation shall be allocated for distribution to the 28
municipality and paid to the municipal corporation. Except as 29
otherwise provided in this paragraph (a), on or before September 30
15, 2025, and each succeeding month thereafter, eighteen and 31
one-half percent (18.5%) of the total sales tax revenue collected 32
during the preceding month under this chapter, except that 33
collected under Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3), 34
27-65-21 and 27-65-24, on business activities within a municipal 35
corporation shall be allocated for distribution and paid to the 36
municipal corporation. On or before September 15, 2025, and each 37
succeeding month thereafter, twenty-five and nine-tenths percent 38
(25.9%) of the total sales tax revenue collected during the 39
preceding month under Section 27-65-17(1)(n) on business 40
activities within a municipal corporation shall be allocated for 41
distribution and paid to the municipal corporation. However, in 42
the event the State Auditor issues a certificate of noncompliance 43
pursuant to Section 21-35-31, the department shall withhold ten 44
percent (10%) of the allocations and payments to the municipality 45
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that would otherwise be payable to the municipality under this 46
paragraph (a) until such time that the department receives written 47
notice of the cancellation of a certificate of noncompliance from 48
the State Auditor. 49
A municipal corporation, for the purpose of distributing the 50
tax under this subsection, shall mean and include all incorporated 51
cities, towns and villages. 52
Monies allocated for distribution and credited to a municipal 53
corporation under this paragraph may be pledged as security for a 54
loan if the distribution received by the municipal corporation is 55
otherwise authorized or required by law to be pledged as security 56
for such a loan. 57
In any county having a county seat that is not an 58
incorporated municipality, the distribution provided under this 59
subsection shall be made as though the county seat was an 60
incorporated municipality; however, the distribution to the 61
municipality shall be paid to the county treasury in which the 62
municipality is located, and those funds shall be used for road, 63
bridge and street construction or maintenance in the county. 64
(b) On or before August 15, 2006, and each succeeding 65
month thereafter through August 15, 2025, eighteen and one-half 66
percent (18-1/2%) of the total sales tax revenue collected during 67
the preceding month under the provisions of this chapter, except 68
that collected under the provisions of Sections 27-65-15, 69
27-65-19(3) and 27-65-21, on business activities on the campus of 70
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a state institution of higher learning or community or junior 71
college whose campus is not located within the corporate limits of 72
a municipality, shall be allocated for distribution to the state 73
institution of higher learning or community or junior college and 74
paid to the state institution of higher learning or community or 75
junior college. On or before September 15, 2025, and each 76
succeeding month thereafter, eighteen and one-half percent (18.5%) 77
of the total sales tax revenue collected during the preceding 78
month under this chapter, except that collected under Sections 79
27-65-15, 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on business 80
activities on the campus of a state institution of higher learning 81
or community or junior college whose campus is not located within 82
the corporate limits of a municipality, shall be allocated for 83
distribution and paid to the state institution of higher learning 84
or community or junior college. On or before September 15, 2025, 85
and each succeeding month thereafter, twenty-five and nine-tenths 86
percent (25.9%) of the total sales tax revenue collected during 87
the preceding month under Section 27-65-17(1)(n) on business 88
activities on the campus of a state institution of higher learning 89
or community or junior college whose campus is not located within 90
the corporate limits of a municipality, shall be allocated for 91
distribution and paid to the state institution of higher learning 92
or community or junior college. 93
(c) On or before August 15, 2018, and each succeeding 94
month thereafter until August 14, 2019, two percent (2%) of the 95
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total sales tax revenue collected during the preceding month under 96
the provisions of this chapter, except that collected under the 97
provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 98
27-65-24, on business activities within the corporate limits of 99
the City of Jackson, Mississippi, shall be deposited into the 100
Capitol Complex Improvement District Project Fund created in 101
Section 29-5-215. On or before August 15, 2019, and each 102
succeeding month thereafter until August 14, 2020, four percent 103
(4%) of the total sales tax revenue collected during the preceding 104
month under the provisions of this chapter, except that collected 105
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 106
and 27-65-24, on business activities within the corporate limits 107
of the City of Jackson, Mississippi, shall be deposited into the 108
Capitol Complex Improvement District Project Fund created in 109
Section 29-5-215. On or before August 15, 2020, and each 110
succeeding month thereafter through July 15, 2023, six percent 111
(6%) of the total sales tax revenue collected during the preceding 112
month under the provisions of this chapter, except that collected 113
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 114
and 27-65-24, on business activities within the corporate limits 115
of the City of Jackson, Mississippi, shall be deposited into the 116
Capitol Complex Improvement District Project Fund created in 117
Section 29-5-215. On or before August 15, 2023, and each 118
succeeding month thereafter through August 15, 2025, nine percent 119
(9%) of the total sales tax revenue collected during the preceding 120
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month under the provisions of this chapter, except that collected 121
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 122
and 27-65-24, on business activities within the corporate limits 123
of the City of Jackson, Mississippi, shall be deposited into the 124
Capitol Complex Improvement District Project Fund created in 125
Section 29-5-215. On or before September 15, 2025, and each 126
succeeding month thereafter, nine percent (9%) of the total sales 127
tax revenue collected during the preceding month under this 128
chapter, except that collected under Sections 27-65-15, 129
27-65-17(1)(n), 27-65-19(3), 27-65-21 and 27-65-24, on business 130
activities within the corporate limits of the City of Jackson, 131
Mississippi, shall be deposited into the Capitol Complex 132
Improvement District Project Fund created in Section 27-5-215. On 133
or before September 15, 2025, and each succeeding month 134
thereafter, twelve and six-tenths percent (12.6%) of the total 135
sales tax revenue collected during the preceding month under 136
Section 27-65-17(1)(n) on business activities within the corporate 137
limits of the City of Jackson, Mississippi, shall be deposited 138
into the Capitol Complex Improvement District Project Fund created 139
in Section 27-5-215. 140
(d) (i) Except as otherwise provided in this paragraph 141
(d), on or before the fifteenth day of the month that the 142
diversion authorized by this section begins, and each succeeding 143
month thereafter, eighteen and one-half percent (18-1/2%) of the 144
total sales tax revenue collected during the preceding month under 145
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the provisions of this chapter, except that collected under the 146
provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 147
business activities within a redevelopment project area developed 148
under a redevelopment plan adopted under the Tax Increment 149
Financing Act (Section 21-45-1 et seq.) shall be allocated for 150
distribution to the county in which the project area is located 151
if: 152
1. The county: 153
a. Borders on the Mississippi Sound and 154
the State of Alabama, or 155
b. Is Harrison County, Mississippi, and 156
the project area is within a radius of two (2) miles from the 157
intersection of Interstate 10 and Menge Avenue; 158
2. The county has issued bonds under Section 159
21-45-9 to finance all or a portion of a redevelopment project in 160
the redevelopment project area; 161
3. Any debt service for the indebtedness 162
incurred is outstanding; and 163
4. A development with a value of Ten Million 164
Dollars ($10,000,000.00) or more is, or will be, located in the 165
redevelopment area. 166
(ii) For a county that is eligible to receive 167
funds under this paragraph (d), as determined by the department 168
under this paragraph (d), from and after September 15, 2025, and 169
each succeeding month thereafter, eighteen and one-half percent 170
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(18.5%) of the total sales tax revenue collected during the 171
preceding month under this chapter, except that collected under 172
Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on 173
business activities within a redevelopment project area developed 174
under a redevelopment plan adopted under the Tax Increment 175
Financing Act (Section 21-45-1 et seq.) shall be allocated for 176
distribution to the county in which the project is located, and 177
twenty-five and nine-tenths percent (25.9%) of the total sales tax 178
revenue collected during the preceding month under Section 179
27-65-17(1)(n) shall be allocated for distribution to that county. 180
(iii) Before any sales tax revenue may be 181
allocated for distribution to a county under this paragraph (d), 182
the county shall certify to the Department of Revenue that the 183
requirements of this paragraph (d) have been met, the amount of 184
bonded indebtedness that has been incurred by the county for the 185
redevelopment project and the expected date the indebtedness 186
incurred by the county will be satisfied. 187
(iv) The diversion of sales tax revenue authorized 188
by this paragraph (d) shall begin the month following the month in 189
which the Department of Revenue determines that the requirements 190
of this paragraph (d) have been met. The diversion shall end the 191
month the indebtedness incurred by the county is satisfied. All 192
revenue received by the county under this paragraph (d) shall be 193
deposited in the fund required to be created in the tax increment 194
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financing plan under Section 21-45-11 and be utilized solely to 195
satisfy the indebtedness incurred by the county. 196
(2) On or before September 15, 1987, and each succeeding 197
month thereafter, from the revenue collected under this chapter 198
during the preceding month, One Million One Hundred Twenty-five 199
Thousand Dollars ($1,125,000.00) shall be allocated for 200
distribution to municipal corporations as defined under subsection 201
(1) of this section in the proportion that the number of gallons 202
of gasoline and diesel fuel sold by distributors to consumers and 203
retailers in each such municipality during the preceding fiscal 204
year bears to the total gallons of gasoline and diesel fuel sold 205
by distributors to consumers and retailers in municipalities 206
statewide during the preceding fiscal year. The Department of 207
Revenue shall require all distributors of gasoline and diesel fuel 208
to report to the department monthly the total number of gallons of 209
gasoline and diesel fuel sold by them to consumers and retailers 210
in each municipality during the preceding month. The Department 211
of Revenue shall have the authority to promulgate such rules and 212
regulations as is necessary to determine the number of gallons of 213
gasoline and diesel fuel sold by distributors to consumers and 214
retailers in each municipality. In determining the percentage 215
allocation of funds under this subsection for the fiscal year 216
beginning July 1, 1987, and ending June 30, 1988, the Department 217
of Revenue may consider gallons of gasoline and diesel fuel sold 218
for a period of less than one (1) fiscal year. For the purposes 219
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of this subsection, the term "fiscal year" means the fiscal year 220
beginning July 1 of a year. 221
(3) On or before September 15, 1987, and on or before the 222
fifteenth day of each succeeding month, until the date specified 223
in Section 65-39-35, the proceeds derived from contractors' taxes 224
levied under Section 27-65-21 on contracts for the construction or 225
reconstruction of highways designated under the highway program 226
created under Section 65-3-97 shall, except as otherwise provided 227
in Section 31-17-127, be deposited into the State Treasury to the 228
credit of the State Highway Fund to be used to fund that highway 229
program. The Mississippi Department of Transportation shall 230
provide to the Department of Revenue such information as is 231
necessary to determine the amount of proceeds to be distributed 232
under this subsection. 233
(4) On or before August 15, 1994, and on or before the 234
fifteenth day of each succeeding month through July 15, 1999, from 235
the proceeds of gasoline, diesel fuel or kerosene taxes as 236
provided in Section 27-5-101(a)(ii)1, Four Million Dollars 237
($4,000,000.00) shall be deposited in the State Treasury to the 238
credit of a special fund designated as the "State Aid Road Fund," 239
created by Section 65-9-17. On or before August 15, 1999, and on 240
or before the fifteenth day of each succeeding month through 241
August 15, 2026, from the total amount of the proceeds of 242
gasoline, diesel fuel or kerosene taxes apportioned by Section 243
27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an 244
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amount equal to twenty-three and one-fourth percent (23-1/4%) of 245
those funds, whichever is the greater amount, shall be deposited 246
in the State Treasury to the credit of the "State Aid Road Fund," 247
created by Section 65-9-17. After August 15, 2025, from the total 248
amount of the proceeds of gasoline, diesel fuel or kerosene taxes 249
apportioned by Section 27-5-101(a)(ii)1 and (iii), Five Million 250
Dollars ($5,000,000.00) or an amount equal to twenty-three and 251
one-fourth percent (23-1/4%) of those funds, whichever is greater, 252
shall be deposited in the State Treasury to the credit of the 253
"State Aid Road Fund" on or before September 15, 2025, and on or 254
before the fifteenth day of each succeeding month through August 255
15, 2026, and Six Million Five Hundred Thousand Dollars 256
($6,500,000.00) or an amount equal to twenty-three and one-fourth 257
percent (23-1/4%) of those funds, whichever is greater, shall be 258
deposited in the State Treasury to the credit of the "State Aid 259
Road Fund" on or before September 15, 2026, and on or before the 260
fifteenth day of each succeeding month through August 15, 2027, 261
and Eight Million Dollars ($8,000,000.00) or an amount equal to 262
twenty-three and one-fourth percent (23-1/4%) of those funds, 263
whichever is greater, shall be deposited in the State Treasury to 264
the credit of the "State Aid Road Fund" on or before September 15, 265
2027, and on or before the fifteenth day of each succeeding month. 266
From the amount of taxes paid into the special fund under this 267
subsection and subsection (9) of this section, there shall be 268
first deducted and paid the amount necessary to pay the expenses 269
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of the Office of State Aid Road Construction, as authorized by the 270
Legislature for all other general and special fund agencies. The 271
remainder of the funds shall be allocated monthly to the several 272
counties in accordance with the following formula: 273
(a) One-third (1/3) shall be allocated to all counties 274
in equal shares; 275
(b) One-third (1/3) shall be allocated to counties 276
based on the proportion that the total number of rural road miles 277
in a county bears to the total number of rural road miles in all 278
counties of the state; and 279
(c) One-third (1/3) shall be allocated to counties 280
based on the proportion that the rural population of the county 281
bears to the total rural population in all counties of the state, 282
according to the latest federal decennial census. 283
For the purposes of this subsection, the term "gasoline, 284
diesel fuel or kerosene taxes" means such taxes as defined in 285
paragraph (f) of Section 27-5-101. 286
The amount of funds allocated to any county under this 287
subsection for any fiscal year after fiscal year 1994 shall not be 288
less than the amount allocated to the county for fiscal year 1994. 289
Any reference in the general laws of this state or the 290
Mississippi Code of 1972 to Section 27-5-105 shall mean and be 291
construed to refer and apply to subsection (4) of Section 292
27-65-75. 293
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(5) On or before August 15, 2024, and each succeeding month 294
thereafter, One Million Six Hundred Sixty-six Thousand Six Hundred 295
Sixty-six Dollars ($1,666,666.00) shall be paid into the special 296
fund known as the Education Enhancement Fund created and existing 297
under the provisions of Section 37-61-33. 298
(6) An amount each month beginning August 15, 1983, through 299
November 15, 1986, as specified in Section 6, Chapter 542, Laws of 300
1983, shall be paid into the special fund known as the 301
Correctional Facilities Construction Fund created in Section 6, 302
Chapter 542, Laws of 1983. 303
(7) On or before August 15, 1992, and each succeeding month 304
thereafter through July 15, 2000, two and two hundred sixty-six 305
one-thousandths percent (2.266%) of the total sales tax revenue 306
collected during the preceding month under the provisions of this 307
chapter, except that collected under the provisions of Section 308
27-65-17(2), shall be deposited by the department into the School 309
Ad Valorem Tax Reduction Fund created under Section 37-61-35. On 310
or before August 15, 2000, and each succeeding month thereafter 311
through August 15, 2025, two and two hundred sixty-six 312
one-thousandths percent (2.266%) of the total sales tax revenue 313
collected during the preceding month under the provisions of this 314
chapter, except that collected under the provisions of Section 315
27-65-17(2), shall be deposited into the School Ad Valorem Tax 316
Reduction Fund created under Section 37-61-35 until such time that 317
the total amount deposited into the fund during a fiscal year 318
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equals Forty-two Million Dollars ($42,000,000.00). Thereafter, 319
the amounts diverted under this subsection (7) during the fiscal 320
year in excess of Forty-two Million Dollars ($42,000,000.00) shall 321
be deposited into the Education Enhancement Fund created under 322
Section 37-61-33 for appropriation by the Legislature as other 323
education needs and shall not be subject to the percentage 324
appropriation requirements set forth in Section 37-61-33. On or 325
before September 15, 2025, and each succeeding month thereafter, 326
two and two hundred sixty-six one-thousandths percent (2.266%) of 327
the total sales tax revenue collected during the preceding month 328
under this chapter, except that collected under Section 329
27-65-17(1)(n) and (2), and three and seventeen one-hundredths 330
percent (3.17%) of the total sales tax revenue collected during 331
the preceding month under Section 27-65-17(1)(n), shall be 332
deposited into the School Ad Valorem Tax Reduction Fund created 333
under Section 37-61-35 until such time that the total amount 334
deposited into the fund during a fiscal year equals Forty-two 335
Million Dollars ($42,000,000.00). Thereafter, the amounts 336
diverted under this subsection (7) during the fiscal year in 337
excess of Forty-two Million Dollars ($42,000,000.00) shall be 338
deposited into the Education Enhancement Fund created under 339
Section 37-61-33 for appropriation by the Legislature as other 340
education needs and shall not be subject to the percentage 341
appropriation requirements set forth in Section 37-61-33. 342
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(8) On or before August 15, 1992, and each succeeding month 343
thereafter through August 15, 2025, nine and seventy-three 344
one-thousandths percent (9.073%) of the total sales tax revenue 345
collected during the preceding month under the provisions of this 346
chapter, except that collected under the provisions of Section 347
27-65-17(2), shall be deposited into the Education Enhancement 348
Fund created under Section 37-61-33. On or before September 15, 349
2025, and each succeeding month thereafter, nine and seventy-three 350
one-thousandths percent (9.073%) of the total sales tax revenue 351
collected during the preceding month under this chapter, except 352
that collected under Section 27-65-17(1)(n) and (2), and twelve 353
and seven-tenths percent (12.7%) of the total sales tax revenue 354
collected during the preceding month under Section 27-65-17(1)(n), 355
shall be deposited into the Education Enhancement Fund created 356
under Section 37-61-33. 357
(9) On or before August 15, 1994, and each succeeding month 358
thereafter, from the revenue collected under this chapter during 359
the preceding month, Two Hundred Fifty Thousand Dollars 360
($250,000.00) shall be paid into the State Aid Road Fund. 361
(10) On or before August 15, 1994, and each succeeding month 362
thereafter through August 15, 1995, from the revenue collected 363
under this chapter during the preceding month, Two Million Dollars 364
($2,000,000.00) shall be deposited into the Motor Vehicle Ad 365
Valorem Tax Reduction Fund established in Section 27-51-105. 366
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(11) Notwithstanding any other provision of this section to 367
the contrary, on or before February 15, 1995, and each succeeding 368
month thereafter, the sales tax revenue collected during the 369
preceding month under the provisions of Section 27-65-17(2) and 370
the corresponding levy in Section 27-65-23 on the rental or lease 371
of private carriers of passengers and light carriers of property 372
as defined in Section 27-51-101 shall be deposited, without 373
diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund 374
established in Section 27-51-105. 375
(12) Notwithstanding any other provision of this section to 376
the contrary, on or before August 15, 1995, and each succeeding 377
month thereafter, the sales tax revenue collected during the 378
preceding month under the provisions of Section 27-65-17(1) on 379
retail sales of private carriers of passengers and light carriers 380
of property, as defined in Section 27-51-101 and the corresponding 381
levy in Section 27-65-23 on the rental or lease of these vehicles, 382
shall be deposited, after diversion, into the Motor Vehicle Ad 383
Valorem Tax Reduction Fund established in Section 27-51-105. 384
(13) On or before July 15, 1994, and on or before the 385
fifteenth day of each succeeding month thereafter, that portion of 386
the avails of the tax imposed in Section 27-65-22 that is derived 387
from activities held on the Mississippi State Fairgrounds Complex 388
shall be paid into a special fund that is created in the State 389
Treasury and shall be expended upon legislative appropriation 390
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solely to defray the costs of repairs and renovation at the Trade 391
Mart and Coliseum. 392
(14) On or before August 15, 1998, and each succeeding month 393
thereafter through July 15, 2005, that portion of the avails of 394
the tax imposed in Section 27-65-23 that is derived from sales by 395
cotton compresses or cotton warehouses and that would otherwise be 396
paid into the General Fund shall be deposited in an amount not to 397
exceed Two Million Dollars ($2,000,000.00) into the special fund 398
created under Section 69-37-39. On or before August 15, 2007, and 399
each succeeding month thereafter through July 15, 2010, that 400
portion of the avails of the tax imposed in Section 27-65-23 that 401
is derived from sales by cotton compresses or cotton warehouses 402
and that would otherwise be paid into the General Fund shall be 403
deposited in an amount not to exceed Two Million Dollars 404
($2,000,000.00) into the special fund created under Section 405
69-37-39 until all debts or other obligations incurred by the 406
Certified Cotton Growers Organization under the Mississippi Boll 407
Weevil Management Act before January 1, 2007, are satisfied in 408
full. On or before August 15, 2010, and each succeeding month 409
thereafter through July 15, 2011, fifty percent (50%) of that 410
portion of the avails of the tax imposed in Section 27-65-23 that 411
is derived from sales by cotton compresses or cotton warehouses 412
and that would otherwise be paid into the General Fund shall be 413
deposited into the special fund created under Section 69-37-39 414
until such time that the total amount deposited into the fund 415
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during a fiscal year equals One Million Dollars ($1,000,000.00). 416
On or before August 15, 2011, and each succeeding month 417
thereafter, that portion of the avails of the tax imposed in 418
Section 27-65-23 that is derived from sales by cotton compresses 419
or cotton warehouses and that would otherwise be paid into the 420
General Fund shall be deposited into the special fund created 421
under Section 69-37-39 until such time that the total amount 422
deposited into the fund during a fiscal year equals One Million 423
Dollars ($1,000,000.00). 424
(15) Notwithstanding any other provision of this section to 425
the contrary, on or before September 15, 2000, and each succeeding 426
month thereafter, the sales tax revenue collected during the 427
preceding month under the provisions of Section 428
27-65-19(1)(d)(i)2, and 27-65-19(1)(d)(i)3 shall be deposited, 429
without diversion, into the Telecommunications Ad Valorem Tax 430
Reduction Fund established in Section 27-38-7. 431
(16) (a) On or before August 15, 2000, and each succeeding 432
month thereafter, the sales tax revenue collected during the 433
preceding month under the provisions of this chapter on the gross 434
proceeds of sales of a project as defined in Section 57-30-1 shall 435
be deposited, after all diversions except the diversion provided 436
for in subsection (1) of this section, into the Sales Tax 437
Incentive Fund created in Section 57-30-3. 438
(b) On or before August 15, 2007, and each succeeding 439
month thereafter, eighty percent (80%) of the sales tax revenue 440
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collected during the preceding month under the provisions of this 441
chapter from the operation of a tourism project under the 442
provisions of Sections 57-26-1 through 57-26-5, shall be 443
deposited, after the diversions required in subsections (7) and 444
(8) of this section, into the Tourism Project Sales Tax Incentive 445
Fund created in Section 57-26-3. 446
(17) Notwithstanding any other provision of this section to 447
the contrary, on or before April 15, 2002, and each succeeding 448
month thereafter, the sales tax revenue collected during the 449
preceding month under Section 27-65-23 on sales of parking 450
services of parking garages and lots at airports shall be 451
deposited, without diversion, into the special fund created under 452
Section 27-5-101(d). 453
(18) [Repealed] 454
(19) (a) On or before August 15, 2005, and each succeeding 455
month thereafter, the sales tax revenue collected during the 456
preceding month under the provisions of this chapter on the gross 457
proceeds of sales of a business enterprise located within a 458
redevelopment project area under the provisions of Sections 459
57-91-1 through 57-91-11, and the revenue collected on the gross 460
proceeds of sales from sales made to a business enterprise located 461
in a redevelopment project area under the provisions of Sections 462
57-91-1 through 57-91-11 (provided that such sales made to a 463
business enterprise are made on the premises of the business 464
enterprise), shall, except as otherwise provided in this 465
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subsection (19), be deposited, after all diversions, into the 466
Redevelopment Project Incentive Fund as created in Section 467
57-91-9. 468
(b) For a municipality participating in the Economic 469
Redevelopment Act created in Sections 57-91-1 through 57-91-11, 470
the diversion provided for in subsection (1) of this section 471
attributable to the gross proceeds of sales of a business 472
enterprise located within a redevelopment project area under the 473
provisions of Sections 57-91-1 through 57-91-11, and attributable 474
to the gross proceeds of sales from sales made to a business 475
enterprise located in a redevelopment project area under the 476
provisions of Sections 57-91-1 through 57-91-11 (provided that 477
such sales made to a business enterprise are made on the premises 478
of the business enterprise), shall be deposited into the 479
Redevelopment Project Incentive Fund as created in Section 480
57-91-9, as follows: 481
(i) For the first six (6) years in which payments 482
are made to a developer from the Redevelopment Project Incentive 483
Fund, one hundred percent (100%) of the diversion shall be 484
deposited into the fund; 485
(ii) For the seventh year in which such payments 486
are made to a developer from the Redevelopment Project Incentive 487
Fund, eighty percent (80%) of the diversion shall be deposited 488
into the fund; 489
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(iii) For the eighth year in which such payments 490
are made to a developer from the Redevelopment Project Incentive 491
Fund, seventy percent (70%) of the diversion shall be deposited 492
into the fund; 493
(iv) For the ninth year in which such payments are 494
made to a developer from the Redevelopment Project Incentive Fund, 495
sixty percent (60%) of the diversion shall be deposited into the 496
fund; and 497
(v) For the tenth year in which such payments are 498
made to a developer from the Redevelopment Project Incentive Fund, 499
fifty percent (50%) of the funds shall be deposited into the fund. 500
(20) On or before January 15, 2007, and each succeeding 501
month thereafter, eighty percent (80%) of the sales tax revenue 502
collected during the preceding month under the provisions of this 503
chapter from the operation of a tourism project under the 504
provisions of Sections 57-28-1 through 57-28-5 shall be deposited, 505
after the diversions required in subsections (7) and (8) of this 506
section, into the Tourism Sales Tax Incentive Fund created in 507
Section 57-28-3. 508
(21) (a) On or before April 15, 2007, and each succeeding 509
month thereafter through June 15, 2013, One Hundred Fifty Thousand 510
Dollars ($150,000.00) of the sales tax revenue collected during 511
the preceding month under the provisions of this chapter shall be 512
deposited into the MMEIA Tax Incentive Fund created in Section 513
57-101-3. 514
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(b) On or before July 15, 2013, and each succeeding 515
month thereafter, One Hundred Fifty Thousand Dollars ($150,000.00) 516
of the sales tax revenue collected during the preceding month 517
under the provisions of this chapter shall be deposited into the 518
Mississippi Development Authority Job Training Grant Fund created 519
in Section 57-1-451. 520
(22) On or before June 1, 2024, and each succeeding month 521
thereafter until December 31, 2057, an amount determined annually 522
by the Mississippi Development Authority of the sales tax revenue 523
collected during the preceding month under the provisions of this 524
chapter shall be deposited into the MMEIA Tax Incentive Fund 525
created in Section 57-125-3. This amount shall be based on 526
estimated payments due within the upcoming year to construction 527
contractors pursuant to construction contracts subject to the tax 528
imposed by Section 27-65-21 for construction to be performed on 529
the project site of a project defined under Section 530
57-75-5(f)(xxxiii) for the coming year. 531
(23) Notwithstanding any other provision of this section to 532
the contrary, on or before August 15, 2009, and each succeeding 533
month thereafter, the sales tax revenue collected during the 534
preceding month under the provisions of Section 27-65-201 shall be 535
deposited, without diversion, into the Motor Vehicle Ad Valorem 536
Tax Reduction Fund established in Section 27-51-105. 537
(24) (a) On or before August 15, 2019, and each month 538
thereafter through July 15, 2020, one percent (1%) of the total 539
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sales tax revenue collected during the preceding month from 540
restaurants and hotels shall be allocated for distribution to the 541
Mississippi Development Authority Tourism Advertising Fund 542
established under Section 57-1-64, to be used exclusively for the 543
purpose stated therein. On or before August 15, 2020, and each 544
month thereafter through July 15, 2021, two percent (2%) of the 545
total sales tax revenue collected during the preceding month from 546
restaurants and hotels shall be allocated for distribution to the 547
Mississippi Development Authority Tourism Advertising Fund 548
established under Section 57-1-64, to be used exclusively for the 549
purpose stated therein. On or before August 15, 2021, and each 550
month thereafter, three percent (3%) of the total sales tax 551
revenue collected during the preceding month from restaurants and 552
hotels shall be allocated for distribution to the Mississippi 553
Development Authority Tourism Advertising Fund established under 554
Section 57-1-64, to be used exclusively for the purpose stated 555
therein. The revenue diverted pursuant to this subsection shall 556
not be available for expenditure until February 1, 2020. 557
(b) The Joint Legislative Committee on Performance 558
Evaluation and Expenditure Review (PEER) must provide an annual 559
report to the Legislature indicating the amount of funds deposited 560
into the Mississippi Development Authority Tourism Advertising 561
Fund established under Section 57-1-64, and a detailed record of 562
how the funds are spent. 563
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(25) On or before September 15, 2026, and each succeeding 564
month thereafter, One Million Two Hundred Fifty Thousand Dollars 565
($1,250,000.00) of the total sales tax revenue collected during 566
the preceding month under the provisions of this chapter from 567
businesses with the North American Industry Classification System 568
Code of 451110 shall be deposited into the Mississippi Outdoor 569
Stewardship Trust Fund created in Section 49-39-7. 570
( * * *26) The remainder of the amounts collected under the 571
provisions of this chapter shall be paid into the State Treasury 572
to the credit of the General Fund. 573
( * * *27) (a) It shall be the duty of the municipal 574
officials of any municipality that expands its limits, or of any 575
community that incorporates as a municipality, to notify the 576
commissioner of that action thirty (30) days before the effective 577
date. Failure to so notify the commissioner shall cause the 578
municipality to forfeit the revenue that it would have been 579
entitled to receive during this period of time when the 580
commissioner had no knowledge of the action. 581
(b) (i) Except as otherwise provided in subparagraph 582
(ii) of this paragraph, if any funds have been erroneously 583
disbursed to any municipality or any overpayment of tax is 584
recovered by the taxpayer, the commissioner may make correction 585
and adjust the error or overpayment with the municipality by 586
withholding the necessary funds from any later payment to be made 587
to the municipality. 588
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(ii) Subject to the provisions of Sections 589
27-65-51 and 27-65-53, if any funds have been erroneously 590
disbursed to a municipality under subsection (1) of this section 591
for a period of three (3) years or more, the maximum amount that 592
may be recovered or withheld from the municipality is the total 593
amount of funds erroneously disbursed for a period of three (3) 594
years beginning with the date of the first erroneous disbursement. 595
However, if during such period, a municipality provides written 596
notice to the Department of Revenue indicating the erroneous 597
disbursement of funds, then the maximum amount that may be 598
recovered or withheld from the municipality is the total amount of 599
funds erroneously disbursed for a period of one (1) year beginning 600
with the date of the first erroneous disbursement. 601
SECTION 2. Section 49-39-7, Mississippi Code of 1972, is 602
amended as follows: 603
49-39-7. (1) (a) There is created in the State Treasury a 604
special fund to be designated the "Mississippi Outdoor Stewardship 605
Trust Fund." The special fund shall consist of monies 606
appropriated or otherwise made available by the Legislature in any 607
manner. Monies shall be accounted for in such a manner to be 608
termed unobligated funds or obligated funds. Unexpended amounts 609
remaining in the special fund at the end of a fiscal year shall 610
not lapse into the State General Fund, and any investment earnings 611
or interest earned on amounts in the special fund shall be 612
deposited to the credit of the special fund; however, any 613
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unobligated monies in excess of Twenty Million Dollars 614
($20,000,000.00), excluding federal funds, remaining in the 615
special fund at the end of a fiscal year that have not been 616
appropriated shall lapse into the State General Fund. Monies in 617
the special fund may be used upon selection by the board. The 618
board and the Department of Finance and Administration may use not 619
more than two percent (2%) of monies in the special fund to defray 620
the board's expenses in carrying out its duties under this 621
chapter. 622
(b) Subject to the provisions of this chapter, monies 623
in the special fund may be used and expended by the board to 624
provide funds for grants to counties, municipalities, state 625
agencies and nongovernmental entities for: 626
(i) Improvement of state park outdoor recreation 627
features and trails; 628
(ii) Acquisition and improvement of parks and 629
trails by counties and municipalities, if such parks and trails 630
lie within the jurisdiction of such counties and municipalities; 631
(iii) Restoration or enhancement projects to 632
create or improve access to public waters and lands for public 633
outdoor recreation, conservation education, or the safe use and 634
enjoyment of permanently protected conservation land; 635
(iv) Restoration or enhancement on privately owned 636
working agricultural lands and forests that support conservation 637
of soil, water, habitat of fish and wildlife resources; 638
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(v) Restoration or enhancement of wetlands, native 639
forests, native grasslands and other unique habitats important for 640
Mississippi's fish and wildlife; and 641
(vi) Acquisition of critical areas for the 642
provision or protection of clean water, wildlife, hunting, 643
fishing, military installation buffering or natural resource-based 644
outdoor recreation. Real property may only be acquired under this 645
subparagraph (vi) when the property: 646
1. Is, at the time of acquisition, being 647
leased by the state as a wildlife management area; 648
2. Adjoins or is in close proximity to state 649
or federal wildlife management areas or state parks, or would 650
provide better public access to such areas; 651
3. Is identified in a wildlife action plan 652
developed by a state agency; 653
4. Constitutes riparian lands, and its 654
acquisition is for the purpose of protecting any drinking water 655
supply; or 656
5. Surrounds a military base or military 657
installation. 658
Acquisition of land under this subparagraph (vi) may not be 659
made through the exercise of any power of eminent domain or any 660
condemnation proceeding. 661
(c) Unless otherwise authorized by the board, a county, 662
municipality, state agency or nongovernmental entity receiving 663
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funds for a project under this section must expend the funds for 664
the project within two (2) years after receipt of the funds in 665
order to be eligible to apply for additional funds for the project 666
under this section. If a county, municipality, state agency or 667
nongovernmental entity receiving funds for a project does not 668
expend the funds within two (2) years after receipt of the funds, 669
then the county, municipality, state agency or nongovernmental 670
entity must provide an accounting of such unused funds and the 671
reason for failure to expend the funds. If the board determines 672
that the project will not be completed in a timely manner, the 673
county, municipality, state agency or nongovernmental entity must 674
then return any unexpended funds. 675
(d) Monies in the special fund may not be used, 676
expended or transferred for any other purpose other than 677
authorized in this chapter. 678
(e) Any state agency receiving funds from the 679
Mississippi Outdoor Stewardship Trust Fund under this section may 680
escalate its budget and expend such funds in accordance with rules 681
and regulations of the Department of Finance and Administration in 682
a manner consistent with the escalation of federal funds. 683
(2) (a) The board shall accept applications from counties, 684
municipalities, state agencies and nongovernmental entities for 685
project proposals eligible for funding under this section. The 686
board shall evaluate the proposals received in accordance with 687
this chapter. 688
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(b) A county, municipality, state agency or 689
nongovernmental entity desiring assistance under this section must 690
submit a complete application to the board. The application must 691
include a description of the purpose for which assistance is 692
requested, the type and amount of assistance requested and any 693
other information required by the board. 694
(c) The board shall require annual independent audits 695
of all expenditures from the special fund and present those 696
findings to the Governor, Lieutenant Governor, Speaker of the 697
House, Chairs of the Senate and House Appropriations Committees, 698
Chairs of the Senate Finance and House Ways and Means Committees 699
and Chairs of the Senate and House Wildlife, Fisheries and Parks 700
Committees. 701
(d) To be eligible for funding, any nongovernmental 702
entity applicant must submit its most recent audit, disclose any 703
audit deficiencies in the previous five (5) years, submit its 704
certificate of good standing from the Mississippi Secretary of 705
State, and submit a current list of its board members for purposes 706
of conflicts of interest. 707
(e) For funds to be spent on private land, the 708
applicant must show demonstrably that the project will benefit the 709
public. 710
(f) Projects that acquire property shall not be 711
considered for approval until after July 1, 2024. 712
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(3) The board, at its first meeting of each calendar year, 713
shall prepare a list of priorities and criteria to guide the 714
selection of projects. The board shall give increased priority to 715
projects: 716
(a) Supporting the public recreation and conservation 717
efforts of state agencies, counties and municipalities; 718
(b) Leveraging or matching other nonfederal or federal 719
funds available for similar purposes; 720
(c) Supporting and promoting recreation in the form of 721
archery, boating, hiking, camping, fishing, hunting, running, 722
jogging, biking, walking, shooting or similar outdoor activities; 723
(d) Contributing to the improvement of the quality and 724
quantity of surface water and groundwater; or 725
(e) Contributing to the conservation of soil, water, 726
and fish and wildlife resources on privately owned working 727
agricultural lands or forests. 728
(4) Upon approval of the total list of projects by the 729
board, the list of projects shall be submitted to the Lieutenant 730
Governor, Speaker of the House, Chairs of the Senate and House 731
Appropriations Committees, Chairs of the Senate Finance and House 732
Ways and Means Committees and Chairs of the Senate and House 733
Wildlife, Fisheries and Parks Committees. If federal funds or 734
guidelines become available and are certified by the Executive 735
Director of the Department of Finance and Administration or the 736
Executive Director of the Mississippi Outdoor Stewardship Fund, 737
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ST: Sales tax; deposit portion of revenue into
the Mississippi Outdoor Stewardship Trust Fund.
the board shall be authorized to expend funds from the Mississippi 738
Outdoor Stewardship Trust Fund and shall notify the Lieutenant 739
Governor, Speaker of the House, Chairs of the Senate and House 740
Appropriations Committees, Chairs of the Senate Finance and House 741
Ways and Means Committees, Chairs of the Senate and House 742
Wildlife, Fisheries and Parks Committees, and Legislative Budget 743
Office of such expenditures prior to their distribution to certain 744
projects approved by the board. 745
SECTION 3. This act shall take effect and be in force from 746
and after July 1, 2026. 747