Taxes; increase certain and use revenue to provide assistance to hospitals for uncompensated medical care services.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Hines

HOUSE BILL NO. 145

AN ACT TO AMEND SECTION 27-65-17, MISSISSIPPI CODE OF 1972, 1
TO INCREASE THE SALES TAX RATE ON SALES OF FIREARMS, AMMUNITION, 2
ARCHERY EQUIPMENT, MOTORCYCLES, ALL-TERRAIN VEHICLES AND JET SKIS; 3
TO AMEND SECTION 27-65-25, MISSISSIPPI CODE OF 1972, TO INCREASE 4
THE SALES TAX RATE ON RETAIL SALES OF ALCOHOLIC BEVERAGES; TO 5
AMEND SECTION 27-65-75, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT 6
THE STATE SALES REVENUE COLLECTED FROM SUCH INCREASES TO SALES TAX 7
RATES UNDER SECTIONS 27-65-17 AND 27-65-25 SHALL BE DEPOSITED, 8
WITHOUT DIVERSION, INTO A SPECIAL FUND CREATED IN THE STATE 9
TREASURY AS THE "MISSISSIPPI HOSPITALS UNCOMPENSATED CARE 10
ASSISTANCE FUND"; TO AMEND SECTION 27-69-3, MISSISSIPPI CODE OF 11
1972, TO REVISE THE DEFINITION OF THE TERM "TOBACCO" UNDER THE 12
TOBACCO TAX LAW; TO DEFINE THE TERM "VAPOR PRODUCT" UNDER THE 13
TOBACCO TAX LAW; TO AMEND SECTION 27-69-13, MISSISSIPPI CODE OF 14
1972, TO INCREASE THE EXCISE TAXES LEVIED ON CIGARETTES AND OTHER 15
TOBACCO; TO AMEND SECTIONS 27-69-15, 27-69-27, 27-69-33 AND 16
27-69-35, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; TO 17
AMEND SECTION 27-69-75, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT 18
TOBACCO TAXES COLLECTED FROM THE INCREASES TO TOBACCO TAX RATES 19
UNDER THIS ACT SHALL BE DEPOSITED INTO THE "MISSISSIPPI HOSPITALS 20
UNCOMPENSATED CARE ASSISTANCE FUND"; TO CREATE THE "MISSISSIPPI 21
HOSPITALS UNCOMPENSATED CARE ASSISTANCE FUND" AS A SPECIAL FUND IN 22
THE STATE TREASURY TO BE ADMINISTERED BY THE DEPARTMENT OF HEALTH; 23
TO PROVIDE THAT MONIES IN THE FUND SHALL BE USED TO PROVIDE 24
ASSISTANCE TO HOSPITALS FOR THE COST OF UNCOMPENSATED MEDICAL CARE 25
SERVICES; AND FOR RELATED PURPOSES. 26
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 27
SECTION 1. Section 27-65-17, Mississippi Code of 1972, is 28
amended as follows: 29
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27-65-17. (1) (a) Except as otherwise provided in this 30
section, upon every person engaging or continuing within this 31
state in the business of selling any tangible personal property 32
whatsoever there is hereby levied, assessed and shall be collected 33
a tax equal to seven percent (7%) of the gross proceeds of the 34
retail sales of the business. 35
(b) Retail sales of farm tractors and parts and labor 36
used to maintain and/or repair such tractors shall be taxed at the 37
rate of one and one-half percent (1-1/2%) when made to farmers for 38
agricultural purposes. 39
(c) (i) Retail sales of farm implements sold to 40
farmers and used directly in the production of poultry, ratite, 41
domesticated fish as defined in Section 69-7-501, livestock, 42
livestock products, agricultural crops or ornamental plant crops 43
or used for other agricultural purposes, and parts and labor used 44
to maintain and/or repair such implements, shall be taxed at the 45
rate of one and one-half percent (1-1/2%) when used on the farm. 46
(ii) The one and one-half percent (1-1/2%) rate 47
shall also apply to all equipment used in logging, pulpwood 48
operations or tree farming, and parts and labor used to maintain 49
and/or repair such equipment, which is either: 50
1. Self-propelled, or 51
2. Mounted so that it is permanently attached 52
to other equipment which is self-propelled or attached to other 53
equipment drawn by a vehicle which is self-propelled. 54
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In order to be eligible for the rate of tax provided for in 55
this subparagraph (ii), such sales must be made to a professional 56
logger. For the purposes of this subparagraph (ii), a 57
"professional logger" is a person, corporation, limited liability 58
company or other entity, or an agent thereof, who possesses a 59
professional logger's permit issued by the Department of Revenue 60
and who presents the permit to the seller at the time of purchase. 61
The department shall establish an application process for a 62
professional logger's permit to be issued, which shall include a 63
requirement that the applicant submit a copy of documentation 64
verifying that the applicant is certified according to Sustainable 65
Forestry Initiative guidelines. Upon a determination that an 66
applicant is a professional logger, the department shall issue the 67
applicant a numbered professional logger's permit. 68
(d) Except as otherwise provided in subsection (3) of 69
this section, retail sales of aircraft, automobiles, trucks, 70
truck-tractors, semitrailers and manufactured or mobile homes 71
shall be taxed at the rate of three percent (3%). 72
(e) Sales of manufacturing machinery or manufacturing 73
machine parts when made to a manufacturer or custom processor for 74
plant use only when the machinery and machine parts will be used 75
exclusively and directly within this state in manufacturing a 76
commodity for sale, rental or in processing for a fee shall be 77
taxed at the rate of one and one-half percent (1-1/2%). 78
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(f) Sales of machinery and machine parts when made to a 79
technology intensive enterprise for plant use only when the 80
machinery and machine parts will be used exclusively and directly 81
within this state for industrial purposes, including, but not 82
limited to, manufacturing or research and development activities, 83
shall be taxed at the rate of one and one-half percent (1-1/2%). 84
In order to be considered a technology intensive enterprise for 85
purposes of this paragraph: 86
(i) The enterprise shall meet minimum criteria 87
established by the Mississippi Development Authority; 88
(ii) The enterprise shall employ at least ten (10) 89
persons in full-time jobs; 90
(iii) At least ten percent (10%) of the workforce 91
in the facility operated by the enterprise shall be scientists, 92
engineers or computer specialists; 93
(iv) The enterprise shall manufacture plastics, 94
chemicals, automobiles, aircraft, computers or electronics; or 95
shall be a research and development facility, a computer design or 96
related facility, or a software publishing facility or other 97
technology intensive facility or enterprise as determined by the 98
Mississippi Development Authority; 99
(v) The average wage of all workers employed by 100
the enterprise at the facility shall be at least one hundred fifty 101
percent (150%) of the state average annual wage; and 102
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(vi) The enterprise must provide a basic health 103
care plan to all employees at the facility. 104
A medical cannabis establishment, as defined in the 105
Mississippi Medical Cannabis Act, shall not be considered to be a 106
technology intensive enterprise for the purposes of this paragraph 107
(f). 108
(g) Sales of materials for use in track and track 109
structures to a railroad whose rates are fixed by the Interstate 110
Commerce Commission or the Mississippi Public Service Commission 111
shall be taxed at the rate of three percent (3%). 112
(h) Sales of tangible personal property to electric 113
power associations for use in the ordinary and necessary operation 114
of their generating or distribution systems shall be taxed at the 115
rate of one percent (1%). 116
(i) Wholesale sales of food and drink for human 117
consumption to full-service vending machine operators to be sold 118
through vending machines located apart from and not connected with 119
other taxable businesses shall be taxed at the rate of eight 120
percent (8%). 121
(j) Sales of equipment used or designed for the purpose 122
of assisting disabled persons, such as wheelchair equipment and 123
lifts, that is mounted or attached to or installed on a private 124
carrier of passengers or light carrier of property, as defined in 125
Section 27-51-101, at the time when the private carrier of 126
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passengers or light carrier of property is sold shall be taxed at 127
the same rate as the sale of such vehicles under this section. 128
(k) Sales of the factory-built components of modular 129
homes, panelized homes and precut homes, and panel constructed 130
homes consisting of structural insulated panels, shall be taxed at 131
the rate of three percent (3%). 132
(l) Sales of materials used in the repair, renovation, 133
addition to, expansion and/or improvement of buildings and related 134
facilities used by a dairy producer shall be taxed at the rate of 135
three and one-half percent (3-1/2%). For the purposes of this 136
paragraph (l), "dairy producer" means any person engaged in the 137
production of milk for commercial use. 138
(m) Sales of equipment and materials used in connection 139
with geophysical surveying, exploring, developing, drilling, 140
redrilling, completing, working over, producing, distributing, or 141
testing of oil, gas and other mineral resources shall be taxed at 142
the rate of four and one-half percent (4-1/2%). Operators that 143
rebill sales of equipment and materials to nonoperating working 144
interest owners on behalf of a joint account through the joint 145
interest billing (JIB), where the sales tax has been paid or 146
accrued by the operator shall not be charged a sales tax on the 147
JIB as services income. 148
(n) Retail sales of food or drink for human consumption 149
not purchased with food stamps issued by the United States 150
Department of Agriculture or other federal agency, but which would 151
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be exempt under Section 27-65-111(o) from the taxes imposed by 152
this chapter if the food items were purchased with food stamps, 153
shall be taxed at the rate of five percent (5%) from and after 154
July 1, 2025. 155
(o) From and after July 1, 2026, sales of firearms, 156
ammunition, archery equipment, motorcycles, all-terrain vehicles 157
and jet skis shall be taxed at the rate of eight percent (8%). 158
(2) From and after January 1, 1995, retail sales of private 159
carriers of passengers and light carriers of property, as defined 160
in Section 27-51-101, shall be taxed an additional two percent 161
(2%). 162
(3) A manufacturer selling at retail in this state shall be 163
required to make returns of the gross proceeds of such sales and 164
pay the tax imposed in this section. 165
SECTION 2. Section 27-65-25, Mississippi Code of 1972, is 166
amended as follows: 167
27-65-25. Upon every person engaging or continuing within 168
this state in the business of selling alcoholic beverages at 169
retail, the sales of which are legal under the provisions of 170
Chapter 1 of Title 67, Mississippi Code of 1972, there is hereby 171
levied, assessed and shall be collected a tax equal to * * * eight 172
percent (8%) of the gross proceeds of the retail sales of the 173
business. 174
SECTION 3. Section 27-65-75, Mississippi Code of 1972, is 175
amended as follows: 176
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27-65-75. On or before the fifteenth day of each month, the 177
revenue collected under the provisions of this chapter during the 178
preceding month shall be paid and distributed as follows: 179
(1) (a) On or before August 15, 1992, and each succeeding 180
month thereafter through July 15, 1993, eighteen percent (18%) of 181
the total sales tax revenue collected during the preceding month 182
under the provisions of this chapter, except that collected under 183
the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 184
business activities within a municipal corporation shall be 185
allocated for distribution to the municipality and paid to the 186
municipal corporation. Except as otherwise provided in this 187
paragraph (a), on or before August 15, 1993, and each succeeding 188
month thereafter through August 15, 2025, eighteen and one-half 189
percent (18-1/2%) of the total sales tax revenue collected during 190
the preceding month under the provisions of this chapter, except 191
that collected under the provisions of Sections 27-65-15, 192
27-65-19(3), 27-65-21 and 27-65-24, on business activities within 193
a municipal corporation shall be allocated for distribution to the 194
municipality and paid to the municipal corporation. Except as 195
otherwise provided in this paragraph (a), on or before September 196
15, 2025, and each succeeding month thereafter, eighteen and 197
one-half percent (18.5%) of the total sales tax revenue collected 198
during the preceding month under this chapter, except that 199
collected under Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3), 200
27-65-21 and 27-65-24, on business activities within a municipal 201
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corporation shall be allocated for distribution and paid to the 202
municipal corporation. On or before September 15, 2025, and each 203
succeeding month thereafter, twenty-five and nine-tenths percent 204
(25.9%) of the total sales tax revenue collected during the 205
preceding month under Section 27-65-17(1)(n) on business 206
activities within a municipal corporation shall be allocated for 207
distribution and paid to the municipal corporation. However, in 208
the event the State Auditor issues a certificate of noncompliance 209
pursuant to Section 21-35-31, the department shall withhold ten 210
percent (10%) of the allocations and payments to the municipality 211
that would otherwise be payable to the municipality under this 212
paragraph (a) until such time that the department receives written 213
notice of the cancellation of a certificate of noncompliance from 214
the State Auditor. 215
A municipal corporation, for the purpose of distributing the 216
tax under this subsection, shall mean and include all incorporated 217
cities, towns and villages. 218
Monies allocated for distribution and credited to a municipal 219
corporation under this paragraph may be pledged as security for a 220
loan if the distribution received by the municipal corporation is 221
otherwise authorized or required by law to be pledged as security 222
for such a loan. 223
In any county having a county seat that is not an 224
incorporated municipality, the distribution provided under this 225
subsection shall be made as though the county seat was an 226
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incorporated municipality; however, the distribution to the 227
municipality shall be paid to the county treasury in which the 228
municipality is located, and those funds shall be used for road, 229
bridge and street construction or maintenance in the county. 230
(b) On or before August 15, 2006, and each succeeding 231
month thereafter through August 15, 2025, eighteen and one-half 232
percent (18-1/2%) of the total sales tax revenue collected during 233
the preceding month under the provisions of this chapter, except 234
that collected under the provisions of Sections 27-65-15, 235
27-65-19(3) and 27-65-21, on business activities on the campus of 236
a state institution of higher learning or community or junior 237
college whose campus is not located within the corporate limits of 238
a municipality, shall be allocated for distribution to the state 239
institution of higher learning or community or junior college and 240
paid to the state institution of higher learning or community or 241
junior college. On or before September 15, 2025, and each 242
succeeding month thereafter, eighteen and one-half percent (18.5%) 243
of the total sales tax revenue collected during the preceding 244
month under this chapter, except that collected under Sections 245
27-65-15, 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on business 246
activities on the campus of a state institution of higher learning 247
or community or junior college whose campus is not located within 248
the corporate limits of a municipality, shall be allocated for 249
distribution and paid to the state institution of higher learning 250
or community or junior college. On or before September 15, 2025, 251
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and each succeeding month thereafter, twenty-five and nine-tenths 252
percent (25.9%) of the total sales tax revenue collected during 253
the preceding month under Section 27-65-17(1)(n) on business 254
activities on the campus of a state institution of higher learning 255
or community or junior college whose campus is not located within 256
the corporate limits of a municipality, shall be allocated for 257
distribution and paid to the state institution of higher learning 258
or community or junior college. 259
(c) On or before August 15, 2018, and each succeeding 260
month thereafter until August 14, 2019, two percent (2%) of the 261
total sales tax revenue collected during the preceding month under 262
the provisions of this chapter, except that collected under the 263
provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 264
27-65-24, on business activities within the corporate limits of 265
the City of Jackson, Mississippi, shall be deposited into the 266
Capitol Complex Improvement District Project Fund created in 267
Section 29-5-215. On or before August 15, 2019, and each 268
succeeding month thereafter until August 14, 2020, four percent 269
(4%) of the total sales tax revenue collected during the preceding 270
month under the provisions of this chapter, except that collected 271
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 272
and 27-65-24, on business activities within the corporate limits 273
of the City of Jackson, Mississippi, shall be deposited into the 274
Capitol Complex Improvement District Project Fund created in 275
Section 29-5-215. On or before August 15, 2020, and each 276
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succeeding month thereafter through July 15, 2023, six percent 277
(6%) of the total sales tax revenue collected during the preceding 278
month under the provisions of this chapter, except that collected 279
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 280
and 27-65-24, on business activities within the corporate limits 281
of the City of Jackson, Mississippi, shall be deposited into the 282
Capitol Complex Improvement District Project Fund created in 283
Section 29-5-215. On or before August 15, 2023, and each 284
succeeding month thereafter through August 15, 2025, nine percent 285
(9%) of the total sales tax revenue collected during the preceding 286
month under the provisions of this chapter, except that collected 287
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 288
and 27-65-24, on business activities within the corporate limits 289
of the City of Jackson, Mississippi, shall be deposited into the 290
Capitol Complex Improvement District Project Fund created in 291
Section 29-5-215. On or before September 15, 2025, and each 292
succeeding month thereafter, nine percent (9%) of the total sales 293
tax revenue collected during the preceding month under this 294
chapter, except that collected under Sections 27-65-15, 295
27-65-17(1)(n), 27-65-19(3), 27-65-21 and 27-65-24, on business 296
activities within the corporate limits of the City of Jackson, 297
Mississippi, shall be deposited into the Capitol Complex 298
Improvement District Project Fund created in Section 27-5-215. On 299
or before September 15, 2025, and each succeeding month 300
thereafter, twelve and six-tenths percent (12.6%) of the total 301
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sales tax revenue collected during the preceding month under 302
Section 27-65-17(1)(n) on business activities within the corporate 303
limits of the City of Jackson, Mississippi, shall be deposited 304
into the Capitol Complex Improvement District Project Fund created 305
in Section 27-5-215. 306
(d) (i) Except as otherwise provided in this paragraph 307
(d), on or before the fifteenth day of the month that the 308
diversion authorized by this section begins, and each succeeding 309
month thereafter, eighteen and one-half percent (18-1/2%) of the 310
total sales tax revenue collected during the preceding month under 311
the provisions of this chapter, except that collected under the 312
provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 313
business activities within a redevelopment project area developed 314
under a redevelopment plan adopted under the Tax Increment 315
Financing Act (Section 21-45-1 et seq.) shall be allocated for 316
distribution to the county in which the project area is located 317
if: 318
1. The county: 319
a. Borders on the Mississippi Sound and 320
the State of Alabama, or 321
b. Is Harrison County, Mississippi, and 322
the project area is within a radius of two (2) miles from the 323
intersection of Interstate 10 and Menge Avenue; 324
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2. The county has issued bonds under Section 325
21-45-9 to finance all or a portion of a redevelopment project in 326
the redevelopment project area; 327
3. Any debt service for the indebtedness 328
incurred is outstanding; and 329
4. A development with a value of Ten Million 330
Dollars ($10,000,000.00) or more is, or will be, located in the 331
redevelopment area. 332
(ii) For a county that is eligible to receive 333
funds under this paragraph (d), as determined by the department 334
under this paragraph (d), from and after September 15, 2025, and 335
each succeeding month thereafter, eighteen and one-half percent 336
(18.5%) of the total sales tax revenue collected during the 337
preceding month under this chapter, except that collected under 338
Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on 339
business activities within a redevelopment project area developed 340
under a redevelopment plan adopted under the Tax Increment 341
Financing Act (Section 21-45-1 et seq.) shall be allocated for 342
distribution to the county in which the project is located, and 343
twenty-five and nine-tenths percent (25.9%) of the total sales tax 344
revenue collected during the preceding month under Section 345
27-65-17(1)(n) shall be allocated for distribution to that county. 346
(iii) Before any sales tax revenue may be 347
allocated for distribution to a county under this paragraph (d), 348
the county shall certify to the Department of Revenue that the 349
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requirements of this paragraph (d) have been met, the amount of 350
bonded indebtedness that has been incurred by the county for the 351
redevelopment project and the expected date the indebtedness 352
incurred by the county will be satisfied. 353
(iv) The diversion of sales tax revenue authorized 354
by this paragraph (d) shall begin the month following the month in 355
which the Department of Revenue determines that the requirements 356
of this paragraph (d) have been met. The diversion shall end the 357
month the indebtedness incurred by the county is satisfied. All 358
revenue received by the county under this paragraph (d) shall be 359
deposited in the fund required to be created in the tax increment 360
financing plan under Section 21-45-11 and be utilized solely to 361
satisfy the indebtedness incurred by the county. 362
(2) On or before September 15, 1987, and each succeeding 363
month thereafter, from the revenue collected under this chapter 364
during the preceding month, One Million One Hundred Twenty-five 365
Thousand Dollars ($1,125,000.00) shall be allocated for 366
distribution to municipal corporations as defined under subsection 367
(1) of this section in the proportion that the number of gallons 368
of gasoline and diesel fuel sold by distributors to consumers and 369
retailers in each such municipality during the preceding fiscal 370
year bears to the total gallons of gasoline and diesel fuel sold 371
by distributors to consumers and retailers in municipalities 372
statewide during the preceding fiscal year. The Department of 373
Revenue shall require all distributors of gasoline and diesel fuel 374
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to report to the department monthly the total number of gallons of 375
gasoline and diesel fuel sold by them to consumers and retailers 376
in each municipality during the preceding month. The Department 377
of Revenue shall have the authority to promulgate such rules and 378
regulations as is necessary to determine the number of gallons of 379
gasoline and diesel fuel sold by distributors to consumers and 380
retailers in each municipality. In determining the percentage 381
allocation of funds under this subsection for the fiscal year 382
beginning July 1, 1987, and ending June 30, 1988, the Department 383
of Revenue may consider gallons of gasoline and diesel fuel sold 384
for a period of less than one (1) fiscal year. For the purposes 385
of this subsection, the term "fiscal year" means the fiscal year 386
beginning July 1 of a year. 387
(3) On or before September 15, 1987, and on or before the 388
fifteenth day of each succeeding month, until the date specified 389
in Section 65-39-35, the proceeds derived from contractors' taxes 390
levied under Section 27-65-21 on contracts for the construction or 391
reconstruction of highways designated under the highway program 392
created under Section 65-3-97 shall, except as otherwise provided 393
in Section 31-17-127, be deposited into the State Treasury to the 394
credit of the State Highway Fund to be used to fund that highway 395
program. The Mississippi Department of Transportation shall 396
provide to the Department of Revenue such information as is 397
necessary to determine the amount of proceeds to be distributed 398
under this subsection. 399
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(4) On or before August 15, 1994, and on or before the 400
fifteenth day of each succeeding month through July 15, 1999, from 401
the proceeds of gasoline, diesel fuel or kerosene taxes as 402
provided in Section 27-5-101(a)(ii)1, Four Million Dollars 403
($4,000,000.00) shall be deposited in the State Treasury to the 404
credit of a special fund designated as the "State Aid Road Fund," 405
created by Section 65-9-17. On or before August 15, 1999, and on 406
or before the fifteenth day of each succeeding month through 407
August 15, 2026, from the total amount of the proceeds of 408
gasoline, diesel fuel or kerosene taxes apportioned by Section 409
27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an 410
amount equal to twenty-three and one-fourth percent (23-1/4%) of 411
those funds, whichever is the greater amount, shall be deposited 412
in the State Treasury to the credit of the "State Aid Road Fund," 413
created by Section 65-9-17. After August 15, 2025, from the total 414
amount of the proceeds of gasoline, diesel fuel or kerosene taxes 415
apportioned by Section 27-5-101(a)(ii)1 and (iii), Five Million 416
Dollars ($5,000,000.00) or an amount equal to twenty-three and 417
one-fourth percent (23-1/4%) of those funds, whichever is greater, 418
shall be deposited in the State Treasury to the credit of the 419
"State Aid Road Fund" on or before September 15, 2025, and on or 420
before the fifteenth day of each succeeding month through August 421
15, 2026, and Six Million Five Hundred Thousand Dollars 422
($6,500,000.00) or an amount equal to twenty-three and one-fourth 423
percent (23-1/4%) of those funds, whichever is greater, shall be 424
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deposited in the State Treasury to the credit of the "State Aid 425
Road Fund" on or before September 15, 2026, and on or before the 426
fifteenth day of each succeeding month through August 15, 2027, 427
and Eight Million Dollars ($8,000,000.00) or an amount equal to 428
twenty-three and one-fourth percent (23-1/4%) of those funds, 429
whichever is greater, shall be deposited in the State Treasury to 430
the credit of the "State Aid Road Fund" on or before September 15, 431
2027, and on or before the fifteenth day of each succeeding month. 432
From the amount of taxes paid into the special fund under this 433
subsection and subsection (9) of this section, there shall be 434
first deducted and paid the amount necessary to pay the expenses 435
of the Office of State Aid Road Construction, as authorized by the 436
Legislature for all other general and special fund agencies. The 437
remainder of the funds shall be allocated monthly to the several 438
counties in accordance with the following formula: 439
(a) One-third (1/3) shall be allocated to all counties 440
in equal shares; 441
(b) One-third (1/3) shall be allocated to counties 442
based on the proportion that the total number of rural road miles 443
in a county bears to the total number of rural road miles in all 444
counties of the state; and 445
(c) One-third (1/3) shall be allocated to counties 446
based on the proportion that the rural population of the county 447
bears to the total rural population in all counties of the state, 448
according to the latest federal decennial census. 449
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For the purposes of this subsection, the term "gasoline, 450
diesel fuel or kerosene taxes" means such taxes as defined in 451
paragraph (f) of Section 27-5-101. 452
The amount of funds allocated to any county under this 453
subsection for any fiscal year after fiscal year 1994 shall not be 454
less than the amount allocated to the county for fiscal year 1994. 455
Any reference in the general laws of this state or the 456
Mississippi Code of 1972 to Section 27-5-105 shall mean and be 457
construed to refer and apply to subsection (4) of Section 458
27-65-75. 459
(5) On or before August 15, 2024, and each succeeding month 460
thereafter, One Million Six Hundred Sixty-six Thousand Six Hundred 461
Sixty-six Dollars ($1,666,666.00) shall be paid into the special 462
fund known as the Education Enhancement Fund created and existing 463
under the provisions of Section 37-61-33. 464
(6) An amount each month beginning August 15, 1983, through 465
November 15, 1986, as specified in Section 6, Chapter 542, Laws of 466
1983, shall be paid into the special fund known as the 467
Correctional Facilities Construction Fund created in Section 6, 468
Chapter 542, Laws of 1983. 469
(7) On or before August 15, 1992, and each succeeding month 470
thereafter through July 15, 2000, two and two hundred sixty-six 471
one-thousandths percent (2.266%) of the total sales tax revenue 472
collected during the preceding month under the provisions of this 473
chapter, except that collected under the provisions of Section 474
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27-65-17(2), shall be deposited by the department into the School 475
Ad Valorem Tax Reduction Fund created under Section 37-61-35. On 476
or before August 15, 2000, and each succeeding month thereafter 477
through August 15, 2025, two and two hundred sixty-six 478
one-thousandths percent (2.266%) of the total sales tax revenue 479
collected during the preceding month under the provisions of this 480
chapter, except that collected under the provisions of Section 481
27-65-17(2), shall be deposited into the School Ad Valorem Tax 482
Reduction Fund created under Section 37-61-35 until such time that 483
the total amount deposited into the fund during a fiscal year 484
equals Forty-two Million Dollars ($42,000,000.00). Thereafter, 485
the amounts diverted under this subsection (7) during the fiscal 486
year in excess of Forty-two Million Dollars ($42,000,000.00) shall 487
be deposited into the Education Enhancement Fund created under 488
Section 37-61-33 for appropriation by the Legislature as other 489
education needs and shall not be subject to the percentage 490
appropriation requirements set forth in Section 37-61-33. On or 491
before September 15, 2025, and each succeeding month thereafter, 492
two and two hundred sixty-six one-thousandths percent (2.266%) of 493
the total sales tax revenue collected during the preceding month 494
under this chapter, except that collected under Section 495
27-65-17(1)(n) and (2), and three and seventeen one-hundredths 496
percent (3.17%) of the total sales tax revenue collected during 497
the preceding month under Section 27-65-17(1)(n), shall be 498
deposited into the School Ad Valorem Tax Reduction Fund created 499
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under Section 37-61-35 until such time that the total amount 500
deposited into the fund during a fiscal year equals Forty-two 501
Million Dollars ($42,000,000.00). Thereafter, the amounts 502
diverted under this subsection (7) during the fiscal year in 503
excess of Forty-two Million Dollars ($42,000,000.00) shall be 504
deposited into the Education Enhancement Fund created under 505
Section 37-61-33 for appropriation by the Legislature as other 506
education needs and shall not be subject to the percentage 507
appropriation requirements set forth in Section 37-61-33. 508
(8) On or before August 15, 1992, and each succeeding month 509
thereafter through August 15, 2025, nine and seventy-three 510
one-thousandths percent (9.073%) of the total sales tax revenue 511
collected during the preceding month under the provisions of this 512
chapter, except that collected under the provisions of Section 513
27-65-17(2), shall be deposited into the Education Enhancement 514
Fund created under Section 37-61-33. On or before September 15, 515
2025, and each succeeding month thereafter, nine and seventy-three 516
one-thousandths percent (9.073%) of the total sales tax revenue 517
collected during the preceding month under this chapter, except 518
that collected under Section 27-65-17(1)(n) and (2), and twelve 519
and seven-tenths percent (12.7%) of the total sales tax revenue 520
collected during the preceding month under Section 27-65-17(1)(n), 521
shall be deposited into the Education Enhancement Fund created 522
under Section 37-61-33. 523
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(9) On or before August 15, 1994, and each succeeding month 524
thereafter, from the revenue collected under this chapter during 525
the preceding month, Two Hundred Fifty Thousand Dollars 526
($250,000.00) shall be paid into the State Aid Road Fund. 527
(10) On or before August 15, 1994, and each succeeding month 528
thereafter through August 15, 1995, from the revenue collected 529
under this chapter during the preceding month, Two Million Dollars 530
($2,000,000.00) shall be deposited into the Motor Vehicle Ad 531
Valorem Tax Reduction Fund established in Section 27-51-105. 532
(11) Notwithstanding any other provision of this section to 533
the contrary, on or before February 15, 1995, and each succeeding 534
month thereafter, the sales tax revenue collected during the 535
preceding month under the provisions of Section 27-65-17(2) and 536
the corresponding levy in Section 27-65-23 on the rental or lease 537
of private carriers of passengers and light carriers of property 538
as defined in Section 27-51-101 shall be deposited, without 539
diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund 540
established in Section 27-51-105. 541
(12) Notwithstanding any other provision of this section to 542
the contrary, on or before August 15, 1995, and each succeeding 543
month thereafter, the sales tax revenue collected during the 544
preceding month under the provisions of Section 27-65-17(1) on 545
retail sales of private carriers of passengers and light carriers 546
of property, as defined in Section 27-51-101 and the corresponding 547
levy in Section 27-65-23 on the rental or lease of these vehicles, 548
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shall be deposited, after diversion, into the Motor Vehicle Ad 549
Valorem Tax Reduction Fund established in Section 27-51-105. 550
(13) On or before July 15, 1994, and on or before the 551
fifteenth day of each succeeding month thereafter, that portion of 552
the avails of the tax imposed in Section 27-65-22 that is derived 553
from activities held on the Mississippi State Fairgrounds Complex 554
shall be paid into a special fund that is created in the State 555
Treasury and shall be expended upon legislative appropriation 556
solely to defray the costs of repairs and renovation at the Trade 557
Mart and Coliseum. 558
(14) On or before August 15, 1998, and each succeeding month 559
thereafter through July 15, 2005, that portion of the avails of 560
the tax imposed in Section 27-65-23 that is derived from sales by 561
cotton compresses or cotton warehouses and that would otherwise be 562
paid into the General Fund shall be deposited in an amount not to 563
exceed Two Million Dollars ($2,000,000.00) into the special fund 564
created under Section 69-37-39. On or before August 15, 2007, and 565
each succeeding month thereafter through July 15, 2010, that 566
portion of the avails of the tax imposed in Section 27-65-23 that 567
is derived from sales by cotton compresses or cotton warehouses 568
and that would otherwise be paid into the General Fund shall be 569
deposited in an amount not to exceed Two Million Dollars 570
($2,000,000.00) into the special fund created under Section 571
69-37-39 until all debts or other obligations incurred by the 572
Certified Cotton Growers Organization under the Mississippi Boll 573
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Weevil Management Act before January 1, 2007, are satisfied in 574
full. On or before August 15, 2010, and each succeeding month 575
thereafter through July 15, 2011, fifty percent (50%) of that 576
portion of the avails of the tax imposed in Section 27-65-23 that 577
is derived from sales by cotton compresses or cotton warehouses 578
and that would otherwise be paid into the General Fund shall be 579
deposited into the special fund created under Section 69-37-39 580
until such time that the total amount deposited into the fund 581
during a fiscal year equals One Million Dollars ($1,000,000.00). 582
On or before August 15, 2011, and each succeeding month 583
thereafter, that portion of the avails of the tax imposed in 584
Section 27-65-23 that is derived from sales by cotton compresses 585
or cotton warehouses and that would otherwise be paid into the 586
General Fund shall be deposited into the special fund created 587
under Section 69-37-39 until such time that the total amount 588
deposited into the fund during a fiscal year equals One Million 589
Dollars ($1,000,000.00). 590
(15) Notwithstanding any other provision of this section to 591
the contrary, on or before September 15, 2000, and each succeeding 592
month thereafter, the sales tax revenue collected during the 593
preceding month under the provisions of Section 594
27-65-19(1)(d)(i)2, and 27-65-19(1)(d)(i)3 shall be deposited, 595
without diversion, into the Telecommunications Ad Valorem Tax 596
Reduction Fund established in Section 27-38-7. 597
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(16) (a) On or before August 15, 2000, and each succeeding 598
month thereafter, the sales tax revenue collected during the 599
preceding month under the provisions of this chapter on the gross 600
proceeds of sales of a project as defined in Section 57-30-1 shall 601
be deposited, after all diversions except the diversion provided 602
for in subsection (1) of this section, into the Sales Tax 603
Incentive Fund created in Section 57-30-3. 604
(b) On or before August 15, 2007, and each succeeding 605
month thereafter, eighty percent (80%) of the sales tax revenue 606
collected during the preceding month under the provisions of this 607
chapter from the operation of a tourism project under the 608
provisions of Sections 57-26-1 through 57-26-5, shall be 609
deposited, after the diversions required in subsections (7) and 610
(8) of this section, into the Tourism Project Sales Tax Incentive 611
Fund created in Section 57-26-3. 612
(17) Notwithstanding any other provision of this section to 613
the contrary, on or before April 15, 2002, and each succeeding 614
month thereafter, the sales tax revenue collected during the 615
preceding month under Section 27-65-23 on sales of parking 616
services of parking garages and lots at airports shall be 617
deposited, without diversion, into the special fund created under 618
Section 27-5-101(d). 619
(18) [Repealed] 620
(19) (a) On or before August 15, 2005, and each succeeding 621
month thereafter, the sales tax revenue collected during the 622
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preceding month under the provisions of this chapter on the gross 623
proceeds of sales of a business enterprise located within a 624
redevelopment project area under the provisions of Sections 625
57-91-1 through 57-91-11, and the revenue collected on the gross 626
proceeds of sales from sales made to a business enterprise located 627
in a redevelopment project area under the provisions of Sections 628
57-91-1 through 57-91-11 (provided that such sales made to a 629
business enterprise are made on the premises of the business 630
enterprise), shall, except as otherwise provided in this 631
subsection (19), be deposited, after all diversions, into the 632
Redevelopment Project Incentive Fund as created in Section 633
57-91-9. 634
(b) For a municipality participating in the Economic 635
Redevelopment Act created in Sections 57-91-1 through 57-91-11, 636
the diversion provided for in subsection (1) of this section 637
attributable to the gross proceeds of sales of a business 638
enterprise located within a redevelopment project area under the 639
provisions of Sections 57-91-1 through 57-91-11, and attributable 640
to the gross proceeds of sales from sales made to a business 641
enterprise located in a redevelopment project area under the 642
provisions of Sections 57-91-1 through 57-91-11 (provided that 643
such sales made to a business enterprise are made on the premises 644
of the business enterprise), shall be deposited into the 645
Redevelopment Project Incentive Fund as created in Section 646
57-91-9, as follows: 647
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(i) For the first six (6) years in which payments 648
are made to a developer from the Redevelopment Project Incentive 649
Fund, one hundred percent (100%) of the diversion shall be 650
deposited into the fund; 651
(ii) For the seventh year in which such payments 652
are made to a developer from the Redevelopment Project Incentive 653
Fund, eighty percent (80%) of the diversion shall be deposited 654
into the fund; 655
(iii) For the eighth year in which such payments 656
are made to a developer from the Redevelopment Project Incentive 657
Fund, seventy percent (70%) of the diversion shall be deposited 658
into the fund; 659
(iv) For the ninth year in which such payments are 660
made to a developer from the Redevelopment Project Incentive Fund, 661
sixty percent (60%) of the diversion shall be deposited into the 662
fund; and 663
(v) For the tenth year in which such payments are 664
made to a developer from the Redevelopment Project Incentive Fund, 665
fifty percent (50%) of the funds shall be deposited into the fund. 666
(20) On or before January 15, 2007, and each succeeding 667
month thereafter, eighty percent (80%) of the sales tax revenue 668
collected during the preceding month under the provisions of this 669
chapter from the operation of a tourism project under the 670
provisions of Sections 57-28-1 through 57-28-5 shall be deposited, 671
after the diversions required in subsections (7) and (8) of this 672
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section, into the Tourism Sales Tax Incentive Fund created in 673
Section 57-28-3. 674
(21) (a) On or before April 15, 2007, and each succeeding 675
month thereafter through June 15, 2013, One Hundred Fifty Thousand 676
Dollars ($150,000.00) of the sales tax revenue collected during 677
the preceding month under the provisions of this chapter shall be 678
deposited into the MMEIA Tax Incentive Fund created in Section 679
57-101-3. 680
(b) On or before July 15, 2013, and each succeeding 681
month thereafter, One Hundred Fifty Thousand Dollars ($150,000.00) 682
of the sales tax revenue collected during the preceding month 683
under the provisions of this chapter shall be deposited into the 684
Mississippi Development Authority Job Training Grant Fund created 685
in Section 57-1-451. 686
(22) On or before June 1, 2024, and each succeeding month 687
thereafter until December 31, 2057, an amount determined annually 688
by the Mississippi Development Authority of the sales tax revenue 689
collected during the preceding month under the provisions of this 690
chapter shall be deposited into the MMEIA Tax Incentive Fund 691
created in Section 57-125-3. This amount shall be based on 692
estimated payments due within the upcoming year to construction 693
contractors pursuant to construction contracts subject to the tax 694
imposed by Section 27-65-21 for construction to be performed on 695
the project site of a project defined under Section 696
57-75-5(f)(xxxiii) for the coming year. 697
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(23) Notwithstanding any other provision of this section to 698
the contrary, on or before August 15, 2009, and each succeeding 699
month thereafter, the sales tax revenue collected during the 700
preceding month under the provisions of Section 27-65-201 shall be 701
deposited, without diversion, into the Motor Vehicle Ad Valorem 702
Tax Reduction Fund established in Section 27-51-105. 703
(24) (a) On or before August 15, 2019, and each month 704
thereafter through July 15, 2020, one percent (1%) of the total 705
sales tax revenue collected during the preceding month from 706
restaurants and hotels shall be allocated for distribution to the 707
Mississippi Development Authority Tourism Advertising Fund 708
established under Section 57-1-64, to be used exclusively for the 709
purpose stated therein. On or before August 15, 2020, and each 710
month thereafter through July 15, 2021, two percent (2%) of the 711
total sales tax revenue collected during the preceding month from 712
restaurants and hotels shall be allocated for distribution to the 713
Mississippi Development Authority Tourism Advertising Fund 714
established under Section 57-1-64, to be used exclusively for the 715
purpose stated therein. On or before August 15, 2021, and each 716
month thereafter, three percent (3%) of the total sales tax 717
revenue collected during the preceding month from restaurants and 718
hotels shall be allocated for distribution to the Mississippi 719
Development Authority Tourism Advertising Fund established under 720
Section 57-1-64, to be used exclusively for the purpose stated 721
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therein. The revenue diverted pursuant to this subsection shall 722
not be available for expenditure until February 1, 2020. 723
(b) The Joint Legislative Committee on Performance 724
Evaluation and Expenditure Review (PEER) must provide an annual 725
report to the Legislature indicating the amount of funds deposited 726
into the Mississippi Development Authority Tourism Advertising 727
Fund established under Section 57-1-64, and a detailed record of 728
how the funds are spent. 729
(25) (a) Notwithstanding any other provision of this 730
section to the contrary, on or before September 15, 2025, and each 731
succeeding month thereafter, the total sales tax revenue collected 732
during the preceding month under the provisions of Sections 733
27-65-17(1)(o) and 27-65-25 from the amount of the increases to 734
tax rates under such sections as provided in this act shall be 735
deposited, without diversion, into the Mississippi Hospitals 736
Uncompensated Care Assistance Fund created in Section 11 of this 737
act. 738
(b) The provisions of this subsection (25) shall 739
supersede and control over any other provisions of this section 740
providing for the distribution of revenue under this section. 741
( * * *26) The remainder of the amounts collected under the 742
provisions of this chapter shall be paid into the State Treasury 743
to the credit of the General Fund. 744
( * * *27) (a) It shall be the duty of the municipal 745
officials of any municipality that expands its limits, or of any 746
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community that incorporates as a municipality, to notify the 747
commissioner of that action thirty (30) days before the effective 748
date. Failure to so notify the commissioner shall cause the 749
municipality to forfeit the revenue that it would have been 750
entitled to receive during this period of time when the 751
commissioner had no knowledge of the action. 752
(b) (i) Except as otherwise provided in subparagraph 753
(ii) of this paragraph, if any funds have been erroneously 754
disbursed to any municipality or any overpayment of tax is 755
recovered by the taxpayer, the commissioner may make correction 756
and adjust the error or overpayment with the municipality by 757
withholding the necessary funds from any later payment to be made 758
to the municipality. 759
(ii) Subject to the provisions of Sections 760
27-65-51 and 27-65-53, if any funds have been erroneously 761
disbursed to a municipality under subsection (1) of this section 762
for a period of three (3) years or more, the maximum amount that 763
may be recovered or withheld from the municipality is the total 764
amount of funds erroneously disbursed for a period of three (3) 765
years beginning with the date of the first erroneous disbursement. 766
However, if during such period, a municipality provides written 767
notice to the Department of Revenue indicating the erroneous 768
disbursement of funds, then the maximum amount that may be 769
recovered or withheld from the municipality is the total amount of 770
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funds erroneously disbursed for a period of one (1) year beginning 771
with the date of the first erroneous disbursement. 772
SECTION 4. Section 27-69-3, Mississippi Code of 1972, is 773
amended as follows: 774
27-69-3. When used in this chapter: 775
(a) "State" means the State of Mississippi as 776
geographically defined, and any and all waters under the 777
jurisdiction of the State of Mississippi. 778
(b) "State Auditor" means the Auditor of Public 779
Accounts of the State of Mississippi, or his legally appointed 780
deputy, clerk or agent. 781
(c) "Commissioner" means the Commissioner of Revenue of 782
the Department of Revenue, and his authorized agents and 783
employees. 784
(d) "Person" means any individual, company, 785
corporation, partnership, association, joint venture, estate, 786
trust, or any other group, or combination acting as a unit, and 787
the plural as well as the singular, unless the intention to give a 788
more limited meaning is disclosed by the context. 789
(e) "Consumer" means a person who comes into possession 790
of tobacco for the purpose of consuming it, giving it away, or 791
disposing of it in any way by sale, barter or exchange. 792
(f) "Tobacco" means any cigarettes, cigars, cheroots, 793
stogies, smoking tobacco (including granulated, plug cut, crimp 794
cut, ready rubbed, and other kinds and forms of tobacco, or 795
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substitutes therefor, prepared in such manner as to be suitable 796
for smoking in a pipe or cigarette) and including plug and twist 797
chewing tobacco and snuff, when such "tobacco" is manufactured and 798
prepared for sale or personal consumption. All words used herein, 799
except vapor products, shall be given the meaning as defined in 800
the regulations of the Treasury Department of the United States of 801
America. The term "tobacco" also includes heated tobacco 802
products. The term "tobacco" also includes vapor products. 803
(g) "First sale" means and includes the first sale, or 804
distribution of such tobacco in intrastate commerce, or the first 805
use or consumption of such tobacco within this state. 806
(h) "Drop shipment" means and includes any delivery of 807
tobacco received by any person within this state, when payment for 808
such tobacco is made to the shipper, or seller by or through a 809
person other than a consignee. 810
(i) "Distributor" includes every person, except 811
retailers as defined herein, in the state who manufactures or 812
produces tobacco or who ships, transports, or imports into this 813
state, or in any manner acquires or possesses tobacco, and makes a 814
first sale of the same in the state. 815
(j) "Wholesaler" includes dealers, whose principal 816
business is that of a wholesale dealer or jobber, who is known to 817
the retail trade as such, and whose place of business is located 818
in Mississippi or in a state which affords reciprocity to 819
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wholesalers domiciled in Mississippi, who shall sell any taxable 820
tobacco to retail dealers only for the purpose of resale. 821
(k) "Retailer" includes every person, other than a 822
wholesale dealer, as defined above, whose principal business is 823
that of selling merchandise at retail, who shall sell, or offer 824
for sale tobacco to the consumer. The sale of tobacco in quantity 825
lots by retailers to other retailers, transient vendors, or other 826
persons, shall not be construed as wholesale and shall not qualify 827
such retailer for a permit as a wholesaler. 828
(l) "Dealer" includes every person, firm, corporation 829
or association of persons, except retailers as defined herein, who 830
manufacture tobacco for distribution, for sale, for use or for 831
consumption in the State of Mississippi. 832
The word "dealer" is further defined to mean any person, 833
firm, corporation or association of persons, except retailers as 834
defined herein, who imports tobacco from any state or foreign 835
country for distribution, sale, use, or consumption in the State 836
of Mississippi. 837
(m) "Distributing agent" includes every person in the 838
state who acts as an agent of any person outside the State of 839
Mississippi, by receiving tobacco in interstate commerce, and 840
storing such tobacco in this state subject to distribution, or 841
delivery upon order from the person outside the state to 842
distributors, wholesalers, retailers and dealers. 843
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(n) "Transient vendor" means and includes every person 844
commonly and generally termed "peddlers" and every person acting 845
for himself, or as an agent, employee, salesman, or in any 846
capacity for another, whether as owner, bailee, or other custodian 847
of tobacco, and going from person to person, dealer to dealer, 848
house to house, or place to place, and selling or offering for 849
sale at retail or wholesale tobacco, and every person who does not 850
keep a regular place of business open at all times in regular 851
hours, and every person who goes from person to person, dealer to 852
dealer, house to house, or place to place, and sells or offers for 853
sale tobacco which he carries with him, and who delivers the same 854
at the time of, or immediately after the sale, or without 855
returning to the place of business operations (a permanent place 856
of business within the state) between the taking of the order and 857
the delivery of the tobacco, or 858
All persons who go from person to person, house to house, 859
place to place, or dealer to dealer, soliciting orders by 860
exhibiting samples, or taking orders, and thereafter making 861
delivery of tobacco, or filling the order without carrying or 862
sending the order to the permanent place of business, and 863
thereafter making delivery of the tobacco pursuant to the terms of 864
the order, or 865
All persons who go from person to person, place to place, 866
house to house, or dealer to dealer, carrying samples and selling 867
tobacco from samples, and afterwards making delivery without 868
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taking and sending an order therefor to a permanent place of 869
business for the filling of the order, and delivery of the 870
tobacco, or the exchange of tobacco having become damaged or 871
unsalable, or the purchase by tobacco of advertising space, or 872
All persons who have in their possession, or under their 873
control, any tobacco offered, or to be offered for sale or to be 874
delivered, unless the sale or delivery thereof is to be made in 875
pursuance of a bona fide order for the tobacco, to be sold or 876
delivered, the order to be evidenced by an invoice or memorandum. 877
(o) "Contraband tobacco" means all tobacco found in the 878
possession of any person whose permit to engage in dealing in 879
tobacco has been revoked by the commissioner; and any cigarettes 880
found in the possession of any person to which the proper tax 881
stamps have not been affixed; and any cigarettes improperly 882
stamped when found in the possession of any person; and all other 883
tobacco upon which the excise tax has not been paid. 884
(p) "Sale" means an exchange for money or goods, giving 885
away, or distributing any tobacco as defined in this chapter. 886
(q) "Forty-eight (48) hours" and "seventy-two (72) 887
hours" means two (2) calendar days and three (3) calendar days, 888
respectively, excluding Sundays and legal holidays. 889
(r) "Stamp" or "stamping," or the import of such word, 890
when used in this chapter, means any manner of stamp or impression 891
permitted by the commissioner that carries out the purposes of the 892
chapter in clearly indicating upon the packages of cigarettes 893
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taxed the due payment of the tax and clearly identifying, by 894
serial number or otherwise, the permittee who affixed the stamp to 895
the particular package. 896
(s) "Manufacturer's list price" means the full sales 897
price at which tobacco is sold or offered for sale by a 898
manufacturer to the wholesaler or distributor in this state 899
without any deduction for freight, trade discount, cash discounts, 900
special discounts or deals, cash rebates, or any other reduction 901
from the regular selling price. In the event freight charges on 902
shipments to wholesalers or distributors are not paid by the 903
manufacturer, then such freight charges required to be paid by the 904
wholesalers and distributors shall be added to the amount paid to 905
the manufacturer in order to determine "manufacturer's list 906
price." In the case of a wholesaler or distributor whose place of 907
business is located outside this state, the "manufacturer's list 908
price" for tobacco sold in this state by such wholesaler or 909
distributor shall in all cases be considered to be the same as 910
that of a wholesaler or distributor located within this state. 911
(t) "Heated tobacco products" means a product 912
containing tobacco that produces an inhalable aerosol by (i) 913
heating the tobacco without combustion of the tobacco or (ii) heat 914
generated from a combustion source that only or primarily heats 915
rather than burns the tobacco. 916
(u) "Vapor product" means an electronic product or 917
device that may be used to deliver any aerosolized or vaporized 918
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substance to the person inhaling from the product or device, 919
including, but not limited to, an e-cigar, e-cigarillo, e-pipe, 920
vape pen or e-hookah; and includes any cartridge, component, part 921
or accessory of the electronic product or device, whether or not 922
sold separately, and also includes any liquid, capsule, powder or 923
substance intended to be aerosolized, vaporized or otherwise 924
ingested during the use of the electronic product or device, 925
whether or not the substance contains nicotine. The term "vapor 926
product" does not include (i) a product that is a drug under 21 927
USCS 321(g)(1); (ii) a product that is a device under 21 USCS 928
321(h); or (iii) a combination product described in 21 USCS 929
353(g). 930
SECTION 5. Section 27-69-13, Mississippi Code of 1972, is 931
amended as follows: 932
27-69-13. There is hereby imposed, levied and assessed, to 933
be collected and paid as hereinafter provided in this chapter, an 934
excise tax on each person or dealer in cigarettes, cigars, 935
stogies, snuff, chewing tobacco, * * * smoking tobacco, vapor 936
products, or substitutes therefor, upon the sale, use, 937
consumption, handling or distribution in the State of Mississippi, 938
as follows: 939
(a) On cigarettes, the rate of tax shall be * * * Four 940
and Four-tenths Cents (4.4¢) on each cigarette sold with a maximum 941
length of one hundred twenty (120) millimeters; any cigarette in 942
excess of this length shall be taxed as if it were two (2) or more 943
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cigarettes. Provided, however, if the federal tax rate on 944
cigarettes in effect on June 1, 1985, is reduced, then the rate as 945
provided herein shall be increased by the amount of the federal 946
tax reduction. Such tax increase shall take effect on the first 947
day of the month following the effective date of such reduction in 948
the federal tax rate. Heated tobacco products shall not be taxed 949
as cigarettes under this paragraph (a); however, this exclusion 950
shall not affect heated tobacco products for any purposes related 951
to Section 27-70-1 et seq. 952
(b) On cigars, cheroots, stogies, snuff, chewing and 953
smoking tobacco, vapor products and all other tobacco products 954
except cigarettes and heated tobacco products, the rate of tax 955
shall be * * * sixteen percent (16%) of the manufacturer's list 956
price. 957
(c) On heated tobacco products, the rate of tax shall 958
be one and twenty-five one-hundredths cents (1.25¢) on each 959
disposable heated tobacco unit or stick sold to be used for 960
consumption by insertion into a heated tobacco product heating 961
system device. 962
No stamp evidencing the tax herein levied on cigarettes shall 963
be of a denomination of less than One Cent (1¢), and whenever the 964
tax computed at the rates herein prescribed on cigarettes shall be 965
a specified amount, plus a fractional part of One Cent (1¢), the 966
package shall be stamped for the next full cent; however, the 967
additional face value of stamps purchased to comply with taxes 968
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imposed by this section after June 1, 1985, shall be subject to a 969
four percent (4%) discount or compensation to dealers for their 970
services rather than the eight percent (8%) discount or 971
compensation allowed by Section 27-69-31. 972
Every wholesaler shall purchase stamps as provided in this 973
chapter, and affix the same to all packages of cigarettes handled 974
by him as herein provided. 975
The above tax is levied upon the sale, use, gift, possession 976
or consumption of tobacco within the State of Mississippi, and the 977
impact of the tax levied by this chapter is hereby declared to be 978
on the vendee, user, consumer or possessor of tobacco in this 979
state; and when said tax is paid by any other person, such payment 980
shall be considered as an advance payment and shall thereafter be 981
added to the price of the tobacco and recovered from the ultimate 982
consumer or user. 983
SECTION 6. Section 27-69-15, Mississippi Code of 1972, is 984
amended as follows: 985
27-69-15. Any retailer, transient vendor, distributing 986
agent, salesman, or other dealer who shall receive any cigarettes 987
other than from a wholesaler having a permit as herein provided, 988
and not having the necessary stamps already affixed, shall, after 989
the receipt of such cigarettes, within the time limit herein 990
provided, present the same to some wholesaler having such permit, 991
for the affixing of the stamps required, and it shall be the duty 992
of such wholesaler, thereupon and upon the payment to him by such 993
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retailer of the face value of the stamps required, to affix the 994
stamps to said cigarettes in the same manner as if the cigarettes 995
were handled and sold by such wholesaler, provided, that such 996
wholesaler, before affixing the stamps, shall require of the 997
retailer, transient vendor, distributing agent, salesman, or other 998
dealer, the original invoice for the cigarettes to be stamped, and 999
such wholesaler shall in each instance note upon the invoice, the 1000
denominations and number of stamps affixed to the cigarettes 1001
covered by said invoice, the notation to be made in ink, or other 1002
manner not easy to erase, at the time the stamps are affixed. 1003
It is further provided that, in addition hereto, the 1004
wholesaler shall keep a separate record of all stamps affixed to 1005
taxable cigarettes presented by retailers, transient vendors, 1006
distributing agents, salesmen, or other dealers, showing the name 1007
of the retailer, transient vendor, distributing agent, salesman, 1008
or other dealer, name of the shipper, date of shipper's invoice, 1009
the date stamps were affixed, denomination of stamps affixed, and 1010
total value of stamps affixed. 1011
When the request is made to any wholesaler in this state by a 1012
retailer, transient vendor, distributing agent, salesman, or other 1013
dealer in this state, said request being duly and seasonably made 1014
for the affixing of stamps, and the request is accompanied by 1015
proper remittance and invoice, and such wholesaler refuses to 1016
affix the stamps to cigarettes as requested, said wholesaler shall 1017
forfeit to the state a penalty of Twenty-five Dollars ($25.00) for 1018
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each offense, the same to be collected by the commissioner and, in 1019
addition thereto, in the discretion of the commissioner, forfeit 1020
his permit to handle stamps. In the event of such refusal on the 1021
part of any wholesaler to affix stamps said retailer, transient 1022
vendor, distributing agent, salesman, or other dealer may make 1023
application to the commissioner for stamps to be placed on the 1024
cigarettes upon which the wholesaler refused to affix the stamps, 1025
said application to be accompanied by an affidavit from the 1026
retailer, transient vendor, distributing agent, salesman, or other 1027
dealer, or some other credible person, setting forth the facts, 1028
whereupon the commissioner may issue and sell to such retailer, 1029
transient vendor, distributing agent, salesman, or other dealer, a 1030
sufficient number of stamps to be affixed to the cigarettes. 1031
Stamps shall not be affixed to any cigarettes except by a 1032
wholesale dealer having a permit, except as otherwise provided in 1033
this chapter. 1034
Stamps shall not be required to be affixed to any cigarettes 1035
while the same is in interstate commerce. 1036
Any person engaged in this state in the business of making 1037
wholesale or retail sales of other tobacco products including 1038
cigars, smoking tobacco, chewing tobacco, snuff, vapor products or 1039
any other tobacco products except cigarettes and heated tobacco 1040
products who purchases such products from a wholesaler or 1041
manufacturer outside this state upon which the Mississippi tobacco 1042
excise tax has not been imposed, shall be responsible for 1043
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remitting the Mississippi tobacco excise tax directly to the 1044
Mississippi Department of Revenue by the twentieth of the month 1045
following the month the sale occurred of the other tobacco 1046
products by such person to a Mississippi customer. 1047
Any person making retail purchases of other tobacco products 1048
including cigars, smoking tobacco, chewing tobacco, snuff, vapor 1049
products or any other tobacco products except cigarettes and 1050
heated tobacco products for personal use in this state who 1051
purchased such other tobacco products from outside this state upon 1052
which the Mississippi tobacco excise tax has not been imposed, 1053
shall be responsible for remitting the Mississippi tobacco excise 1054
tax directly to the Mississippi Department of Revenue within 1055
forty-eight (48) hours after the purchase of the other tobacco 1056
products. 1057
In no case shall the provisions of this chapter be construed 1058
to require the payment of a tax upon any tobacco upon which the 1059
tax herein levied has once been paid to the state. 1060
SECTION 7. Section 27-69-27, Mississippi Code of 1972, is 1061
amended as follows: 1062
27-69-27. The payment of the tax imposed by this chapter 1063
shall be evidenced by affixing stamps to each individual package 1064
of cigarettes usually sold to consumers, as distinguished from 1065
cartons or larger units which are composed of a number of 1066
individual packages. 1067
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Except as otherwise provided in this paragraph, the stamp 1068
shall be affixed within seventy-two (72) hours after the receipt 1069
of the cigarettes by the wholesaler, and within forty-eight (48) 1070
hours after receipt of the cigarettes by the retailer; provided, 1071
that in the case a dealer conducts a wholesale and retail business 1072
at one (1) place of business, stamps shall be affixed within 1073
forty-eight (48) hours after receipt of the cigarettes. However, 1074
the provisions of this paragraph shall not apply to tobacco at the 1075
point it is purchased at a sale under Section 27-69-56. The stamp 1076
must be so securely affixed as to require the continued 1077
application of water or of steam to remove it, or so that it 1078
cannot be otherwise removed without destruction or mutilation. 1079
The excise tax imposed on cigars, smoking tobacco, chewing 1080
tobacco, snuff, vapor products and all other tobacco products 1081
except cigarettes and heated tobacco products shall be computed by 1082
the application of the excise tax rate to the manufacturer's list 1083
price on all purchases of such tobacco. The excise tax shall be 1084
due and payable on or before the fifteenth day of the month next 1085
succeeding the month in which the tax accrues. The tax shall be 1086
filed with the commissioner on forms prescribed by the 1087
commissioner. 1088
Provided, however, manufacturers or other wholesale 1089
distributors of tobacco, which are subject to the excise taxes 1090
imposed by Section 27-69-13 of this chapter for the privilege of 1091
selling or using such tobaccos within this state, who maintain 1092
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"terminals" or warehouses in which such tobaccos are stored, and 1093
who sell only to licensed wholesale dealers within the state who 1094
are qualified to purchase and affix the stamps required, may 1095
maintain such "spot stocks," intended only for such sales, without 1096
affixing the stamps or filing returns and paying the tax. 1097
Any person desiring to maintain such "terminal" or warehouse, 1098
shall make application to the commissioner and obtain a permit to 1099
maintain such stocks without affixing stamps thereto, for sale 1100
exclusively to out-of-state purchasers, or licensed wholesale 1101
dealers within this state, and the commissioner is hereby 1102
authorized to grant such permit upon the execution and filing with 1103
the commissioner, by the applicant, a bond with surety companies, 1104
authorized to do business in Mississippi, as surety thereon, and 1105
conditioned for the strict compliance by the applicant, with the 1106
following conditions under which said privilege may be granted. 1107
The person maintaining such stock of untaxed tobacco shall 1108
supply to the commissioner monthly, or at such times as the 1109
commissioner may require, complete invoices of all tobaccos 1110
received, and shall also supply correct invoices of all tobaccos 1111
removed from such "terminal" or warehouse, said invoices to 1112
contain the correct name and address of all persons to whom such 1113
tobacco shall be delivered or consigned, whether within or without 1114
the State of Mississippi. 1115
The penalty of such bond shall be determined by the 1116
commissioner, in an amount sufficient to protect the State of 1117
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Mississippi from any loss of revenue which might occur by reason 1118
of the failure of principal to strictly adhere to the requirement 1119
that no tobacco would be sold from such stock within the State of 1120
Mississippi, except to licensed wholesale dealers. 1121
SECTION 8. Section 27-69-33, Mississippi Code of 1972, is 1122
amended as follows: 1123
27-69-33. Manufacturers, distributors and wholesalers of 1124
cigars, cigarettes * * *, smoking tobacco or vapor products 1125
subject to the tax under this chapter, doing both intrastate and 1126
interstate business in such tobacco, must qualify as interstate 1127
dealers in such tobacco by applying to the commissioner for 1128
permission to engage in such business, and, upon receipt of such 1129
permission, he shall be permitted to set aside such part of his 1130
stock as may be absolutely necessary for the conduct of such 1131
interstate business, without affixing the stamps to cigarettes 1132
required by this chapter. Said interstate stock shall be kept in 1133
an entirely separate part of the building, separate and apart from 1134
intrastate stock, and the said interstate business shall be 1135
conducted by the said wholesale dealer in accordance with rules 1136
and regulations to be promulgated by the commissioner. 1137
It is further provided that shipment of such merchandise be 1138
made only by a railroad, express company, boat line, or motor 1139
freight line certified by the Mississippi Public Service 1140
Commission as a common carrier, or by registered or insured parcel 1141
post. 1142
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It is further provided that any manufacturer, distributor, or 1143
wholesaler of cigars, cigarettes * * *, smoking tobacco or vapor 1144
products, engaged in interstate commerce in such tobaccos, shall 1145
report to the commissioner on or before the fifteenth day of each 1146
month, on forms prescribed by the commissioner, all sales of 1147
cigarettes made in interstate commerce during the preceding month 1148
to which Mississippi stamps were not affixed. These reports must 1149
be made supplementary to the reports required to be filed by 1150
Section 27-69-35 of this chapter. 1151
Each shipment must be covered by a complete copy of invoice 1152
of the consignor, and supported by properly receipted bill of 1153
lading of the transportation company, or post office department as 1154
specified in the foregoing, and the receipted bills of lading and 1155
invoices shall be subject to inspection by the commissioner for a 1156
period of three (3) years. 1157
The commissioner is further authorized to verify the actual 1158
delivery to the consignee of such unstamped taxable cigarettes 1159
before allowing credit, and for the purpose of such verification, 1160
the commissioner may exchange information with the proper 1161
authorities of other states as to movement of taxable tobacco to 1162
and from other states into and from the State of Mississippi. 1163
SECTION 9. Section 27-69-35, Mississippi Code of 1972, is 1164
amended as follows: 1165
27-69-35. It shall be the duty of every person subject to 1166
the provisions of this chapter, to keep an accurate set of 1167
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records, showing all transactions had with reference to the 1168
purchase, sale or gift of cigars, cigarettes, * * *, smoking 1169
tobacco or vapor products, and such person shall keep separately 1170
all invoices of cigars, cigarettes * * *, smoking tobacco or vapor 1171
products, and shall keep a record of all stamps purchased, and 1172
such records, and all stocks of cigars, cigarettes * * *, smoking 1173
tobacco or vapor products on hand, shall be open to inspection at 1174
all reasonable times to the commissioner; provided, however, that 1175
all retail dealers, transient vendors, distributing agents, or 1176
other dealers purchasing, or receiving cigars, cigarettes, * * *, 1177
smoking tobacco or vapor products from without the state, whether 1178
the same shall have been ordered through a wholesaler, or jobber 1179
in this state, or by drop shipment, or otherwise, shall within 1180
five (5) days after receipt of the same, mail a duplicate invoice 1181
of all such purchases, or receipts, to the commissioner, and 1182
failure to furnish such duplicate invoices shall be deemed a 1183
misdemeanor. 1184
It is further provided that all manufacturers, distributors 1185
and wholesalers of cigars, cigarettes * * *, smoking tobacco or 1186
vapor products, who have a permit required by this chapter shall 1187
furnish the commissioner with a statement monthly, showing the 1188
amount of taxable tobacco received, and must also furnish the 1189
commissioner with duplicate invoices covering stamps affixed to 1190
drop shipments purchased by retailers. 1191
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In the examination of such books, records, etc., the 1192
commissioner shall have the power to administer oaths to any 1193
person, and any person answering falsely, under oath, any of such 1194
questions, shall be guilty of perjury. 1195
If any person being so examined, fails to answer questions 1196
propounded to him by the commissioner, or if any person, being 1197
summoned to appear and answer such questions, shall fail or refuse 1198
to do so, or if any person shall fail or refuse to permit the 1199
inspection of his stock of merchandise, or invoices, or books, or 1200
papers pertaining to any dealers in cigars, cigarettes * * *, 1201
smoking tobacco or vapor products, the commissioner may make such 1202
fact known to the circuit court of the county in which such 1203
failure or refusal occurs, or judge thereof in termtime or in 1204
vacation, by petition, and such circuit court, or judge thereof, 1205
shall issue a summons for such person so refusing, returnable on a 1206
date to be fixed by said court, or said judge, and on said date, 1207
the said circuit court, or the circuit judge, shall proceed to 1208
examine into the truth of the matter set out in said petition, and 1209
if the same be found to be true, the said circuit court, or 1210
circuit judge, shall issue a writ of subpoena duces tecum ordering 1211
and directing the person so summoned to bring into court, and 1212
exhibit for the inspection of the commissioner, all such books, 1213
records, invoices, etc., as the court may deem proper from all the 1214
facts and circumstances in the case. Any person failing or 1215
refusing to present such books, records, invoices, etc., or 1216
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failing or refusing to testify, shall be punished for contempt as 1217
provided by Section 9-1-17 of the Mississippi Code of 1972. 1218
SECTION 10. Section 27-69-75, Mississippi Code of 1972, is 1219
amended as follows: 1220
27-69-75. All taxes levied by this chapter shall be payable 1221
to the commissioner in cash, or by personal check, cashier's 1222
check, bank exchange, post office money order or express money 1223
order, and shall be deposited by the commissioner in the State 1224
Treasury on the same day collected. No remittance other than cash 1225
shall be a final discharge of liability for the tax herein 1226
assessed and levied, unless and until it has been paid in cash to 1227
the commissioner. 1228
Except as otherwise provided in this section, all tobacco 1229
taxes collected, including tobacco license taxes, shall be 1230
deposited into the State Treasury to the credit of the General 1231
Fund. On or before September 15, 2025, and each succeeding month 1232
thereafter tobacco taxes collected during the preceding month 1233
under the provisions of this chapter from the increases to tax 1234
rates under Section 27-69-13 and as a result of the amendment to 1235
Section 27-69-3, as provided in this act shall be deposited into 1236
the Mississippi Hospital Uncompensated Care Assistance Fund 1237
created in Section 11 of this act. 1238
Wholesalers who are entitled to purchase stamps at a 1239
discount, as provided by Section 27-69-31, may have consigned to 1240
them, without advance payment, such stamps, if and when such 1241
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wholesaler shall give to the commissioner a good and sufficient 1242
bond executed by some surety company authorized to do business in 1243
this state, conditioned to secure the payment for the stamps so 1244
consigned. The commissioner shall require payment for such stamps 1245
not later than thirty (30) days from the date the stamps were 1246
consigned. 1247
SECTION 11. (1) There is created in the State Treasury a 1248
special fund to be designated as the "Mississippi Hospitals 1249
Uncompensated Care Assistance Fund", which shall consist of funds 1250
deposited therein under Sections 27-65-75(25) and 27-69-75, 1251
Mississippi Code of 1972, and funds from any other source 1252
designated for deposit into such fund. The fund shall be 1253
maintained by the State Treasurer as a separate and special fund, 1254
separate and apart from the General Fund of the state. Unexpended 1255
amounts remaining in the fund at the end of a fiscal year shall 1256
not lapse into the State General Fund, and any investment earnings 1257
or interest earned on amounts in the fund shall be deposited to 1258
the credit of the fund. Monies in the fund shall be used by the 1259
Department of Health, upon appropriation by the Legislature, for 1260
the purposes described in subsection (2) of this section. 1261
(2) (a) The Department of Health shall establish a program 1262
for reimbursing hospitals, in whole or in part, for uncompensated 1263
medical care services as follows: 1264
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(i) Eighty percent (80%) of the monies in the fund 1265
shall be allocated to all hospitals in this state in equal shares, 1266
and 1267
(ii) Twenty percent (20%) of the monies in the 1268
fund shall be allocated to hospitals in this state that have not 1269
more than seventy-five (75) licensed beds based on the proportion 1270
that the total uncompensated medical care services provided by 1271
such a hospital bears to the total uncompensated medical care 1272
services provided by all of such hospitals in the state, as 1273
determined by the Department of Health. 1274
(b) A hospital desiring assistance under paragraph 1275
(a)(ii) of this subsection may apply to the Department of Health 1276
for reimbursement of the uncompensated medical care services. A 1277
hospital desiring assistance must submit an application to the 1278
Department of Health. The application must include a description 1279
of the medical care services provided by the hospital for which 1280
the assistance is requested, the total costs of the medical care 1281
services provided by the hospital and the portion of such costs 1282
for which the hospital was not compensated, the amount of 1283
assistance requested and any other information required by the 1284
Department of Health. 1285
(c) The Department of Health shall have all powers 1286
necessary to implement and administer the program established 1287
under this section, and the department shall promulgate rules and 1288
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ST: Taxes; increase certain and use revenue to
provide assistance to hospitals for
uncompensated medical care services.
regulations, in accordance with the Mississippi Administrative 1289
Procedures Law, necessary for the implementation of this section. 1290
SECTION 12. This act shall take effect and be in force from 1291
and after July 1, 2026. 1292