Motor vehicle ad valorem tax credit; bring forward sections of law relating to.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Scott

HOUSE BILL NO. 207

AN ACT TO BRING FORWARD SECTIONS 27-51-101, 27-51-103, 1
27-51-105 AND 27-51-107, MISSISSIPPI CODE OF 1972, WHICH ARE 2
SECTIONS OF LAW AUTHORIZING A MOTOR VEHICLE AD VALOREM TAX CREDIT, 3
FOR THE PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 4
27-65-75, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR THE 5
DISTRIBUTION OF STATE SALES TAX REVENUE, FOR THE PURPOSES OF 6
POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Section 27-51-101, Mississippi Code of 1972, is 9
brought forward as follows: 10
27-51-101. As used in Sections 27-51-101 through 27-51-107, 11
unless the context requires otherwise: 12
(a) "Private carrier of passengers" shall have the 13
meaning ascribed to such term in Section 27-19-3, but shall not be 14
construed to include motorcycles. 15
(b) "Light carrier of property" means any motor vehicle 16
with a gross weight, as defined in Section 27-19-3, of ten 17
thousand (10,000) pounds or less that is designed and constructed 18
for the primary purpose of transporting property on the roads and 19
highways. 20
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(c) "Local taxing district" means any county, 21
municipality, school district or other local entity that levies an 22
ad valorem tax or for which an ad valorem tax is levied, to fund 23
all or a portion of its budget. 24
(d) "State fiscal year" means the period beginning on 25
July 1 and ending on June 30 of the following year. 26
(e) "Commission," "State Tax Commission" or 27
"department" means the Department of Revenue. 28
SECTION 2. Section 27-51-103, Mississippi Code of 1972, is 29
brought forward as follows: 30
27-51-103. (1) From and after January 1, 1995, through June 31
30, 1995, a taxpayer shall be allowed as a credit towards the tax 32
liability imposed by Chapter 51, Title 27, Mississippi Code of 33
1972, on the amount of ad valorem taxes due during the taxable 34
year on any private carrier of passengers and light carrier of 35
property owned by him, an amount equal to five percent (5%) of the 36
assessed value of the motor vehicle. 37
(2) From and after July 1, 1995, a taxpayer shall be allowed 38
as a credit against motor vehicle ad valorem taxes due under 39
Chapter 51, Title 27, Mississippi Code of 1972, on any private 40
carrier of passengers and light carrier of property owned by him, 41
an amount as provided for in subsection (3) of this section. 42
(3) (a) Except as otherwise provided in paragraph (b) of 43
this subsection, from and after July 1, 1995, the amount of the 44
credit that a taxpayer shall be allowed against motor vehicle ad 45
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valorem taxes due under Chapter 51, Title 27, Mississippi Code of 46
1972, shall be determined by the State Tax Commission for each 47
fiscal year. The amount of the credit shall be promulgated by the 48
commission on or before May 1 prior to each state fiscal year 49
beginning with the state fiscal year beginning on July 1, 1995. 50
In developing the credit, the commission shall establish credit 51
amounts that provide for an equal percentage of dollar credit 52
amounts for private carriers of passengers and light carriers of 53
property in proportion to their assessed value, based on the 54
projected amount of funds in the Motor Vehicle Ad Valorem Tax 55
Reduction Fund that will be available for distribution in such 56
state fiscal year. The commission may calculate the credit in 57
such a manner so as to have surplus funds available in the Motor 58
Vehicle Ad Valorem Tax Reduction Fund for cash-flow needs and 59
monthly shortfalls that might be incurred as a result of 60
unexpected revenue fluctuations; however, in the calculation of 61
the credit in order to make such surplus funds available, the 62
commission shall attempt to create a balance in the Motor Vehicle 63
Ad Valorem Tax Reduction Fund that does not exceed, at the end of 64
any state fiscal year, five percent (5%) of the projected amount 65
of funds that will be available in the Motor Vehicle Ad Valorem 66
Tax Reduction Fund for distribution during such state fiscal year. 67
(b) From and after July 1, 2009, through June 30, 2010, 68
a taxpayer shall be allowed as a credit towards the tax liability 69
imposed by Chapter 51, Title 27, Mississippi Code of 1972, on the 70
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amount of ad valorem taxes due during the taxable year on any 71
private carrier of passengers and light carrier of property owned 72
by him, an amount equal to four and twenty-five one-hundredths 73
percent (4.25%) of the assessed value of the motor vehicle. 74
(4) Tax credits provided for by this section may be used 75
against motor vehicle ad valorem taxes due under Chapter 51, Title 76
27, Mississippi Code of 1972, at the time that a taxpayer pays 77
motor vehicle ad valorem taxes to the county tax collector. 78
(5) Each receipt for motor vehicle ad valorem taxes shall 79
clearly indicate that the credit provided for by this section is 80
granted as a result of legislative action but shall not specify 81
any particular legislative session. 82
(6) A taxpayer who is delinquent in the payment of motor 83
vehicle ad valorem taxes to the extent that the penalty assessed 84
pursuant to Section 27-51-43, Mississippi Code of 1972, has 85
reached twenty-five percent (25%) of the ad valorem taxes due 86
shall not be eligible to receive the tax credit authorized 87
pursuant to this section. 88
SECTION 3. Section 27-51-105, Mississippi Code of 1972, is 89
brought forward as follows: 90
27-51-105. (1) There is created in the State Treasury a 91
special fund to be known as the Motor Vehicle Ad Valorem Tax 92
Reduction Fund, into which shall be deposited the monies specified 93
in Section 27-65-75(10), (11) and (12), such monies as may be 94
required to be transferred into such fund pursuant to Section 95
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27-38-5, and such other monies as the Legislature may provide by 96
appropriation. The monies in the fund shall be used for the 97
purpose of making payments to counties for the reduction in motor 98
vehicle ad valorem tax revenues incurred by local taxing districts 99
in the county as a result of the ad valorem tax credit for private 100
carriers of passengers and light carriers of property that is 101
provided for by Section 27-51-103. 102
(2) The Motor Vehicle Ad Valorem Tax Reduction Fund shall be 103
administered by the State Tax Commission, and monies in the fund 104
shall be expended upon appropriation by the Legislature. 105
Unexpended amounts remaining in the fund at the end of the state 106
fiscal year shall not lapse into the State General Fund, and any 107
interest earned on amounts in the fund shall be deposited to the 108
credit of the fund. 109
SECTION 4. Section 27-51-107, Mississippi Code of 1972, is 110
brought forward as follows: 111
27-51-107. (1) On or before February 10, 1995, and the 112
tenth day of each succeeding month thereafter, the State Tax 113
Commission shall make payments from the Motor Vehicle Ad Valorem 114
Tax Reduction Fund established in Section 27-51-105 to the county 115
tax collectors for distribution to the local taxing districts as 116
reimbursement for motor vehicle ad valorem taxes that are lost 117
during the preceding month as a result of the ad valorem tax 118
credit for private carriers of passengers and light carriers of 119
property that is provided for by Section 27-51-103. The amount 120
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that each local taxing district will receive for each month under 121
this subsection shall be determined by the State Tax Commission 122
based on documentation provided by the tax collectors under 123
guidelines established by the commission. 124
(2) On or before the twentieth day of the month that the 125
payments from the commission under subsection (1) of this section 126
are received, the county tax collectors shall remit the 127
appropriate amount of such payments to the local taxing districts 128
for which the county tax collector collects motor vehicle ad 129
valorem taxes. When an ad valorem tax credit that is allowed to a 130
taxpayer is not paid by the commission in the payment for the 131
month in which such credit is allowed, the tax collector shall 132
remit the payment for such credit to the local taxing authority on 133
or before the twentieth day of the month that payment for such 134
credit is received from the commission. 135
(3) Funds received by local taxing districts from the 136
payments under subsection (1) of this section shall be considered 137
to be, and shall be used in the same manner as, the proceeds of 138
motor vehicle ad valorem taxes. 139
SECTION 5. Section 27-65-75, Mississippi Code of 1972, is 140
brought forward as follows: 141
27-65-75. On or before the fifteenth day of each month, the 142
revenue collected under the provisions of this chapter during the 143
preceding month shall be paid and distributed as follows: 144
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(1) (a) On or before August 15, 1992, and each succeeding 145
month thereafter through July 15, 1993, eighteen percent (18%) of 146
the total sales tax revenue collected during the preceding month 147
under the provisions of this chapter, except that collected under 148
the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 149
business activities within a municipal corporation shall be 150
allocated for distribution to the municipality and paid to the 151
municipal corporation. Except as otherwise provided in this 152
paragraph (a), on or before August 15, 1993, and each succeeding 153
month thereafter through August 15, 2025, eighteen and one-half 154
percent (18-1/2%) of the total sales tax revenue collected during 155
the preceding month under the provisions of this chapter, except 156
that collected under the provisions of Sections 27-65-15, 157
27-65-19(3), 27-65-21 and 27-65-24, on business activities within 158
a municipal corporation shall be allocated for distribution to the 159
municipality and paid to the municipal corporation. Except as 160
otherwise provided in this paragraph (a), on or before September 161
15, 2025, and each succeeding month thereafter, eighteen and 162
one-half percent (18.5%) of the total sales tax revenue collected 163
during the preceding month under this chapter, except that 164
collected under Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3), 165
27-65-21 and 27-65-24, on business activities within a municipal 166
corporation shall be allocated for distribution and paid to the 167
municipal corporation. On or before September 15, 2025, and each 168
succeeding month thereafter, twenty-five and nine-tenths percent 169
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(25.9%) of the total sales tax revenue collected during the 170
preceding month under Section 27-65-17(1)(n) on business 171
activities within a municipal corporation shall be allocated for 172
distribution and paid to the municipal corporation. However, in 173
the event the State Auditor issues a certificate of noncompliance 174
pursuant to Section 21-35-31, the department shall withhold ten 175
percent (10%) of the allocations and payments to the municipality 176
that would otherwise be payable to the municipality under this 177
paragraph (a) until such time that the department receives written 178
notice of the cancellation of a certificate of noncompliance from 179
the State Auditor. 180
A municipal corporation, for the purpose of distributing the 181
tax under this subsection, shall mean and include all incorporated 182
cities, towns and villages. 183
Monies allocated for distribution and credited to a municipal 184
corporation under this paragraph may be pledged as security for a 185
loan if the distribution received by the municipal corporation is 186
otherwise authorized or required by law to be pledged as security 187
for such a loan. 188
In any county having a county seat that is not an 189
incorporated municipality, the distribution provided under this 190
subsection shall be made as though the county seat was an 191
incorporated municipality; however, the distribution to the 192
municipality shall be paid to the county treasury in which the 193
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municipality is located, and those funds shall be used for road, 194
bridge and street construction or maintenance in the county. 195
(b) On or before August 15, 2006, and each succeeding 196
month thereafter through August 15, 2025, eighteen and one-half 197
percent (18-1/2%) of the total sales tax revenue collected during 198
the preceding month under the provisions of this chapter, except 199
that collected under the provisions of Sections 27-65-15, 200
27-65-19(3) and 27-65-21, on business activities on the campus of 201
a state institution of higher learning or community or junior 202
college whose campus is not located within the corporate limits of 203
a municipality, shall be allocated for distribution to the state 204
institution of higher learning or community or junior college and 205
paid to the state institution of higher learning or community or 206
junior college. On or before September 15, 2025, and each 207
succeeding month thereafter, eighteen and one-half percent (18.5%) 208
of the total sales tax revenue collected during the preceding 209
month under this chapter, except that collected under Sections 210
27-65-15, 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on business 211
activities on the campus of a state institution of higher learning 212
or community or junior college whose campus is not located within 213
the corporate limits of a municipality, shall be allocated for 214
distribution and paid to the state institution of higher learning 215
or community or junior college. On or before September 15, 2025, 216
and each succeeding month thereafter, twenty-five and nine-tenths 217
percent (25.9%) of the total sales tax revenue collected during 218
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the preceding month under Section 27-65-17(1)(n) on business 219
activities on the campus of a state institution of higher learning 220
or community or junior college whose campus is not located within 221
the corporate limits of a municipality, shall be allocated for 222
distribution and paid to the state institution of higher learning 223
or community or junior college. 224
(c) On or before August 15, 2018, and each succeeding 225
month thereafter until August 14, 2019, two percent (2%) of the 226
total sales tax revenue collected during the preceding month under 227
the provisions of this chapter, except that collected under the 228
provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 229
27-65-24, on business activities within the corporate limits of 230
the City of Jackson, Mississippi, shall be deposited into the 231
Capitol Complex Improvement District Project Fund created in 232
Section 29-5-215. On or before August 15, 2019, and each 233
succeeding month thereafter until August 14, 2020, four percent 234
(4%) of the total sales tax revenue collected during the preceding 235
month under the provisions of this chapter, except that collected 236
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 237
and 27-65-24, on business activities within the corporate limits 238
of the City of Jackson, Mississippi, shall be deposited into the 239
Capitol Complex Improvement District Project Fund created in 240
Section 29-5-215. On or before August 15, 2020, and each 241
succeeding month thereafter through July 15, 2023, six percent 242
(6%) of the total sales tax revenue collected during the preceding 243
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month under the provisions of this chapter, except that collected 244
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 245
and 27-65-24, on business activities within the corporate limits 246
of the City of Jackson, Mississippi, shall be deposited into the 247
Capitol Complex Improvement District Project Fund created in 248
Section 29-5-215. On or before August 15, 2023, and each 249
succeeding month thereafter through August 15, 2025, nine percent 250
(9%) of the total sales tax revenue collected during the preceding 251
month under the provisions of this chapter, except that collected 252
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 253
and 27-65-24, on business activities within the corporate limits 254
of the City of Jackson, Mississippi, shall be deposited into the 255
Capitol Complex Improvement District Project Fund created in 256
Section 29-5-215. On or before September 15, 2025, and each 257
succeeding month thereafter, nine percent (9%) of the total sales 258
tax revenue collected during the preceding month under this 259
chapter, except that collected under Sections 27-65-15, 260
27-65-17(1)(n), 27-65-19(3), 27-65-21 and 27-65-24, on business 261
activities within the corporate limits of the City of Jackson, 262
Mississippi, shall be deposited into the Capitol Complex 263
Improvement District Project Fund created in Section 27-5-215. On 264
or before September 15, 2025, and each succeeding month 265
thereafter, twelve and six-tenths percent (12.6%) of the total 266
sales tax revenue collected during the preceding month under 267
Section 27-65-17(1)(n) on business activities within the corporate 268
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limits of the City of Jackson, Mississippi, shall be deposited 269
into the Capitol Complex Improvement District Project Fund created 270
in Section 27-5-215. 271
(d) (i) Except as otherwise provided in this paragraph 272
(d), on or before the fifteenth day of the month that the 273
diversion authorized by this section begins, and each succeeding 274
month thereafter, eighteen and one-half percent (18-1/2%) of the 275
total sales tax revenue collected during the preceding month under 276
the provisions of this chapter, except that collected under the 277
provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 278
business activities within a redevelopment project area developed 279
under a redevelopment plan adopted under the Tax Increment 280
Financing Act (Section 21-45-1 et seq.) shall be allocated for 281
distribution to the county in which the project area is located 282
if: 283
1. The county: 284
a. Borders on the Mississippi Sound and 285
the State of Alabama, or 286
b. Is Harrison County, Mississippi, and 287
the project area is within a radius of two (2) miles from the 288
intersection of Interstate 10 and Menge Avenue; 289
2. The county has issued bonds under Section 290
21-45-9 to finance all or a portion of a redevelopment project in 291
the redevelopment project area; 292
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3. Any debt service for the indebtedness 293
incurred is outstanding; and 294
4. A development with a value of Ten Million 295
Dollars ($10,000,000.00) or more is, or will be, located in the 296
redevelopment area. 297
(ii) For a county that is eligible to receive 298
funds under this paragraph (d), as determined by the department 299
under this paragraph (d), from and after September 15, 2025, and 300
each succeeding month thereafter, eighteen and one-half percent 301
(18.5%) of the total sales tax revenue collected during the 302
preceding month under this chapter, except that collected under 303
Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on 304
business activities within a redevelopment project area developed 305
under a redevelopment plan adopted under the Tax Increment 306
Financing Act (Section 21-45-1 et seq.) shall be allocated for 307
distribution to the county in which the project is located, and 308
twenty-five and nine-tenths percent (25.9%) of the total sales tax 309
revenue collected during the preceding month under Section 310
27-65-17(1)(n) shall be allocated for distribution to that county. 311
(iii) Before any sales tax revenue may be 312
allocated for distribution to a county under this paragraph (d), 313
the county shall certify to the Department of Revenue that the 314
requirements of this paragraph (d) have been met, the amount of 315
bonded indebtedness that has been incurred by the county for the 316
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redevelopment project and the expected date the indebtedness 317
incurred by the county will be satisfied. 318
(iv) The diversion of sales tax revenue authorized 319
by this paragraph (d) shall begin the month following the month in 320
which the Department of Revenue determines that the requirements 321
of this paragraph (d) have been met. The diversion shall end the 322
month the indebtedness incurred by the county is satisfied. All 323
revenue received by the county under this paragraph (d) shall be 324
deposited in the fund required to be created in the tax increment 325
financing plan under Section 21-45-11 and be utilized solely to 326
satisfy the indebtedness incurred by the county. 327
(2) On or before September 15, 1987, and each succeeding 328
month thereafter, from the revenue collected under this chapter 329
during the preceding month, One Million One Hundred Twenty-five 330
Thousand Dollars ($1,125,000.00) shall be allocated for 331
distribution to municipal corporations as defined under subsection 332
(1) of this section in the proportion that the number of gallons 333
of gasoline and diesel fuel sold by distributors to consumers and 334
retailers in each such municipality during the preceding fiscal 335
year bears to the total gallons of gasoline and diesel fuel sold 336
by distributors to consumers and retailers in municipalities 337
statewide during the preceding fiscal year. The Department of 338
Revenue shall require all distributors of gasoline and diesel fuel 339
to report to the department monthly the total number of gallons of 340
gasoline and diesel fuel sold by them to consumers and retailers 341
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in each municipality during the preceding month. The Department 342
of Revenue shall have the authority to promulgate such rules and 343
regulations as is necessary to determine the number of gallons of 344
gasoline and diesel fuel sold by distributors to consumers and 345
retailers in each municipality. In determining the percentage 346
allocation of funds under this subsection for the fiscal year 347
beginning July 1, 1987, and ending June 30, 1988, the Department 348
of Revenue may consider gallons of gasoline and diesel fuel sold 349
for a period of less than one (1) fiscal year. For the purposes 350
of this subsection, the term "fiscal year" means the fiscal year 351
beginning July 1 of a year. 352
(3) On or before September 15, 1987, and on or before the 353
fifteenth day of each succeeding month, until the date specified 354
in Section 65-39-35, the proceeds derived from contractors' taxes 355
levied under Section 27-65-21 on contracts for the construction or 356
reconstruction of highways designated under the highway program 357
created under Section 65-3-97 shall, except as otherwise provided 358
in Section 31-17-127, be deposited into the State Treasury to the 359
credit of the State Highway Fund to be used to fund that highway 360
program. The Mississippi Department of Transportation shall 361
provide to the Department of Revenue such information as is 362
necessary to determine the amount of proceeds to be distributed 363
under this subsection. 364
(4) On or before August 15, 1994, and on or before the 365
fifteenth day of each succeeding month through July 15, 1999, from 366
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the proceeds of gasoline, diesel fuel or kerosene taxes as 367
provided in Section 27-5-101(a)(ii)1, Four Million Dollars 368
($4,000,000.00) shall be deposited in the State Treasury to the 369
credit of a special fund designated as the "State Aid Road Fund," 370
created by Section 65-9-17. On or before August 15, 1999, and on 371
or before the fifteenth day of each succeeding month through 372
August 15, 2026, from the total amount of the proceeds of 373
gasoline, diesel fuel or kerosene taxes apportioned by Section 374
27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an 375
amount equal to twenty-three and one-fourth percent (23-1/4%) of 376
those funds, whichever is the greater amount, shall be deposited 377
in the State Treasury to the credit of the "State Aid Road Fund," 378
created by Section 65-9-17. After August 15, 2025, from the total 379
amount of the proceeds of gasoline, diesel fuel or kerosene taxes 380
apportioned by Section 27-5-101(a)(ii)1 and (iii), Five Million 381
Dollars ($5,000,000.00) or an amount equal to twenty-three and 382
one-fourth percent (23-1/4%) of those funds, whichever is greater, 383
shall be deposited in the State Treasury to the credit of the 384
"State Aid Road Fund" on or before September 15, 2025, and on or 385
before the fifteenth day of each succeeding month through August 386
15, 2026, and Six Million Five Hundred Thousand Dollars 387
($6,500,000.00) or an amount equal to twenty-three and one-fourth 388
percent (23-1/4%) of those funds, whichever is greater, shall be 389
deposited in the State Treasury to the credit of the "State Aid 390
Road Fund" on or before September 15, 2026, and on or before the 391
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fifteenth day of each succeeding month through August 15, 2027, 392
and Eight Million Dollars ($8,000,000.00) or an amount equal to 393
twenty-three and one-fourth percent (23-1/4%) of those funds, 394
whichever is greater, shall be deposited in the State Treasury to 395
the credit of the "State Aid Road Fund" on or before September 15, 396
2027, and on or before the fifteenth day of each succeeding month. 397
From the amount of taxes paid into the special fund under this 398
subsection and subsection (9) of this section, there shall be 399
first deducted and paid the amount necessary to pay the expenses 400
of the Office of State Aid Road Construction, as authorized by the 401
Legislature for all other general and special fund agencies. The 402
remainder of the funds shall be allocated monthly to the several 403
counties in accordance with the following formula: 404
(a) One-third (1/3) shall be allocated to all counties 405
in equal shares; 406
(b) One-third (1/3) shall be allocated to counties 407
based on the proportion that the total number of rural road miles 408
in a county bears to the total number of rural road miles in all 409
counties of the state; and 410
(c) One-third (1/3) shall be allocated to counties 411
based on the proportion that the rural population of the county 412
bears to the total rural population in all counties of the state, 413
according to the latest federal decennial census. 414
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For the purposes of this subsection, the term "gasoline, 415
diesel fuel or kerosene taxes" means such taxes as defined in 416
paragraph (f) of Section 27-5-101. 417
The amount of funds allocated to any county under this 418
subsection for any fiscal year after fiscal year 1994 shall not be 419
less than the amount allocated to the county for fiscal year 1994. 420
Any reference in the general laws of this state or the 421
Mississippi Code of 1972 to Section 27-5-105 shall mean and be 422
construed to refer and apply to subsection (4) of Section 423
27-65-75. 424
(5) On or before August 15, 2024, and each succeeding month 425
thereafter, One Million Six Hundred Sixty-six Thousand Six Hundred 426
Sixty-six Dollars ($1,666,666.00) shall be paid into the special 427
fund known as the Education Enhancement Fund created and existing 428
under the provisions of Section 37-61-33. 429
(6) An amount each month beginning August 15, 1983, through 430
November 15, 1986, as specified in Section 6, Chapter 542, Laws of 431
1983, shall be paid into the special fund known as the 432
Correctional Facilities Construction Fund created in Section 6, 433
Chapter 542, Laws of 1983. 434
(7) On or before August 15, 1992, and each succeeding month 435
thereafter through July 15, 2000, two and two hundred sixty-six 436
one-thousandths percent (2.266%) of the total sales tax revenue 437
collected during the preceding month under the provisions of this 438
chapter, except that collected under the provisions of Section 439
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27-65-17(2), shall be deposited by the department into the School 440
Ad Valorem Tax Reduction Fund created under Section 37-61-35. On 441
or before August 15, 2000, and each succeeding month thereafter 442
through August 15, 2025, two and two hundred sixty-six 443
one-thousandths percent (2.266%) of the total sales tax revenue 444
collected during the preceding month under the provisions of this 445
chapter, except that collected under the provisions of Section 446
27-65-17(2), shall be deposited into the School Ad Valorem Tax 447
Reduction Fund created under Section 37-61-35 until such time that 448
the total amount deposited into the fund during a fiscal year 449
equals Forty-two Million Dollars ($42,000,000.00). Thereafter, 450
the amounts diverted under this subsection (7) during the fiscal 451
year in excess of Forty-two Million Dollars ($42,000,000.00) shall 452
be deposited into the Education Enhancement Fund created under 453
Section 37-61-33 for appropriation by the Legislature as other 454
education needs and shall not be subject to the percentage 455
appropriation requirements set forth in Section 37-61-33. On or 456
before September 15, 2025, and each succeeding month thereafter, 457
two and two hundred sixty-six one-thousandths percent (2.266%) of 458
the total sales tax revenue collected during the preceding month 459
under this chapter, except that collected under Section 460
27-65-17(1)(n) and (2), and three and seventeen one-hundredths 461
percent (3.17%) of the total sales tax revenue collected during 462
the preceding month under Section 27-65-17(1)(n), shall be 463
deposited into the School Ad Valorem Tax Reduction Fund created 464
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under Section 37-61-35 until such time that the total amount 465
deposited into the fund during a fiscal year equals Forty-two 466
Million Dollars ($42,000,000.00). Thereafter, the amounts 467
diverted under this subsection (7) during the fiscal year in 468
excess of Forty-two Million Dollars ($42,000,000.00) shall be 469
deposited into the Education Enhancement Fund created under 470
Section 37-61-33 for appropriation by the Legislature as other 471
education needs and shall not be subject to the percentage 472
appropriation requirements set forth in Section 37-61-33. 473
(8) On or before August 15, 1992, and each succeeding month 474
thereafter through August 15, 2025, nine and seventy-three 475
one-thousandths percent (9.073%) of the total sales tax revenue 476
collected during the preceding month under the provisions of this 477
chapter, except that collected under the provisions of Section 478
27-65-17(2), shall be deposited into the Education Enhancement 479
Fund created under Section 37-61-33. On or before September 15, 480
2025, and each succeeding month thereafter, nine and seventy-three 481
one-thousandths percent (9.073%) of the total sales tax revenue 482
collected during the preceding month this chapter, except that 483
collected under Section 27-65-17(1)(n) and (2), and twelve and 484
seven-tenths percent (12.7%) of the total sales tax revenue 485
collected during the preceding month under Section 27-65-17(1)(n), 486
shall be deposited into the Education Enhancement Fund created 487
under Section 37-61-33. 488
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(9) On or before August 15, 1994, and each succeeding month 489
thereafter, from the revenue collected under this chapter during 490
the preceding month, Two Hundred Fifty Thousand Dollars 491
($250,000.00) shall be paid into the State Aid Road Fund. 492
(10) On or before August 15, 1994, and each succeeding month 493
thereafter through August 15, 1995, from the revenue collected 494
under this chapter during the preceding month, Two Million Dollars 495
($2,000,000.00) shall be deposited into the Motor Vehicle Ad 496
Valorem Tax Reduction Fund established in Section 27-51-105. 497
(11) Notwithstanding any other provision of this section to 498
the contrary, on or before February 15, 1995, and each succeeding 499
month thereafter, the sales tax revenue collected during the 500
preceding month under the provisions of Section 27-65-17(2) and 501
the corresponding levy in Section 27-65-23 on the rental or lease 502
of private carriers of passengers and light carriers of property 503
as defined in Section 27-51-101 shall be deposited, without 504
diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund 505
established in Section 27-51-105. 506
(12) Notwithstanding any other provision of this section to 507
the contrary, on or before August 15, 1995, and each succeeding 508
month thereafter, the sales tax revenue collected during the 509
preceding month under the provisions of Section 27-65-17(1) on 510
retail sales of private carriers of passengers and light carriers 511
of property, as defined in Section 27-51-101 and the corresponding 512
levy in Section 27-65-23 on the rental or lease of these vehicles, 513
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shall be deposited, after diversion, into the Motor Vehicle Ad 514
Valorem Tax Reduction Fund established in Section 27-51-105. 515
(13) On or before July 15, 1994, and on or before the 516
fifteenth day of each succeeding month thereafter, that portion of 517
the avails of the tax imposed in Section 27-65-22 that is derived 518
from activities held on the Mississippi State Fairgrounds Complex 519
shall be paid into a special fund that is created in the State 520
Treasury and shall be expended upon legislative appropriation 521
solely to defray the costs of repairs and renovation at the Trade 522
Mart and Coliseum. 523
(14) On or before August 15, 1998, and each succeeding month 524
thereafter through July 15, 2005, that portion of the avails of 525
the tax imposed in Section 27-65-23 that is derived from sales by 526
cotton compresses or cotton warehouses and that would otherwise be 527
paid into the General Fund shall be deposited in an amount not to 528
exceed Two Million Dollars ($2,000,000.00) into the special fund 529
created under Section 69-37-39. On or before August 15, 2007, and 530
each succeeding month thereafter through July 15, 2010, that 531
portion of the avails of the tax imposed in Section 27-65-23 that 532
is derived from sales by cotton compresses or cotton warehouses 533
and that would otherwise be paid into the General Fund shall be 534
deposited in an amount not to exceed Two Million Dollars 535
($2,000,000.00) into the special fund created under Section 536
69-37-39 until all debts or other obligations incurred by the 537
Certified Cotton Growers Organization under the Mississippi Boll 538
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Weevil Management Act before January 1, 2007, are satisfied in 539
full. On or before August 15, 2010, and each succeeding month 540
thereafter through July 15, 2011, fifty percent (50%) of that 541
portion of the avails of the tax imposed in Section 27-65-23 that 542
is derived from sales by cotton compresses or cotton warehouses 543
and that would otherwise be paid into the General Fund shall be 544
deposited into the special fund created under Section 69-37-39 545
until such time that the total amount deposited into the fund 546
during a fiscal year equals One Million Dollars ($1,000,000.00). 547
On or before August 15, 2011, and each succeeding month 548
thereafter, that portion of the avails of the tax imposed in 549
Section 27-65-23 that is derived from sales by cotton compresses 550
or cotton warehouses and that would otherwise be paid into the 551
General Fund shall be deposited into the special fund created 552
under Section 69-37-39 until such time that the total amount 553
deposited into the fund during a fiscal year equals One Million 554
Dollars ($1,000,000.00). 555
(15) Notwithstanding any other provision of this section to 556
the contrary, on or before September 15, 2000, and each succeeding 557
month thereafter, the sales tax revenue collected during the 558
preceding month under the provisions of Section 559
27-65-19(1)(d)(i)2, and 27-65-19(1)(d)(i)3 shall be deposited, 560
without diversion, into the Telecommunications Ad Valorem Tax 561
Reduction Fund established in Section 27-38-7. 562
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(16) (a) On or before August 15, 2000, and each succeeding 563
month thereafter, the sales tax revenue collected during the 564
preceding month under the provisions of this chapter on the gross 565
proceeds of sales of a project as defined in Section 57-30-1 shall 566
be deposited, after all diversions except the diversion provided 567
for in subsection (1) of this section, into the Sales Tax 568
Incentive Fund created in Section 57-30-3. 569
(b) On or before August 15, 2007, and each succeeding 570
month thereafter, eighty percent (80%) of the sales tax revenue 571
collected during the preceding month under the provisions of this 572
chapter from the operation of a tourism project under the 573
provisions of Sections 57-26-1 through 57-26-5, shall be 574
deposited, after the diversions required in subsections (7) and 575
(8) of this section, into the Tourism Project Sales Tax Incentive 576
Fund created in Section 57-26-3. 577
(17) Notwithstanding any other provision of this section to 578
the contrary, on or before April 15, 2002, and each succeeding 579
month thereafter, the sales tax revenue collected during the 580
preceding month under Section 27-65-23 on sales of parking 581
services of parking garages and lots at airports shall be 582
deposited, without diversion, into the special fund created under 583
Section 27-5-101(d). 584
(18) [Repealed] 585
(19) (a) On or before August 15, 2005, and each succeeding 586
month thereafter, the sales tax revenue collected during the 587
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preceding month under the provisions of this chapter on the gross 588
proceeds of sales of a business enterprise located within a 589
redevelopment project area under the provisions of Sections 590
57-91-1 through 57-91-11, and the revenue collected on the gross 591
proceeds of sales from sales made to a business enterprise located 592
in a redevelopment project area under the provisions of Sections 593
57-91-1 through 57-91-11 (provided that such sales made to a 594
business enterprise are made on the premises of the business 595
enterprise), shall, except as otherwise provided in this 596
subsection (19), be deposited, after all diversions, into the 597
Redevelopment Project Incentive Fund as created in Section 598
57-91-9. 599
(b) For a municipality participating in the Economic 600
Redevelopment Act created in Sections 57-91-1 through 57-91-11, 601
the diversion provided for in subsection (1) of this section 602
attributable to the gross proceeds of sales of a business 603
enterprise located within a redevelopment project area under the 604
provisions of Sections 57-91-1 through 57-91-11, and attributable 605
to the gross proceeds of sales from sales made to a business 606
enterprise located in a redevelopment project area under the 607
provisions of Sections 57-91-1 through 57-91-11 (provided that 608
such sales made to a business enterprise are made on the premises 609
of the business enterprise), shall be deposited into the 610
Redevelopment Project Incentive Fund as created in Section 611
57-91-9, as follows: 612
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(i) For the first six (6) years in which payments 613
are made to a developer from the Redevelopment Project Incentive 614
Fund, one hundred percent (100%) of the diversion shall be 615
deposited into the fund; 616
(ii) For the seventh year in which such payments 617
are made to a developer from the Redevelopment Project Incentive 618
Fund, eighty percent (80%) of the diversion shall be deposited 619
into the fund; 620
(iii) For the eighth year in which such payments 621
are made to a developer from the Redevelopment Project Incentive 622
Fund, seventy percent (70%) of the diversion shall be deposited 623
into the fund; 624
(iv) For the ninth year in which such payments are 625
made to a developer from the Redevelopment Project Incentive Fund, 626
sixty percent (60%) of the diversion shall be deposited into the 627
fund; and 628
(v) For the tenth year in which such payments are 629
made to a developer from the Redevelopment Project Incentive Fund, 630
fifty percent (50%) of the funds shall be deposited into the fund. 631
(20) On or before January 15, 2007, and each succeeding 632
month thereafter, eighty percent (80%) of the sales tax revenue 633
collected during the preceding month under the provisions of this 634
chapter from the operation of a tourism project under the 635
provisions of Sections 57-28-1 through 57-28-5 shall be deposited, 636
after the diversions required in subsections (7) and (8) of this 637
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section, into the Tourism Sales Tax Incentive Fund created in 638
Section 57-28-3. 639
(21) (a) On or before April 15, 2007, and each succeeding 640
month thereafter through June 15, 2013, One Hundred Fifty Thousand 641
Dollars ($150,000.00) of the sales tax revenue collected during 642
the preceding month under the provisions of this chapter shall be 643
deposited into the MMEIA Tax Incentive Fund created in Section 644
57-101-3. 645
(b) On or before July 15, 2013, and each succeeding 646
month thereafter, One Hundred Fifty Thousand Dollars ($150,000.00) 647
of the sales tax revenue collected during the preceding month 648
under the provisions of this chapter shall be deposited into the 649
Mississippi Development Authority Job Training Grant Fund created 650
in Section 57-1-451. 651
(22) On or before June 1, 2024, and each succeeding month 652
thereafter until December 31, 2057, an amount determined annually 653
by the Mississippi Development Authority of the sales tax revenue 654
collected during the preceding month under the provisions of this 655
chapter shall be deposited into the MMEIA Tax Incentive Fund 656
created in Section 57-125-3. This amount shall be based on 657
estimated payments due within the upcoming year to construction 658
contractors pursuant to construction contracts subject to the tax 659
imposed by Section 27-65-21 for construction to be performed on 660
the project site of a project defined under Section 661
57-75-5(f)(xxxiii) for the coming year. 662
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(23) Notwithstanding any other provision of this section to 663
the contrary, on or before August 15, 2009, and each succeeding 664
month thereafter, the sales tax revenue collected during the 665
preceding month under the provisions of Section 27-65-201 shall be 666
deposited, without diversion, into the Motor Vehicle Ad Valorem 667
Tax Reduction Fund established in Section 27-51-105. 668
(24) (a) On or before August 15, 2019, and each month 669
thereafter through July 15, 2020, one percent (1%) of the total 670
sales tax revenue collected during the preceding month from 671
restaurants and hotels shall be allocated for distribution to the 672
Mississippi Development Authority Tourism Advertising Fund 673
established under Section 57-1-64, to be used exclusively for the 674
purpose stated therein. On or before August 15, 2020, and each 675
month thereafter through July 15, 2021, two percent (2%) of the 676
total sales tax revenue collected during the preceding month from 677
restaurants and hotels shall be allocated for distribution to the 678
Mississippi Development Authority Tourism Advertising Fund 679
established under Section 57-1-64, to be used exclusively for the 680
purpose stated therein. On or before August 15, 2021, and each 681
month thereafter, three percent (3%) of the total sales tax 682
revenue collected during the preceding month from restaurants and 683
hotels shall be allocated for distribution to the Mississippi 684
Development Authority Tourism Advertising Fund established under 685
Section 57-1-64, to be used exclusively for the purpose stated 686
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therein. The revenue diverted pursuant to this subsection shall 687
not be available for expenditure until February 1, 2020. 688
(b) The Joint Legislative Committee on Performance 689
Evaluation and Expenditure Review (PEER) must provide an annual 690
report to the Legislature indicating the amount of funds deposited 691
into the Mississippi Development Authority Tourism Advertising 692
Fund established under Section 57-1-64, and a detailed record of 693
how the funds are spent. 694
(25) The remainder of the amounts collected under the 695
provisions of this chapter shall be paid into the State Treasury 696
to the credit of the General Fund. 697
(26) (a) It shall be the duty of the municipal officials of 698
any municipality that expands its limits, or of any community that 699
incorporates as a municipality, to notify the commissioner of that 700
action thirty (30) days before the effective date. Failure to so 701
notify the commissioner shall cause the municipality to forfeit 702
the revenue that it would have been entitled to receive during 703
this period of time when the commissioner had no knowledge of the 704
action. 705
(b) (i) Except as otherwise provided in subparagraph 706
(ii) of this paragraph, if any funds have been erroneously 707
disbursed to any municipality or any overpayment of tax is 708
recovered by the taxpayer, the commissioner may make correction 709
and adjust the error or overpayment with the municipality by 710
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ST: Motor vehicle ad valorem tax credit; bring
forward sections of law relating to.
withholding the necessary funds from any later payment to be made 711
to the municipality. 712
(ii) Subject to the provisions of Sections 713
27-65-51 and 27-65-53, if any funds have been erroneously 714
disbursed to a municipality under subsection (1) of this section 715
for a period of three (3) years or more, the maximum amount that 716
may be recovered or withheld from the municipality is the total 717
amount of funds erroneously disbursed for a period of three (3) 718
years beginning with the date of the first erroneous disbursement. 719
However, if during such period, a municipality provides written 720
notice to the Department of Revenue indicating the erroneous 721
disbursement of funds, then the maximum amount that may be 722
recovered or withheld from the municipality is the total amount of 723
funds erroneously disbursed for a period of one (1) year beginning 724
with the date of the first erroneous disbursement. 725
SECTION 6. This act shall take effect and be in force from 726
and after July 1, 2026. 727