Educational Facilities Construction, Infrastructure and Capital Improvements Grant Program; create for improvements.

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To: Education;
Appropriations A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Clark

HOUSE BILL NO. 241

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