Mental Health Employee Retention Loan Repayment Program; create and provide funding for.

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To: Public Health and Human
Services; Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Creekmore IV

HOUSE BILL NO. 344

AN ACT TO CREATE THE MENTAL HEALTH EMPLOYEE RETENTION LOAN 1
REPAYMENT PROGRAM FOR CERTAIN NEW MENTAL HEALTH EMPLOYEES TO BE 2
ADMINISTERED BY THE MISSISSIPPI POSTSECONDARY EDUCATION FINANCIAL 3
ASSISTANCE BOARD; TO PROVIDE ELIGIBILITY REQUIREMENTS FOR PERSONS 4
SEEKING TO PARTICIPATE IN THE PROGRAM; TO SET A MAXIMUM AMOUNT OF 5
LOAN REPAYMENT ASSISTANCE UNDER THE PROGRAM; TO REQUIRE THE 6
MISSISSIPPI POSTSECONDARY EDUCATION FINANCIAL ASSISTANCE BOARD TO 7
PROMULGATE REGULATIONS NECESSARY FOR THE PROPER ADMINISTRATION OF 8
THIS ACT, INCLUDING SETTING A FISCAL YEAR POLICY FOR THE PROGRAM 9
AND APPLICATION DATES AND DEADLINES; TO CREATE THE "MENTAL HEALTH 10
EMPLOYEE RETENTION LOAN REPAYMENT FUND" AS A SPECIAL FUND IN THE 11
STATE TREASURY; TO PROVIDE THAT MONIES IN THE FUND SHALL BE USED 12
BY THE MISSISSIPPI POSTSECONDARY EDUCATION FINANCIAL ASSISTANCE 13
BOARD, UPON APPROPRIATION BY THE LEGISLATURE, FOR THE PURPOSE OF 14
PAYING AWARDS UNDER THE MENTAL HEALTH EMPLOYEE RETENTION LOAN 15
REPAYMENT PROGRAM; TO AMEND SECTION 27-7-15, MISSISSIPPI CODE OF 16
1972, TO REVISE THE DEFINITION OF THE TERM "GROSS INCOME" UNDER 17
THE STATE INCOME TAX LAW TO EXCLUDE LOAN REPAYMENT ASSISTANCE 18
PROVIDED UNDER THE MENTAL HEALTH EMPLOYEE RETENTION LOAN REPAYMENT 19
PROGRAM; TO AMEND SECTION 27-69-3, MISSISSIPPI CODE OF 1972, TO 20
REVISE THE DEFINITION OF THE TERM "TOBACCO" UNDER THE TOBACCO TAX 21
LAW; TO DEFINE THE TERM "VAPOR PRODUCT" UNDER THE TOBACCO TAX LAW; 22
TO AMEND SECTION 27-69-13, MISSISSIPPI CODE OF 1972, TO LEVY AN 23
EXCISE TAX ON VAPOR PRODUCTS; TO AMEND SECTIONS 27-69-15, 24
27-69-27, 27-69-33 AND 27-69-35, MISSISSIPPI CODE OF 1972, IN 25
CONFORMITY THERETO; TO AMEND SECTION 27-69-75, MISSISSIPPI CODE OF 26
1972, TO PROVIDE THAT THE REVENUE DERIVED FROM THE EXCISE TAX ON 27
VAPOR PRODUCTS SHALL BE DEPOSITED INTO THE "MENTAL HEALTH EMPLOYEE 28
RETENTION LOAN REPAYMENT FUND"; TO BRING FORWARD SECTION 27-69-69, 29
MISSISSIPPI CODE OF 1972, WHICH IS A SECTION OF THE TOBACCO TAX 30
LAW, FOR THE PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED 31
PURPOSES. 32
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 33
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SECTION 1. (1) For the purposes of this section, the 34
following terms shall have the meanings ascribed in this 35
subsection unless the context clearly indicates otherwise: 36
(a) "Community mental health center" means a facility 37
authorized under Section 41-19-33, Mississippi Code of 1972. 38
(b) "Mental health employee" means a person who is (i) 39
employed full-time as an employee in the state mental health 40
system and (ii) holds a professional credential through the 41
Department of Mental Health's Division of Professional Licensure 42
and Certification. For the purposes of this paragraph (a), 43
"full-time" means working the equivalent of at least thirty (30) 44
hours of service per week for twelve (12) consecutive months. 45
(c) "State mental health system" means the eleven (11) 46
programs that are operated and/or administered by the Department 47
of Mental Health and/any programs that are operated and/or 48
administered by community mental health centers. 49
(2) There is established the "Mental Health Employee 50
Retention Loan Repayment Program" for persons employed as mental 51
health employees to be administered by the Mississippi 52
Postsecondary Education Financial Assistance Board. 53
(3) Subject to the availability of funds, an eligible 54
applicant for an initial award must have: 55
(a) Legal residency in the State of Mississippi; 56
(b) Gained employment within the last year for the 57
first time as a mental health employee; and 58
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(c) Outstanding qualifying educational loans, received 59
at any point during the recipients postsecondary education career, 60
which may include the principal, interest and related expenses 61
such as the required interest premium on the unpaid balances of 62
government and commercial loans obtained by the recipient for 63
educational expense. 64
(4) Persons who have received funds from state-forgivable 65
loan programs established under Mississippi law, or who are in 66
default or delinquent on any federal, state, local or commercial 67
qualifying educational loan, shall not be eligible for the 68
program. 69
(5) Recipients in the program shall be selected on a 70
first-come, first-served basis from all eligible applicants. The 71
Mississippi Postsecondary Education Financial Assistance Board 72
shall renew eligible applicants approved in prior years only if 73
the renewal applicant continues to meet the standards set forth in 74
this section, and the renewal applicant has not received full 75
funding provided by subsection (6) of this section. 76
(6) Awards for recipients who are employed as a mental 77
health employee may be a maximum of Six Thousand Dollars 78
($6,000.00) for each year of employment up to three (3) years. 79
(7) A recipient shall not be penalized for ending employment 80
as a mental health employee if the recipient begins working again 81
as a mental health employee during the year on which the award is 82
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based and is employed for the time required in subsection (11) of 83
this section. 84
(8) Awards shall be granted on a year-to-year basis, and 85
recipients have no obligation to seek a subsequent award. 86
(9) Awards shall be paid annually, after the expiration of 87
the year of employment for which the award was granted, to the 88
recipient's lender or loan service provider, to be applied to the 89
outstanding balance. Monies paid by the recipient or on the 90
recipient's behalf toward qualifying educational loans before 91
payment of the award shall not be eligible for reimbursement 92
through the program. 93
(10) During the employment year for which the award is 94
granted, a recipient shall at all times keep the Mississippi 95
Postsecondary Education Financial Assistance Board informed of any 96
changes to the recipient's current, correct and complete 97
employment information and status. 98
(11) A recipient must be employed as a mental health 99
employee for the entire twelve (12) months of the year on which 100
the award is based. Recipients who fail to fulfill the year of 101
employment on which the award was based forfeit any right to the 102
award. 103
(12) The Mississippi Postsecondary Education Financial 104
Assistance Board, in collaboration with the Department of Mental 105
Health and any other applicable state agency as determined by the 106
Mississippi Postsecondary Education Financial Assistance Board, 107
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shall attempt to track award recipients under this program through 108
their third employment year, unless the recipient leaves 109
employment as a mental health employee at an earlier date. Data 110
collected shall include each recipients' place of employment and 111
any other pertinent information necessary to determine the 112
efficacy of the program in retaining mental health employees in 113
the State of Mississippi. 114
(13) The Mississippi Postsecondary Education Financial 115
Assistance Board shall promulgate regulations necessary for the 116
proper administration of this section, including setting a fiscal 117
year policy for the program and application dates and deadlines. 118
(14) There is created in the State Treasury a special fund 119
to be designated as the "Mental Health Employee Retention Loan 120
Repayment Fund", which shall consist of funds deposited therein 121
under Section 27-69-75, Mississippi Code of 1972, and funds from 122
any other source designated for deposit into such fund. The fund 123
shall be maintained by the State Treasurer as a separate and 124
special fund, separate and apart from the General Fund of the 125
state. Unexpended amounts remaining in the fund at the end of a 126
fiscal year shall not lapse into the State General Fund, and any 127
investment earnings or interest earned on amounts in the fund 128
shall be deposited to the credit of the fund. Monies in the fund 129
shall be used by the Mississippi Postsecondary Education Financial 130
Assistance Board, upon appropriation by the Legislature, for the 131
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purpose of paying awards under the Mental Health Employee 132
Retention Loan Repayment Program created in this section. 133
(15) This section shall stand repealed on July 1, 2030. 134
SECTION 2. Section 27-7-15, Mississippi Code of 1972, is 135
amended as follows: 136
27-7-15. (1) For the purposes of this article, except as 137
otherwise provided, the term "gross income" means and includes the 138
income of a taxpayer derived from salaries, wages, fees or 139
compensation for service, of whatever kind and in whatever form 140
paid, including income from governmental agencies and subdivisions 141
thereof; or from professions, vocations, trades, businesses, 142
commerce or sales, or renting or dealing in property, or 143
reacquired property; also from annuities, interest, rents, 144
dividends, securities, insurance premiums, reinsurance premiums, 145
considerations for supplemental insurance contracts, or the 146
transaction of any business carried on for gain or profit, or 147
gains, or profits, and income derived from any source whatever and 148
in whatever form paid. The amount of all such items of income 149
shall be included in the gross income for the taxable year in 150
which received by the taxpayer. The amount by which an eligible 151
employee's salary is reduced pursuant to a salary reduction 152
agreement authorized under Section 25-17-5 shall be excluded from 153
the term "gross income" within the meaning of this article. 154
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(2) In determining gross income for the purpose of this 155
section, the following, under regulations prescribed by the 156
commissioner, shall be applicable: 157
(a) Dealers in property. Federal rules, regulations 158
and revenue procedures shall be followed with respect to 159
installment sales unless a transaction results in the shifting of 160
income from inside the state to outside the state. 161
(b) Casual sales of property. 162
(i) Prior to January 1, 2001, federal rules, 163
regulations and revenue procedures shall be followed with respect 164
to installment sales except they shall be applied and administered 165
as if H.R. 3594, the Installment Tax Correction Act of 2000 of the 166
106th Congress, had not been enacted. This provision will 167
generally affect taxpayers, reporting on the accrual method of 168
accounting, entering into installment note agreements on or after 169
December 17, 1999. Any gain or profit resulting from the casual 170
sale of property will be recognized in the year of sale. 171
(ii) From and after January 1, 2001, federal 172
rules, regulations and revenue procedures shall be followed with 173
respect to installment sales except as provided in this 174
subparagraph (ii). Gain or profit from the casual sale of 175
property shall be recognized in the year of sale. When a taxpayer 176
recognizes gain on the casual sale of property in which the gain 177
is deferred for federal income tax purposes, a taxpayer may elect 178
to defer the payment of tax resulting from the gain as allowed and 179
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to the extent provided under regulations prescribed by the 180
commissioner. If the payment of the tax is made on a deferred 181
basis, the tax shall be computed based on the applicable rate for 182
the income reported in the year the payment is made. Except as 183
otherwise provided in subparagraph (iii) of this paragraph (b), 184
deferring the payment of the tax shall not affect the liability 185
for the tax. If at any time the installment note is sold, 186
contributed, transferred or disposed of in any manner and for any 187
purpose by the original note holder, or the original note holder 188
is merged, liquidated, dissolved or withdrawn from this state, 189
then all deferred tax payments under this section shall 190
immediately become due and payable. 191
(iii) If the selling price of the property is 192
reduced by any alteration in the terms of an installment note, 193
including default by the purchaser, the gain to be recognized is 194
recomputed based on the adjusted selling price in the same manner 195
as for federal income tax purposes. The tax on this amount, less 196
the previously paid tax on the recognized gain, is payable over 197
the period of the remaining installments. If the tax on the 198
previously recognized gain has been paid in full to this state, 199
the return on which the payment was made may be amended for this 200
purpose only. The statute of limitations in Section 27-7-49 shall 201
not bar an amended return for this purpose. 202
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(c) Reserves of insurance companies. In the case of 203
insurance companies, any amounts in excess of the legally required 204
reserves shall be included as gross income. 205
(d) Affiliated companies or persons. As regards sales, 206
exchanges or payments for services from one to another of 207
affiliated companies or persons or under other circumstances where 208
the relation between the buyer and seller is such that gross 209
proceeds from the sale or the value of the exchange or the payment 210
for services are not indicative of the true value of the subject 211
matter of the sale, exchange or payment for services, the 212
commissioner shall prescribe uniform and equitable rules for 213
determining the true value of the gross income, gross sales, 214
exchanges or payment for services, or require consolidated returns 215
of affiliates. 216
(e) Alimony and separate maintenance payments. The 217
federal rules, regulations and revenue procedures in determining 218
the deductibility and taxability of alimony payments shall be 219
followed in this state. 220
(f) Reimbursement for expenses of moving. There shall 221
be included in gross income (as compensation for services) any 222
amount received or accrued, directly or indirectly, by an 223
individual as a payment for or reimbursement of expenses of moving 224
from one (1) residence to another residence which is attributable 225
to employment or self-employment. 226
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(3) In the case of taxpayers other than residents, gross 227
income includes gross income from sources within this state. 228
(4) The words "gross income" do not include the following 229
items of income which shall be exempt from taxation under this 230
article: 231
(a) The proceeds of life insurance policies and 232
contracts paid upon the death of the insured. However, the income 233
from the proceeds of such policies or contracts shall be included 234
in the gross income. 235
(b) The amount received by the insured as a return of 236
premium or premiums paid by him under life insurance policies, 237
endowment, or annuity contracts, either during the term or at 238
maturity or upon surrender of the contract. 239
(c) The value of property acquired by gift, bequest, 240
devise or descent, but the income from such property shall be 241
included in the gross income. 242
(d) Interest upon the obligations of the United States 243
or its possessions, or securities issued under the provisions of 244
the Federal Farm Loan Act of 1916, or bonds issued by the War 245
Finance Corporation, or obligations of the State of Mississippi or 246
political subdivisions thereof. 247
(e) The amounts received through accident or health 248
insurance as compensation for personal injuries or sickness, plus 249
the amount of any damages received for such injuries or such 250
sickness or injuries, or through the War Risk Insurance Act, or 251
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any law for the benefit or relief of injured or disabled members 252
of the military or naval forces of the United States. 253
(f) Income received by any religious denomination or by 254
any institution or trust for moral or mental improvements, 255
religious, Bible, tract, charitable, benevolent, fraternal, 256
missionary, hospital, infirmary, educational, scientific, 257
literary, library, patriotic, historical or cemetery purposes or 258
for two (2) or more of such purposes, if such income be used 259
exclusively for carrying out one or more of such purposes. 260
(g) Income received by a domestic corporation which is 261
"taxable in another state" as this term is defined in this 262
article, derived from business activity conducted outside this 263
state. Domestic corporations taxable both within and without the 264
state shall determine Mississippi income on the same basis as 265
provided for foreign corporations under the provisions of this 266
article. 267
(h) In case of insurance companies, there shall be 268
excluded from gross income such portion of actual premiums 269
received from an individual policyholder as is paid back or 270
credited to or treated as an abatement of premiums of such 271
policyholder within the taxable year. 272
(i) Income from dividends that has already borne a tax 273
as dividend income under the provisions of this article, when such 274
dividends may be specifically identified in the possession of the 275
recipient. 276
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(j) Amounts paid by the United States to a person as 277
added compensation for hazardous duty pay as a member of the Armed 278
Forces of the United States in a combat zone designated by 279
Executive Order of the President of the United States. 280
(k) Amounts received as retirement allowances, 281
pensions, annuities or optional retirement allowances paid under 282
the federal Social Security Act, the Railroad Retirement Act, the 283
Federal Civil Service Retirement Act, or any other retirement 284
system of the United States government, retirement allowances paid 285
under the Mississippi Public Employees' Retirement System, 286
Mississippi Highway Safety Patrol Retirement System or any other 287
retirement system of the State of Mississippi or any political 288
subdivision thereof. The exemption allowed under this paragraph 289
(k) shall be available to the spouse or other beneficiary at the 290
death of the primary retiree. 291
(l) Amounts received as retirement allowances, 292
pensions, annuities or optional retirement allowances paid by any 293
public or governmental retirement system not designated in 294
paragraph (k) or any private retirement system or plan of which 295
the recipient was a member at any time during the period of his 296
employment. Amounts received as a distribution under a Roth 297
Individual Retirement Account shall be treated in the same manner 298
as provided under the Internal Revenue Code of 1986, as amended. 299
The exemption allowed under this paragraph (l) shall be available 300
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to the spouse or other beneficiary at the death of the primary 301
retiree. 302
(m) National Guard or Reserve Forces of the United 303
States compensation not to exceed the aggregate sum of Five 304
Thousand Dollars ($5,000.00) for any taxable year through the 2005 305
taxable year, and not to exceed the aggregate sum of Fifteen 306
Thousand Dollars ($15,000.00) for any taxable year thereafter. 307
(n) Compensation received for active service as a 308
member below the grade of commissioned officer and so much of the 309
compensation as does not exceed the maximum enlisted amount 310
received for active service as a commissioned officer in the Armed 311
Forces of the United States for any month during any part of which 312
such members of the Armed Forces (i) served in a combat zone as 313
designated by Executive Order of the President of the United 314
States or a qualified hazardous duty area as defined by federal 315
law, or both; or (ii) was hospitalized as a result of wounds, 316
disease or injury incurred while serving in such combat zone. For 317
the purposes of this paragraph (n), the term "maximum enlisted 318
amount" means and has the same definition as that term has in 26 319
USCS 112. 320
(o) The proceeds received from federal and state 321
forestry incentive programs. 322
(p) The amount representing the difference between the 323
increase of gross income derived from sales for export outside the 324
United States as compared to the preceding tax year wherein gross 325
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income from export sales was highest, and the net increase in 326
expenses attributable to such increased exports. In the absence 327
of direct accounting, the ratio of net profits to total sales may 328
be applied to the increase in export sales. This paragraph (p) 329
shall only apply to businesses located in this state engaging in 330
the international export of Mississippi goods and services. Such 331
goods or services shall have at least fifty percent (50%) of value 332
added at a location in Mississippi. 333
(q) Amounts paid by the federal government for the 334
construction of soil conservation systems as required by a 335
conservation plan adopted pursuant to 16 USCS 3801 et seq. 336
(r) The amount deposited in a medical savings account, 337
and any interest accrued thereon, that is a part of a medical 338
savings account program as specified in the Medical Savings 339
Account Act under Sections 71-9-1 through 71-9-9; provided, 340
however, that any amount withdrawn from such account for purposes 341
other than paying eligible medical expense or to procure health 342
coverage shall be included in gross income. 343
(s) Amounts paid by the Mississippi Soil and Water 344
Conservation Commission from the Mississippi Soil and Water 345
Cost-Share Program for the installation of water quality best 346
management practices. 347
(t) Dividends received by a holding corporation, as 348
defined in Section 27-13-1, from a subsidiary corporation, as 349
defined in Section 27-13-1. 350
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(u) Interest, dividends, gains or income of any kind on 351
any account in the Mississippi Affordable College Savings Trust 352
Fund, as established in Sections 37-155-101 through 37-155-125, to 353
the extent that such amounts remain on deposit in the MACS Trust 354
Fund or are withdrawn pursuant to a qualified withdrawal, as 355
defined in Section 37-155-105. 356
(v) Interest, dividends or gains accruing on the 357
payments made pursuant to a prepaid tuition contract, as provided 358
for in Section 37-155-17. 359
(w) Income resulting from transactions with a related 360
member where the related member subject to tax under this chapter 361
was required to, and did in fact, add back the expense of such 362
transactions as required by Section 27-7-17(2). Under no 363
circumstances may the exclusion from income exceed the deduction 364
add-back of the related member, nor shall the exclusion apply to 365
any income otherwise excluded under this chapter. 366
(x) Amounts that are subject to the tax levied pursuant 367
to Section 27-7-901, and are paid to patrons by gaming 368
establishments licensed under the Mississippi Gaming Control Act. 369
(y) Amounts that are subject to the tax levied pursuant 370
to Section 27-7-903, and are paid to patrons by gaming 371
establishments not licensed under the Mississippi Gaming Control 372
Act. 373
(z) Interest, dividends, gains or income of any kind on 374
any account in a qualified tuition program and amounts received as 375
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distributions under a qualified tuition program shall be treated 376
in the same manner as provided under the United States Internal 377
Revenue Code, as amended. For the purposes of this paragraph (z), 378
the term "qualified tuition program" means and has the same 379
definition as that term has in 26 USCS 529. 380
(aa) The amount deposited in a health savings account, 381
and any interest accrued thereon, that is a part of a health 382
savings account program as specified in the Health Savings 383
Accounts Act created in Sections 83-62-1 through 83-62-9; however, 384
any amount withdrawn from such account for purposes other than 385
paying qualified medical expenses or to procure health coverage 386
shall be included in gross income, except as otherwise provided by 387
Sections 83-62-7 and 83-62-9. 388
(bb) Amounts received as qualified disaster relief 389
payments shall be treated in the same manner as provided under the 390
United States Internal Revenue Code, as amended. 391
(cc) Amounts received as a "qualified Hurricane Katrina 392
distribution" as defined in the United States Internal Revenue 393
Code, as amended. 394
(dd) Amounts received by an individual which may be 395
excluded from income as foreign earned income for federal income 396
tax purposes. 397
(ee) Amounts received by a qualified individual, 398
directly or indirectly, from an employer or nonprofit housing 399
organization that are qualified housing expenses associated with 400
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an employer-assisted housing program. For purposes of this 401
paragraph (ee): 402
(i) "Qualified individual" means any individual 403
whose household income does not exceed one hundred twenty percent 404
(120%) of the area median gross income (as defined by the United 405
States Department of Housing and Urban Development), adjusted for 406
household size, for the area in which the housing is located. 407
(ii) "Nonprofit housing organization" means an 408
organization that is organized as a not-for-profit organization 409
under the laws of this state or another state and has as one of 410
its purposes: 411
1. Homeownership education or counseling; 412
2. The development of affordable housing; or 413
3. The development or administration of 414
employer-assisted housing programs. 415
(iii) "Employer-assisted housing program" means a 416
separate written plan of any employer (including, without 417
limitation, tax-exempt organizations and public employers) for the 418
exclusive benefit of the employer's employees to pay qualified 419
housing expenses to assist the employer's employees in securing 420
affordable housing. 421
(iv) "Qualified housing expenses" means: 422
1. With respect to rental assistance, an 423
amount not to exceed Two Thousand Dollars ($2,000.00) paid for the 424
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purpose of assisting employees with security deposits and rental 425
subsidies; and 426
2. With respect to homeownership assistance, 427
an amount not to exceed the lesser of Ten Thousand Dollars 428
($10,000.00) or six percent (6%) of the purchase price of the 429
employee's principal residence that is paid for the purpose of 430
assisting employees with down payments, payment of closing costs, 431
reduced interest mortgages, mortgage guarantee programs, mortgage 432
forgiveness programs, equity contribution programs, or 433
contributions to homebuyer education and/or homeownership 434
counseling of eligible employees. 435
(ff) For the 2010 taxable year and any taxable year 436
thereafter, amounts converted in accordance with the United States 437
Internal Revenue Code, as amended, from a traditional Individual 438
Retirement Account to a Roth Individual Retirement Account. The 439
exemption allowed under this paragraph (ff) shall be available to 440
the spouse or other beneficiary at the death of the primary 441
retiree. 442
(gg) Amounts received for the performance of disaster 443
or emergency-related work as defined in Section 27-113-5. 444
(hh) The amount deposited in a catastrophe savings 445
account established under Sections 27-7-1001 through 27-7-1007, 446
interest income earned on the catastrophe savings account, and 447
distributions from the catastrophe savings account; however, any 448
amount withdrawn from a catastrophe savings account for purposes 449
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other than paying qualified catastrophe expenses shall be included 450
in gross income, except as otherwise provided by Sections 451
27-7-1001 through 27-7-1007. 452
(ii) Interest, dividends, gains or income of any kind 453
on any account in the Mississippi Achieving a Better Life 454
Experience (ABLE) Trust Fund, as established in Chapter 28, Title 455
43, to the extent that such amounts remain on deposit in the ABLE 456
Trust Fund or are withdrawn pursuant to a qualified withdrawal, as 457
defined in Section 43-28-11. 458
(jj) Subject to the limitations provided under Section 459
27-7-1103, amounts deposited into a first-time homebuyer savings 460
account and any interest or other income earned attributable to an 461
account and monies or funds withdrawn or distributed from an 462
account for the payment of eligible costs by or on behalf of a 463
qualified beneficiary; however, any monies or funds withdrawn or 464
distributed from a first-time homebuyer savings account for any 465
purpose other than the payment of eligible costs by or on behalf 466
of a qualified beneficiary shall be included in gross income. For 467
the purpose of this paragraph (jj), the terms "first-time 468
homebuyer savings account," "eligible costs" and "qualified 469
beneficiary" mean and have the same definitions as such terms have 470
in Section 27-7-1101. 471
(kk) Amounts paid by an agricultural disaster program 472
as compensation to an agricultural producer, cattle farmer or 473
cattle rancher who has suffered a loss as the result of a disaster 474
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or emergency, including, but not limited to, the following United 475
States Department of Agriculture programs: 476
(i) Livestock Forage Disaster Program; 477
(ii) Livestock Indemnity Program; 478
(iii) Emergency Assistance for Livestock, Honey 479
Bees and Farm-raised Fish Program; 480
(iv) Emergency Conservation Program; 481
(v) Noninsured Crop Disaster Assistance Program; 482
(vi) Pasture, Rangeland, Forage Pilot Insurance 483
Program; 484
(vii) Annual Forage Pilot Program; 485
(viii) Livestock Risk Protection Insurance 486
Program; and 487
(ix) Livestock Gross Margin Insurance Plan. 488
(ll) Amounts received as advances and/or grants under 489
the federal Coronavirus Aid, Relief, and Economic Security Act, 490
the Consolidated Appropriations Act of 2021 and the American 491
Rescue Plan Act. 492
(mm) Any and all cancelled indebtedness provided for 493
under the Coronavirus Aid, Relief, and Economic Security Act and 494
the Consolidated Appropriations Act of 2021. 495
(nn) Amounts received as payments under Section 496
27-3-85. 497
(oo) Amounts received as grants under the 2020 COVID-19 498
Mississippi Business Assistance Act. 499
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(pp) Amounts received as grants under Section 57-1-521. 500
( * * *qq) Amounts received as grants under the 501
Shuttered Venue Operators Grant Program and Restaurant 502
Revitalization Fund authorized by the Economic Aid to Hard-Hit 503
Small Businesses, Nonprofits, and Venues Act, and amended by the 504
American Rescue Plan Act. 505
( * * *rr) Amounts received as grants under the 506
Mississippi Agriculture Stabilization Act. 507
(ss) Awards for loan repayment assistance made under 508
the Mental Health Employee Retention Loan Repayment Program 509
created in Section 1 of this act. 510
(5) Prisoners of war, missing in action-taxable status. 511
(a) Members of the Armed Forces. Gross income does not 512
include compensation received for active service as a member of 513
the Armed Forces of the United States for any month during any 514
part of which such member is in a missing status, as defined in 515
paragraph (d) of this subsection, during the Vietnam Conflict as a 516
result of such conflict. 517
(b) Civilian employees. Gross income does not include 518
compensation received for active service as an employee for any 519
month during any part of which such employee is in a missing 520
status during the Vietnam Conflict as a result of such conflict. 521
(c) Period of conflict. For the purpose of this 522
subsection, the Vietnam Conflict began February 28, 1961, and ends 523
on the date designated by the President by Executive Order as the 524
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date of the termination of combatant activities in Vietnam. For 525
the purpose of this subsection, an individual is in a missing 526
status as a result of the Vietnam Conflict if immediately before 527
such status began he was performing service in Vietnam or was 528
performing service in Southeast Asia in direct support of military 529
operations in Vietnam. "Southeast Asia," as used in this 530
paragraph, is defined to include Cambodia, Laos, Thailand and 531
waters adjacent thereto. 532
(d) "Missing status" means the status of an employee or 533
member of the Armed Forces who is in active service and is 534
officially carried or determined to be absent in a status of (i) 535
missing; (ii) missing in action; (iii) interned in a foreign 536
country; (iv) captured, beleaguered or besieged by a hostile 537
force; or (v) detained in a foreign country against his will; but 538
does not include the status of an employee or member of the Armed 539
Forces for a period during which he is officially determined to be 540
absent from his post of duty without authority. 541
(e) "Active service" means active federal service by an 542
employee or member of the Armed Forces of the United States in an 543
active duty status. 544
(f) "Employee" means one who is a citizen or national 545
of the United States or an alien admitted to the United States for 546
permanent residence and is a resident of the State of Mississippi 547
and is employed in or under a federal executive agency or 548
department of the Armed Forces. 549
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(g) "Compensation" means (i) basic pay; (ii) special 550
pay; (iii) incentive pay; (iv) basic allowance for quarters; (v) 551
basic allowance for subsistence; and (vi) station per diem 552
allowances for not more than ninety (90) days. 553
(h) If refund or credit of any overpayment of tax for 554
any taxable year resulting from the application of this subsection 555
(5) is prevented by the operation of any law or rule of law, such 556
refund or credit of such overpayment of tax may, nevertheless, be 557
made or allowed if claim therefor is filed with the Department of 558
Revenue within three (3) years after the date of the enactment of 559
this subsection. 560
(i) The provisions of this subsection shall be 561
effective for taxable years ending on or after February 28, 1961. 562
(6) A shareholder of an S corporation, as defined in Section 563
27-8-3(1)(g), shall take into account the income, loss, deduction 564
or credit of the S corporation only to the extent provided in 565
Section 27-8-7(2). 566
SECTION 3. Section 27-69-3, Mississippi Code of 1972, is 567
amended as follows: 568
27-69-3. When used in this chapter: 569
(a) "State" means the State of Mississippi as 570
geographically defined, and any and all waters under the 571
jurisdiction of the State of Mississippi. 572
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(b) "State Auditor" means the Auditor of Public 573
Accounts of the State of Mississippi, or his legally appointed 574
deputy, clerk or agent. 575
(c) "Commissioner" means the Commissioner of Revenue of 576
the Department of Revenue, and his authorized agents and 577
employees. 578
(d) "Person" means any individual, company, 579
corporation, partnership, association, joint venture, estate, 580
trust, or any other group, or combination acting as a unit, and 581
the plural as well as the singular, unless the intention to give a 582
more limited meaning is disclosed by the context. 583
(e) "Consumer" means a person who comes into possession 584
of tobacco for the purpose of consuming it, giving it away, or 585
disposing of it in any way by sale, barter or exchange. 586
(f) "Tobacco" means any cigarettes, cigars, cheroots, 587
stogies, smoking tobacco (including granulated, plug cut, crimp 588
cut, ready rubbed, and other kinds and forms of tobacco, or 589
substitutes therefor, prepared in such manner as to be suitable 590
for smoking in a pipe or cigarette) and including plug and twist 591
chewing tobacco and snuff, when such "tobacco" is manufactured and 592
prepared for sale or personal consumption. The term "tobacco" 593
also includes vapor products. All words used herein, except vapor 594
products, shall be given the meaning as defined in the regulations 595
of the Treasury Department of the United States of America. The 596
term "tobacco" also includes heated tobacco products. 597
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(g) "First sale" means and includes the first sale, or 598
distribution of such tobacco in intrastate commerce, or the first 599
use or consumption of such tobacco within this state. 600
(h) "Drop shipment" means and includes any delivery of 601
tobacco received by any person within this state, when payment for 602
such tobacco is made to the shipper, or seller by or through a 603
person other than a consignee. 604
(i) "Distributor" includes every person, except 605
retailers as defined herein, in the state who manufactures or 606
produces tobacco or who ships, transports, or imports into this 607
state, or in any manner acquires or possesses tobacco, and makes a 608
first sale of the same in the state. 609
(j) "Wholesaler" includes dealers, whose principal 610
business is that of a wholesale dealer or jobber, who is known to 611
the retail trade as such, and whose place of business is located 612
in Mississippi or in a state which affords reciprocity to 613
wholesalers domiciled in Mississippi, who shall sell any taxable 614
tobacco to retail dealers only for the purpose of resale. 615
(k) "Retailer" includes every person, other than a 616
wholesale dealer, as defined above, whose principal business is 617
that of selling merchandise at retail, who shall sell, or offer 618
for sale tobacco to the consumer. The sale of tobacco in quantity 619
lots by retailers to other retailers, transient vendors, or other 620
persons, shall not be construed as wholesale and shall not qualify 621
such retailer for a permit as a wholesaler. 622
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(l) "Dealer" includes every person, firm, corporation 623
or association of persons, except retailers as defined herein, who 624
manufacture tobacco for distribution, for sale, for use or for 625
consumption in the State of Mississippi. 626
The word "dealer" is further defined to mean any person, 627
firm, corporation or association of persons, except retailers as 628
defined herein, who imports tobacco from any state or foreign 629
country for distribution, sale, use, or consumption in the State 630
of Mississippi. 631
(m) "Distributing agent" includes every person in the 632
state who acts as an agent of any person outside the State of 633
Mississippi, by receiving tobacco in interstate commerce, and 634
storing such tobacco in this state subject to distribution, or 635
delivery upon order from the person outside the state to 636
distributors, wholesalers, retailers and dealers. 637
(n) "Transient vendor" means and includes every person 638
commonly and generally termed "peddlers" and every person acting 639
for himself, or as an agent, employee, salesman, or in any 640
capacity for another, whether as owner, bailee, or other custodian 641
of tobacco, and going from person to person, dealer to dealer, 642
house to house, or place to place, and selling or offering for 643
sale at retail or wholesale tobacco, and every person who does not 644
keep a regular place of business open at all times in regular 645
hours, and every person who goes from person to person, dealer to 646
dealer, house to house, or place to place, and sells or offers for 647
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sale tobacco which he carries with him, and who delivers the same 648
at the time of, or immediately after the sale, or without 649
returning to the place of business operations (a permanent place 650
of business within the state) between the taking of the order and 651
the delivery of the tobacco, or 652
All persons who go from person to person, house to house, 653
place to place, or dealer to dealer, soliciting orders by 654
exhibiting samples, or taking orders, and thereafter making 655
delivery of tobacco, or filling the order without carrying or 656
sending the order to the permanent place of business, and 657
thereafter making delivery of the tobacco pursuant to the terms of 658
the order, or 659
All persons who go from person to person, place to place, 660
house to house, or dealer to dealer, carrying samples and selling 661
tobacco from samples, and afterwards making delivery without 662
taking and sending an order therefor to a permanent place of 663
business for the filling of the order, and delivery of the 664
tobacco, or the exchange of tobacco having become damaged or 665
unsalable, or the purchase by tobacco of advertising space, or 666
All persons who have in their possession, or under their 667
control, any tobacco offered, or to be offered for sale or to be 668
delivered, unless the sale or delivery thereof is to be made in 669
pursuance of a bona fide order for the tobacco, to be sold or 670
delivered, the order to be evidenced by an invoice or memorandum. 671
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(o) "Contraband tobacco" means all tobacco found in the 672
possession of any person whose permit to engage in dealing in 673
tobacco has been revoked by the commissioner; and any cigarettes 674
found in the possession of any person to which the proper tax 675
stamps have not been affixed; and any cigarettes improperly 676
stamped when found in the possession of any person; and all other 677
tobacco upon which the excise tax has not been paid. 678
(p) "Sale" means an exchange for money or goods, giving 679
away, or distributing any tobacco as defined in this chapter. 680
(q) "Forty-eight (48) hours" and "seventy-two (72) 681
hours" means two (2) calendar days and three (3) calendar days, 682
respectively, excluding Sundays and legal holidays. 683
(r) "Stamp" or "stamping," or the import of such word, 684
when used in this chapter, means any manner of stamp or impression 685
permitted by the commissioner that carries out the purposes of the 686
chapter in clearly indicating upon the packages of cigarettes 687
taxed the due payment of the tax and clearly identifying, by 688
serial number or otherwise, the permittee who affixed the stamp to 689
the particular package. 690
(s) "Manufacturer's list price" means the full sales 691
price at which tobacco is sold or offered for sale by a 692
manufacturer to the wholesaler or distributor in this state 693
without any deduction for freight, trade discount, cash discounts, 694
special discounts or deals, cash rebates, or any other reduction 695
from the regular selling price. In the event freight charges on 696
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shipments to wholesalers or distributors are not paid by the 697
manufacturer, then such freight charges required to be paid by the 698
wholesalers and distributors shall be added to the amount paid to 699
the manufacturer in order to determine "manufacturer's list 700
price." In the case of a wholesaler or distributor whose place of 701
business is located outside this state, the "manufacturer's list 702
price" for tobacco sold in this state by such wholesaler or 703
distributor shall in all cases be considered to be the same as 704
that of a wholesaler or distributor located within this state. 705
(t) "Heated tobacco products" means a product 706
containing tobacco that produces an inhalable aerosol by (i) 707
heating the tobacco without combustion of the tobacco or (ii) heat 708
generated from a combustion source that only or primarily heats 709
rather than burns the tobacco. 710
(u) "Vapor product" means an electronic product or 711
device that may be used to deliver any aerosolized or vaporized 712
substance to the person inhaling from the product or device, 713
including, but not limited to, an e-cigar, e-cigarillo, e-pipe, 714
vape pen or e-hookah; and includes any cartridge, component, part 715
or accessory of the electronic product or device, whether or not 716
sold separately, and also includes any liquid, capsule, powder or 717
substance intended to be aerosolized, vaporized or otherwise 718
ingested during the use of the electronic product or device, 719
whether or not the substance contains nicotine. The term "vapor 720
product" does not include (i) a product that is a drug under 21 721
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USCS 321(g)(1); (ii) a product that is a device under 21 USCS 722
321(h); or (iii) a combination product described in 21 USCS 723
353(g). 724
SECTION 4. Section 27-69-13, Mississippi Code of 1972, is 725
amended as follows: 726
27-69-13. There is hereby imposed, levied and assessed, to 727
be collected and paid as hereinafter provided in this chapter, an 728
excise tax on each person or dealer in cigarettes, cigars, 729
stogies, snuff, chewing tobacco, * * * smoking tobacco, and vapor 730
products, or substitutes therefor, upon the sale, use, 731
consumption, handling or distribution in the State of Mississippi, 732
as follows: 733
(a) On cigarettes, the rate of tax shall be Three and 734
Four-tenths Cents (3.4¢) on each cigarette sold with a maximum 735
length of one hundred twenty (120) millimeters; any cigarette in 736
excess of this length shall be taxed as if it were two (2) or more 737
cigarettes. Provided, however, if the federal tax rate on 738
cigarettes in effect on June 1, 1985, is reduced, then the rate as 739
provided herein shall be increased by the amount of the federal 740
tax reduction. Such tax increase shall take effect on the first 741
day of the month following the effective date of such reduction in 742
the federal tax rate. Heated tobacco products shall not be taxed 743
as cigarettes under this paragraph (a); however, this exclusion 744
shall not affect heated tobacco products for any purposes related 745
to Section 27-70-1 et seq. 746
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(b) On cigars, cheroots, stogies, snuff, chewing and 747
smoking tobacco and all other tobacco products except 748
cigarettes * * *, heated tobacco products and vapor products, the 749
rate of tax shall be fifteen percent (15%) of the manufacturer's 750
list price. 751
(c) On heated tobacco products, the rate of tax shall 752
be one and twenty-five one-hundredths cents (1.25¢) on each 753
disposable heated tobacco unit or stick sold to be used for 754
consumption by insertion into a heated tobacco product heating 755
system device. 756
(d) On vapor products, the rate of tax shall be 757
twenty-five percent (25%) of the manufacturer's list price. 758
No stamp evidencing the tax herein levied on cigarettes shall 759
be of a denomination of less than One Cent (1¢), and whenever the 760
tax computed at the rates herein prescribed on cigarettes shall be 761
a specified amount, plus a fractional part of One Cent (1¢), the 762
package shall be stamped for the next full cent; however, the 763
additional face value of stamps purchased to comply with taxes 764
imposed by this section after June 1, 1985, shall be subject to a 765
four percent (4%) discount or compensation to dealers for their 766
services rather than the eight percent (8%) discount or 767
compensation allowed by Section 27-69-31. 768
Every wholesaler shall purchase stamps as provided in this 769
chapter, and affix the same to all packages of cigarettes handled 770
by him as herein provided. 771
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The above tax is levied upon the sale, use, gift, possession 772
or consumption of tobacco within the State of Mississippi, and the 773
impact of the tax levied by this chapter is hereby declared to be 774
on the vendee, user, consumer or possessor of tobacco in this 775
state; and when said tax is paid by any other person, such payment 776
shall be considered as an advance payment and shall thereafter be 777
added to the price of the tobacco and recovered from the ultimate 778
consumer or user. 779
SECTION 5. Section 27-69-15, Mississippi Code of 1972, is 780
amended as follows: 781
27-69-15. Any retailer, transient vendor, distributing 782
agent, salesman, or other dealer who shall receive any cigarettes 783
other than from a wholesaler having a permit as herein provided, 784
and not having the necessary stamps already affixed, shall, after 785
the receipt of such cigarettes, within the time limit herein 786
provided, present the same to some wholesaler having such permit, 787
for the affixing of the stamps required, and it shall be the duty 788
of such wholesaler, thereupon and upon the payment to him by such 789
retailer of the face value of the stamps required, to affix the 790
stamps to said cigarettes in the same manner as if the cigarettes 791
were handled and sold by such wholesaler, provided, that such 792
wholesaler, before affixing the stamps, shall require of the 793
retailer, transient vendor, distributing agent, salesman, or other 794
dealer, the original invoice for the cigarettes to be stamped, and 795
such wholesaler shall in each instance note upon the invoice, the 796
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denominations and number of stamps affixed to the cigarettes 797
covered by said invoice, the notation to be made in ink, or other 798
manner not easy to erase, at the time the stamps are affixed. 799
It is further provided that, in addition hereto, the 800
wholesaler shall keep a separate record of all stamps affixed to 801
taxable cigarettes presented by retailers, transient vendors, 802
distributing agents, salesmen, or other dealers, showing the name 803
of the retailer, transient vendor, distributing agent, salesman, 804
or other dealer, name of the shipper, date of shipper's invoice, 805
the date stamps were affixed, denomination of stamps affixed, and 806
total value of stamps affixed. 807
When the request is made to any wholesaler in this state by a 808
retailer, transient vendor, distributing agent, salesman, or other 809
dealer in this state, said request being duly and seasonably made 810
for the affixing of stamps, and the request is accompanied by 811
proper remittance and invoice, and such wholesaler refuses to 812
affix the stamps to cigarettes as requested, said wholesaler shall 813
forfeit to the state a penalty of Twenty-five Dollars ($25.00) for 814
each offense, the same to be collected by the commissioner and, in 815
addition thereto, in the discretion of the commissioner, forfeit 816
his permit to handle stamps. In the event of such refusal on the 817
part of any wholesaler to affix stamps said retailer, transient 818
vendor, distributing agent, salesman, or other dealer may make 819
application to the commissioner for stamps to be placed on the 820
cigarettes upon which the wholesaler refused to affix the stamps, 821
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said application to be accompanied by an affidavit from the 822
retailer, transient vendor, distributing agent, salesman, or other 823
dealer, or some other credible person, setting forth the facts, 824
whereupon the commissioner may issue and sell to such retailer, 825
transient vendor, distributing agent, salesman, or other dealer, a 826
sufficient number of stamps to be affixed to the cigarettes. 827
Stamps shall not be affixed to any cigarettes except by a 828
wholesale dealer having a permit, except as otherwise provided in 829
this chapter. 830
Stamps shall not be required to be affixed to any cigarettes 831
while the same is in interstate commerce. 832
Any person engaged in this state in the business of making 833
wholesale or retail sales of other tobacco products including 834
cigars, smoking tobacco, chewing tobacco, snuff, vapor products or 835
any other tobacco products except cigarettes and heated tobacco 836
products who purchases such products from a wholesaler or 837
manufacturer outside this state upon which the Mississippi tobacco 838
excise tax has not been imposed, shall be responsible for 839
remitting the Mississippi tobacco excise tax directly to the 840
Mississippi Department of Revenue by the twentieth of the month 841
following the month the sale occurred of the other tobacco 842
products by such person to a Mississippi customer. 843
Any person making retail purchases of other tobacco products 844
including cigars, smoking tobacco, chewing tobacco, snuff, vapor 845
products or any other tobacco products except cigarettes and 846
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heated tobacco products for personal use in this state who 847
purchased such other tobacco products from outside this state upon 848
which the Mississippi tobacco excise tax has not been imposed, 849
shall be responsible for remitting the Mississippi tobacco excise 850
tax directly to the Mississippi Department of Revenue within 851
forty-eight (48) hours after the purchase of the other tobacco 852
products. 853
In no case shall the provisions of this chapter be construed 854
to require the payment of a tax upon any tobacco upon which the 855
tax herein levied has once been paid to the state. 856
SECTION 6. Section 27-69-27, Mississippi Code of 1972, is 857
amended as follows: 858
27-69-27. The payment of the tax imposed by this chapter 859
shall be evidenced by affixing stamps to each individual package 860
of cigarettes usually sold to consumers, as distinguished from 861
cartons or larger units which are composed of a number of 862
individual packages. 863
Except as otherwise provided in this paragraph, the stamp 864
shall be affixed within seventy-two (72) hours after the receipt 865
of the cigarettes by the wholesaler, and within forty-eight (48) 866
hours after receipt of the cigarettes by the retailer; provided, 867
that in the case a dealer conducts a wholesale and retail business 868
at one (1) place of business, stamps shall be affixed within 869
forty-eight (48) hours after receipt of the cigarettes. However, 870
the provisions of this paragraph shall not apply to tobacco at the 871
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point it is purchased at a sale under Section 27-69-56. The stamp 872
must be so securely affixed as to require the continued 873
application of water or of steam to remove it, or so that it 874
cannot be otherwise removed without destruction or mutilation. 875
The excise tax imposed on cigars, smoking tobacco, chewing 876
tobacco, snuff, vapor products and all other tobacco products 877
except cigarettes and heated tobacco products shall be computed by 878
the application of the excise tax rate to the manufacturer's list 879
price on all purchases of such tobacco. The excise tax shall be 880
due and payable on or before the fifteenth day of the month next 881
succeeding the month in which the tax accrues. The tax shall be 882
filed with the commissioner on forms prescribed by the 883
commissioner. 884
Provided, however, manufacturers or other wholesale 885
distributors of tobacco, which are subject to the excise taxes 886
imposed by Section 27-69-13 of this chapter for the privilege of 887
selling or using such tobaccos within this state, who maintain 888
"terminals" or warehouses in which such tobaccos are stored, and 889
who sell only to licensed wholesale dealers within the state who 890
are qualified to purchase and affix the stamps required, may 891
maintain such "spot stocks," intended only for such sales, without 892
affixing the stamps or filing returns and paying the tax. 893
Any person desiring to maintain such "terminal" or warehouse, 894
shall make application to the commissioner and obtain a permit to 895
maintain such stocks without affixing stamps thereto, for sale 896
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exclusively to out-of-state purchasers, or licensed wholesale 897
dealers within this state, and the commissioner is hereby 898
authorized to grant such permit upon the execution and filing with 899
the commissioner, by the applicant, a bond with surety companies, 900
authorized to do business in Mississippi, as surety thereon, and 901
conditioned for the strict compliance by the applicant, with the 902
following conditions under which said privilege may be granted. 903
The person maintaining such stock of untaxed tobacco shall 904
supply to the commissioner monthly, or at such times as the 905
commissioner may require, complete invoices of all tobaccos 906
received, and shall also supply correct invoices of all tobaccos 907
removed from such "terminal" or warehouse, said invoices to 908
contain the correct name and address of all persons to whom such 909
tobacco shall be delivered or consigned, whether within or without 910
the State of Mississippi. 911
The penalty of such bond shall be determined by the 912
commissioner, in an amount sufficient to protect the State of 913
Mississippi from any loss of revenue which might occur by reason 914
of the failure of principal to strictly adhere to the requirement 915
that no tobacco would be sold from such stock within the State of 916
Mississippi, except to licensed wholesale dealers. 917
SECTION 7. Section 27-69-33, Mississippi Code of 1972, is 918
amended as follows: 919
27-69-33. Manufacturers, distributors and wholesalers of 920
cigars, cigarettes * * *, smoking tobacco or vapor products 921
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subject to the tax under this chapter, doing both intrastate and 922
interstate business in such tobacco, must qualify as interstate 923
dealers in such tobacco by applying to the commissioner for 924
permission to engage in such business, and, upon receipt of such 925
permission, he shall be permitted to set aside such part of his 926
stock as may be absolutely necessary for the conduct of such 927
interstate business, without affixing the stamps to cigarettes 928
required by this chapter. Said interstate stock shall be kept in 929
an entirely separate part of the building, separate and apart from 930
intrastate stock, and the said interstate business shall be 931
conducted by the said wholesale dealer in accordance with rules 932
and regulations to be promulgated by the commissioner. 933
It is further provided that shipment of such merchandise be 934
made only by a railroad, express company, boat line, or motor 935
freight line certified by the Mississippi Public Service 936
Commission as a common carrier, or by registered or insured parcel 937
post. 938
It is further provided that any manufacturer, distributor, or 939
wholesaler of cigars, cigarettes * * *, smoking tobacco or vapor 940
products, engaged in interstate commerce in such tobaccos, shall 941
report to the commissioner on or before the fifteenth day of each 942
month, on forms prescribed by the commissioner, all sales of 943
cigarettes made in interstate commerce during the preceding month 944
to which Mississippi stamps were not affixed. These reports must 945
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be made supplementary to the reports required to be filed by 946
Section 27-69-35 of this chapter. 947
Each shipment must be covered by a complete copy of invoice 948
of the consignor, and supported by properly receipted bill of 949
lading of the transportation company, or post office department as 950
specified in the foregoing, and the receipted bills of lading and 951
invoices shall be subject to inspection by the commissioner for a 952
period of three (3) years. 953
The commissioner is further authorized to verify the actual 954
delivery to the consignee of such unstamped taxable cigarettes 955
before allowing credit, and for the purpose of such verification, 956
the commissioner may exchange information with the proper 957
authorities of other states as to movement of taxable tobacco to 958
and from other states into and from the State of Mississippi. 959
SECTION 8. Section 27-69-35, Mississippi Code of 1972, is 960
amended as follows: 961
27-69-35. It shall be the duty of every person subject to 962
the provisions of this chapter, to keep an accurate set of 963
records, showing all transactions had with reference to the 964
purchase, sale or gift of cigars, cigarettes * * *, smoking 965
tobacco or vapor products, and such person shall keep separately 966
all invoices of cigars, cigarettes * * *, smoking tobacco or vapor 967
products, and shall keep a record of all stamps purchased, and 968
such records, and all stocks of cigars, cigarettes * * *, smoking 969
tobacco or vapor products on hand, shall be open to inspection at 970
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all reasonable times to the commissioner; provided, however, that 971
all retail dealers, transient vendors, distributing agents, or 972
other dealers purchasing, or receiving cigars, cigarettes, * * * 973
smoking tobacco or vapor products from without the state, whether 974
the same shall have been ordered through a wholesaler, or jobber 975
in this state, or by drop shipment, or otherwise, shall within 976
five (5) days after receipt of the same, mail a duplicate invoice 977
of all such purchases, or receipts, to the commissioner, and 978
failure to furnish such duplicate invoices shall be deemed a 979
misdemeanor. 980
It is further provided that all manufacturers, distributors 981
and wholesalers of cigars, cigarettes * * *, smoking tobacco or 982
vapor products, who have a permit required by this chapter shall 983
furnish the commissioner with a statement monthly, showing the 984
amount of taxable tobacco received, and must also furnish the 985
commissioner with duplicate invoices covering stamps affixed to 986
drop shipments purchased by retailers. 987
In the examination of such books, records, etc., the 988
commissioner shall have the power to administer oaths to any 989
person, and any person answering falsely, under oath, any of such 990
questions, shall be guilty of perjury. 991
If any person being so examined, fails to answer questions 992
propounded to him by the commissioner, or if any person, being 993
summoned to appear and answer such questions, shall fail or refuse 994
to do so, or if any person shall fail or refuse to permit the 995
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inspection of his stock of merchandise, or invoices, or books, or 996
papers pertaining to any dealers in cigars, cigarettes * * *, 997
smoking tobacco or vapor products, the commissioner may make such 998
fact known to the circuit court of the county in which such 999
failure or refusal occurs, or judge thereof in termtime or in 1000
vacation, by petition, and such circuit court, or judge thereof, 1001
shall issue a summons for such person so refusing, returnable on a 1002
date to be fixed by said court, or said judge, and on said date, 1003
the said circuit court, or the circuit judge, shall proceed to 1004
examine into the truth of the matter set out in said petition, and 1005
if the same be found to be true, the said circuit court, or 1006
circuit judge, shall issue a writ of subpoena duces tecum ordering 1007
and directing the person so summoned to bring into court, and 1008
exhibit for the inspection of the commissioner, all such books, 1009
records, invoices, etc., as the court may deem proper from all the 1010
facts and circumstances in the case. Any person failing or 1011
refusing to present such books, records, invoices, etc., or 1012
failing or refusing to testify, shall be punished for contempt as 1013
provided by Section 9-1-17 of the Mississippi Code of 1972. 1014
SECTION 9. Section 27-69-75, Mississippi Code of 1972, is 1015
amended as follows: 1016
27-69-75. All taxes levied by this chapter shall be payable 1017
to the commissioner in cash, or by personal check, cashier's 1018
check, bank exchange, post office money order or express money 1019
order, and shall be deposited by the commissioner in the State 1020
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Treasury on the same day collected. No remittance other than cash 1021
shall be a final discharge of liability for the tax herein 1022
assessed and levied, unless and until it has been paid in cash to 1023
the commissioner. 1024
Except as otherwise provided in this section, all tobacco 1025
taxes collected, including tobacco license taxes, shall be 1026
deposited into the State Treasury to the credit of the General 1027
Fund. All tobacco taxes collected on vapor products under Section 1028
27-69-13 shall be deposited into the Mental Health Employee 1029
Retention Loan Repayment Fund created in Section 1 of this act. 1030
Wholesalers who are entitled to purchase stamps at a 1031
discount, as provided by Section 27-69-31, may have consigned to 1032
them, without advance payment, such stamps, if and when such 1033
wholesaler shall give to the commissioner a good and sufficient 1034
bond executed by some surety company authorized to do business in 1035
this state, conditioned to secure the payment for the stamps so 1036
consigned. The commissioner shall require payment for such stamps 1037
not later than thirty (30) days from the date the stamps were 1038
consigned. 1039
SECTION 10. Section 27-69-69, Mississippi Code of 1972, is 1040
brought forward as follows: 1041
27-69-69. Any municipality within this state, in which any 1042
business licensed under the provisions of this chapter, may be 1043
carried on, shall have the right to impose upon persons engaged in 1044
such business, an annual privilege tax of not more than fifty 1045
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ST: Mental Health Employee Retention Loan
Repayment Program; create and provide funding
for.
percent (50%) of the permit fee imposed by Section 27-69-7 of this 1046
chapter; provided, however, that no person engaged in the 1047
wholesale sale, or distribution of cigars, cigarettes or smoking 1048
tobacco taxed by this chapter shall be taxed by any municipality 1049
other than that in which the warehouse or wholesale business is 1050
located. 1051
SECTION 11. This act shall take effect and be in force from 1052
and after July 1, 2026. 1053