Sales tax; impose on portion of cigarette increased cost to wholesaler or cost to the retailer included in sales price.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Lamar

HOUSE BILL NO. 4043

AN ACT TO IMPOSE A TAX ON THE SALE OF CIGARETTES AT WHOLESALE 1
OR RETAIL, AS THE CASE MAY BE, ON THE AMOUNT OF THE INCREASE IN 2
COST TO WHOLESALER OR COST TO THE RETAILER, AS THE CASE MAY BE, 3
UNDER THE UNFAIR CIGARETTE SALES LAW AS PROVIDED FOR IN THIS ACT; 4
TO AMEND SECTION 75-23-5, MISSISSIPPI CODE OF 1972, TO REVISE THE 5
DEFINITION OF THE TERM "COST TO WHOLESALER" UNDER THE UNFAIR 6
CIGARETTE SALES LAW TO PHASE IN AN INCREASE IN THE PRESUMED COST 7
OF DOING BUSINESS BY THE WHOLESALER; TO REVISE THE DEFINITION OF 8
THE TERM "COST TO THE RETAILER" UNDER THE UNFAIR CIGARETTE SALES 9
LAW TO PHASE IN AN INCREASE IN THE PRESUMED COST OF DOING BUSINESS 10
BY THE RETAILER; TO AMEND SECTION 27-65-75, MISSISSIPPI CODE OF 11
1972, TO PROVIDE THAT THE STATE SALES TAX REVENUE COLLECTED FROM 12
THE TAX IMPOSED UNDER THIS ACT SHALL BE DEPOSITED INTO THE GENERAL 13
FUND; AND FOR RELATED PURPOSES. 14
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 15
SECTION 1. (1) For the purposes of this section, the 16
following words and phrases shall have the meanings ascribed in 17
this subsection unless the context clearly indicates otherwise: 18
(a) "Cost to wholesaler" means and has the same 19
definition as such term has in Section 75-23-5, Mississippi Code 20
of 1972. 21
(b) "Cost to the retailer" means and has the same 22
definition as such term has in Section 75-23-5, Mississippi Code 23
of 1972. 24
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(2) (a) For the sale of cigarettes at wholesale, there is 25
imposed a tax at the rate of fifty percent (50%) on the sum of the 26
amounts of the increases in cost to wholesaler provided for in 27
Section 75-23-5, Mississippi Code of 1972, as amended by this act, 28
with the sum calculated as if the phased in increases provided for 29
in Section 75-23-5, Mississippi Code of 1972, as amended by this 30
act, were fully implemented on July 1, 2026. 31
(b) For the sale of cigarettes at retail, there is 32
imposed a tax at the rate of fifty percent (50%) on the sum of the 33
amounts of the increases in cost to the retailer provided for in 34
Section 75-23-5, Mississippi Code of 1972, as amended by this act, 35
with the sum calculated as if the phased in increases provided for 36
in Section 75-23-5, Mississippi Code of 1972, as amended by this 37
act, were fully implemented on July 1, 2026. 38
SECTION 2. Section 75-23-5, Mississippi Code of 1972, is 39
amended as follows: 40
75-23-5. The following words, terms and phrases, when used 41
in the Unfair Cigarette Sales Law, shall have the meaning ascribed 42
to them in this section except where the context clearly indicates 43
a different meaning: 44
(a) "Person" shall mean and include any individual, 45
firm, association, company, partnership, corporation, joint-stock 46
company, club, agency, syndicate, the State of Mississippi, 47
county, municipal corporation or other political subdivision of 48
this state, receiver, trustee, fiduciary, or trade association. 49
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(b) "Commission" or "department" shall mean the 50
Department of Revenue of the State of Mississippi. 51
(c) "Cigarettes" shall mean and include any roll for 52
smoking made wholly or in part of tobacco, irrespective of size or 53
shape and whether or not such tobacco is flavored, adulterated or 54
mixed with any other ingredient, the wrapper or cover of which is 55
made of paper or any other substance or material, excepting 56
tobacco. 57
(d) "Wholesaler" shall mean and include any person 58
qualified as a wholesaler with the Department of Revenue of 59
Mississippi and shall also mean and include any person other than 60
a buying pool as defined herein, wherever resident or located, who 61
brings or causes to be brought into this state unstamped 62
cigarettes purchased directly from the manufacturer thereof and 63
who maintains an established place of business where substantially 64
all of the business is the sale of cigarettes and related 65
merchandise at wholesale to cigarette licensees and where at all 66
times a substantial stock of cigarettes and related merchandise is 67
available for resale; provided, that seventy-five percent (75%) 68
thereof are sold to retailers or other wholesalers not connected 69
with the wholesaler by reason of any business connection or 70
otherwise; and also any person retailing cigarettes to consumers, 71
provided, at least seventy-five percent (75%) of his purchases are 72
made directly from the manufacturers thereof; and also any person 73
in this state other than a buying pool as defined herein, who 74
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purchases cigarettes, from any other person who purchases from a 75
manufacturer at least seventy-five percent (75%) of which are for 76
purposes of resale to retailers in this state not connected with 77
said wholesaler by reason of any business connection or otherwise 78
and who maintains an established place of business where 79
cigarettes and related merchandise are sold at wholesale to 80
persons licensed under this law, and where at all times a 81
substantial stock of cigarettes and related merchandise is 82
available to all retailers for resale; and also any person in this 83
state who acquires cigarettes solely for the purpose of resale in 84
cigarette vending machines; provided, such person operated thirty 85
(30) or more machines. 86
(e) "Retailer" shall mean and include any person who is 87
engaged in this state in the business of selling cigarettes at 88
retail and includes any group of persons, cooperative 89
organizations, buying pools, and any other person or group of 90
retailers purchasing cigarettes on a cooperative basis from 91
licensed distributors or wholesalers. Any person placing a 92
cigarette vending machine at, on or in any premises shall be 93
deemed to be a retailer from each such vending machine. 94
(f) "Buying pool" means and includes any combination, 95
corporation, association, affiliation or group of retail dealers 96
operating jointly in the purchase, sale, exchange, or barter of 97
cigarettes, the profits of which accrue directly or indirectly to 98
such retail dealers. 99
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(g) "Sale" or "sell" shall mean any transfer for a 100
consideration, exchange, barter, gift, offer for sale, advertising 101
for sale, soliciting an order for cigarettes and distribution in 102
any manner or by any means whatsoever. 103
(h) "Sell at wholesale," "sale at wholesale" and 104
"wholesale sales" shall mean and include any sale made in the 105
ordinary course of trade or usual conduct of the wholesaler's 106
business to a retailer for the purpose of resale. 107
(i) "Sell at retail," "sale at retail" or "retail 108
sales" shall mean and include any sale for consumption or use made 109
in the ordinary course of trade or usual conduct of the seller's 110
business. 111
(j) "Basic cost of cigarettes" shall mean whichever of 112
the two (2) following amounts is lower, namely, (i) the invoice 113
cost of cigarettes to the wholesaler or retailer, as the case may 114
be, or (ii) the lowest replacement cost of cigarettes to the 115
wholesaler or retailer, as the case may be, within thirty (30) 116
days prior to the date of sale, in the quantity last purchased 117
(whether within or before the thirty-day period), less, in either 118
of the two (2) cases, all trade discounts except customary 119
discounts for cash, plus the full face value of any stamps or any 120
tax which may be required by any cigarette tax act of this state 121
or political subdivision thereof, now in effect or hereafter 122
enacted, if not already included in the invoice cost of the 123
cigarettes to the wholesaler or retailer, as the case may be. 124
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(k) (i) "Cost to wholesaler" shall mean the basic cost 125
of the cigarettes involved to the wholesaler plus the cost of 126
doing business by the wholesaler as evidenced by the standards and 127
methods of accounting regularly employed by him, and must include, 128
without limitation, labor costs (including salaries of executives 129
and officers), rent, depreciation, selling costs, maintenance of 130
equipment, delivery costs, all types of licenses, taxes, insurance 131
and advertising. 132
(ii) In the absence of proof of a lesser or higher 133
cost of doing business by the wholesale dealer making the sale, 134
the cost of doing business by the wholesale dealer shall be 135
presumed to be two percent (2%) of the basic cost of cigarettes to 136
the wholesale dealer through June 30, 2026; three percent (3%) of 137
the basic cost of cigarettes to the wholesale dealer from and 138
after July 1, 2026, through June 30, 2027; four percent (4%) of 139
the basic cost of cigarettes to the wholesale dealer from and 140
after July 1, 2027, through June 30, 2028; and five percent (5%) 141
of the basic cost of cigarettes to the wholesale dealer from and 142
after July 1, 2028. Any fraction of a cent thus computed shall be 143
rounded off to the next highest cent, plus cartage to the retail 144
outlet, if performed or paid for by the wholesale dealer, which 145
cartage cost, in the absence of proof of a lesser or higher cost, 146
shall be presumed to be one-half of one percent (1/2 of 1%) of the 147
basic cost of the cigarettes to the wholesale dealer, any fraction 148
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of a cent in computing the amount of the cartage shall be rounded 149
off to the next highest cent. 150
(l) (i) "Cost to the retailer" shall mean the basic 151
cost of the cigarettes involved to the retailer plus the cost of 152
doing business by the retailer as evidenced by the standards and 153
methods of accounting regularly employed by him and must include, 154
without limitation, labor (including salaries of executives and 155
officers), rent, depreciation, selling costs, maintenance of 156
equipment, delivery costs, all types of licenses, taxes, insurance 157
and advertising. 158
(ii) In the absence of proof of a lesser or higher 159
cost of doing business by the retailer making the sale, the cost 160
of doing business by the retailer shall be presumed to be six 161
percent (6%) of the basic cost of cigarettes to the retailer 162
through June 30, 2026; eight percent (8%) of the basic cost of 163
cigarettes to the retailer from and after July 1, 2026, through 164
June 30, 2027; ten percent (10%) of the basic cost of cigarettes 165
to the retailer from and after July 1, 2027, through June 30, 166
2028; and twelve percent (12%) of the basic cost of cigarettes to 167
the retailer from and after July 1, 2028. Any fraction of a cent 168
thus computed shall be rounded off to the next highest cent. 169
(iii) In the case of any retail dealer who in 170
connection with the retail dealer's purchase of any cigarettes 171
shall receive not only the discounts ordinarily allowed upon 172
purchases by a retail dealer but also in whole or in part the 173
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discounts ordinarily allowed upon purchases by a wholesale dealer, 174
the cost of doing business by the retail dealer with respect to 175
the cigarettes shall be, in the absence of proof of a lesser or 176
higher cost of doing business by the retail dealer, the sum of the 177
cost of doing business by the retail dealer and, to the extent 178
that he shall have received the full discounts ordinarily allowed 179
to a wholesale dealer, the cost of doing business by a wholesale 180
dealer as hereinabove defined in paragraph (j)(ii) of this 181
section. 182
SECTION 3. Section 27-65-75, Mississippi Code of 1972, is 183
amended as follows: 184
27-65-75. On or before the fifteenth day of each month, the 185
revenue collected under the provisions of this chapter during the 186
preceding month shall be paid and distributed as follows: 187
(1) (a) On or before August 15, 1992, and each succeeding 188
month thereafter through July 15, 1993, eighteen percent (18%) of 189
the total sales tax revenue collected during the preceding month 190
under the provisions of this chapter, except that collected under 191
the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 192
business activities within a municipal corporation shall be 193
allocated for distribution to the municipality and paid to the 194
municipal corporation. Except as otherwise provided in this 195
paragraph (a), on or before August 15, 1993, and each succeeding 196
month thereafter through August 15, 2025, eighteen and one-half 197
percent (18-1/2%) of the total sales tax revenue collected during 198
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the preceding month under the provisions of this chapter, except 199
that collected under the provisions of Sections 27-65-15, 200
27-65-19(3), 27-65-21 and 27-65-24, on business activities within 201
a municipal corporation shall be allocated for distribution to the 202
municipality and paid to the municipal corporation. Except as 203
otherwise provided in this paragraph (a), on or before September 204
15, 2025, and each succeeding month thereafter, eighteen and 205
one-half percent (18.5%) of the total sales tax revenue collected 206
during the preceding month under this chapter, except that 207
collected under Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3), 208
27-65-21 and 27-65-24, on business activities within a municipal 209
corporation shall be allocated for distribution and paid to the 210
municipal corporation. On or before September 15, 2025, and each 211
succeeding month thereafter, twenty-five and nine-tenths percent 212
(25.9%) of the total sales tax revenue collected during the 213
preceding month under Section 27-65-17(1)(n) on business 214
activities within a municipal corporation shall be allocated for 215
distribution and paid to the municipal corporation. However, in 216
the event the State Auditor issues a certificate of noncompliance 217
pursuant to Section 21-35-31, the department shall withhold ten 218
percent (10%) of the allocations and payments to the municipality 219
that would otherwise be payable to the municipality under this 220
paragraph (a) until such time that the department receives written 221
notice of the cancellation of a certificate of noncompliance from 222
the State Auditor. 223
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A municipal corporation, for the purpose of distributing the 224
tax under this subsection, shall mean and include all incorporated 225
cities, towns and villages. 226
Monies allocated for distribution and credited to a municipal 227
corporation under this paragraph may be pledged as security for a 228
loan if the distribution received by the municipal corporation is 229
otherwise authorized or required by law to be pledged as security 230
for such a loan. 231
In any county having a county seat that is not an 232
incorporated municipality, the distribution provided under this 233
subsection shall be made as though the county seat was an 234
incorporated municipality; however, the distribution to the 235
municipality shall be paid to the county treasury in which the 236
municipality is located, and those funds shall be used for road, 237
bridge and street construction or maintenance in the county. 238
(b) On or before August 15, 2006, and each succeeding 239
month thereafter through August 15, 2025, eighteen and one-half 240
percent (18-1/2%) of the total sales tax revenue collected during 241
the preceding month under the provisions of this chapter, except 242
that collected under the provisions of Sections 27-65-15, 243
27-65-19(3) and 27-65-21, on business activities on the campus of 244
a state institution of higher learning or community or junior 245
college whose campus is not located within the corporate limits of 246
a municipality, shall be allocated for distribution to the state 247
institution of higher learning or community or junior college and 248
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paid to the state institution of higher learning or community or 249
junior college. On or before September 15, 2025, and each 250
succeeding month thereafter, eighteen and one-half percent (18.5%) 251
of the total sales tax revenue collected during the preceding 252
month under this chapter, except that collected under Sections 253
27-65-15, 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on business 254
activities on the campus of a state institution of higher learning 255
or community or junior college whose campus is not located within 256
the corporate limits of a municipality, shall be allocated for 257
distribution and paid to the state institution of higher learning 258
or community or junior college. On or before September 15, 2025, 259
and each succeeding month thereafter, twenty-five and nine-tenths 260
percent (25.9%) of the total sales tax revenue collected during 261
the preceding month under Section 27-65-17(1)(n) on business 262
activities on the campus of a state institution of higher learning 263
or community or junior college whose campus is not located within 264
the corporate limits of a municipality, shall be allocated for 265
distribution and paid to the state institution of higher learning 266
or community or junior college. 267
(c) On or before August 15, 2018, and each succeeding 268
month thereafter until August 14, 2019, two percent (2%) of the 269
total sales tax revenue collected during the preceding month under 270
the provisions of this chapter, except that collected under the 271
provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 272
27-65-24, on business activities within the corporate limits of 273
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the City of Jackson, Mississippi, shall be deposited into the 274
Capitol Complex Improvement District Project Fund created in 275
Section 29-5-215. On or before August 15, 2019, and each 276
succeeding month thereafter until August 14, 2020, four percent 277
(4%) of the total sales tax revenue collected during the preceding 278
month under the provisions of this chapter, except that collected 279
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 280
and 27-65-24, on business activities within the corporate limits 281
of the City of Jackson, Mississippi, shall be deposited into the 282
Capitol Complex Improvement District Project Fund created in 283
Section 29-5-215. On or before August 15, 2020, and each 284
succeeding month thereafter through July 15, 2023, six percent 285
(6%) of the total sales tax revenue collected during the preceding 286
month under the provisions of this chapter, except that collected 287
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 288
and 27-65-24, on business activities within the corporate limits 289
of the City of Jackson, Mississippi, shall be deposited into the 290
Capitol Complex Improvement District Project Fund created in 291
Section 29-5-215. On or before August 15, 2023, and each 292
succeeding month thereafter through August 15, 2025, nine percent 293
(9%) of the total sales tax revenue collected during the preceding 294
month under the provisions of this chapter, except that collected 295
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 296
and 27-65-24, on business activities within the corporate limits 297
of the City of Jackson, Mississippi, shall be deposited into the 298
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Capitol Complex Improvement District Project Fund created in 299
Section 29-5-215. On or before September 15, 2025, and each 300
succeeding month thereafter, nine percent (9%) of the total sales 301
tax revenue collected during the preceding month under this 302
chapter, except that collected under Sections 27-65-15, 303
27-65-17(1)(n), 27-65-19(3), 27-65-21 and 27-65-24, on business 304
activities within the corporate limits of the City of Jackson, 305
Mississippi, shall be deposited into the Capitol Complex 306
Improvement District Project Fund created in Section 27-5-215. On 307
or before September 15, 2025, and each succeeding month 308
thereafter, twelve and six-tenths percent (12.6%) of the total 309
sales tax revenue collected during the preceding month under 310
Section 27-65-17(1)(n) on business activities within the corporate 311
limits of the City of Jackson, Mississippi, shall be deposited 312
into the Capitol Complex Improvement District Project Fund created 313
in Section 27-5-215. 314
(d) (i) Except as otherwise provided in this paragraph 315
(d), on or before the fifteenth day of the month that the 316
diversion authorized by this section begins, and each succeeding 317
month thereafter, eighteen and one-half percent (18-1/2%) of the 318
total sales tax revenue collected during the preceding month under 319
the provisions of this chapter, except that collected under the 320
provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 321
business activities within a redevelopment project area developed 322
under a redevelopment plan adopted under the Tax Increment 323
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Financing Act (Section 21-45-1 et seq.) shall be allocated for 324
distribution to the county in which the project area is located 325
if: 326
1. The county: 327
a. Borders on the Mississippi Sound and 328
the State of Alabama, or 329
b. Is Harrison County, Mississippi, and 330
the project area is within a radius of two (2) miles from the 331
intersection of Interstate 10 and Menge Avenue; 332
2. The county has issued bonds under Section 333
21-45-9 to finance all or a portion of a redevelopment project in 334
the redevelopment project area; 335
3. Any debt service for the indebtedness 336
incurred is outstanding; and 337
4. A development with a value of Ten Million 338
Dollars ($10,000,000.00) or more is, or will be, located in the 339
redevelopment area. 340
(ii) For a county that is eligible to receive 341
funds under this paragraph (d), as determined by the department 342
under this paragraph (d), from and after September 15, 2025, and 343
each succeeding month thereafter, eighteen and one-half percent 344
(18.5%) of the total sales tax revenue collected during the 345
preceding month under this chapter, except that collected under 346
Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on 347
business activities within a redevelopment project area developed 348
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under a redevelopment plan adopted under the Tax Increment 349
Financing Act (Section 21-45-1 et seq.) shall be allocated for 350
distribution to the county in which the project is located, and 351
twenty-five and nine-tenths percent (25.9%) of the total sales tax 352
revenue collected during the preceding month under Section 353
27-65-17(1)(n) shall be allocated for distribution to that county. 354
(iii) Before any sales tax revenue may be 355
allocated for distribution to a county under this paragraph (d), 356
the county shall certify to the Department of Revenue that the 357
requirements of this paragraph (d) have been met, the amount of 358
bonded indebtedness that has been incurred by the county for the 359
redevelopment project and the expected date the indebtedness 360
incurred by the county will be satisfied. 361
(iv) The diversion of sales tax revenue authorized 362
by this paragraph (d) shall begin the month following the month in 363
which the Department of Revenue determines that the requirements 364
of this paragraph (d) have been met. The diversion shall end the 365
month the indebtedness incurred by the county is satisfied. All 366
revenue received by the county under this paragraph (d) shall be 367
deposited in the fund required to be created in the tax increment 368
financing plan under Section 21-45-11 and be utilized solely to 369
satisfy the indebtedness incurred by the county. 370
(2) On or before September 15, 1987, and each succeeding 371
month thereafter, from the revenue collected under this chapter 372
during the preceding month, One Million One Hundred Twenty-five 373
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Thousand Dollars ($1,125,000.00) shall be allocated for 374
distribution to municipal corporations as defined under subsection 375
(1) of this section in the proportion that the number of gallons 376
of gasoline and diesel fuel sold by distributors to consumers and 377
retailers in each such municipality during the preceding fiscal 378
year bears to the total gallons of gasoline and diesel fuel sold 379
by distributors to consumers and retailers in municipalities 380
statewide during the preceding fiscal year. The Department of 381
Revenue shall require all distributors of gasoline and diesel fuel 382
to report to the department monthly the total number of gallons of 383
gasoline and diesel fuel sold by them to consumers and retailers 384
in each municipality during the preceding month. The Department 385
of Revenue shall have the authority to promulgate such rules and 386
regulations as is necessary to determine the number of gallons of 387
gasoline and diesel fuel sold by distributors to consumers and 388
retailers in each municipality. In determining the percentage 389
allocation of funds under this subsection for the fiscal year 390
beginning July 1, 1987, and ending June 30, 1988, the Department 391
of Revenue may consider gallons of gasoline and diesel fuel sold 392
for a period of less than one (1) fiscal year. For the purposes 393
of this subsection, the term "fiscal year" means the fiscal year 394
beginning July 1 of a year. 395
(3) On or before September 15, 1987, and on or before the 396
fifteenth day of each succeeding month, until the date specified 397
in Section 65-39-35, the proceeds derived from contractors' taxes 398
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levied under Section 27-65-21 on contracts for the construction or 399
reconstruction of highways designated under the highway program 400
created under Section 65-3-97 shall, except as otherwise provided 401
in Section 31-17-127, be deposited into the State Treasury to the 402
credit of the State Highway Fund to be used to fund that highway 403
program. The Mississippi Department of Transportation shall 404
provide to the Department of Revenue such information as is 405
necessary to determine the amount of proceeds to be distributed 406
under this subsection. 407
(4) On or before August 15, 1994, and on or before the 408
fifteenth day of each succeeding month through July 15, 1999, from 409
the proceeds of gasoline, diesel fuel or kerosene taxes as 410
provided in Section 27-5-101(a)(ii)1, Four Million Dollars 411
($4,000,000.00) shall be deposited in the State Treasury to the 412
credit of a special fund designated as the "State Aid Road Fund," 413
created by Section 65-9-17. On or before August 15, 1999, and on 414
or before the fifteenth day of each succeeding month through 415
August 15, 2026, from the total amount of the proceeds of 416
gasoline, diesel fuel or kerosene taxes apportioned by Section 417
27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an 418
amount equal to twenty-three and one-fourth percent (23-1/4%) of 419
those funds, whichever is the greater amount, shall be deposited 420
in the State Treasury to the credit of the "State Aid Road Fund," 421
created by Section 65-9-17. After August 15, 2025, from the total 422
amount of the proceeds of gasoline, diesel fuel or kerosene taxes 423
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apportioned by Section 27-5-101(a)(ii)1 and (iii), Five Million 424
Dollars ($5,000,000.00) or an amount equal to twenty-three and 425
one-fourth percent (23-1/4%) of those funds, whichever is greater, 426
shall be deposited in the State Treasury to the credit of the 427
"State Aid Road Fund" on or before September 15, 2025, and on or 428
before the fifteenth day of each succeeding month through August 429
15, 2026, and Six Million Five Hundred Thousand Dollars 430
($6,500,000.00) or an amount equal to twenty-three and one-fourth 431
percent (23-1/4%) of those funds, whichever is greater, shall be 432
deposited in the State Treasury to the credit of the "State Aid 433
Road Fund" on or before September 15, 2026, and on or before the 434
fifteenth day of each succeeding month through August 15, 2027, 435
and Eight Million Dollars ($8,000,000.00) or an amount equal to 436
twenty-three and one-fourth percent (23-1/4%) of those funds, 437
whichever is greater, shall be deposited in the State Treasury to 438
the credit of the "State Aid Road Fund" on or before September 15, 439
2027, and on or before the fifteenth day of each succeeding month. 440
From the amount of taxes paid into the special fund under this 441
subsection and subsection (9) of this section, there shall be 442
first deducted and paid the amount necessary to pay the expenses 443
of the Office of State Aid Road Construction, as authorized by the 444
Legislature for all other general and special fund agencies. The 445
remainder of the funds shall be allocated monthly to the several 446
counties in accordance with the following formula: 447
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(a) One-third (1/3) shall be allocated to all counties 448
in equal shares; 449
(b) One-third (1/3) shall be allocated to counties 450
based on the proportion that the total number of rural road miles 451
in a county bears to the total number of rural road miles in all 452
counties of the state; and 453
(c) One-third (1/3) shall be allocated to counties 454
based on the proportion that the rural population of the county 455
bears to the total rural population in all counties of the state, 456
according to the latest federal decennial census. 457
For the purposes of this subsection, the term "gasoline, 458
diesel fuel or kerosene taxes" means such taxes as defined in 459
paragraph (f) of Section 27-5-101. 460
The amount of funds allocated to any county under this 461
subsection for any fiscal year after fiscal year 1994 shall not be 462
less than the amount allocated to the county for fiscal year 1994. 463
Any reference in the general laws of this state or the 464
Mississippi Code of 1972 to Section 27-5-105 shall mean and be 465
construed to refer and apply to subsection (4) of Section 466
27-65-75. 467
(5) On or before August 15, 2024, and each succeeding month 468
thereafter, One Million Six Hundred Sixty-six Thousand Six Hundred 469
Sixty-six Dollars ($1,666,666.00) shall be paid into the special 470
fund known as the Education Enhancement Fund created and existing 471
under the provisions of Section 37-61-33. 472
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(6) An amount each month beginning August 15, 1983, through 473
November 15, 1986, as specified in Section 6, Chapter 542, Laws of 474
1983, shall be paid into the special fund known as the 475
Correctional Facilities Construction Fund created in Section 6, 476
Chapter 542, Laws of 1983. 477
(7) On or before August 15, 1992, and each succeeding month 478
thereafter through July 15, 2000, two and two hundred sixty-six 479
one-thousandths percent (2.266%) of the total sales tax revenue 480
collected during the preceding month under the provisions of this 481
chapter, except that collected under the provisions of Section 482
27-65-17(2), shall be deposited by the department into the School 483
Ad Valorem Tax Reduction Fund created under Section 37-61-35. On 484
or before August 15, 2000, and each succeeding month thereafter 485
through August 15, 2025, two and two hundred sixty-six 486
one-thousandths percent (2.266%) of the total sales tax revenue 487
collected during the preceding month under the provisions of this 488
chapter, except that collected under the provisions of Section 489
27-65-17(2), shall be deposited into the School Ad Valorem Tax 490
Reduction Fund created under Section 37-61-35 until such time that 491
the total amount deposited into the fund during a fiscal year 492
equals Forty-two Million Dollars ($42,000,000.00). Thereafter, 493
the amounts diverted under this subsection (7) during the fiscal 494
year in excess of Forty-two Million Dollars ($42,000,000.00) shall 495
be deposited into the Education Enhancement Fund created under 496
Section 37-61-33 for appropriation by the Legislature as other 497
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education needs and shall not be subject to the percentage 498
appropriation requirements set forth in Section 37-61-33. On or 499
before September 15, 2025, and each succeeding month thereafter, 500
two and two hundred sixty-six one-thousandths percent (2.266%) of 501
the total sales tax revenue collected during the preceding month 502
under this chapter, except that collected under Section 503
27-65-17(1)(n) and (2), and three and seventeen one-hundredths 504
percent (3.17%) of the total sales tax revenue collected during 505
the preceding month under Section 27-65-17(1)(n), shall be 506
deposited into the School Ad Valorem Tax Reduction Fund created 507
under Section 37-61-35 until such time that the total amount 508
deposited into the fund during a fiscal year equals Forty-two 509
Million Dollars ($42,000,000.00). Thereafter, the amounts 510
diverted under this subsection (7) during the fiscal year in 511
excess of Forty-two Million Dollars ($42,000,000.00) shall be 512
deposited into the Education Enhancement Fund created under 513
Section 37-61-33 for appropriation by the Legislature as other 514
education needs and shall not be subject to the percentage 515
appropriation requirements set forth in Section 37-61-33. 516
(8) On or before August 15, 1992, and each succeeding month 517
thereafter through August 15, 2025, nine and seventy-three 518
one-thousandths percent (9.073%) of the total sales tax revenue 519
collected during the preceding month under the provisions of this 520
chapter, except that collected under the provisions of Section 521
27-65-17(2), shall be deposited into the Education Enhancement 522
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Fund created under Section 37-61-33. On or before September 15, 523
2025, and each succeeding month thereafter, nine and seventy-three 524
one-thousandths percent (9.073%) of the total sales tax revenue 525
collected during the preceding month under this chapter, except 526
that collected under Section 27-65-17(1)(n) and (2), and twelve 527
and seven-tenths percent (12.7%) of the total sales tax revenue 528
collected during the preceding month under Section 27-65-17(1)(n), 529
shall be deposited into the Education Enhancement Fund created 530
under Section 37-61-33. 531
(9) On or before August 15, 1994, and each succeeding month 532
thereafter, from the revenue collected under this chapter during 533
the preceding month, Two Hundred Fifty Thousand Dollars 534
($250,000.00) shall be paid into the State Aid Road Fund. 535
(10) On or before August 15, 1994, and each succeeding month 536
thereafter through August 15, 1995, from the revenue collected 537
under this chapter during the preceding month, Two Million Dollars 538
($2,000,000.00) shall be deposited into the Motor Vehicle Ad 539
Valorem Tax Reduction Fund established in Section 27-51-105. 540
(11) Notwithstanding any other provision of this section to 541
the contrary, on or before February 15, 1995, and each succeeding 542
month thereafter, the sales tax revenue collected during the 543
preceding month under the provisions of Section 27-65-17(2) and 544
the corresponding levy in Section 27-65-23 on the rental or lease 545
of private carriers of passengers and light carriers of property 546
as defined in Section 27-51-101 shall be deposited, without 547
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diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund 548
established in Section 27-51-105. 549
(12) Notwithstanding any other provision of this section to 550
the contrary, on or before August 15, 1995, and each succeeding 551
month thereafter, the sales tax revenue collected during the 552
preceding month under the provisions of Section 27-65-17(1) on 553
retail sales of private carriers of passengers and light carriers 554
of property, as defined in Section 27-51-101 and the corresponding 555
levy in Section 27-65-23 on the rental or lease of these vehicles, 556
shall be deposited, after diversion, into the Motor Vehicle Ad 557
Valorem Tax Reduction Fund established in Section 27-51-105. 558
(13) On or before July 15, 1994, and on or before the 559
fifteenth day of each succeeding month thereafter, that portion of 560
the avails of the tax imposed in Section 27-65-22 that is derived 561
from activities held on the Mississippi State Fairgrounds Complex 562
shall be paid into a special fund that is created in the State 563
Treasury and shall be expended upon legislative appropriation 564
solely to defray the costs of repairs and renovation at the Trade 565
Mart and Coliseum. 566
(14) On or before August 15, 1998, and each succeeding month 567
thereafter through July 15, 2005, that portion of the avails of 568
the tax imposed in Section 27-65-23 that is derived from sales by 569
cotton compresses or cotton warehouses and that would otherwise be 570
paid into the General Fund shall be deposited in an amount not to 571
exceed Two Million Dollars ($2,000,000.00) into the special fund 572
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created under Section 69-37-39. On or before August 15, 2007, and 573
each succeeding month thereafter through July 15, 2010, that 574
portion of the avails of the tax imposed in Section 27-65-23 that 575
is derived from sales by cotton compresses or cotton warehouses 576
and that would otherwise be paid into the General Fund shall be 577
deposited in an amount not to exceed Two Million Dollars 578
($2,000,000.00) into the special fund created under Section 579
69-37-39 until all debts or other obligations incurred by the 580
Certified Cotton Growers Organization under the Mississippi Boll 581
Weevil Management Act before January 1, 2007, are satisfied in 582
full. On or before August 15, 2010, and each succeeding month 583
thereafter through July 15, 2011, fifty percent (50%) of that 584
portion of the avails of the tax imposed in Section 27-65-23 that 585
is derived from sales by cotton compresses or cotton warehouses 586
and that would otherwise be paid into the General Fund shall be 587
deposited into the special fund created under Section 69-37-39 588
until such time that the total amount deposited into the fund 589
during a fiscal year equals One Million Dollars ($1,000,000.00). 590
On or before August 15, 2011, and each succeeding month 591
thereafter, that portion of the avails of the tax imposed in 592
Section 27-65-23 that is derived from sales by cotton compresses 593
or cotton warehouses and that would otherwise be paid into the 594
General Fund shall be deposited into the special fund created 595
under Section 69-37-39 until such time that the total amount 596
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deposited into the fund during a fiscal year equals One Million 597
Dollars ($1,000,000.00). 598
(15) Notwithstanding any other provision of this section to 599
the contrary, on or before September 15, 2000, and each succeeding 600
month thereafter, the sales tax revenue collected during the 601
preceding month under the provisions of Section 602
27-65-19(1)(d)(i)2, and 27-65-19(1)(d)(i)3 shall be deposited, 603
without diversion, into the Telecommunications Ad Valorem Tax 604
Reduction Fund established in Section 27-38-7. 605
(16) (a) On or before August 15, 2000, and each succeeding 606
month thereafter, the sales tax revenue collected during the 607
preceding month under the provisions of this chapter on the gross 608
proceeds of sales of a project as defined in Section 57-30-1 shall 609
be deposited, after all diversions except the diversion provided 610
for in subsection (1) of this section, into the Sales Tax 611
Incentive Fund created in Section 57-30-3. 612
(b) On or before August 15, 2007, and each succeeding 613
month thereafter, eighty percent (80%) of the sales tax revenue 614
collected during the preceding month under the provisions of this 615
chapter from the operation of a tourism project under the 616
provisions of Sections 57-26-1 through 57-26-5, shall be 617
deposited, after the diversions required in subsections (7) and 618
(8) of this section, into the Tourism Project Sales Tax Incentive 619
Fund created in Section 57-26-3. 620
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(17) Notwithstanding any other provision of this section to 621
the contrary, on or before April 15, 2002, and each succeeding 622
month thereafter, the sales tax revenue collected during the 623
preceding month under Section 27-65-23 on sales of parking 624
services of parking garages and lots at airports shall be 625
deposited, without diversion, into the special fund created under 626
Section 27-5-101(d). 627
(18) [Repealed] 628
(19) (a) On or before August 15, 2005, and each succeeding 629
month thereafter, the sales tax revenue collected during the 630
preceding month under the provisions of this chapter on the gross 631
proceeds of sales of a business enterprise located within a 632
redevelopment project area under the provisions of Sections 633
57-91-1 through 57-91-11, and the revenue collected on the gross 634
proceeds of sales from sales made to a business enterprise located 635
in a redevelopment project area under the provisions of Sections 636
57-91-1 through 57-91-11 (provided that such sales made to a 637
business enterprise are made on the premises of the business 638
enterprise), shall, except as otherwise provided in this 639
subsection (19), be deposited, after all diversions, into the 640
Redevelopment Project Incentive Fund as created in Section 641
57-91-9. 642
(b) For a municipality participating in the Economic 643
Redevelopment Act created in Sections 57-91-1 through 57-91-11, 644
the diversion provided for in subsection (1) of this section 645
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attributable to the gross proceeds of sales of a business 646
enterprise located within a redevelopment project area under the 647
provisions of Sections 57-91-1 through 57-91-11, and attributable 648
to the gross proceeds of sales from sales made to a business 649
enterprise located in a redevelopment project area under the 650
provisions of Sections 57-91-1 through 57-91-11 (provided that 651
such sales made to a business enterprise are made on the premises 652
of the business enterprise), shall be deposited into the 653
Redevelopment Project Incentive Fund as created in Section 654
57-91-9, as follows: 655
(i) For the first six (6) years in which payments 656
are made to a developer from the Redevelopment Project Incentive 657
Fund, one hundred percent (100%) of the diversion shall be 658
deposited into the fund; 659
(ii) For the seventh year in which such payments 660
are made to a developer from the Redevelopment Project Incentive 661
Fund, eighty percent (80%) of the diversion shall be deposited 662
into the fund; 663
(iii) For the eighth year in which such payments 664
are made to a developer from the Redevelopment Project Incentive 665
Fund, seventy percent (70%) of the diversion shall be deposited 666
into the fund; 667
(iv) For the ninth year in which such payments are 668
made to a developer from the Redevelopment Project Incentive Fund, 669
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sixty percent (60%) of the diversion shall be deposited into the 670
fund; and 671
(v) For the tenth year in which such payments are 672
made to a developer from the Redevelopment Project Incentive Fund, 673
fifty percent (50%) of the funds shall be deposited into the fund. 674
(20) On or before January 15, 2007, and each succeeding 675
month thereafter, eighty percent (80%) of the sales tax revenue 676
collected during the preceding month under the provisions of this 677
chapter from the operation of a tourism project under the 678
provisions of Sections 57-28-1 through 57-28-5 shall be deposited, 679
after the diversions required in subsections (7) and (8) of this 680
section, into the Tourism Sales Tax Incentive Fund created in 681
Section 57-28-3. 682
(21) (a) On or before April 15, 2007, and each succeeding 683
month thereafter through June 15, 2013, One Hundred Fifty Thousand 684
Dollars ($150,000.00) of the sales tax revenue collected during 685
the preceding month under the provisions of this chapter shall be 686
deposited into the MMEIA Tax Incentive Fund created in Section 687
57-101-3. 688
(b) On or before July 15, 2013, and each succeeding 689
month thereafter, One Hundred Fifty Thousand Dollars ($150,000.00) 690
of the sales tax revenue collected during the preceding month 691
under the provisions of this chapter shall be deposited into the 692
Mississippi Development Authority Job Training Grant Fund created 693
in Section 57-1-451. 694
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(22) On or before June 1, 2024, and each succeeding month 695
thereafter until December 31, 2057, an amount determined annually 696
by the Mississippi Development Authority of the sales tax revenue 697
collected during the preceding month under the provisions of this 698
chapter shall be deposited into the MMEIA Tax Incentive Fund 699
created in Section 57-125-3. This amount shall be based on 700
estimated payments due within the upcoming year to construction 701
contractors pursuant to construction contracts subject to the tax 702
imposed by Section 27-65-21 for construction to be performed on 703
the project site of a project defined under Section 704
57-75-5(f)(xxxiii) for the coming year. 705
(23) Notwithstanding any other provision of this section to 706
the contrary, on or before August 15, 2009, and each succeeding 707
month thereafter, the sales tax revenue collected during the 708
preceding month under the provisions of Section 27-65-201 shall be 709
deposited, without diversion, into the Motor Vehicle Ad Valorem 710
Tax Reduction Fund established in Section 27-51-105. 711
(24) (a) On or before August 15, 2019, and each month 712
thereafter through July 15, 2020, one percent (1%) of the total 713
sales tax revenue collected during the preceding month from 714
restaurants and hotels shall be allocated for distribution to the 715
Mississippi Development Authority Tourism Advertising Fund 716
established under Section 57-1-64, to be used exclusively for the 717
purpose stated therein. On or before August 15, 2020, and each 718
month thereafter through July 15, 2021, two percent (2%) of the 719
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total sales tax revenue collected during the preceding month from 720
restaurants and hotels shall be allocated for distribution to the 721
Mississippi Development Authority Tourism Advertising Fund 722
established under Section 57-1-64, to be used exclusively for the 723
purpose stated therein. On or before August 15, 2021, and each 724
month thereafter, three percent (3%) of the total sales tax 725
revenue collected during the preceding month from restaurants and 726
hotels shall be allocated for distribution to the Mississippi 727
Development Authority Tourism Advertising Fund established under 728
Section 57-1-64, to be used exclusively for the purpose stated 729
therein. The revenue diverted pursuant to this subsection shall 730
not be available for expenditure until February 1, 2020. 731
(b) The Joint Legislative Committee on Performance 732
Evaluation and Expenditure Review (PEER) must provide an annual 733
report to the Legislature indicating the amount of funds deposited 734
into the Mississippi Development Authority Tourism Advertising 735
Fund established under Section 57-1-64, and a detailed record of 736
how the funds are spent. 737
(25) On or before September 15, 2026, and each succeeding 738
month thereafter, the total amount of revenue collected during the 739
preceding month under the provisions of Section 1 of this act 740
shall be deposited, without diversion, into the General Fund. 741
( * * *26) The remainder of the amounts collected under the 742
provisions of this chapter shall be paid into the State Treasury 743
to the credit of the General Fund. 744
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( * * *27) (a) It shall be the duty of the municipal 745
officials of any municipality that expands its limits, or of any 746
community that incorporates as a municipality, to notify the 747
commissioner of that action thirty (30) days before the effective 748
date. Failure to so notify the commissioner shall cause the 749
municipality to forfeit the revenue that it would have been 750
entitled to receive during this period of time when the 751
commissioner had no knowledge of the action. 752
(b) (i) Except as otherwise provided in subparagraph 753
(ii) of this paragraph, if any funds have been erroneously 754
disbursed to any municipality or any overpayment of tax is 755
recovered by the taxpayer, the commissioner may make correction 756
and adjust the error or overpayment with the municipality by 757
withholding the necessary funds from any later payment to be made 758
to the municipality. 759
(ii) Subject to the provisions of Sections 760
27-65-51 and 27-65-53, if any funds have been erroneously 761
disbursed to a municipality under subsection (1) of this section 762
for a period of three (3) years or more, the maximum amount that 763
may be recovered or withheld from the municipality is the total 764
amount of funds erroneously disbursed for a period of three (3) 765
years beginning with the date of the first erroneous disbursement. 766
However, if during such period, a municipality provides written 767
notice to the Department of Revenue indicating the erroneous 768
disbursement of funds, then the maximum amount that may be 769
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ST: Sales tax; impose on portion of cigarette
increased cost to wholesaler or cost to the
retailer included in sales price.
recovered or withheld from the municipality is the total amount of 770
funds erroneously disbursed for a period of one (1) year beginning 771
with the date of the first erroneous disbursement. 772
SECTION 4. Section 1 of this act shall be codified as a new 773
section in Chapter 65, Title 27, Mississippi Code of 1972. 774
SECTION 5. This act shall take effect and be in force from 775
and after July 1, 2026. 776