Sales tax; create diversion to counties.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Arnold

HOUSE BILL NO. 53

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