Sales tax; create diversion to the Pearl River Valley Water Supply District.

H. B. No. 673 *HR43/R286* ~ OFFICIAL ~ G1/2
26/HR43/R286
PAGE 1 (BS\KP)

To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Powell

HOUSE BILL NO. 673

AN ACT TO AMEND SECTION 27-65-75, MISSISSIPPI CODE OF 1972, 1
TO PROVIDE THAT EIGHTEEN AND ONE-HALF PERCENT OF THE SALES TAX 2
REVENUE COLLECTED ON BUSINESS ACTIVITIES WITHIN A COUNTY THAT IS A 3
PART OF THE PEARL RIVER VALLEY WATER SUPPLY DISTRICT ON PROPERTY 4
THAT IS OWNED BY THE DISTRICT AND OUTSIDE OF THE CORPORATE LIMITS 5
OF MUNICIPALITIES IN SUCH COUNTY SHALL BE DISTRIBUTED TO THE PEARL 6
RIVER VALLEY WATER SUPPLY DISTRICT; TO AMEND SECTION 27-65-53, 7
MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED 8
PURPOSES. 9
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 10
SECTION 1. Section 27-65-75, Mississippi Code of 1972, is 11
amended as follows: 12
27-65-75. On or before the fifteenth day of each month, the 13
revenue collected under the provisions of this chapter during the 14
preceding month shall be paid and distributed as follows: 15
(1) (a) On or before August 15, 1992, and each succeeding 16
month thereafter through July 15, 1993, eighteen percent (18%) of 17
the total sales tax revenue collected during the preceding month 18
under the provisions of this chapter, except that collected under 19
the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 20
business activities within a municipal corporation shall be 21
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 2 (BS\KP)

allocated for distribution to the municipality and paid to the 22
municipal corporation. Except as otherwise provided in this 23
paragraph (a), on or before August 15, 1993, and each succeeding 24
month thereafter through August 15, 2025, eighteen and one-half 25
percent (18-1/2%) of the total sales tax revenue collected during 26
the preceding month under the provisions of this chapter, except 27
that collected under the provisions of Sections 27-65-15, 28
27-65-19(3), 27-65-21 and 27-65-24, on business activities within 29
a municipal corporation shall be allocated for distribution to the 30
municipality and paid to the municipal corporation. Except as 31
otherwise provided in this paragraph (a), on or before September 32
15, 2025, and each succeeding month thereafter, eighteen and 33
one-half percent (18.5%) of the total sales tax revenue collected 34
during the preceding month under this chapter, except that 35
collected under Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3), 36
27-65-21 and 27-65-24, on business activities within a municipal 37
corporation shall be allocated for distribution and paid to the 38
municipal corporation. On or before September 15, 2025, and each 39
succeeding month thereafter, twenty-five and nine-tenths percent 40
(25.9%) of the total sales tax revenue collected during the 41
preceding month under Section 27-65-17(1)(n) on business 42
activities within a municipal corporation shall be allocated for 43
distribution and paid to the municipal corporation. However, in 44
the event the State Auditor issues a certificate of noncompliance 45
pursuant to Section 21-35-31, the department shall withhold ten 46
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 3 (BS\KP)

percent (10%) of the allocations and payments to the municipality 47
that would otherwise be payable to the municipality under this 48
paragraph (a) until such time that the department receives written 49
notice of the cancellation of a certificate of noncompliance from 50
the State Auditor. 51
A municipal corporation, for the purpose of distributing the 52
tax under this subsection, shall mean and include all incorporated 53
cities, towns and villages. 54
Monies allocated for distribution and credited to a municipal 55
corporation under this paragraph may be pledged as security for a 56
loan if the distribution received by the municipal corporation is 57
otherwise authorized or required by law to be pledged as security 58
for such a loan. 59
In any county having a county seat that is not an 60
incorporated municipality, the distribution provided under this 61
subsection shall be made as though the county seat was an 62
incorporated municipality; however, the distribution to the 63
municipality shall be paid to the county treasury in which the 64
municipality is located, and those funds shall be used for road, 65
bridge and street construction or maintenance in the county. 66
(b) On or before August 15, 2006, and each succeeding 67
month thereafter through August 15, 2025, eighteen and one-half 68
percent (18-1/2%) of the total sales tax revenue collected during 69
the preceding month under the provisions of this chapter, except 70
that collected under the provisions of Sections 27-65-15, 71
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 4 (BS\KP)

27-65-19(3) and 27-65-21, on business activities on the campus of 72
a state institution of higher learning or community or junior 73
college whose campus is not located within the corporate limits of 74
a municipality, shall be allocated for distribution to the state 75
institution of higher learning or community or junior college and 76
paid to the state institution of higher learning or community or 77
junior college. On or before September 15, 2025, and each 78
succeeding month thereafter, eighteen and one-half percent (18.5%) 79
of the total sales tax revenue collected during the preceding 80
month under this chapter, except that collected under Sections 81
27-65-15, 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on business 82
activities on the campus of a state institution of higher learning 83
or community or junior college whose campus is not located within 84
the corporate limits of a municipality, shall be allocated for 85
distribution and paid to the state institution of higher learning 86
or community or junior college. On or before September 15, 2025, 87
and each succeeding month thereafter, twenty-five and nine-tenths 88
percent (25.9%) of the total sales tax revenue collected during 89
the preceding month under Section 27-65-17(1)(n) on business 90
activities on the campus of a state institution of higher learning 91
or community or junior college whose campus is not located within 92
the corporate limits of a municipality, shall be allocated for 93
distribution and paid to the state institution of higher learning 94
or community or junior college. 95
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 5 (BS\KP)

(c) On or before August 15, 2018, and each succeeding 96
month thereafter until August 14, 2019, two percent (2%) of the 97
total sales tax revenue collected during the preceding month under 98
the provisions of this chapter, except that collected under the 99
provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 100
27-65-24, on business activities within the corporate limits of 101
the City of Jackson, Mississippi, shall be deposited into the 102
Capitol Complex Improvement District Project Fund created in 103
Section 29-5-215. On or before August 15, 2019, and each 104
succeeding month thereafter until August 14, 2020, four percent 105
(4%) of the total sales tax revenue collected during the preceding 106
month under the provisions of this chapter, except that collected 107
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 108
and 27-65-24, on business activities within the corporate limits 109
of the City of Jackson, Mississippi, shall be deposited into the 110
Capitol Complex Improvement District Project Fund created in 111
Section 29-5-215. On or before August 15, 2020, and each 112
succeeding month thereafter through July 15, 2023, six percent 113
(6%) of the total sales tax revenue collected during the preceding 114
month under the provisions of this chapter, except that collected 115
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 116
and 27-65-24, on business activities within the corporate limits 117
of the City of Jackson, Mississippi, shall be deposited into the 118
Capitol Complex Improvement District Project Fund created in 119
Section 29-5-215. On or before August 15, 2023, and each 120
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 6 (BS\KP)

succeeding month thereafter through August 15, 2025, nine percent 121
(9%) of the total sales tax revenue collected during the preceding 122
month under the provisions of this chapter, except that collected 123
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 124
and 27-65-24, on business activities within the corporate limits 125
of the City of Jackson, Mississippi, shall be deposited into the 126
Capitol Complex Improvement District Project Fund created in 127
Section 29-5-215. On or before September 15, 2025, and each 128
succeeding month thereafter, nine percent (9%) of the total sales 129
tax revenue collected during the preceding month under this 130
chapter, except that collected under Sections 27-65-15, 131
27-65-17(1)(n), 27-65-19(3), 27-65-21 and 27-65-24, on business 132
activities within the corporate limits of the City of Jackson, 133
Mississippi, shall be deposited into the Capitol Complex 134
Improvement District Project Fund created in Section 27-5-215. On 135
or before September 15, 2025, and each succeeding month 136
thereafter, twelve and six-tenths percent (12.6%) of the total 137
sales tax revenue collected during the preceding month under 138
Section 27-65-17(1)(n) on business activities within the corporate 139
limits of the City of Jackson, Mississippi, shall be deposited 140
into the Capitol Complex Improvement District Project Fund created 141
in Section 27-5-215. 142
(d) (i) Except as otherwise provided in this paragraph 143
(d), on or before the fifteenth day of the month that the 144
diversion authorized by this section begins, and each succeeding 145
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 7 (BS\KP)

month thereafter, eighteen and one-half percent (18-1/2%) of the 146
total sales tax revenue collected during the preceding month under 147
the provisions of this chapter, except that collected under the 148
provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 149
business activities within a redevelopment project area developed 150
under a redevelopment plan adopted under the Tax Increment 151
Financing Act (Section 21-45-1 et seq.) shall be allocated for 152
distribution to the county in which the project area is located 153
if: 154
1. The county: 155
a. Borders on the Mississippi Sound and 156
the State of Alabama, or 157
b. Is Harrison County, Mississippi, and 158
the project area is within a radius of two (2) miles from the 159
intersection of Interstate 10 and Menge Avenue; 160
2. The county has issued bonds under Section 161
21-45-9 to finance all or a portion of a redevelopment project in 162
the redevelopment project area; 163
3. Any debt service for the indebtedness 164
incurred is outstanding; and 165
4. A development with a value of Ten Million 166
Dollars ($10,000,000.00) or more is, or will be, located in the 167
redevelopment area. 168
(ii) For a county that is eligible to receive 169
funds under this paragraph (d), as determined by the department 170
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 8 (BS\KP)

under this paragraph (d), from and after September 15, 2025, and 171
each succeeding month thereafter, eighteen and one-half percent 172
(18.5%) of the total sales tax revenue collected during the 173
preceding month under this chapter, except that collected under 174
Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on 175
business activities within a redevelopment project area developed 176
under a redevelopment plan adopted under the Tax Increment 177
Financing Act (Section 21-45-1 et seq.) shall be allocated for 178
distribution to the county in which the project is located, and 179
twenty-five and nine-tenths percent (25.9%) of the total sales tax 180
revenue collected during the preceding month under Section 181
27-65-17(1)(n) shall be allocated for distribution to that county. 182
(iii) Before any sales tax revenue may be 183
allocated for distribution to a county under this paragraph (d), 184
the county shall certify to the Department of Revenue that the 185
requirements of this paragraph (d) have been met, the amount of 186
bonded indebtedness that has been incurred by the county for the 187
redevelopment project and the expected date the indebtedness 188
incurred by the county will be satisfied. 189
(iv) The diversion of sales tax revenue authorized 190
by this paragraph (d) shall begin the month following the month in 191
which the Department of Revenue determines that the requirements 192
of this paragraph (d) have been met. The diversion shall end the 193
month the indebtedness incurred by the county is satisfied. All 194
revenue received by the county under this paragraph (d) shall be 195
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 9 (BS\KP)

deposited in the fund required to be created in the tax increment 196
financing plan under Section 21-45-11 and be utilized solely to 197
satisfy the indebtedness incurred by the county. 198
(2) On or before September 15, 1987, and each succeeding 199
month thereafter, from the revenue collected under this chapter 200
during the preceding month, One Million One Hundred Twenty-five 201
Thousand Dollars ($1,125,000.00) shall be allocated for 202
distribution to municipal corporations as defined under subsection 203
(1) of this section in the proportion that the number of gallons 204
of gasoline and diesel fuel sold by distributors to consumers and 205
retailers in each such municipality during the preceding fiscal 206
year bears to the total gallons of gasoline and diesel fuel sold 207
by distributors to consumers and retailers in municipalities 208
statewide during the preceding fiscal year. The Department of 209
Revenue shall require all distributors of gasoline and diesel fuel 210
to report to the department monthly the total number of gallons of 211
gasoline and diesel fuel sold by them to consumers and retailers 212
in each municipality during the preceding month. The Department 213
of Revenue shall have the authority to promulgate such rules and 214
regulations as is necessary to determine the number of gallons of 215
gasoline and diesel fuel sold by distributors to consumers and 216
retailers in each municipality. In determining the percentage 217
allocation of funds under this subsection for the fiscal year 218
beginning July 1, 1987, and ending June 30, 1988, the Department 219
of Revenue may consider gallons of gasoline and diesel fuel sold 220
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 10 (BS\KP)

for a period of less than one (1) fiscal year. For the purposes 221
of this subsection, the term "fiscal year" means the fiscal year 222
beginning July 1 of a year. 223
(3) On or before September 15, 1987, and on or before the 224
fifteenth day of each succeeding month, until the date specified 225
in Section 65-39-35, the proceeds derived from contractors' taxes 226
levied under Section 27-65-21 on contracts for the construction or 227
reconstruction of highways designated under the highway program 228
created under Section 65-3-97 shall, except as otherwise provided 229
in Section 31-17-127, be deposited into the State Treasury to the 230
credit of the State Highway Fund to be used to fund that highway 231
program. The Mississippi Department of Transportation shall 232
provide to the Department of Revenue such information as is 233
necessary to determine the amount of proceeds to be distributed 234
under this subsection. 235
(4) On or before August 15, 1994, and on or before the 236
fifteenth day of each succeeding month through July 15, 1999, from 237
the proceeds of gasoline, diesel fuel or kerosene taxes as 238
provided in Section 27-5-101(a)(ii)1, Four Million Dollars 239
($4,000,000.00) shall be deposited in the State Treasury to the 240
credit of a special fund designated as the "State Aid Road Fund," 241
created by Section 65-9-17. On or before August 15, 1999, and on 242
or before the fifteenth day of each succeeding month through 243
August 15, 2026, from the total amount of the proceeds of 244
gasoline, diesel fuel or kerosene taxes apportioned by Section 245
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 11 (BS\KP)

27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an 246
amount equal to twenty-three and one-fourth percent (23-1/4%) of 247
those funds, whichever is the greater amount, shall be deposited 248
in the State Treasury to the credit of the "State Aid Road Fund," 249
created by Section 65-9-17. After August 15, 2025, from the total 250
amount of the proceeds of gasoline, diesel fuel or kerosene taxes 251
apportioned by Section 27-5-101(a)(ii)1 and (iii), Five Million 252
Dollars ($5,000,000.00) or an amount equal to twenty-three and 253
one-fourth percent (23-1/4%) of those funds, whichever is greater, 254
shall be deposited in the State Treasury to the credit of the 255
"State Aid Road Fund" on or before September 15, 2025, and on or 256
before the fifteenth day of each succeeding month through August 257
15, 2026, and Six Million Five Hundred Thousand Dollars 258
($6,500,000.00) or an amount equal to twenty-three and one-fourth 259
percent (23-1/4%) of those funds, whichever is greater, shall be 260
deposited in the State Treasury to the credit of the "State Aid 261
Road Fund" on or before September 15, 2026, and on or before the 262
fifteenth day of each succeeding month through August 15, 2027, 263
and Eight Million Dollars ($8,000,000.00) or an amount equal to 264
twenty-three and one-fourth percent (23-1/4%) of those funds, 265
whichever is greater, shall be deposited in the State Treasury to 266
the credit of the "State Aid Road Fund" on or before September 15, 267
2027, and on or before the fifteenth day of each succeeding month. 268
From the amount of taxes paid into the special fund under this 269
subsection and subsection (9) of this section, there shall be 270
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 12 (BS\KP)

first deducted and paid the amount necessary to pay the expenses 271
of the Office of State Aid Road Construction, as authorized by the 272
Legislature for all other general and special fund agencies. The 273
remainder of the funds shall be allocated monthly to the several 274
counties in accordance with the following formula: 275
(a) One-third (1/3) shall be allocated to all counties 276
in equal shares; 277
(b) One-third (1/3) shall be allocated to counties 278
based on the proportion that the total number of rural road miles 279
in a county bears to the total number of rural road miles in all 280
counties of the state; and 281
(c) One-third (1/3) shall be allocated to counties 282
based on the proportion that the rural population of the county 283
bears to the total rural population in all counties of the state, 284
according to the latest federal decennial census. 285
For the purposes of this subsection, the term "gasoline, 286
diesel fuel or kerosene taxes" means such taxes as defined in 287
paragraph (f) of Section 27-5-101. 288
The amount of funds allocated to any county under this 289
subsection for any fiscal year after fiscal year 1994 shall not be 290
less than the amount allocated to the county for fiscal year 1994. 291
Any reference in the general laws of this state or the 292
Mississippi Code of 1972 to Section 27-5-105 shall mean and be 293
construed to refer and apply to subsection (4) of Section 294
27-65-75. 295
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 13 (BS\KP)

(5) On or before August 15, 2024, and each succeeding month 296
thereafter, One Million Six Hundred Sixty-six Thousand Six Hundred 297
Sixty-six Dollars ($1,666,666.00) shall be paid into the special 298
fund known as the Education Enhancement Fund created and existing 299
under the provisions of Section 37-61-33. 300
(6) An amount each month beginning August 15, 1983, through 301
November 15, 1986, as specified in Section 6, Chapter 542, Laws of 302
1983, shall be paid into the special fund known as the 303
Correctional Facilities Construction Fund created in Section 6, 304
Chapter 542, Laws of 1983. 305
(7) On or before August 15, 1992, and each succeeding month 306
thereafter through July 15, 2000, two and two hundred sixty-six 307
one-thousandths percent (2.266%) of the total sales tax revenue 308
collected during the preceding month under the provisions of this 309
chapter, except that collected under the provisions of Section 310
27-65-17(2), shall be deposited by the department into the School 311
Ad Valorem Tax Reduction Fund created under Section 37-61-35. On 312
or before August 15, 2000, and each succeeding month thereafter 313
through August 15, 2025, two and two hundred sixty-six 314
one-thousandths percent (2.266%) of the total sales tax revenue 315
collected during the preceding month under the provisions of this 316
chapter, except that collected under the provisions of Section 317
27-65-17(2), shall be deposited into the School Ad Valorem Tax 318
Reduction Fund created under Section 37-61-35 until such time that 319
the total amount deposited into the fund during a fiscal year 320
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 14 (BS\KP)

equals Forty-two Million Dollars ($42,000,000.00). Thereafter, 321
the amounts diverted under this subsection (7) during the fiscal 322
year in excess of Forty-two Million Dollars ($42,000,000.00) shall 323
be deposited into the Education Enhancement Fund created under 324
Section 37-61-33 for appropriation by the Legislature as other 325
education needs and shall not be subject to the percentage 326
appropriation requirements set forth in Section 37-61-33. On or 327
before September 15, 2025, and each succeeding month thereafter, 328
two and two hundred sixty-six one-thousandths percent (2.266%) of 329
the total sales tax revenue collected during the preceding month 330
under this chapter, except that collected under Section 331
27-65-17(1)(n) and (2), and three and seventeen one-hundredths 332
percent (3.17%) of the total sales tax revenue collected during 333
the preceding month under Section 27-65-17(1)(n), shall be 334
deposited into the School Ad Valorem Tax Reduction Fund created 335
under Section 37-61-35 until such time that the total amount 336
deposited into the fund during a fiscal year equals Forty-two 337
Million Dollars ($42,000,000.00). Thereafter, the amounts 338
diverted under this subsection (7) during the fiscal year in 339
excess of Forty-two Million Dollars ($42,000,000.00) shall be 340
deposited into the Education Enhancement Fund created under 341
Section 37-61-33 for appropriation by the Legislature as other 342
education needs and shall not be subject to the percentage 343
appropriation requirements set forth in Section 37-61-33. 344
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 15 (BS\KP)

(8) On or before August 15, 1992, and each succeeding month 345
thereafter through August 15, 2025, nine and seventy-three 346
one-thousandths percent (9.073%) of the total sales tax revenue 347
collected during the preceding month under the provisions of this 348
chapter, except that collected under the provisions of Section 349
27-65-17(2), shall be deposited into the Education Enhancement 350
Fund created under Section 37-61-33. On or before September 15, 351
2025, and each succeeding month thereafter, nine and seventy-three 352
one-thousandths percent (9.073%) of the total sales tax revenue 353
collected during the preceding month under this chapter, except 354
that collected under Section 27-65-17(1)(n) and (2), and twelve 355
and seven-tenths percent (12.7%) of the total sales tax revenue 356
collected during the preceding month under Section 27-65-17(1)(n), 357
shall be deposited into the Education Enhancement Fund created 358
under Section 37-61-33. 359
(9) On or before August 15, 1994, and each succeeding month 360
thereafter, from the revenue collected under this chapter during 361
the preceding month, Two Hundred Fifty Thousand Dollars 362
($250,000.00) shall be paid into the State Aid Road Fund. 363
(10) On or before August 15, 1994, and each succeeding month 364
thereafter through August 15, 1995, from the revenue collected 365
under this chapter during the preceding month, Two Million Dollars 366
($2,000,000.00) shall be deposited into the Motor Vehicle Ad 367
Valorem Tax Reduction Fund established in Section 27-51-105. 368
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 16 (BS\KP)

(11) Notwithstanding any other provision of this section to 369
the contrary, on or before February 15, 1995, and each succeeding 370
month thereafter, the sales tax revenue collected during the 371
preceding month under the provisions of Section 27-65-17(2) and 372
the corresponding levy in Section 27-65-23 on the rental or lease 373
of private carriers of passengers and light carriers of property 374
as defined in Section 27-51-101 shall be deposited, without 375
diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund 376
established in Section 27-51-105. 377
(12) Notwithstanding any other provision of this section to 378
the contrary, on or before August 15, 1995, and each succeeding 379
month thereafter, the sales tax revenue collected during the 380
preceding month under the provisions of Section 27-65-17(1) on 381
retail sales of private carriers of passengers and light carriers 382
of property, as defined in Section 27-51-101 and the corresponding 383
levy in Section 27-65-23 on the rental or lease of these vehicles, 384
shall be deposited, after diversion, into the Motor Vehicle Ad 385
Valorem Tax Reduction Fund established in Section 27-51-105. 386
(13) On or before July 15, 1994, and on or before the 387
fifteenth day of each succeeding month thereafter, that portion of 388
the avails of the tax imposed in Section 27-65-22 that is derived 389
from activities held on the Mississippi State Fairgrounds Complex 390
shall be paid into a special fund that is created in the State 391
Treasury and shall be expended upon legislative appropriation 392
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 17 (BS\KP)

solely to defray the costs of repairs and renovation at the Trade 393
Mart and Coliseum. 394
(14) On or before August 15, 1998, and each succeeding month 395
thereafter through July 15, 2005, that portion of the avails of 396
the tax imposed in Section 27-65-23 that is derived from sales by 397
cotton compresses or cotton warehouses and that would otherwise be 398
paid into the General Fund shall be deposited in an amount not to 399
exceed Two Million Dollars ($2,000,000.00) into the special fund 400
created under Section 69-37-39. On or before August 15, 2007, and 401
each succeeding month thereafter through July 15, 2010, that 402
portion of the avails of the tax imposed in Section 27-65-23 that 403
is derived from sales by cotton compresses or cotton warehouses 404
and that would otherwise be paid into the General Fund shall be 405
deposited in an amount not to exceed Two Million Dollars 406
($2,000,000.00) into the special fund created under Section 407
69-37-39 until all debts or other obligations incurred by the 408
Certified Cotton Growers Organization under the Mississippi Boll 409
Weevil Management Act before January 1, 2007, are satisfied in 410
full. On or before August 15, 2010, and each succeeding month 411
thereafter through July 15, 2011, fifty percent (50%) of that 412
portion of the avails of the tax imposed in Section 27-65-23 that 413
is derived from sales by cotton compresses or cotton warehouses 414
and that would otherwise be paid into the General Fund shall be 415
deposited into the special fund created under Section 69-37-39 416
until such time that the total amount deposited into the fund 417
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 18 (BS\KP)

during a fiscal year equals One Million Dollars ($1,000,000.00). 418
On or before August 15, 2011, and each succeeding month 419
thereafter, that portion of the avails of the tax imposed in 420
Section 27-65-23 that is derived from sales by cotton compresses 421
or cotton warehouses and that would otherwise be paid into the 422
General Fund shall be deposited into the special fund created 423
under Section 69-37-39 until such time that the total amount 424
deposited into the fund during a fiscal year equals One Million 425
Dollars ($1,000,000.00). 426
(15) Notwithstanding any other provision of this section to 427
the contrary, on or before September 15, 2000, and each succeeding 428
month thereafter, the sales tax revenue collected during the 429
preceding month under the provisions of Section 430
27-65-19(1)(d)(i)2, and 27-65-19(1)(d)(i)3 shall be deposited, 431
without diversion, into the Telecommunications Ad Valorem Tax 432
Reduction Fund established in Section 27-38-7. 433
(16) (a) On or before August 15, 2000, and each succeeding 434
month thereafter, the sales tax revenue collected during the 435
preceding month under the provisions of this chapter on the gross 436
proceeds of sales of a project as defined in Section 57-30-1 shall 437
be deposited, after all diversions except the diversion provided 438
for in subsection (1) of this section, into the Sales Tax 439
Incentive Fund created in Section 57-30-3. 440
(b) On or before August 15, 2007, and each succeeding 441
month thereafter, eighty percent (80%) of the sales tax revenue 442
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 19 (BS\KP)

collected during the preceding month under the provisions of this 443
chapter from the operation of a tourism project under the 444
provisions of Sections 57-26-1 through 57-26-5, shall be 445
deposited, after the diversions required in subsections (7) and 446
(8) of this section, into the Tourism Project Sales Tax Incentive 447
Fund created in Section 57-26-3. 448
(17) Notwithstanding any other provision of this section to 449
the contrary, on or before April 15, 2002, and each succeeding 450
month thereafter, the sales tax revenue collected during the 451
preceding month under Section 27-65-23 on sales of parking 452
services of parking garages and lots at airports shall be 453
deposited, without diversion, into the special fund created under 454
Section 27-5-101(d). 455
(18) [Repealed] 456
(19) (a) On or before August 15, 2005, and each succeeding 457
month thereafter, the sales tax revenue collected during the 458
preceding month under the provisions of this chapter on the gross 459
proceeds of sales of a business enterprise located within a 460
redevelopment project area under the provisions of Sections 461
57-91-1 through 57-91-11, and the revenue collected on the gross 462
proceeds of sales from sales made to a business enterprise located 463
in a redevelopment project area under the provisions of Sections 464
57-91-1 through 57-91-11 (provided that such sales made to a 465
business enterprise are made on the premises of the business 466
enterprise), shall, except as otherwise provided in this 467
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 20 (BS\KP)

subsection (19), be deposited, after all diversions, into the 468
Redevelopment Project Incentive Fund as created in Section 469
57-91-9. 470
(b) For a municipality participating in the Economic 471
Redevelopment Act created in Sections 57-91-1 through 57-91-11, 472
the diversion provided for in subsection (1) of this section 473
attributable to the gross proceeds of sales of a business 474
enterprise located within a redevelopment project area under the 475
provisions of Sections 57-91-1 through 57-91-11, and attributable 476
to the gross proceeds of sales from sales made to a business 477
enterprise located in a redevelopment project area under the 478
provisions of Sections 57-91-1 through 57-91-11 (provided that 479
such sales made to a business enterprise are made on the premises 480
of the business enterprise), shall be deposited into the 481
Redevelopment Project Incentive Fund as created in Section 482
57-91-9, as follows: 483
(i) For the first six (6) years in which payments 484
are made to a developer from the Redevelopment Project Incentive 485
Fund, one hundred percent (100%) of the diversion shall be 486
deposited into the fund; 487
(ii) For the seventh year in which such payments 488
are made to a developer from the Redevelopment Project Incentive 489
Fund, eighty percent (80%) of the diversion shall be deposited 490
into the fund; 491
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 21 (BS\KP)

(iii) For the eighth year in which such payments 492
are made to a developer from the Redevelopment Project Incentive 493
Fund, seventy percent (70%) of the diversion shall be deposited 494
into the fund; 495
(iv) For the ninth year in which such payments are 496
made to a developer from the Redevelopment Project Incentive Fund, 497
sixty percent (60%) of the diversion shall be deposited into the 498
fund; and 499
(v) For the tenth year in which such payments are 500
made to a developer from the Redevelopment Project Incentive Fund, 501
fifty percent (50%) of the funds shall be deposited into the fund. 502
(20) On or before January 15, 2007, and each succeeding 503
month thereafter, eighty percent (80%) of the sales tax revenue 504
collected during the preceding month under the provisions of this 505
chapter from the operation of a tourism project under the 506
provisions of Sections 57-28-1 through 57-28-5 shall be deposited, 507
after the diversions required in subsections (7) and (8) of this 508
section, into the Tourism Sales Tax Incentive Fund created in 509
Section 57-28-3. 510
(21) (a) On or before April 15, 2007, and each succeeding 511
month thereafter through June 15, 2013, One Hundred Fifty Thousand 512
Dollars ($150,000.00) of the sales tax revenue collected during 513
the preceding month under the provisions of this chapter shall be 514
deposited into the MMEIA Tax Incentive Fund created in Section 515
57-101-3. 516
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 22 (BS\KP)

(b) On or before July 15, 2013, and each succeeding 517
month thereafter, One Hundred Fifty Thousand Dollars ($150,000.00) 518
of the sales tax revenue collected during the preceding month 519
under the provisions of this chapter shall be deposited into the 520
Mississippi Development Authority Job Training Grant Fund created 521
in Section 57-1-451. 522
(22) On or before June 1, 2024, and each succeeding month 523
thereafter until December 31, 2057, an amount determined annually 524
by the Mississippi Development Authority of the sales tax revenue 525
collected during the preceding month under the provisions of this 526
chapter shall be deposited into the MMEIA Tax Incentive Fund 527
created in Section 57-125-3. This amount shall be based on 528
estimated payments due within the upcoming year to construction 529
contractors pursuant to construction contracts subject to the tax 530
imposed by Section 27-65-21 for construction to be performed on 531
the project site of a project defined under Section 532
57-75-5(f)(xxxiii) for the coming year. 533
(23) Notwithstanding any other provision of this section to 534
the contrary, on or before August 15, 2009, and each succeeding 535
month thereafter, the sales tax revenue collected during the 536
preceding month under the provisions of Section 27-65-201 shall be 537
deposited, without diversion, into the Motor Vehicle Ad Valorem 538
Tax Reduction Fund established in Section 27-51-105. 539
(24) (a) On or before August 15, 2019, and each month 540
thereafter through July 15, 2020, one percent (1%) of the total 541
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 23 (BS\KP)

sales tax revenue collected during the preceding month from 542
restaurants and hotels shall be allocated for distribution to the 543
Mississippi Development Authority Tourism Advertising Fund 544
established under Section 57-1-64, to be used exclusively for the 545
purpose stated therein. On or before August 15, 2020, and each 546
month thereafter through July 15, 2021, two percent (2%) of the 547
total sales tax revenue collected during the preceding month from 548
restaurants and hotels shall be allocated for distribution to the 549
Mississippi Development Authority Tourism Advertising Fund 550
established under Section 57-1-64, to be used exclusively for the 551
purpose stated therein. On or before August 15, 2021, and each 552
month thereafter, three percent (3%) of the total sales tax 553
revenue collected during the preceding month from restaurants and 554
hotels shall be allocated for distribution to the Mississippi 555
Development Authority Tourism Advertising Fund established under 556
Section 57-1-64, to be used exclusively for the purpose stated 557
therein. The revenue diverted pursuant to this subsection shall 558
not be available for expenditure until February 1, 2020. 559
(b) The Joint Legislative Committee on Performance 560
Evaluation and Expenditure Review (PEER) must provide an annual 561
report to the Legislature indicating the amount of funds deposited 562
into the Mississippi Development Authority Tourism Advertising 563
Fund established under Section 57-1-64, and a detailed record of 564
how the funds are spent. 565
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 24 (BS\KP)

(25) On or before September 15, 2026, and each succeeding 566
month thereafter, eighteen and one-half percent (18-1/2%) of the 567
total sales tax revenue collected during the preceding month under 568
the provisions of this chapter, except that collected under the 569
provisions of Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3), 570
27-65-21 and 27-65-24, on business activities within a county that 571
is a part of the Pearl River Valley Water Supply District on 572
property that is owned by the district and outside of the 573
corporate limits of municipalities in such county shall be 574
allocated for distribution to the Pearl River Valley Water Supply 575
District and paid to the Pearl River Valley Water Supply District. 576
On or before September 15, 2026, and each succeeding month 577
thereafter, twenty-five and nine-tenths percent (25.9%) of the 578
total sales tax revenue collected during the preceding month under 579
Section 27-65-17(1)(n) on business activities within a county that 580
is a part of the Pearl River Valley Water Supply District on 581
property that is owned by the district and outside of the 582
corporate limits of municipalities in such county shall be 583
allocated for distribution to the Pearl River Valley Water Supply 584
District and paid to the Pearl River Valley Water Supply District. 585
( * * *26) The remainder of the amounts collected under the 586
provisions of this chapter shall be paid into the State Treasury 587
to the credit of the General Fund. 588
( * * *27) (a) It shall be the duty of the municipal 589
officials of any municipality that expands its limits, or of any 590
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 25 (BS\KP)

community that incorporates as a municipality, to notify the 591
commissioner of that action thirty (30) days before the effective 592
date. Failure to so notify the commissioner shall cause the 593
municipality to forfeit the revenue that it would have been 594
entitled to receive during this period of time when the 595
commissioner had no knowledge of the action. 596
(b) (i) Except as otherwise provided in subparagraph 597
(ii) of this paragraph, if any funds have been erroneously 598
disbursed to any municipality or any overpayment of tax is 599
recovered by the taxpayer, the commissioner may make correction 600
and adjust the error or overpayment with the municipality by 601
withholding the necessary funds from any later payment to be made 602
to the municipality. 603
(ii) Subject to the provisions of Sections 604
27-65-51 and 27-65-53, if any funds have been erroneously 605
disbursed to a municipality under subsection (1) of this section 606
for a period of three (3) years or more, the maximum amount that 607
may be recovered or withheld from the municipality is the total 608
amount of funds erroneously disbursed for a period of three (3) 609
years beginning with the date of the first erroneous disbursement. 610
However, if during such period, a municipality provides written 611
notice to the Department of Revenue indicating the erroneous 612
disbursement of funds, then the maximum amount that may be 613
recovered or withheld from the municipality is the total amount of 614
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 26 (BS\KP)

funds erroneously disbursed for a period of one (1) year beginning 615
with the date of the first erroneous disbursement. 616
SECTION 2. Section 27-65-53, Mississippi Code of 1972, is 617
amended as follows: 618
27-65-53. If the commissioner finds that the taxpayer has 619
overpaid his tax for any reason and the taxpayer has discontinued 620
business and there is no subsequent liability upon which the 621
excess may be credited, or if the amount of the excess so paid 622
shall exceed the estimated liability for the next twelve (12) 623
months, the excess shall be refunded to the taxpayer. Such amount 624
shall be certified to the State Auditor of Public Accounts by the 625
commission. The said auditor is hereby authorized to make such 626
investigation and audit of the claim as he finds necessary. If he 627
finds that the commissioner is correct in his determination, the 628
auditor may issue his warrant to the State Treasurer in favor of 629
the taxpayer for the amount of tax erroneously paid into the State 630
Treasury, such refunds to be made from current sales tax 631
collections. If part of the overpayment has been disbursed to any 632
municipality or state institution of higher learning or to the 633
Pearl River Valley Water Supply District, under authority of 634
Section 27-65-75, the municipality or state institution of higher 635
learning or the Pearl River Valley Water Supply District, having 636
erroneously received the money, shall adjust the amount with the 637
commissioner, or the overpayment may be withheld by the state from 638
H. B. No. 673 *HR43/R286* ~ OFFICIAL ~
26/HR43/R286
PAGE 27 (BS\KP)
ST: Sales tax; create diversion to the Pearl
River Valley Water Supply District.
any funds due by the state to the municipality or state 639
institution of higher learning or such district. 640
Provided, that where the taxpayer has overpaid his tax, the 641
commissioner may give credit for same and allow the taxpayer to 642
take credit on a subsequent return or, if necessary, in his 643
discretion, have the taxpayer file for a refund as provided 644
herein. 645
If any overpayment of tax as reflected in an application or 646
amended return, or both, filed by the taxpayer, and verified by 647
the commissioner or otherwise determined to be due by the 648
commissioner or commission, is not refunded or credited to a 649
taxpayer's account within ninety (90) days after the application 650
or amended return is filed or the date the commission or 651
commissioner determines a refund is due, whichever is later, 652
interest at the rate of one-half of one percent (1/2 of 1%) per 653
month shall be allowed on such overpayment computed for the period 654
after expiration of the ninety-day period provided herein to the 655
date of payment. 656
SECTION 3. This act shall take effect and be in force from 657
and after July 1, 2026. 658