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H. B. No. 786 *HR31/R333* ~ OFFICIAL ~ G1/2
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To: Business and Commerce
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Eubanks
HOUSE BILL NO. 786
AN ACT TO AMEND SECTION 27-19-63, MISSISSIPPI CODE OF 1972, 1
TO PROVIDE THAT IF THE OWNER OR OPERATOR OF A PURCHASED VEHICLE 2
ACQUIRED THE VEHICLE FROM A DEALER AND AS PART OF THE TRANSACTION 3
OF PURCHASING THE VEHICLE TRADED IN A VEHICLE TO THE DEALER, THE 4
PERSON MAY RETAIN THE LICENSE PLATE REMOVED FROM THE TRADED 5
VEHICLE AND USE THE LICENSE PLATE ON THE VEHICLE PURCHASED AND 6
REGISTERED IF THE LICENSE PLATE IS OF THE SAME SERIES AS THAT OF A 7
NEW LICENSE PLATE REQUIRED FOR THE VEHICLE THAT IS PURCHASED AND 8
TO BE REGISTERED, THE LICENSE PLATE IS AUTHORIZED FOR USE ON THE 9
TYPE OF VEHICLE PURCHASED AND TO BE REGISTERED AND THE COUNTY IN 10
WHICH THE LICENSE PLATE WAS ISSUED IS THE SAME AS THE COUNTY IN 11
WHICH THE PURCHASED VEHICLE IS TO BE REGISTERED; TO AMEND SECTION 12
27-19-141, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF A PERSON, 13
OTHER THAN A DEALER OR AGENT, SELLS OR TRANSFERS A VEHICLE TO 14
ANOTHER PERSON, IN LIEU OF SURRENDERING THE LICENSE PLATE, THE 15
PERSON MAY RETAIN AND USE THE LICENSE PLATE ON ANOTHER VEHICLE 16
THAT IS TO BE REGISTERED BY SUCH PERSON FOR THE FIRST TIME IF THE 17
LICENSE PLATE IS OF THE SAME SERIES AS THAT OF A NEW LICENSE PLATE 18
REQUIRED FOR SUCH VEHICLE THAT IS TO BE REGISTERED, THE LICENSE 19
PLATE REMOVED FROM THE VEHICLE IS AUTHORIZED FOR USE ON THE TYPE 20
OF VEHICLE TO BE REGISTERED AND THE COUNTY IN WHICH THE LICENSE 21
PLATE WAS ISSUED IS THE SAME AS THE COUNTY IN WHICH THE VEHICLE IS 22
TO BE REGISTERED; AND FOR RELATED PURPOSES. 23
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 24
SECTION 1. Section 27-19-63, Mississippi Code of 1972, is 25
amended as follows: 26
27-19-63. (1) Except as otherwise provided in this section, 27
the privilege license tax levied by the provisions of this article 28
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shall be paid annually during the anniversary month of the 29
acquisition of the vehicle. The privilege license tax levied 30
shall be based on a period of twelve (12) months, even though the 31
actual time from the acquisition of the vehicle to the end of the 32
anniversary month of the next succeeding year may be more than 33
twelve (12) months. Any person subject to the provisions of this 34
article shall have an additional fifteen (15) days from the end of 35
the anniversary month in which to purchase the tag and/or decals 36
and to pay the privilege license tax without being in violation of 37
this section. Any person owning a vehicle subject to taxation 38
under the provisions of this article who fails or refuses to pay 39
such tax and obtain the privilege license required within the 40
prescribed period of time shall be guilty of violating the 41
provisions of this article, and shall be liable for the amount of 42
such tax plus a penalty as provided for in this section. If the 43
person owning a vehicle subject to taxation under the provisions 44
of this article does not operate such vehicle on the highways of 45
this state from the date of acquisition or, if previously 46
registered, from the end of the anniversary month of his tag and 47
decals to the date on which he makes application for the privilege 48
license, he shall pay such license tax for a period of twelve (12) 49
months beginning with the first day of the month in which he 50
applies for such privilege license. The owner shall submit an 51
affidavit with his application attesting to the fact that his 52
vehicle was not operated on the highways of this state from the 53
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date of acquisition or, if previously registered, from the end of 54
the anniversary month of his tag and decals to the date on which 55
he makes application for the privilege license. 56
(2) Except as may be otherwise provided in subsection (3) of 57
this section, the privilege license tax levied by the provision of 58
this article on operators of motor vehicles in excess of ten 59
thousand (10,000) pounds, gross vehicle weight, apportioned 60
vehicles, rental and commercial trailers and buses shall be due 61
annually during the anniversary month which shall be established 62
by the Commissioner of Revenue; however, there shall be an 63
additional fifteen (15) days from the end of the anniversary month 64
in which to file an application with the department and pay the 65
privilege license tax. The annual license tag and/or decals 66
issued by the department for the license tax year shall be valid 67
for a period of time to be determined by the * * * Commissioner of 68
Revenue but not to exceed fifteen (15) months following the 69
anniversary month; provided, however, this does not extend the 70
time for filing the application with the department and the 71
payment of the license tax. Any person who fails or refuses to 72
pay such tax and obtain the privilege license required when due 73
shall be guilty of violating the provision of this article and 74
shall be liable for the entire amount of such tax from the date 75
the liability was incurred, plus penalty as provided for in this 76
section. 77
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(3) The privilege license tax levied by the provisions of 78
this article on operators of a motor vehicle that is in a 79
corporate fleet or an individual fleet registered under Section 80
27-19-66, a trailer in a fleet registered under Section 81
27-19-66.1, or a motor vehicle that is in a rental fleet 82
registered under Section 27-19-66.2 shall be due annually during 83
the anniversary month which shall be established by the 84
Commissioner of Revenue for corporate fleets, rental fleets and 85
trailer fleets, and by the county tax collectors for individual 86
fleets; however, there shall be an additional fifteen (15) days 87
from the end of the anniversary month in which to file an 88
application with the department or the county tax collector, as 89
the case may be, and to purchase the tag or renew the registration 90
of such motor vehicle and pay the privilege license tax. The 91
department or the county tax collector, as the case may be, shall 92
issue a tag or renew the annual registration of such motor vehicle 93
for the license tax year only after all ad valorem taxes and 94
privilege taxes due on such motor vehicle have been paid. Any 95
person who fails or refuses to pay the privilege tax and obtain 96
the privilege license required when due shall be guilty of 97
violating the provisions of this article and shall be liable for 98
the entire amount of such tax from the date the liability was 99
incurred, plus penalty as provided for in this section. If a 100
motor vehicle registered in a rental fleet is removed from the 101
fleet and the rental fleet license tag is removed from the motor 102
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vehicle and transferred to and used on another motor vehicle that 103
is added to the fleet during the registration year to replace the 104
removed motor vehicle, the remaining portion of privilege tax paid 105
on the removed motor vehicle for the registration year shall be 106
transferred to the replacement motor vehicle and there shall be no 107
other privilege tax liability for the replacement motor vehicle 108
for the remaining portion of the registration year. 109
(4) Penalties shall be assessed on the privilege license tax 110
at the rate of five percent (5%) for the first fifteen (15) days 111
of delinquency, or part thereof, and five percent (5%) for each 112
additional thirty-day period of delinquency, or part thereof, not 113
to exceed a maximum penalty of twenty-five percent (25%); however, 114
a penalty of Two Hundred Fifty Dollars ($250.00), in addition to 115
the maximum penalty for delinquency, shall be assessed against any 116
person who is liable for the motor vehicle privilege license tax 117
but who (a) displays an out-of-state license tag on the motor 118
vehicle; or (b) displays a license tag or privilege license decal 119
on the motor vehicle which was issued for another vehicle. The 120
department, for good reason shown, may waive all or any part of 121
the penalties imposed. No private passenger vehicle registered 122
under this chapter shall have displayed on the front of such 123
vehicle, or elsewhere, the official license tag of another state, 124
whether or not such license tag has expired. Law enforcement 125
officers of this state may remove from private passenger vehicles 126
any out-of-state license tags so displayed. 127
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(5) The requirement that the privilege tax be paid during 128
the anniversary month of each year shall not apply in the 129
following cases: 130
(a) When a motor vehicle is acquired, the owner or 131
operator of the vehicle purchased shall have thirty (30) full 132
working days, exclusive of the date of delivery, after the vehicle 133
has been delivered to him, within which to make the application 134
for the required privilege license, otherwise such person shall be 135
liable for penalty as provided for in this section. Provided, 136
however, that when any person shall acquire a vehicle as herein 137
provided, and it shall be necessary that such vehicle be 138
remodeled, changed or altered by such person before same is 139
suitable for the purposes for which it was acquired, then such 140
person shall have seven (7) full working days, exclusive of the 141
day of the completion of such remodeling, change or alteration, 142
after the completion thereof, or thirty (30) full working days, 143
exclusive of the date of delivery, after the vehicle has been 144
delivered to him, whichever is greater, within which to make 145
application for the required privilege license; provided, that if 146
such person fails to make application within such period, such 147
person shall be liable for penalty as provided for in this 148
section. In addition, if the owner or operator of the purchased 149
vehicle acquired the vehicle from a dealer and as part of the 150
transaction of purchasing the vehicle he traded in a vehicle to 151
the dealer, the person may retain the license plate removed from 152
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the traded vehicle and use the license plate on the vehicle 153
purchased and registered if (i) the license plate is of the same 154
series as that of a new license plate required for the vehicle 155
that is purchased and to be registered, (ii) the license plate is 156
authorized for use on the type of vehicle purchased and to be 157
registered and (iii) the county in which the license plate was 158
issued is the same as the county in which the purchased vehicle is 159
to be registered. 160
"Delivery" as used herein shall be construed to mean receipt 161
of such vehicle by the purchaser thereof at his residence or place 162
of business, and, in the event the vehicle is purchased at any 163
place other than in the county of residence or place of business 164
of such person, he shall be entitled to forty-eight (48) hours 165
within which to transport such vehicle to the county of his 166
residence or place of business. At all times during such 167
transportation, the owner or operator of such vehicle shall have 168
in his possession a true bill of sale, giving the description of 169
the vehicle, the name and address of the dealer from whom 170
purchased, the name and address of the owner or operator, and the 171
date on which the vehicle was acquired. For failure to have such 172
bill of sale in his possession during the entire time during which 173
the vehicle is being transported, the owner or operator shall be 174
liable for the annual privilege tax plus penalty as provided for 175
in this section. 176
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(b) Where a person has paid the current privilege 177
license tax required by the laws of another state and applies for 178
a privilege license in this state within thirty (30) days, no 179
penalty shall be assessed; however, any person who fails to comply 180
herewith shall be liable for the full annual tax, plus penalty as 181
provided for in this section. 182
(6) Any nonresident of the State of Mississippi who has paid 183
the current privilege license required by the laws of another 184
state upon a private carrier of passengers, and thereafter becomes 185
a resident of the State of Mississippi, or brings such vehicle 186
into the State of Mississippi for use in connection with his 187
business in this state, or who is gainfully employed in this state 188
shall be entitled to operate such vehicle without obtaining a 189
privilege license in this state for a period of not more than 190
thirty (30) days. 191
"Resident" for the purpose of registration and operation of 192
motor vehicles shall include, but not be limited to, the 193
following: 194
(a) Any person, except a tourist or out-of-town 195
student, who owns, leases or rents a place within the state and 196
occupies same as a place of residence. 197
(b) Any person who engages in a trade, profession or 198
occupation in this state or who accepts employment in other than 199
seasonal agricultural work. 200
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SECTION 2. Section 27-19-141, Mississippi Code of 1972, is 201
amended as follows: 202
27-19-141. In case any person, other than a dealer or agent, 203
shall sell, assign or transfer any vehicle to another person, the 204
person acquiring such vehicle shall register the vehicle with the 205
county tax collector of his residence or the * * * Department of 206
Revenue within seven (7) working days after such sale, assignment 207
or transfer and pay the annual privilege license taxes. The 208
seller or transferor shall remove the license plate from the 209
vehicle and retain same. Such license plate must be surrendered 210
to the issuing authority with the corresponding tax receipt if 211
required, or retained by the seller or transferor as authorized 212
herein, and credit shall be allowed for the taxes paid for the 213
remaining tax year on like privilege or ad valorem taxes due on 214
another vehicle owned by the seller or transferor, or by the 215
seller's or transferor's spouse or dependent child. In lieu of 216
surrendering the license plate to the issuing authority, the 217
seller or transferor may retain and use the license plate on 218
another vehicle that is to be registered by such person for the 219
first time if (a) the license plate is of the same series as that 220
of a new license plate required for such vehicle that is to be 221
registered, (b) the license plate removed from the vehicle is 222
authorized for use on the type of vehicle to be registered and (c) 223
the county in which the license plate was issued is the same as 224
the county in which the vehicle is to be registered. Privilege 225
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taxes on vehicles registered in excess of ten thousand (10,000) 226
pounds gross vehicle weight, apportioned vehicles, rental and 227
commercial trailers and buses, shall be considered like taxes only 228
for vehicles registered in excess of ten thousand (10,000) pounds 229
gross vehicle weight, apportioned vehicles, rental and commercial 230
trailers and buses. Privilege or ad valorem taxes on vehicles 231
with a gross vehicle weight of ten thousand (10,000) pounds or 232
less shall be considered like taxes only for vehicles with a gross 233
vehicle weight of ten thousand (10,000) pounds or less. If the 234
seller or transferor does not elect to receive such credit at the 235
time the license plate is surrendered or retained for use on 236
another vehicle, the issuing authority shall issue a certificate 237
of credit to the seller or transferor, or to the seller's or 238
transferor's spouse or dependent child, or to any other person, 239
business or corporation, at the direction of the seller or 240
transferor, for the remaining unexpired taxes prorated from the 241
first day of the month following the month in which the license 242
plate is surrendered. Any credit allowed for taxes due or any 243
certificate of credit issued may be applied to like taxes owed in 244
any county by the person to whom the credit is allowed or by the 245
person possessing the certificate of credit. No credit, however, 246
shall be allowed on the charge made for registration fees and any 247
tag fees. Such license plates surrendered to the tax collector 248
shall be retained by him, and in no event shall such license plate 249
be attached to any motor vehicle after being surrendered to the 250
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ST: Motor vehicle license plates; allow reuse
from one vehicle to another under certain
conditions.
tax collector, nor shall any license plate be transferred from one 251
(1) motor vehicle to any other motor vehicle. Certificates of 252
credit shall be designed and furnished by the commissioner. 253
The credit authorized by this section shall not apply to 254
trailers or semitrailers subject to the tax levied in Section 255
27-19-18. 256
SECTION 3. This act shall take effect and be in force from 257
and after July 1, 2026. 258