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HB898 • 2026

Sales Tax Diversion Study Committee; create.

AN ACT TO CREATE THE SALES TAX DIVERSION STUDY COMMITTEE, WHICH SHALL DEVELOP RECOMMENDATIONS CONCERNING THE PROPER ALLOCATION OF SALES TAX REVENUE BETWEEN THE MISSISSIPPI DEPARTMENT OF REVENUE AND MUNICIPALITIES; TO PROVIDE THE DUTIES AND COMPOSITION OF THE COMMITTEE; TO REQUIRE THE COMMITTEE TO MAKE A LEGISLATIVE REPORT UPON COMPLETION OF THE STUDY; AND FOR RELATED PURPOSES.

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Hall, Remak
Last action
2026-03-25
Official status
Law
Effective date
July 1, 20

Plain English Breakdown

The bill does not provide specific details about funding or future legislative changes based on the committee's findings.

Sales Tax Diversion Study Committee Act

This law creates a committee to study how sales tax revenue is allocated between the state and local municipalities in Mississippi.

What This Bill Does

  • Creates the Sales Tax Diversion Study Committee to examine and develop recommendations on proper allocation of sales tax revenue between the Department of Revenue and municipalities.
  • The committee will conduct a review of current practices, assess financial impacts, analyze technological solutions, and evaluate oversight mechanisms.
  • Sets up rules for the composition, meetings, and reporting deadlines of the committee.

Who It Names or Affects

  • The Mississippi Department of Revenue
  • Local municipalities in Mississippi

Terms To Know

Sales Tax Diversion Study Committee
A committee established to study and recommend improvements for the allocation of sales tax revenue.
Legislative Report
A report given by the committee to the Mississippi Legislature upon completion of its study.

Limits and Unknowns

  • The bill does not specify how much funding will be provided for the committee's work.
  • It is unclear what specific changes might come from the recommendations made by the committee.

Bill History

  1. 2026-03-25 Mississippi Legislative Bill Status System

    03/25 Approved by Governor

  2. 2026-03-20 Mississippi Legislative Bill Status System

    03/20 (S) Enrolled Bill Signed

  3. 2026-03-19 Mississippi Legislative Bill Status System

    03/19 (H) Enrolled Bill Signed

  4. 2026-03-18 Mississippi Legislative Bill Status System

    03/18 (H) Concurred in Amend From Senate

  5. 2026-03-09 Mississippi Legislative Bill Status System

    03/09 (S) Returned For Concurrence

  6. 2026-03-05 Mississippi Legislative Bill Status System

    03/05 (S) Passed As Amended

  7. 2026-03-05 Mississippi Legislative Bill Status System

    03/05 (S) Amended

  8. 2026-03-03 Mississippi Legislative Bill Status System

    03/03 (S) Title Suff Do Pass As Amended

  9. 2026-02-13 Mississippi Legislative Bill Status System

    02/13 (S) Referred To Finance

  10. 2026-02-05 Mississippi Legislative Bill Status System

    02/05 (H) Transmitted To Senate

  11. 2026-02-04 Mississippi Legislative Bill Status System

    02/04 (H) Passed

  12. 2026-02-04 Mississippi Legislative Bill Status System

    02/04 (H) Committee Substitute Adopted

  13. 2026-02-03 Mississippi Legislative Bill Status System

    02/03 (H) Title Suff Do Pass Comm Sub

  14. 2026-01-16 Mississippi Legislative Bill Status System

    01/16 (H) Referred To Ways and Means

Official Summary Text

Sales Tax Diversion Study Committee; create.

Current Bill Text

Read the full stored bill text 
H. B. No. 898 *HR43/R755SG* ~ OFFICIAL ~ G1/2
26/HR43/R755SG
PAGE 1 (BS\KP)

To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Hall, Remak

HOUSE BILL NO. 898
(As Sent to Governor)

AN ACT TO CREATE THE SALES TAX DIVERSION STUDY COMMITTEE, 1
WHICH SHALL DEVELOP RECOMMENDATIONS CONCERNING THE PROPER 2
ALLOCATION OF SALES TAX REVENUE BETWEEN THE MISSISSIPPI DEPARTMENT 3
OF REVENUE AND MUNICIPALITIES; TO PROVIDE THE DUTIES AND 4
COMPOSITION OF THE COMMITTEE; TO REQUIRE THE COMMITTEE TO MAKE A 5
LEGISLATIVE REPORT UPON COMPLETION OF THE STUDY; AND FOR RELATED 6
PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. There is created the Sales Tax Diversion Study 9
Committee to examine, evaluate, and develop recommendations 10
regarding the proper allocation of sales tax revenue between the 11
Mississippi Department of Revenue and municipalities. The 12
committee shall: 13
(a) Conduct a comprehensive review of current sales tax 14
diversion practices and identify discrepancies. 15
(b) Assess the financial impact of misallocated sales 16
tax revenue on municipalities. 17
(c) Analyze technological solutions, including 18
modernized software systems, to ensure accurate sales tax 19
distribution. 20
H. B. No. 898 *HR43/R755SG* ~ OFFICIAL ~
26/HR43/R755SG
PAGE 2 (BS\KP)

(d) Evaluate the accountability and oversight 21
mechanisms within the Department of Revenue. 22
(e) Develop recommendations for legislative or 23
administrative reforms to be implemented in the 2027 Legislative 24
Session. 25
SECTION 2. The committee shall be composed of the following 26
fifteen (16) members: 27
(a) The Chairman of the Ways and Means Committee of the 28
Mississippi House of Representatives; 29
(b) The Chairman of the Finance Committee of the 30
Mississippi Senate; 31
(c) Three (3) members of the Mississippi Senate, 32
appointed by the Lieutenant Governor; 33
(d) Three (3) members of the Mississippi House of 34
Representatives, appointed by the Speaker of the House; 35
(e) The Commissioner of the Mississippi Department of 36
Revenue, or a designee, as an ex officio nonvoting member; 37
(f) The Executive Director of the Mississippi Municipal 38
League, or a designee; 39
(g) The State Auditor, or a designee, to assess 40
financial oversight concerns; 41
(h) A representative from a Mississippi municipality 42
with a population over fifty thousand (50,000), appointed by the 43
Governor; 44
H. B. No. 898 *HR43/R755SG* ~ OFFICIAL ~
26/HR43/R755SG
PAGE 3 (BS\KP)

(i) A representative from a Mississippi municipality 45
with a population under fifty thousand (50,000), appointed by the 46
Governor; 47
(j) The Executive Director of the Mississippi Economic 48
Council, or a designee; 49
(k) The Executive Director of the Business and Industry 50
Political Education Committee, or a designee; and 51
(l) A representative of a destination marketing 52
organization, appointed by the Lieutenant Governor. 53
Appointments made under this section shall be made within 54
thirty (30) days of the effective date of this act. 55
SECTION 3. (1) At its first meeting, the committee shall 56
elect a chairperson and vice chairperson from among its members 57
and shall establish rules for transacting business and keeping 58
records. 59
(2) The committee shall meet as necessary and report its 60
findings and recommendations to the Legislature no later than 61
December 1, 2026. 62
(3) A majority of committee members shall constitute a 63
quorum for conducting business. 64
SECTION 4. (1) The Mississippi Department of Revenue shall 65
provide necessary staff and logistical support to the committee. 66
(2) To achieve its objectives, the committee may request 67
data, analysis and assistance from any state agency, division or 68
political subdivision. 69
H. B. No. 898 *HR43/R755SG* ~ OFFICIAL ~
26/HR43/R755SG
PAGE 4 (BS\KP)
ST: Sales Tax Diversion Study Committee;
create.
SECTION 5. The Sales Tax Diversion Study Committee shall 70
dissolve on or before January 1, 2027, unless extended by the 71
Legislature. 72
SECTION 6. This act shall take effect and be in force from 73
and after July 1, 2026. 74