Sales tax; create diversion to counties.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Byrd

HOUSE BILL NO. 955

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