Sales Tax Diversion Study Committee; establish.

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To: Accountability,
Efficiency, Transparency
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Blackwell

SENATE BILL NO. 2407

AN ACT TO ESTABLISH THE SALES TAX DIVERSION STUDY COMMITTEE 1
TO EXAMINE, EVALUATE AND DEVELOP RECOMMENDATIONS REGARDING THE 2
PROPER ALLOCATION OF SALES TAX REVENUE BETWEEN THE DEPARTMENT OF 3
REVENUE AND MUNICIPALITIES; TO DETAIL THE RESPONSIBILITIES OF THE 4
COMMITTEE; TO PROVIDE FOR THE COMPOSITION OF THE COMMITTEE; TO 5
PROVIDE THAT THE COMMITTEE SHALL REPORT ITS FINDINGS AND 6
RECOMMENDATIONS TO THE LEGISLATURE NO LATER THAN DECEMBER 1, 2026; 7
TO DIRECT THE DEPARTMENT OF REVENUE TO PROVIDE NECESSARY STAFF AND 8
LOGISTICAL SUPPORT TO THE COMMITTEE; TO ALLOW FOR ADDITIONAL 9
SUPPORT FROM THE JOINT LEGISLATIVE COMMITTEE ON PERFORMANCE 10
EVALUATION AND EXPENDITURE REVIEW (PEER), UPON REQUEST AND SUBJECT 11
TO AVAILABLE RESOURCES; TO PROVIDE FOR COMPENSATION ACCORDING TO 12
LAW FOR LEGISLATIVE MEMBERS AND TRAVEL EXPENSE REIMBURSEMENT FOR 13
NONLEGISLATIVE MEMBERS; TO PROVIDE FOR THE DISSOLUTION OF THE 14
COMMITTEE ON OR BEFORE JANUARY 1, 2027; AND FOR RELATED PURPOSES. 15
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 16
SECTION 1. (1) Sales Tax Diversion Study Committee 17
established. There is hereby created the Sales Tax Diversion 18
Study Committee to examine, evaluate and develop recommendations 19
regarding the proper allocation of sales tax revenue between the 20
Mississippi Department of Revenue and municipalities. The 21
committee shall: 22
(a) Conduct a comprehensive review of current sales tax 23
diversion practices and identify discrepancies; 24
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(b) Assess the financial impact of misallocated sales 25
tax revenue on municipalities; 26
(c) Analyze technological solutions, including 27
modernized software systems, to ensure accurate sales tax 28
distribution; 29
(d) Evaluate the accountability and oversight 30
mechanisms within the Department of Revenue; and 31
(e) Develop recommendations for legislative or 32
administrative reforms to be implemented in the next legislative 33
session. 34
(2) Composition of the committee. (a) The committee shall 35
be composed of the following eleven (11) members: 36
(i) The Commissioner of Revenue, or his/her 37
designee; 38
(ii) A member of the Mississippi State Senate 39
appointed by the Lieutenant Governor; 40
(iii) A member of the Mississippi House of 41
Representatives appointed by the Speaker of the House; 42
(iv) The Chairman of the Senate Finance Committee, 43
or his/her designee; 44
(v) The Chairman of the House Ways and Means 45
Committee, or his/her designee; 46
(vi) The Executive Director of the Mississippi 47
Municipal League, or his/her designee; 48
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(vii) The State Director of the National 49
Federation of Independent Business, or his/her designee; 50
(viii) The Executive Director of the Mississippi 51
Economic Council, or his/her designee; 52
(ix) A representative from a Mississippi 53
municipality with a population over fifty thousand (50,000), 54
appointed by the Governor; 55
(x) A representative from a Mississippi 56
municipality with a population under fifty thousand (50,000), 57
appointed by the Governor; and 58
(xi) An appointee of the Governor. 59
(b) Appointments to the committee shall be made within 60
thirty (30) days of the effective date of this act. 61
(3) Committee organization and responsibilities. (a) At 62
its first meeting, the committee shall: 63
(i) Elect a chairperson and vice chairperson from 64
among its members; and 65
(ii) Establish rules for transacting business and 66
keeping records. 67
(b) The committee shall meet as necessary and report 68
its findings and recommendations to the Legislature no later than 69
December 1, 2026. 70
(c) A majority of committee members shall constitute a 71
quorum for conducting business. 72
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ST: Sales Tax Diversion Study Committee;
establish.
(4) Support and cooperation. (a) The Department of Revenue 73
shall provide necessary staff and logistical support to the 74
committee. 75
(b) In addition, the Joint Legislative Committee on 76
Performance Evaluation and Expenditure Review (PEER) may provide 77
additional staff and administrative support to the committee upon 78
request and subject to available resources. 79
(c) To achieve its objectives, the committee may 80
request data, analysis and assistance from any state agency, 81
division or political subdivision. 82
(5) Compensation of committee members. (a) Legislative 83
members of the study committee shall be entitled to per diem and 84
reimbursement of expenses in accordance with Section 25-3-41, 85
Mississippi Code of 1972. 86
(b) Nonlegislative members shall serve without 87
compensation but may be reimbursed for necessary travel expenses 88
from any available funds designated for such purposes. 89
(6) Dissolution of the committee. The committee shall be 90
dissolved on or before January 1, 2027, unless extended by the 91
Legislature. 92
SECTION 2. This act shall take effect and be in force from 93
and after its passage. 94