Grocery Tax Elimination Act; enact.

S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~ R3/5
26/SS26/R798
PAGE 1 (icj\kr)

To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) McLendon, Blackmon, Simmons
(13th)

SENATE BILL NO. 2842

AN ACT TO AMEND SECTION 27-65-111, MISSISSIPPI CODE OF 1972, 1
TO EXEMPT FROM THE STATE SALES TAX RETAIL SALES OF GROCERIES, 2
DEFINED AS FOOD OR DRINK FOR HUMAN CONSUMPTION ELIGIBLE FOR 3
PURCHASE WITH FOOD STAMPS ISSUED BY THE UNITED STATES DEPARTMENT 4
OF AGRICULTURE OR OTHER FEDERAL AGENCY; TO AMEND SECTIONS 5
27-65-17, 27-65-75 AND 27-67-31, MISSISSIPPI CODE OF 1972, TO 6
CONFORM; AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Section 27-65-111, Mississippi Code of 1972, is 9
amended as follows: 10
27-65-111. The exemptions from the provisions of this 11
chapter which are not industrial, agricultural or governmental, or 12
which do not relate to utilities or taxes, or which are not 13
properly classified as one (1) of the exemption classifications of 14
this chapter, shall be confined to persons or property exempted by 15
this section or by the Constitution of the United States or the 16
State of Mississippi. No exemptions as now provided by any other 17
section, except the classified exemption sections of this chapter 18
set forth herein, shall be valid as against the tax herein levied. 19
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 2 (icj\kr)

Any subsequent exemption from the tax levied hereunder, except as 20
indicated above, shall be provided by amendments to this section. 21
No exemption provided in this section shall apply to taxes 22
levied by Section 27-65-15 or 27-65-21. 23
The tax levied by this chapter shall not apply to the 24
following: 25
(a) Sales of tangible personal property and services to 26
hospitals or infirmaries owned and operated by a corporation or 27
association in which no part of the net earnings inures to the 28
benefit of any private shareholder, group or individual, and which 29
are subject to and governed by Sections 41-7-123 through 41-7-127. 30
Only sales of tangible personal property or services which 31
are ordinary and necessary to the operation of such hospitals and 32
infirmaries are exempted from tax. 33
(b) Sales of daily or weekly newspapers, and 34
periodicals or publications of scientific, literary or educational 35
organizations exempt from federal income taxation under Section 36
501(c)(3) of the Internal Revenue Code of 1954, as it exists as of 37
March 31, 1975, and subscription sales of all magazines. 38
(c) Sales of coffins, caskets and other materials used 39
in the preparation of human bodies for burial. 40
(d) Sales of tangible personal property for immediate 41
export to a foreign country. 42
(e) Sales of tangible personal property to an 43
orphanage, old men's or ladies' home, supported wholly or in part 44
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 3 (icj\kr)

by a religious denomination, fraternal nonprofit organization or 45
other nonprofit organization. 46
(f) Sales of tangible personal property, labor or 47
services taxable under Sections 27-65-17, 27-65-19 and 27-65-23, 48
to a YMCA, YWCA, a Boys' or Girls' Club owned and operated by a 49
corporation or association in which no part of the net earnings 50
inures to the benefit of any private shareholder, group or 51
individual. 52
(g) Sales to elementary and secondary grade schools, 53
junior and senior colleges owned and operated by a corporation or 54
association in which no part of the net earnings inures to the 55
benefit of any private shareholder, group or individual, and which 56
are exempt from state income taxation, provided that this 57
exemption does not apply to sales of property or services which 58
are not to be used in the ordinary operation of the school, or 59
which are to be resold to the students or the public. 60
(h) The gross proceeds of retail sales and the use or 61
consumption in this state of drugs and medicines: 62
(i) Prescribed for the treatment of a human being 63
by a person authorized to prescribe the medicines, and dispensed 64
or prescription filled by a registered pharmacist in accordance 65
with law; or 66
(ii) Furnished by a licensed physician, surgeon, 67
dentist or podiatrist to his own patient for treatment of the 68
patient; or 69
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 4 (icj\kr)

(iii) Furnished by a hospital for treatment of any 70
person pursuant to the order of a licensed physician, surgeon, 71
dentist or podiatrist; or 72
(iv) Sold to a licensed physician, surgeon, 73
podiatrist, dentist or hospital for the treatment of a human 74
being; or 75
(v) Sold to this state or any political 76
subdivision or municipal corporation thereof, for use in the 77
treatment of a human being or furnished for the treatment of a 78
human being by a medical facility or clinic maintained by this 79
state or any political subdivision or municipal corporation 80
thereof. 81
"Medicines," as used in this paragraph (h), shall mean and 82
include any substance or preparation intended for use by external 83
or internal application to the human body in the diagnosis, cure, 84
mitigation, treatment or prevention of disease and which is 85
commonly recognized as a substance or preparation intended for 86
such use; "medicines" do not include any auditory, prosthetic, 87
ophthalmic or ocular device or appliance, any dentures or parts 88
thereof or any artificial limbs or their replacement parts, 89
articles which are in the nature of splints, bandages, pads, 90
compresses, supports, dressings, instruments, apparatus, 91
contrivances, appliances, devices or other mechanical, electronic, 92
optical or physical equipment or article or the component parts 93
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 5 (icj\kr)

and accessories thereof, or any alcoholic beverage or any other 94
drug or medicine not commonly referred to as a prescription drug. 95
Notwithstanding the preceding sentence of this paragraph (h), 96
"medicines" as used in this paragraph (h), shall mean and include 97
sutures, whether or not permanently implanted, bone screws, bone 98
pins, pacemakers and other articles permanently implanted in the 99
human body to assist the functioning of any natural organ, artery, 100
vein or limb and which remain or dissolve in the body. 101
The exemption provided in this paragraph (h) shall not apply 102
to medical cannabis sold in accordance with the provisions of the 103
Mississippi Medical Cannabis Act and in compliance with rules and 104
regulations adopted thereunder. 105
"Hospital," as used in this paragraph (h), shall have the 106
meaning ascribed to it in Section 41-9-3. 107
Insulin furnished by a registered pharmacist to a person for 108
treatment of diabetes as directed by a physician shall be deemed 109
to be dispensed on prescription within the meaning of this 110
paragraph (h). 111
(i) Retail sales of automobiles, trucks and 112
truck-tractors if exported from this state within forty-eight (48) 113
hours and registered and first used in another state. 114
(j) Sales of tangible personal property or services to 115
the Salvation Army and the Muscular Dystrophy Association, Inc. 116
(k) From July 1, 1985, through December 31, 1992, 117
retail sales of "alcohol-blended fuel" as such term is defined in 118
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 6 (icj\kr)

Section 75-55-5. The gasoline-alcohol blend or the straight 119
alcohol eligible for this exemption shall not contain alcohol 120
distilled outside the State of Mississippi. 121
(l) Sales of tangible personal property or services to 122
the Institute for Technology Development. 123
(m) The gross proceeds of retail sales of food and 124
drink for human consumption made through vending machines serviced 125
by full-line vendors from and not connected with other taxable 126
businesses. 127
(n) The gross proceeds of sales of motor fuel. 128
(o) * * * Retail sales of groceries. For purposes of 129
this paragraph, "groceries" means food or drink for human 130
consumption eligible for purchase with food stamps issued by the 131
United States Department of Agriculture or other federal agency. 132
(p) Sales of cookies for human consumption by the Girl 133
Scouts of America if no part of the net earnings from those sales 134
inures to the benefit of any private group or individual. 135
(q) Gifts or sales of tangible personal property or 136
services to public or private nonprofit museums of art. 137
(r) Sales of tangible personal property or services to 138
alumni associations of state-supported colleges or universities. 139
(s) Sales of tangible personal property or services to 140
National Association of Junior Auxiliaries, Inc., and chapters of 141
the National Association of Junior Auxiliaries, Inc. 142
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 7 (icj\kr)

(t) Sales of tangible personal property or services to 143
domestic violence shelters which qualify for state funding under 144
Sections 93-21-101 through 93-21-113. 145
(u) Sales of tangible personal property or services to 146
the National Multiple Sclerosis Society, Mississippi Chapter. 147
(v) Retail sales of food for human consumption 148
purchased with food instruments issued the Mississippi Band of 149
Choctaw Indians under the Women, Infants and Children Program 150
(WIC) funded by the United States Department of Agriculture. 151
(w) Sales of tangible personal property or services to 152
a private company, as defined in Section 57-61-5, which is making 153
such purchases with proceeds of bonds issued under Section 57-61-1 154
et seq., the Mississippi Business Investment Act. 155
(x) The gross collections from the operation of 156
self-service, coin-operated car washing equipment and sales of the 157
service of washing motor vehicles with portable high-pressure 158
washing equipment on the premises of the customer. 159
(y) Sales of tangible personal property or services to 160
the Mississippi Technology Alliance. 161
(z) Sales of tangible personal property to nonprofit 162
organizations that provide foster care, adoption services and 163
temporary housing for unwed mothers and their children if the 164
organization is exempt from federal income taxation under Section 165
501(c)(3) of the Internal Revenue Code. 166
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 8 (icj\kr)

(aa) Sales of tangible personal property to nonprofit 167
organizations that provide residential rehabilitation for persons 168
with alcohol and drug dependencies if the organization is exempt 169
from federal income taxation under Section 501(c)(3) of the 170
Internal Revenue Code. 171
(ab) (i) Retail sales of an article of clothing or 172
footwear designed to be worn on or about the human body and retail 173
sales of school supplies if the sales price of the article of 174
clothing or footwear or school supply is less than One Hundred 175
Dollars ($100.00) and the sale takes place during a period 176
beginning at 12:01 a.m. on the second Friday in July and ending at 177
12:00 midnight the following Sunday. This paragraph (ab) shall 178
not apply to: 179
1. Accessories including jewelry, handbags, 180
luggage, umbrellas, wallets, watches, briefcases, garment bags and 181
similar items carried on or about the human body, without regard 182
to whether worn on the body in a manner characteristic of 183
clothing; 184
2. The rental of clothing or footwear; and 185
3. Skis, swim fins, roller blades, skates and 186
similar items worn on the foot. 187
(ii) For purposes of this paragraph (ab), "school 188
supplies" means items that are commonly used by a student in a 189
course of study. The following is an all-inclusive list: 190
1. Backpacks; 191
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 9 (icj\kr)

2. Binder pockets; 192
3. Binders; 193
4. Blackboard chalk; 194
5. Book bags; 195
6. Calculators; 196
7. Cellophane tape; 197
8. Clays and glazes; 198
9. Compasses; 199
10. Composition books; 200
11. Crayons; 201
12. Dictionaries and thesauruses; 202
13. Dividers; 203
14. Erasers; 204
15. Folders: expandable, pocket, plastic and 205
manila; 206
16. Glue, paste and paste sticks; 207
17. Highlighters; 208
18. Index card boxes; 209
19. Index cards; 210
20. Legal pads; 211
21. Lunch boxes; 212
22. Markers; 213
23. Notebooks; 214
24. Paintbrushes for artwork; 215
25. Paints: acrylic, tempera and oil; 216
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 10 (icj\kr)

26. Paper: loose-leaf ruled notebook paper, 217
copy paper, graph paper, tracing paper, manila paper, colored 218
paper, poster board and construction paper; 219
27. Pencil boxes and other school supply 220
boxes; 221
28. Pencil sharpeners; 222
29. Pencils; 223
30. Pens; 224
31. Protractors; 225
32. Reference books; 226
33. Reference maps and globes; 227
34. Rulers; 228
35. Scissors; 229
36. Sheet music; 230
37. Sketch and drawing pads; 231
38. Textbooks; 232
39. Watercolors; 233
40. Workbooks; and 234
41. Writing tablets. 235
(iii) From and after January 1, 2010, the 236
governing authorities of a municipality, for retail sales 237
occurring within the corporate limits of the municipality, may 238
suspend the application of the exemption provided for in this 239
paragraph (ab) by adoption of a resolution to that effect stating 240
the date upon which the suspension shall take effect. A certified 241
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 11 (icj\kr)

copy of the resolution shall be furnished to the Department of 242
Revenue at least ninety (90) days prior to the date upon which the 243
municipality desires such suspension to take effect. 244
(ac) The gross proceeds of sales of tangible personal 245
property made for the sole purpose of raising funds for a school 246
or an organization affiliated with a school. 247
As used in this paragraph (ac), "school" means any public or 248
private school that teaches courses of instruction to students in 249
any grade from kindergarten through Grade 12. 250
(ad) Sales of durable medical equipment and home 251
medical supplies when ordered or prescribed by a licensed 252
physician for medical purposes of a patient. As used in this 253
paragraph (ad), "durable medical equipment" and "home medical 254
supplies" mean equipment, including repair and replacement parts 255
for the equipment or supplies listed under Title XVIII of the 256
Social Security Act or under the state plan for medical assistance 257
under Title XIX of the Social Security Act, prosthetics, 258
orthotics, hearing aids, hearing devices, prescription eyeglasses, 259
oxygen and oxygen equipment. Payment does not have to be made, in 260
whole or in part, by any particular person to be eligible for this 261
exemption. Purchases of home medical equipment and supplies by a 262
provider of home health services or a provider of hospice services 263
are eligible for this exemption if the purchases otherwise meet 264
the requirements of this paragraph. 265
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 12 (icj\kr)

(ae) Sales of tangible personal property or services to 266
Mississippi Blood Services. 267
(af) (i) Subject to the provisions of this paragraph 268
(af), retail sales of firearms, ammunition and hunting supplies if 269
sold during the annual Mississippi Second Amendment Weekend 270
holiday beginning at 12:01 a.m. on the last Friday in August and 271
ending at 12:00 midnight the following Sunday. For the purposes 272
of this paragraph (af), "hunting supplies" means tangible personal 273
property used for hunting, including, and limited to, archery 274
equipment, firearm and archery cases, firearm and archery 275
accessories, hearing protection, holsters, belts and slings. 276
Hunting supplies does not include animals used for hunting. 277
(ii) This paragraph (af) shall apply only if one 278
or more of the following occur: 279
1. Title to and/or possession of an eligible 280
item is transferred from a seller to a purchaser; and/or 281
2. A purchaser orders and pays for an 282
eligible item and the seller accepts the order for immediate 283
shipment, even if delivery is made after the time period provided 284
in subparagraph (i) of this paragraph (af), provided that the 285
purchaser has not requested or caused the delay in shipment. 286
(ag) Sales of nonperishable food items to charitable 287
organizations that are exempt from federal income taxation under 288
Section 501(c)(3) of the Internal Revenue Code and operate a food 289
bank or food pantry or food lines. 290
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 13 (icj\kr)

(ah) Sales of tangible personal property or services to 291
the United Way of the Pine Belt Region, Inc. 292
(ai) Sales of tangible personal property or services to 293
the Mississippi Children's Museum or any subsidiary or affiliate 294
thereof operating a satellite or branch museum within this state. 295
(aj) Sales of tangible personal property or services to 296
the Jackson Zoological Park. 297
(ak) Sales of tangible personal property or services to 298
the Hattiesburg Zoo. 299
(al) Gross proceeds from sales of food, merchandise or 300
other concessions at an event held solely for religious or 301
charitable purposes at livestock facilities, agriculture 302
facilities or other facilities constructed, renovated or expanded 303
with funds for the grant program authorized under Section 18, 304
Chapter 530, Laws of 1995. 305
(am) Sales of tangible personal property and services 306
to the Diabetes Foundation of Mississippi and the Mississippi 307
Chapter of the Juvenile Diabetes Research Foundation. 308
(an) Sales of potting soil, mulch, or other soil 309
amendments used in growing ornamental plants which bear no fruit 310
of commercial value when sold to commercial plant nurseries that 311
operate exclusively at wholesale and where no retail sales can be 312
made. 313
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 14 (icj\kr)

(ao) Sales of tangible personal property or services to 314
the University of Mississippi Medical Center Research Development 315
Foundation. 316
(ap) Sales of tangible personal property or services to 317
Keep Mississippi Beautiful, Inc., and all affiliates of Keep 318
Mississippi Beautiful, Inc. 319
(aq) Sales of tangible personal property or services to 320
the Friends of Children's Hospital. 321
(ar) Sales of tangible personal property or services to 322
the Pinecrest Weekend Snackpacks for Kids located in Corinth, 323
Mississippi. 324
(as) Sales of hearing aids when ordered or prescribed 325
by a licensed physician, audiologist or hearing aid specialist for 326
the medical purposes of a patient. 327
(at) Sales exempt under the Facilitating Business Rapid 328
Response to State Declared Disasters Act of 2015 (Sections 329
27-113-1 through 27-113-9). 330
(au) Sales of tangible personal property or services to 331
the Junior League of Jackson. 332
(av) Sales of tangible personal property or services to 333
the Mississippi's Toughest Kids Foundation for use in the 334
construction, furnishing and equipping of buildings and related 335
facilities and infrastructure at Camp Kamassa in Copiah County, 336
Mississippi. This paragraph (av) shall stand repealed on July 1, 337
2028. 338
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 15 (icj\kr)

(aw) Sales of tangible personal property or services to 339
MS Gulf Coast Buddy Sports, Inc. 340
(ax) Sales of tangible personal property or services to 341
Biloxi Lions, Inc. 342
(ay) Sales of tangible personal property or services to 343
Lions Sight Foundation of Mississippi, Inc. 344
(az) Sales of tangible personal property and services 345
to the Goldring/Woldenberg Institute of Southern Jewish Life 346
(ISJL). 347
(ba) Sales of coins, currency, and bullion. For the 348
purposes of this paragraph (ba), the following words and phrases 349
shall have the meanings ascribed in this paragraph (ba) unless the 350
context clearly indicates otherwise: 351
(i) "Bullion" means a bar, ingot, or coin: 352
1. Manufactured, in whole or in part, of 353
gold, silver, platinum, or palladium; 354
2. That was or is used solely as a medium of 355
exchange, security, or commodity by any state, the United States 356
Government, or a foreign nation; and 357
3. Sold based on the intrinsic value of the 358
bar, ingot, or coin as a precious metal or collectible item rather 359
than its form or representative value as a medium of exchange. 360
(ii) "Coin or currency" means a coin or currency: 361
1. Manufactured, in whole or in part, of 362
gold, silver, other metal, or paper; 363
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 16 (icj\kr)

2. That was or is used solely as a medium of 364
exchange, security, or commodity by any state, the United States 365
Government, or a foreign nation; and 366
3. Sold based on the intrinsic value of the 367
coin or currency as a precious metal or collectible item rather 368
than its form or representative value as a medium of exchange. 369
"Coin or currency" does not include a coin or currency that has 370
been incorporated into jewelry. 371
SECTION 2. Section 27-65-17, Mississippi Code of 1972, is 372
amended as follows: 373
27-65-17. (1) (a) Except as otherwise provided in this 374
section, upon every person engaging or continuing within this 375
state in the business of selling any tangible personal property 376
whatsoever there is hereby levied, assessed and shall be collected 377
a tax equal to seven percent (7%) of the gross proceeds of the 378
retail sales of the business. 379
(b) Retail sales of farm tractors and parts and labor 380
used to maintain and/or repair such tractors shall be taxed at the 381
rate of one and one-half percent (1-1/2%) when made to farmers for 382
agricultural purposes. 383
(c) (i) Retail sales of farm implements sold to 384
farmers and used directly in the production of poultry, ratite, 385
domesticated fish as defined in Section 69-7-501, livestock, 386
livestock products, agricultural crops or ornamental plant crops 387
or used for other agricultural purposes, and parts and labor used 388
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 17 (icj\kr)

to maintain and/or repair such implements, shall be taxed at the 389
rate of one and one-half percent (1-1/2%) when used on the farm. 390
(ii) The one and one-half percent (1-1/2%) rate 391
shall also apply to all equipment used in logging, pulpwood 392
operations or tree farming, and parts and labor used to maintain 393
and/or repair such equipment, which is either: 394
1. Self-propelled, or 395
2. Mounted so that it is permanently attached 396
to other equipment which is self-propelled or attached to other 397
equipment drawn by a vehicle which is self-propelled. 398
In order to be eligible for the rate of tax provided for in 399
this subparagraph (ii), such sales must be made to a professional 400
logger. For the purposes of this subparagraph (ii), a 401
"professional logger" is a person, corporation, limited liability 402
company or other entity, or an agent thereof, who possesses a 403
professional logger's permit issued by the Department of Revenue 404
and who presents the permit to the seller at the time of purchase. 405
The department shall establish an application process for a 406
professional logger's permit to be issued, which shall include a 407
requirement that the applicant submit a copy of documentation 408
verifying that the applicant is certified according to Sustainable 409
Forestry Initiative guidelines. Upon a determination that an 410
applicant is a professional logger, the department shall issue the 411
applicant a numbered professional logger's permit. 412
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 18 (icj\kr)

(d) Except as otherwise provided in subsection (3) of 413
this section, retail sales of aircraft, automobiles, trucks, 414
truck-tractors, semitrailers and manufactured or mobile homes 415
shall be taxed at the rate of three percent (3%). 416
(e) Sales of manufacturing machinery or manufacturing 417
machine parts when made to a manufacturer or custom processor for 418
plant use only when the machinery and machine parts will be used 419
exclusively and directly within this state in manufacturing a 420
commodity for sale, rental or in processing for a fee shall be 421
taxed at the rate of one and one-half percent (1-1/2%). 422
(f) Sales of machinery and machine parts when made to a 423
technology intensive enterprise for plant use only when the 424
machinery and machine parts will be used exclusively and directly 425
within this state for industrial purposes, including, but not 426
limited to, manufacturing or research and development activities, 427
shall be taxed at the rate of one and one-half percent (1-1/2%). 428
In order to be considered a technology intensive enterprise for 429
purposes of this paragraph: 430
(i) The enterprise shall meet minimum criteria 431
established by the Mississippi Development Authority; 432
(ii) The enterprise shall employ at least ten (10) 433
persons in full-time jobs; 434
(iii) At least ten percent (10%) of the workforce 435
in the facility operated by the enterprise shall be scientists, 436
engineers or computer specialists; 437
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 19 (icj\kr)

(iv) The enterprise shall manufacture plastics, 438
chemicals, automobiles, aircraft, computers or electronics; or 439
shall be a research and development facility, a computer design or 440
related facility, or a software publishing facility or other 441
technology intensive facility or enterprise as determined by the 442
Mississippi Development Authority; 443
(v) The average wage of all workers employed by 444
the enterprise at the facility shall be at least one hundred fifty 445
percent (150%) of the state average annual wage; and 446
(vi) The enterprise must provide a basic health 447
care plan to all employees at the facility. 448
A medical cannabis establishment, as defined in the 449
Mississippi Medical Cannabis Act, shall not be considered to be a 450
technology intensive enterprise for the purposes of this paragraph 451
(f). 452
(g) Sales of materials for use in track and track 453
structures to a railroad whose rates are fixed by the Interstate 454
Commerce Commission or the Mississippi Public Service Commission 455
shall be taxed at the rate of three percent (3%). 456
(h) Sales of tangible personal property to electric 457
power associations for use in the ordinary and necessary operation 458
of their generating or distribution systems shall be taxed at the 459
rate of one percent (1%). 460
(i) Wholesale sales of food and drink for human 461
consumption to full-service vending machine operators to be sold 462
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 20 (icj\kr)

through vending machines located apart from and not connected with 463
other taxable businesses shall be taxed at the rate of eight 464
percent (8%). 465
(j) Sales of equipment used or designed for the purpose 466
of assisting disabled persons, such as wheelchair equipment and 467
lifts, that is mounted or attached to or installed on a private 468
carrier of passengers or light carrier of property, as defined in 469
Section 27-51-101, at the time when the private carrier of 470
passengers or light carrier of property is sold shall be taxed at 471
the same rate as the sale of such vehicles under this section. 472
(k) Sales of the factory-built components of modular 473
homes, panelized homes and precut homes, and panel constructed 474
homes consisting of structural insulated panels, shall be taxed at 475
the rate of three percent (3%). 476
(l) Sales of materials used in the repair, renovation, 477
addition to, expansion and/or improvement of buildings and related 478
facilities used by a dairy producer shall be taxed at the rate of 479
three and one-half percent (3-1/2%). For the purposes of this 480
paragraph (l), "dairy producer" means any person engaged in the 481
production of milk for commercial use. 482
(m) Sales of equipment and materials used in connection 483
with geophysical surveying, exploring, developing, drilling, 484
redrilling, completing, working over, producing, distributing, or 485
testing of oil, gas and other mineral resources shall be taxed at 486
the rate of four and one-half percent (4-1/2%). Operators that 487
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 21 (icj\kr)

rebill sales of equipment and materials to nonoperating working 488
interest owners on behalf of a joint account through the joint 489
interest billing (JIB), where the sales tax has been paid or 490
accrued by the operator shall not be charged a sales tax on the 491
JIB as services income. 492
* * * 493
(2) From and after January 1, 1995, retail sales of private 494
carriers of passengers and light carriers of property, as defined 495
in Section 27-51-101, shall be taxed an additional two percent 496
(2%). 497
(3) A manufacturer selling at retail in this state shall be 498
required to make returns of the gross proceeds of such sales and 499
pay the tax imposed in this section. 500
SECTION 3. Section 27-65-75, Mississippi Code of 1972, is 501
amended as follows: 502
27-65-75. On or before the fifteenth day of each month, the 503
revenue collected under the provisions of this chapter during the 504
preceding month shall be paid and distributed as follows: 505
(1) (a) On or before August 15, 1992, and each succeeding 506
month thereafter through July 15, 1993, eighteen percent (18%) of 507
the total sales tax revenue collected during the preceding month 508
under the provisions of this chapter, except that collected under 509
the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 510
business activities within a municipal corporation shall be 511
allocated for distribution to the municipality and paid to the 512
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 22 (icj\kr)

municipal corporation. Except as otherwise provided in this 513
paragraph (a), on or before August 15, 1993, and each succeeding 514
month thereafter through August 15, 2025, eighteen and one-half 515
percent (18-1/2%) of the total sales tax revenue collected during 516
the preceding month under the provisions of this chapter, except 517
that collected under the provisions of Sections 27-65-15, 518
27-65-19(3), 27-65-21 and 27-65-24, on business activities within 519
a municipal corporation shall be allocated for distribution to the 520
municipality and paid to the municipal corporation. Except as 521
otherwise provided in this paragraph (a), on or before September 522
15, 2025, and each succeeding month thereafter, eighteen and 523
one-half percent (18.5%) of the total sales tax revenue collected 524
during the preceding month under this chapter, except that 525
collected under Sections 27-65-15, * * * 27-65-19(3), 27-65-21 and 526
27-65-24, on business activities within a municipal corporation 527
shall be allocated for distribution and paid to the municipal 528
corporation. * * * However, in the event the State Auditor issues 529
a certificate of noncompliance pursuant to Section 21-35-31, the 530
department shall withhold ten percent (10%) of the allocations and 531
payments to the municipality that would otherwise be payable to 532
the municipality under this paragraph (a) until such time that the 533
department receives written notice of the cancellation of a 534
certificate of noncompliance from the State Auditor. 535
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 23 (icj\kr)

A municipal corporation, for the purpose of distributing the 536
tax under this subsection, shall mean and include all incorporated 537
cities, towns and villages. 538
Monies allocated for distribution and credited to a municipal 539
corporation under this paragraph may be pledged as security for a 540
loan if the distribution received by the municipal corporation is 541
otherwise authorized or required by law to be pledged as security 542
for such a loan. 543
In any county having a county seat that is not an 544
incorporated municipality, the distribution provided under this 545
subsection shall be made as though the county seat was an 546
incorporated municipality; however, the distribution to the 547
municipality shall be paid to the county treasury in which the 548
municipality is located, and those funds shall be used for road, 549
bridge and street construction or maintenance in the county. 550
(b) On or before August 15, 2006, and each succeeding 551
month thereafter through August 15, 2025, eighteen and one-half 552
percent (18-1/2%) of the total sales tax revenue collected during 553
the preceding month under the provisions of this chapter, except 554
that collected under the provisions of Sections 27-65-15, 555
27-65-19(3) and 27-65-21, on business activities on the campus of 556
a state institution of higher learning or community or junior 557
college whose campus is not located within the corporate limits of 558
a municipality, shall be allocated for distribution to the state 559
institution of higher learning or community or junior college and 560
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 24 (icj\kr)

paid to the state institution of higher learning or community or 561
junior college. On or before September 15, 2025, and each 562
succeeding month thereafter, eighteen and one-half percent (18.5%) 563
of the total sales tax revenue collected during the preceding 564
month under this chapter, except that collected under Sections 565
27-65-15, * * * 27-65-19(3) and 27-65-21, on business activities 566
on the campus of a state institution of higher learning or 567
community or junior college whose campus is not located within the 568
corporate limits of a municipality, shall be allocated for 569
distribution and paid to the state institution of higher learning 570
or community or junior college. * * * 571
(c) On or before August 15, 2018, and each succeeding 572
month thereafter until August 14, 2019, two percent (2%) of the 573
total sales tax revenue collected during the preceding month under 574
the provisions of this chapter, except that collected under the 575
provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 576
27-65-24, on business activities within the corporate limits of 577
the City of Jackson, Mississippi, shall be deposited into the 578
Capitol Complex Improvement District Project Fund created in 579
Section 29-5-215. On or before August 15, 2019, and each 580
succeeding month thereafter until August 14, 2020, four percent 581
(4%) of the total sales tax revenue collected during the preceding 582
month under the provisions of this chapter, except that collected 583
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 584
and 27-65-24, on business activities within the corporate limits 585
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 25 (icj\kr)

of the City of Jackson, Mississippi, shall be deposited into the 586
Capitol Complex Improvement District Project Fund created in 587
Section 29-5-215. On or before August 15, 2020, and each 588
succeeding month thereafter through July 15, 2023, six percent 589
(6%) of the total sales tax revenue collected during the preceding 590
month under the provisions of this chapter, except that collected 591
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 592
and 27-65-24, on business activities within the corporate limits 593
of the City of Jackson, Mississippi, shall be deposited into the 594
Capitol Complex Improvement District Project Fund created in 595
Section 29-5-215. On or before August 15, 2023, and each 596
succeeding month thereafter through August 15, 2025, nine percent 597
(9%) of the total sales tax revenue collected during the preceding 598
month under the provisions of this chapter, except that collected 599
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 600
and 27-65-24, on business activities within the corporate limits 601
of the City of Jackson, Mississippi, shall be deposited into the 602
Capitol Complex Improvement District Project Fund created in 603
Section 29-5-215. On or before September 15, 2025, and each 604
succeeding month thereafter, nine percent (9%) of the total sales 605
tax revenue collected during the preceding month under this 606
chapter, except that collected under Sections 27-65-15, * * * 607
27-65-19(3), 27-65-21 and 27-65-24, on business activities within 608
the corporate limits of the City of Jackson, Mississippi, shall be 609
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 26 (icj\kr)

deposited into the Capitol Complex Improvement District Project 610
Fund created in Section 27-5-215. * * * 611
(d) (i) Except as otherwise provided in this paragraph 612
(d), on or before the fifteenth day of the month that the 613
diversion authorized by this section begins, and each succeeding 614
month thereafter, eighteen and one-half percent (18-1/2%) of the 615
total sales tax revenue collected during the preceding month under 616
the provisions of this chapter, except that collected under the 617
provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 618
business activities within a redevelopment project area developed 619
under a redevelopment plan adopted under the Tax Increment 620
Financing Act (Section 21-45-1 et seq.) shall be allocated for 621
distribution to the county in which the project area is located 622
if: 623
1. The county: 624
a. Borders on the Mississippi Sound and 625
the State of Alabama, or 626
b. Is Harrison County, Mississippi, and 627
the project area is within a radius of two (2) miles from the 628
intersection of Interstate 10 and Menge Avenue; 629
2. The county has issued bonds under Section 630
21-45-9 to finance all or a portion of a redevelopment project in 631
the redevelopment project area; 632
3. Any debt service for the indebtedness 633
incurred is outstanding; and 634
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 27 (icj\kr)

4. A development with a value of Ten Million 635
Dollars ($10,000,000.00) or more is, or will be, located in the 636
redevelopment area. 637
(ii) For a county that is eligible to receive 638
funds under this paragraph (d), as determined by the department 639
under this paragraph (d), from and after September 15, 2025, and 640
each succeeding month thereafter, eighteen and one-half percent 641
(18.5%) of the total sales tax revenue collected during the 642
preceding month under this chapter, except that collected under 643
Sections 27-65-15, * * * 27-65-19(3) and 27-65-21, on business 644
activities within a redevelopment project area developed under a 645
redevelopment plan adopted under the Tax Increment Financing Act 646
(Section 21-45-1 et seq.) shall be allocated for distribution to 647
the county in which the project is located * * *. 648
(iii) Before any sales tax revenue may be 649
allocated for distribution to a county under this paragraph (d), 650
the county shall certify to the Department of Revenue that the 651
requirements of this paragraph (d) have been met, the amount of 652
bonded indebtedness that has been incurred by the county for the 653
redevelopment project and the expected date the indebtedness 654
incurred by the county will be satisfied. 655
(iv) The diversion of sales tax revenue authorized 656
by this paragraph (d) shall begin the month following the month in 657
which the Department of Revenue determines that the requirements 658
of this paragraph (d) have been met. The diversion shall end the 659
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 28 (icj\kr)

month the indebtedness incurred by the county is satisfied. All 660
revenue received by the county under this paragraph (d) shall be 661
deposited in the fund required to be created in the tax increment 662
financing plan under Section 21-45-11 and be utilized solely to 663
satisfy the indebtedness incurred by the county. 664
(2) On or before September 15, 1987, and each succeeding 665
month thereafter, from the revenue collected under this chapter 666
during the preceding month, One Million One Hundred Twenty-five 667
Thousand Dollars ($1,125,000.00) shall be allocated for 668
distribution to municipal corporations as defined under subsection 669
(1) of this section in the proportion that the number of gallons 670
of gasoline and diesel fuel sold by distributors to consumers and 671
retailers in each such municipality during the preceding fiscal 672
year bears to the total gallons of gasoline and diesel fuel sold 673
by distributors to consumers and retailers in municipalities 674
statewide during the preceding fiscal year. The Department of 675
Revenue shall require all distributors of gasoline and diesel fuel 676
to report to the department monthly the total number of gallons of 677
gasoline and diesel fuel sold by them to consumers and retailers 678
in each municipality during the preceding month. The Department 679
of Revenue shall have the authority to promulgate such rules and 680
regulations as is necessary to determine the number of gallons of 681
gasoline and diesel fuel sold by distributors to consumers and 682
retailers in each municipality. In determining the percentage 683
allocation of funds under this subsection for the fiscal year 684
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 29 (icj\kr)

beginning July 1, 1987, and ending June 30, 1988, the Department 685
of Revenue may consider gallons of gasoline and diesel fuel sold 686
for a period of less than one (1) fiscal year. For the purposes 687
of this subsection, the term "fiscal year" means the fiscal year 688
beginning July 1 of a year. 689
(3) On or before September 15, 1987, and on or before the 690
fifteenth day of each succeeding month, until the date specified 691
in Section 65-39-35, the proceeds derived from contractors' taxes 692
levied under Section 27-65-21 on contracts for the construction or 693
reconstruction of highways designated under the highway program 694
created under Section 65-3-97 shall, except as otherwise provided 695
in Section 31-17-127, be deposited into the State Treasury to the 696
credit of the State Highway Fund to be used to fund that highway 697
program. The Mississippi Department of Transportation shall 698
provide to the Department of Revenue such information as is 699
necessary to determine the amount of proceeds to be distributed 700
under this subsection. 701
(4) On or before August 15, 1994, and on or before the 702
fifteenth day of each succeeding month through July 15, 1999, from 703
the proceeds of gasoline, diesel fuel or kerosene taxes as 704
provided in Section 27-5-101(a)(ii)1, Four Million Dollars 705
($4,000,000.00) shall be deposited in the State Treasury to the 706
credit of a special fund designated as the "State Aid Road Fund," 707
created by Section 65-9-17. On or before August 15, 1999, and on 708
or before the fifteenth day of each succeeding month through 709
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 30 (icj\kr)

August 15, 2026, from the total amount of the proceeds of 710
gasoline, diesel fuel or kerosene taxes apportioned by Section 711
27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an 712
amount equal to twenty-three and one-fourth percent (23-1/4%) of 713
those funds, whichever is the greater amount, shall be deposited 714
in the State Treasury to the credit of the "State Aid Road Fund," 715
created by Section 65-9-17. After August 15, 2025, from the total 716
amount of the proceeds of gasoline, diesel fuel or kerosene taxes 717
apportioned by Section 27-5-101(a)(ii)1 and (iii), Five Million 718
Dollars ($5,000,000.00) or an amount equal to twenty-three and 719
one-fourth percent (23-1/4%) of those funds, whichever is greater, 720
shall be deposited in the State Treasury to the credit of the 721
"State Aid Road Fund" on or before September 15, 2025, and on or 722
before the fifteenth day of each succeeding month through August 723
15, 2026, and Six Million Five Hundred Thousand Dollars 724
($6,500,000.00) or an amount equal to twenty-three and one-fourth 725
percent (23-1/4%) of those funds, whichever is greater, shall be 726
deposited in the State Treasury to the credit of the "State Aid 727
Road Fund" on or before September 15, 2026, and on or before the 728
fifteenth day of each succeeding month through August 15, 2027, 729
and Eight Million Dollars ($8,000,000.00) or an amount equal to 730
twenty-three and one-fourth percent (23-1/4%) of those funds, 731
whichever is greater, shall be deposited in the State Treasury to 732
the credit of the "State Aid Road Fund" on or before September 15, 733
2027, and on or before the fifteenth day of each succeeding month. 734
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 31 (icj\kr)

From the amount of taxes paid into the special fund under this 735
subsection and subsection (9) of this section, there shall be 736
first deducted and paid the amount necessary to pay the expenses 737
of the Office of State Aid Road Construction, as authorized by the 738
Legislature for all other general and special fund agencies. The 739
remainder of the funds shall be allocated monthly to the several 740
counties in accordance with the following formula: 741
(a) One-third (1/3) shall be allocated to all counties 742
in equal shares; 743
(b) One-third (1/3) shall be allocated to counties 744
based on the proportion that the total number of rural road miles 745
in a county bears to the total number of rural road miles in all 746
counties of the state; and 747
(c) One-third (1/3) shall be allocated to counties 748
based on the proportion that the rural population of the county 749
bears to the total rural population in all counties of the state, 750
according to the latest federal decennial census. 751
For the purposes of this subsection, the term "gasoline, 752
diesel fuel or kerosene taxes" means such taxes as defined in 753
paragraph (f) of Section 27-5-101. 754
The amount of funds allocated to any county under this 755
subsection for any fiscal year after fiscal year 1994 shall not be 756
less than the amount allocated to the county for fiscal year 1994. 757
Any reference in the general laws of this state or the 758
Mississippi Code of 1972 to Section 27-5-105 shall mean and be 759
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 32 (icj\kr)

construed to refer and apply to subsection (4) of Section 760
27-65-75. 761
(5) On or before August 15, 2024, and each succeeding month 762
thereafter, One Million Six Hundred Sixty-six Thousand Six Hundred 763
Sixty-six Dollars ($1,666,666.00) shall be paid into the special 764
fund known as the Education Enhancement Fund created and existing 765
under the provisions of Section 37-61-33. 766
(6) An amount each month beginning August 15, 1983, through 767
November 15, 1986, as specified in Section 6, Chapter 542, Laws of 768
1983, shall be paid into the special fund known as the 769
Correctional Facilities Construction Fund created in Section 6, 770
Chapter 542, Laws of 1983. 771
(7) On or before August 15, 1992, and each succeeding month 772
thereafter through July 15, 2000, two and two hundred sixty-six 773
one-thousandths percent (2.266%) of the total sales tax revenue 774
collected during the preceding month under the provisions of this 775
chapter, except that collected under the provisions of Section 776
27-65-17(2), shall be deposited by the department into the School 777
Ad Valorem Tax Reduction Fund created under Section 37-61-35. On 778
or before August 15, 2000, and each succeeding month thereafter 779
through August 15, 2025, two and two hundred sixty-six 780
one-thousandths percent (2.266%) of the total sales tax revenue 781
collected during the preceding month under the provisions of this 782
chapter, except that collected under the provisions of Section 783
27-65-17(2), shall be deposited into the School Ad Valorem Tax 784
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 33 (icj\kr)

Reduction Fund created under Section 37-61-35 until such time that 785
the total amount deposited into the fund during a fiscal year 786
equals Forty-two Million Dollars ($42,000,000.00). Thereafter, 787
the amounts diverted under this subsection (7) during the fiscal 788
year in excess of Forty-two Million Dollars ($42,000,000.00) shall 789
be deposited into the Education Enhancement Fund created under 790
Section 37-61-33 for appropriation by the Legislature as other 791
education needs and shall not be subject to the percentage 792
appropriation requirements set forth in Section 37-61-33. On or 793
before September 15, 2025, and each succeeding month thereafter, 794
two and two hundred sixty-six one-thousandths percent (2.266%) of 795
the total sales tax revenue collected during the preceding month 796
under this chapter, except that collected under Section * * * 797
27-65-17(2), * * * shall be deposited into the School Ad Valorem 798
Tax Reduction Fund created under Section 37-61-35 until such time 799
that the total amount deposited into the fund during a fiscal year 800
equals Forty-two Million Dollars ($42,000,000.00). Thereafter, 801
the amounts diverted under this subsection (7) during the fiscal 802
year in excess of Forty-two Million Dollars ($42,000,000.00) shall 803
be deposited into the Education Enhancement Fund created under 804
Section 37-61-33 for appropriation by the Legislature as other 805
education needs and shall not be subject to the percentage 806
appropriation requirements set forth in Section 37-61-33. 807
(8) On or before August 15, 1992, and each succeeding month 808
thereafter through August 15, 2025, nine and seventy-three 809
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 34 (icj\kr)

one-thousandths percent (9.073%) of the total sales tax revenue 810
collected during the preceding month under the provisions of this 811
chapter, except that collected under the provisions of Section 812
27-65-17(2), shall be deposited into the Education Enhancement 813
Fund created under Section 37-61-33. On or before September 15, 814
2025, and each succeeding month thereafter, nine and seventy-three 815
one-thousandths percent (9.073%) of the total sales tax revenue 816
collected during the preceding month under this chapter, except 817
that collected under Section * * * 27-65-17(2), * * * shall be 818
deposited into the Education Enhancement Fund created under 819
Section 37-61-33. 820
(9) On or before August 15, 1994, and each succeeding month 821
thereafter, from the revenue collected under this chapter during 822
the preceding month, Two Hundred Fifty Thousand Dollars 823
($250,000.00) shall be paid into the State Aid Road Fund. 824
(10) On or before August 15, 1994, and each succeeding month 825
thereafter through August 15, 1995, from the revenue collected 826
under this chapter during the preceding month, Two Million Dollars 827
($2,000,000.00) shall be deposited into the Motor Vehicle Ad 828
Valorem Tax Reduction Fund established in Section 27-51-105. 829
(11) Notwithstanding any other provision of this section to 830
the contrary, on or before February 15, 1995, and each succeeding 831
month thereafter, the sales tax revenue collected during the 832
preceding month under the provisions of Section 27-65-17(2) and 833
the corresponding levy in Section 27-65-23 on the rental or lease 834
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 35 (icj\kr)

of private carriers of passengers and light carriers of property 835
as defined in Section 27-51-101 shall be deposited, without 836
diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund 837
established in Section 27-51-105. 838
(12) Notwithstanding any other provision of this section to 839
the contrary, on or before August 15, 1995, and each succeeding 840
month thereafter, the sales tax revenue collected during the 841
preceding month under the provisions of Section 27-65-17(1) on 842
retail sales of private carriers of passengers and light carriers 843
of property, as defined in Section 27-51-101 and the corresponding 844
levy in Section 27-65-23 on the rental or lease of these vehicles, 845
shall be deposited, after diversion, into the Motor Vehicle Ad 846
Valorem Tax Reduction Fund established in Section 27-51-105. 847
(13) On or before July 15, 1994, and on or before the 848
fifteenth day of each succeeding month thereafter, that portion of 849
the avails of the tax imposed in Section 27-65-22 that is derived 850
from activities held on the Mississippi State Fairgrounds Complex 851
shall be paid into a special fund that is created in the State 852
Treasury and shall be expended upon legislative appropriation 853
solely to defray the costs of repairs and renovation at the Trade 854
Mart and Coliseum. 855
(14) On or before August 15, 1998, and each succeeding month 856
thereafter through July 15, 2005, that portion of the avails of 857
the tax imposed in Section 27-65-23 that is derived from sales by 858
cotton compresses or cotton warehouses and that would otherwise be 859
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 36 (icj\kr)

paid into the General Fund shall be deposited in an amount not to 860
exceed Two Million Dollars ($2,000,000.00) into the special fund 861
created under Section 69-37-39. On or before August 15, 2007, and 862
each succeeding month thereafter through July 15, 2010, that 863
portion of the avails of the tax imposed in Section 27-65-23 that 864
is derived from sales by cotton compresses or cotton warehouses 865
and that would otherwise be paid into the General Fund shall be 866
deposited in an amount not to exceed Two Million Dollars 867
($2,000,000.00) into the special fund created under Section 868
69-37-39 until all debts or other obligations incurred by the 869
Certified Cotton Growers Organization under the Mississippi Boll 870
Weevil Management Act before January 1, 2007, are satisfied in 871
full. On or before August 15, 2010, and each succeeding month 872
thereafter through July 15, 2011, fifty percent (50%) of that 873
portion of the avails of the tax imposed in Section 27-65-23 that 874
is derived from sales by cotton compresses or cotton warehouses 875
and that would otherwise be paid into the General Fund shall be 876
deposited into the special fund created under Section 69-37-39 877
until such time that the total amount deposited into the fund 878
during a fiscal year equals One Million Dollars ($1,000,000.00). 879
On or before August 15, 2011, and each succeeding month 880
thereafter, that portion of the avails of the tax imposed in 881
Section 27-65-23 that is derived from sales by cotton compresses 882
or cotton warehouses and that would otherwise be paid into the 883
General Fund shall be deposited into the special fund created 884
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 37 (icj\kr)

under Section 69-37-39 until such time that the total amount 885
deposited into the fund during a fiscal year equals One Million 886
Dollars ($1,000,000.00). 887
(15) Notwithstanding any other provision of this section to 888
the contrary, on or before September 15, 2000, and each succeeding 889
month thereafter, the sales tax revenue collected during the 890
preceding month under the provisions of Section 891
27-65-19(1)(d)(i)2, and 27-65-19(1)(d)(i)3 shall be deposited, 892
without diversion, into the Telecommunications Ad Valorem Tax 893
Reduction Fund established in Section 27-38-7. 894
(16) (a) On or before August 15, 2000, and each succeeding 895
month thereafter, the sales tax revenue collected during the 896
preceding month under the provisions of this chapter on the gross 897
proceeds of sales of a project as defined in Section 57-30-1 shall 898
be deposited, after all diversions except the diversion provided 899
for in subsection (1) of this section, into the Sales Tax 900
Incentive Fund created in Section 57-30-3. 901
(b) On or before August 15, 2007, and each succeeding 902
month thereafter, eighty percent (80%) of the sales tax revenue 903
collected during the preceding month under the provisions of this 904
chapter from the operation of a tourism project under the 905
provisions of Sections 57-26-1 through 57-26-5, shall be 906
deposited, after the diversions required in subsections (7) and 907
(8) of this section, into the Tourism Project Sales Tax Incentive 908
Fund created in Section 57-26-3. 909
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 38 (icj\kr)

(17) Notwithstanding any other provision of this section to 910
the contrary, on or before April 15, 2002, and each succeeding 911
month thereafter, the sales tax revenue collected during the 912
preceding month under Section 27-65-23 on sales of parking 913
services of parking garages and lots at airports shall be 914
deposited, without diversion, into the special fund created under 915
Section 27-5-101(d). 916
(18) [Repealed] 917
(19) (a) On or before August 15, 2005, and each succeeding 918
month thereafter, the sales tax revenue collected during the 919
preceding month under the provisions of this chapter on the gross 920
proceeds of sales of a business enterprise located within a 921
redevelopment project area under the provisions of Sections 922
57-91-1 through 57-91-11, and the revenue collected on the gross 923
proceeds of sales from sales made to a business enterprise located 924
in a redevelopment project area under the provisions of Sections 925
57-91-1 through 57-91-11 (provided that such sales made to a 926
business enterprise are made on the premises of the business 927
enterprise), shall, except as otherwise provided in this 928
subsection (19), be deposited, after all diversions, into the 929
Redevelopment Project Incentive Fund as created in Section 930
57-91-9. 931
(b) For a municipality participating in the Economic 932
Redevelopment Act created in Sections 57-91-1 through 57-91-11, 933
the diversion provided for in subsection (1) of this section 934
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 39 (icj\kr)

attributable to the gross proceeds of sales of a business 935
enterprise located within a redevelopment project area under the 936
provisions of Sections 57-91-1 through 57-91-11, and attributable 937
to the gross proceeds of sales from sales made to a business 938
enterprise located in a redevelopment project area under the 939
provisions of Sections 57-91-1 through 57-91-11 (provided that 940
such sales made to a business enterprise are made on the premises 941
of the business enterprise), shall be deposited into the 942
Redevelopment Project Incentive Fund as created in Section 943
57-91-9, as follows: 944
(i) For the first six (6) years in which payments 945
are made to a developer from the Redevelopment Project Incentive 946
Fund, one hundred percent (100%) of the diversion shall be 947
deposited into the fund; 948
(ii) For the seventh year in which such payments 949
are made to a developer from the Redevelopment Project Incentive 950
Fund, eighty percent (80%) of the diversion shall be deposited 951
into the fund; 952
(iii) For the eighth year in which such payments 953
are made to a developer from the Redevelopment Project Incentive 954
Fund, seventy percent (70%) of the diversion shall be deposited 955
into the fund; 956
(iv) For the ninth year in which such payments are 957
made to a developer from the Redevelopment Project Incentive Fund, 958
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 40 (icj\kr)

sixty percent (60%) of the diversion shall be deposited into the 959
fund; and 960
(v) For the tenth year in which such payments are 961
made to a developer from the Redevelopment Project Incentive Fund, 962
fifty percent (50%) of the funds shall be deposited into the fund. 963
(20) On or before January 15, 2007, and each succeeding 964
month thereafter, eighty percent (80%) of the sales tax revenue 965
collected during the preceding month under the provisions of this 966
chapter from the operation of a tourism project under the 967
provisions of Sections 57-28-1 through 57-28-5 shall be deposited, 968
after the diversions required in subsections (7) and (8) of this 969
section, into the Tourism Sales Tax Incentive Fund created in 970
Section 57-28-3. 971
(21) (a) On or before April 15, 2007, and each succeeding 972
month thereafter through June 15, 2013, One Hundred Fifty Thousand 973
Dollars ($150,000.00) of the sales tax revenue collected during 974
the preceding month under the provisions of this chapter shall be 975
deposited into the MMEIA Tax Incentive Fund created in Section 976
57-101-3. 977
(b) On or before July 15, 2013, and each succeeding 978
month thereafter, One Hundred Fifty Thousand Dollars ($150,000.00) 979
of the sales tax revenue collected during the preceding month 980
under the provisions of this chapter shall be deposited into the 981
Mississippi Development Authority Job Training Grant Fund created 982
in Section 57-1-451. 983
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 41 (icj\kr)

(22) On or before June 1, 2024, and each succeeding month 984
thereafter until December 31, 2057, an amount determined annually 985
by the Mississippi Development Authority of the sales tax revenue 986
collected during the preceding month under the provisions of this 987
chapter shall be deposited into the MMEIA Tax Incentive Fund 988
created in Section 57-125-3. This amount shall be based on 989
estimated payments due within the upcoming year to construction 990
contractors pursuant to construction contracts subject to the tax 991
imposed by Section 27-65-21 for construction to be performed on 992
the project site of a project defined under Section 993
57-75-5(f)(xxxiii) for the coming year. 994
(23) Notwithstanding any other provision of this section to 995
the contrary, on or before August 15, 2009, and each succeeding 996
month thereafter, the sales tax revenue collected during the 997
preceding month under the provisions of Section 27-65-201 shall be 998
deposited, without diversion, into the Motor Vehicle Ad Valorem 999
Tax Reduction Fund established in Section 27-51-105. 1000
(24) (a) On or before August 15, 2019, and each month 1001
thereafter through July 15, 2020, one percent (1%) of the total 1002
sales tax revenue collected during the preceding month from 1003
restaurants and hotels shall be allocated for distribution to the 1004
Mississippi Development Authority Tourism Advertising Fund 1005
established under Section 57-1-64, to be used exclusively for the 1006
purpose stated therein. On or before August 15, 2020, and each 1007
month thereafter through July 15, 2021, two percent (2%) of the 1008
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 42 (icj\kr)

total sales tax revenue collected during the preceding month from 1009
restaurants and hotels shall be allocated for distribution to the 1010
Mississippi Development Authority Tourism Advertising Fund 1011
established under Section 57-1-64, to be used exclusively for the 1012
purpose stated therein. On or before August 15, 2021, and each 1013
month thereafter, three percent (3%) of the total sales tax 1014
revenue collected during the preceding month from restaurants and 1015
hotels shall be allocated for distribution to the Mississippi 1016
Development Authority Tourism Advertising Fund established under 1017
Section 57-1-64, to be used exclusively for the purpose stated 1018
therein. The revenue diverted pursuant to this subsection shall 1019
not be available for expenditure until February 1, 2020. 1020
(b) The Joint Legislative Committee on Performance 1021
Evaluation and Expenditure Review (PEER) must provide an annual 1022
report to the Legislature indicating the amount of funds deposited 1023
into the Mississippi Development Authority Tourism Advertising 1024
Fund established under Section 57-1-64, and a detailed record of 1025
how the funds are spent. 1026
(25) The remainder of the amounts collected under the 1027
provisions of this chapter shall be paid into the State Treasury 1028
to the credit of the General Fund. 1029
(26) (a) It shall be the duty of the municipal officials of 1030
any municipality that expands its limits, or of any community that 1031
incorporates as a municipality, to notify the commissioner of that 1032
action thirty (30) days before the effective date. Failure to so 1033
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 43 (icj\kr)

notify the commissioner shall cause the municipality to forfeit 1034
the revenue that it would have been entitled to receive during 1035
this period of time when the commissioner had no knowledge of the 1036
action. 1037
(b) (i) Except as otherwise provided in subparagraph 1038
(ii) of this paragraph, if any funds have been erroneously 1039
disbursed to any municipality or any overpayment of tax is 1040
recovered by the taxpayer, the commissioner may make correction 1041
and adjust the error or overpayment with the municipality by 1042
withholding the necessary funds from any later payment to be made 1043
to the municipality. 1044
(ii) Subject to the provisions of Sections 1045
27-65-51 and 27-65-53, if any funds have been erroneously 1046
disbursed to a municipality under subsection (1) of this section 1047
for a period of three (3) years or more, the maximum amount that 1048
may be recovered or withheld from the municipality is the total 1049
amount of funds erroneously disbursed for a period of three (3) 1050
years beginning with the date of the first erroneous disbursement. 1051
However, if during such period, a municipality provides written 1052
notice to the Department of Revenue indicating the erroneous 1053
disbursement of funds, then the maximum amount that may be 1054
recovered or withheld from the municipality is the total amount of 1055
funds erroneously disbursed for a period of one (1) year beginning 1056
with the date of the first erroneous disbursement. 1057
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 44 (icj\kr)

SECTION 4. Section 27-67-31, Mississippi Code of 1972, is 1058
amended as follows: 1059
27-67-31. All administrative provisions of the sales tax 1060
law, and amendments thereto, including those which fix damages, 1061
penalties and interest for failure to comply with the provisions 1062
of said sales tax law, and all other requirements and duties 1063
imposed upon taxpayer, shall apply to all persons liable for use 1064
taxes under the provisions of this article. The commissioner 1065
shall exercise all power and authority and perform all duties with 1066
respect to taxpayers under this article as are provided in said 1067
sales tax law, except where there is conflict, then the provisions 1068
of this article shall control. 1069
The commissioner may require transportation companies to 1070
permit the examination of waybills, freight bills, or other 1071
documents covering shipments of tangible personal property into 1072
this state. 1073
On or before the fifteenth day of each month, the amount 1074
received from taxes, damages and interest under the provisions of 1075
this article during the preceding month shall be paid and 1076
distributed as follows: 1077
(a) On or before July 15, 1994, through July 15, 2000, 1078
and each succeeding month thereafter, two and two hundred 1079
sixty-six one-thousandths percent (2.266%) of the total use tax 1080
revenue collected during the preceding month under the provisions 1081
of this article shall be deposited in the School Ad Valorem Tax 1082
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 45 (icj\kr)

Reduction Fund created pursuant to Section 37-61-35. On or before 1083
August 15, 2000, and each succeeding month thereafter, two and two 1084
hundred sixty-six one-thousandths percent (2.266%) of the total 1085
use tax revenue collected during the preceding month under the 1086
provisions of this chapter shall be deposited into the School Ad 1087
Valorem Tax Reduction Fund created under Section 37-61-35 until 1088
such time that the total amount deposited into the fund during a 1089
fiscal year equals Four Million Dollars ($4,000,000.00). 1090
Thereafter, the amounts diverted under this paragraph (a) during 1091
the fiscal year in excess of Four Million Dollars ($4,000,000.00) 1092
shall be deposited into the Education Enhancement Fund created 1093
under Section 37-61-33 for appropriation by the Legislature as 1094
other education needs and shall not be subject to the percentage 1095
appropriation requirements set forth in Section 37-61-33. 1096
(b) On or before July 15, 1994, and each succeeding 1097
month thereafter, nine and seventy-three one-thousandths percent 1098
(9.073%) of the total use tax revenue collected during the 1099
preceding month under the provisions of this article shall be 1100
deposited into the Education Enhancement Fund created pursuant to 1101
Section 37-61-33. 1102
(c) On or before July 15, 1997, and on or before the 1103
fifteenth day of each succeeding month thereafter, the revenue 1104
collected under the provisions of this article imposed and levied 1105
as a result of Section 27-65-17(2) and the corresponding levy in 1106
Section 27-65-23 on the rental or lease of private carriers of 1107
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 46 (icj\kr)

passengers and light carriers of property as defined in Section 1108
27-51-101 shall be deposited into the Motor Vehicle Ad Valorem Tax 1109
Reduction Fund created pursuant to Section 27-51-105. 1110
(d) On or before July 15, 1997, and on or before the 1111
fifteenth day of each succeeding month thereafter and after the 1112
deposits required by paragraphs (a) and (b) of this section are 1113
made, the remaining revenue collected under the provisions of this 1114
article imposed and levied as a result of Section 27-65-17(1) and 1115
the corresponding levy in Section 27-65-23 on the rental or lease 1116
of private carriers of passengers and light carriers of property 1117
as defined in Section 27-51-101 shall be deposited into the Motor 1118
Vehicle Ad Valorem Tax Reduction Fund created pursuant to Section 1119
27-51-105. 1120
(e) On or before August 15, 2019, and each succeeding 1121
month thereafter through July 15, 2020, three and three-fourths 1122
percent (3-3/4%) of the total use tax revenue collected during the 1123
preceding month under the provisions of this article shall be 1124
deposited into the special fund created in Section 27-67-35(1). 1125
On or before August 15, 2020, and each succeeding month thereafter 1126
through July 15, 2021, seven and one-half percent (7-1/2%) of the 1127
total use tax revenue collected during the preceding month under 1128
the provisions of this article shall be deposited into the special 1129
fund created in Section 27-67-35(1). On or before August 15, 1130
2021, and each succeeding month thereafter through July 15, 2022, 1131
eleven and one-fourth percent (11-1/4%) of the total use tax 1132
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 47 (icj\kr)

revenue collected during the preceding month under the provisions 1133
of this article shall be deposited into the special fund created 1134
in Section 27-67-35(1). On or before August 15, 2022, and each 1135
succeeding month thereafter through August 15, 2025, fifteen 1136
percent (15%) of the total use tax revenue collected during the 1137
preceding month under the provisions of this article shall be 1138
deposited into the special fund created in Section 27-67-35(1). 1139
On or before September 15, 2025, and each succeeding month 1140
thereafter, fifteen percent (15%) of the total use tax revenue 1141
collected during the preceding month under this article * * * 1142
shall be deposited into the special fund created in Section 1143
27-67-35(1). 1144
(f) On or before August 15, 2019, and each succeeding 1145
month thereafter through July 15, 2020, three and three-fourths 1146
percent (3-3/4%) of the total use tax revenue collected during the 1147
preceding month under the provisions of this article shall be 1148
deposited into the special fund created in Section 27-67-35(2). 1149
On or before August 15, 2020, and each succeeding month thereafter 1150
through July 15, 2021, seven and one-half percent (7-1/2%) of the 1151
total use tax revenue collected during the preceding month under 1152
the provisions of this article shall be deposited into the special 1153
fund created in Section 27-67-35(2). On or before August 15, 1154
2021, and each succeeding month thereafter through July 15, 2022, 1155
eleven and one-fourth percent (11-1/4%) of the total use tax 1156
revenue collected during the preceding month under the provisions 1157
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 48 (icj\kr)

of this article shall be deposited into the special fund created 1158
in Section 27-67-35(2). On or before August 15, 2022, and each 1159
succeeding month thereafter through August 15, 2025, fifteen 1160
percent (15%) of the total use tax revenue collected during the 1161
preceding month under the provisions of this article shall be 1162
deposited into the special fund created in Section 27-67-35(2). 1163
On or before September 15, 2025, and each succeeding month 1164
thereafter, fifteen percent (15%) of the total use tax revenue 1165
collected during the preceding month under this article, except 1166
that imposed and levied as a result of Section 27-65-17(1)(n), and 1167
twenty-one percent (21%) of the total use tax revenue collected 1168
during the preceding month under this article imposed and levied 1169
as a result of Section 27-65-17(1)(n), shall be deposited into the 1170
special fund created in Section 27-67-35(2). 1171
(g) On or before August 15, 2019, and each succeeding 1172
month thereafter through July 15, 2020, Four Hundred Sixteen 1173
Thousand Six Hundred Sixty-six Dollars and Sixty-seven Cents 1174
($416,666.67) or one and one-fourth percent (1-1/4%) of the total 1175
use tax revenue collected during the preceding month under the 1176
provisions of this article, whichever is the greater amount, shall 1177
be deposited into the Local System Bridge Replacement and 1178
Rehabilitation Fund created in Section 65-37-13. On or before 1179
August 15, 2020, and each succeeding month thereafter through July 1180
15, 2021, Eight Hundred Thirty-three Thousand Three Hundred 1181
Thirty-three Dollars and Thirty-four Cents ($833,333.34) or two 1182
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 49 (icj\kr)

and one-half percent (2-1/2%) of the total use tax revenue 1183
collected during the preceding month under the provisions of this 1184
article, whichever is the greater amount, shall be deposited into 1185
the Local System Bridge Replacement and Rehabilitation Fund 1186
created in Section 65-37-13. On or before August 15, 2021, and 1187
each succeeding month thereafter through July 15, 2022, One 1188
Million Two Hundred Fifty Thousand Dollars ($1,250,000.00) or 1189
three and three-fourths percent (3-3/4%) of the total use tax 1190
revenue collected during the preceding month under the provisions 1191
of this article, whichever is the greater amount, shall be 1192
deposited into the Local System Bridge Replacement and 1193
Rehabilitation Fund created in Section 65-37-13. On or before 1194
August 15, 2022, and each succeeding month thereafter through July 1195
15, 2023, One Million Six Hundred Sixty-six Thousand Six Hundred 1196
Sixty-six Dollars and Sixty-seven Cents ($1,666,666.67) or five 1197
percent (5%) of the total use tax revenue collected during the 1198
preceding month under the provisions of this article, whichever is 1199
the greater amount, shall be deposited into the Local System 1200
Bridge Replacement and Rehabilitation Fund created in Section 1201
65-37-13. On or before August 15, 2023, and each succeeding month 1202
thereafter, (i) One Million Six Hundred Sixty-six Thousand Six 1203
Hundred Sixty-six Dollars and Sixty-seven Cents ($1,666,666.67) or 1204
two and one-half percent (2-1/2%) of the total use tax revenue 1205
collected during the preceding month under the provisions of this 1206
article, whichever is the greater amount, shall be deposited into 1207
S. B. No. 2842 *SS26/R798* ~ OFFICIAL ~
26/SS26/R798
PAGE 50 (icj\kr)
ST: Grocery Tax Elimination Act; enact.
the Local System Bridge Replacement and Rehabilitation Fund 1208
created in Section 65-37-13, and (ii) One Million Six Hundred 1209
Sixty-six Thousand Six Hundred Sixty-six Dollars and Sixty-seven 1210
Cents ($1,666,666.67) or two and one-half percent (2-1/2%) of the 1211
total use tax revenue collected during the preceding month under 1212
the provisions of this article, whichever is the greater amount, 1213
shall be deposited into the State Aid Road Fund created in Section 1214
65-9-17. 1215
(h) On or before August 15, 2020, and each succeeding 1216
month thereafter through July 15, 2022, One Million Dollars 1217
($1,000,000.00) of the total use tax revenue collected during the 1218
preceding month under the provisions of this article shall be 1219
deposited into the Local System Bridge Replacement and 1220
Rehabilitation Fund created in Section 65-37-13. Amounts 1221
deposited into the Local System Bridge Replacement and 1222
Rehabilitation Fund under this paragraph (h) shall be in addition 1223
to amounts deposited into the fund under paragraph (g) of this 1224
section. 1225
(i) The remainder of the amount received from taxes, 1226
damages and interest under the provisions of this article shall be 1227
paid into the General Fund of the State Treasury by the 1228
commissioner. 1229
SECTION 5. This act shall take effect and be in force from 1230
and after July 1, 2026. 1231