Car tags; clarify privilege tax not paid on $1 tags for certain veterans with service-connected disabilities.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) England

SENATE BILL NO. 2864

AN ACT TO AMEND SECTIONS 27-19-53 AND 27-19-11, MISSISSIPPI 1
CODE OF 1972, TO SPECIFY THAT THE HIGHWAY PRIVILEGE TAX IS NOT 2
IMPOSED ON A MOTOR VEHICLE RECEIVING A $1.00 LICENSE TAG UNDER THE 3
PROVISION OF LAW AUTHORIZING SUCH A TAG FOR A PERSON RATED AS 4
HAVING 100% PERMANENT SERVICE-CONNECTED DISABILITY OR AT LEAST 70% 5
NONPERMANENT SERVICE-CONNECTED DISABILITY; AND FOR RELATED 6
PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Section 27-19-53, Mississippi Code of 1972, is 9
amended as follows: 10
27-19-53. (1) (a) (i) Any legal resident of the State of 11
Mississippi who is rated as having one hundred percent (100%) 12
permanent service-connected disability or at least seventy percent 13
(70%) nonpermanent service-connected disability by the Veterans' 14
Administration or United States Department of Veterans Affairs is 15
privileged to purchase annually under this subsection two (2) 16
motor vehicle license plates or tags in his or her county of legal 17
residence, for the sum of One Dollar ($1.00) in total cost for 18
each plate or tag, regardless of the make * * *, model or weight 19
of the motor vehicle, and shall not be charged the highway 20
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privilege tax under Section 27-19-11. The legal resident of the 21
State of Mississippi who is rated as having one hundred percent 22
(100%) permanent service-connected disability by the Veteran's 23
Administration or United States Department of Veterans Affairs is 24
privileged for the tag, purchased under this section, to have the 25
label "100% Disabled Veteran" or "Disabled Veteran" listed on the 26
tag. The registration year of such motor vehicle shall commence 27
the first day of the month in which application for registration 28
is made, as provided in Section 27-19-31. In order for a person 29
who is rated as having at least seventy percent (70%) nonpermanent 30
service-connected disability to renew a license plate or tag 31
issued under this section, the person must provide an updated 32
benefits letter from the United States Department of Veterans 33
Affairs indicating that the person's rating has not been adjusted 34
to less than seventy percent (70%) nonpermanent service-connected 35
disability. 36
(ii) Any legal resident of the State of 37
Mississippi who is rated as having one hundred percent (100%) 38
permanent service-connected disability or at least seventy percent 39
(70%) nonpermanent service-connected disability by the Veterans' 40
Administration or United States Department of Veterans Affairs is 41
privileged to purchase annually under this subsection one (1) 42
motorcycle license plate or tag in his or her county of legal 43
residence, for the sum of One Dollar ($1.00) in total cost for 44
each plate or tag. The legal resident of the State of Mississippi 45
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who is rated as having one hundred percent (100%) permanent 46
service-connected disability by the Veteran's Administration or 47
United States Department of Veterans Affairs is privileged for the 48
tag, purchased under this section, to have the label "100% 49
Disabled Veteran" or "Disabled Veteran" listed on the tag. The 50
registration year of such motorcycle shall commence the first day 51
of the month in which application for registration is made, as 52
provided in Section 27-19-31. In order for a person who is rated 53
as having at least seventy percent (70%) nonpermanent 54
service-connected disability to renew a license plate or tag 55
issued under this section, the person must provide an updated 56
benefits letter from the United States Department of Veterans 57
Affairs indicating that the person's rating has not been adjusted 58
to less than seventy percent (70%) nonpermanent service-connected 59
disability. 60
(b) Not more than two (2) such motor vehicle license 61
plates or tags shall be issued under this subsection to each such 62
qualified person. Not more than one (1) such motorcycle license 63
plate or tag shall be issued under this subsection to each such 64
qualified person. 65
(c) This section pertains only to taxes or plates for 66
private passenger motor vehicles or pickup trucks or motorcycles. 67
(d) Proof of ownership of a particular motor vehicle or 68
motorcycle for which a license plate or tag is requested must be 69
shown at time of application for such plate or tag. 70
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(e) Vehicles and motorcycles owned by such person are 71
exempt under this subsection from all ad valorem and privilege 72
taxes; however, the surviving spouse of a deceased person who was 73
issued a license plate or tag under this subsection shall be 74
entitled to apply for or retain a license tag issued under this 75
subsection and may continue annually to renew registration for two 76
(2) motor vehicle license plates or tags and one (1) motorcycle 77
license plate or tag under this subsection for as long as the 78
spouse remains unmarried. In addition, if a deceased person who 79
was eligible to be issued a license plate or tag under this 80
subsection did not apply for or was not issued a license plate or 81
tag, the surviving spouse of such deceased person shall be 82
entitled to apply for and be issued a license plate or tag under 83
this subsection and may continue annually to renew registration 84
for two (2) motor vehicle license plates or tags and one (1) 85
motorcycle license tag or plate under this subsection for as long 86
as the spouse remains unmarried. At the time of application or 87
renewal registration, a surviving spouse who desires to retain a 88
distinctive plate or tag issued under this subsection shall file 89
with the county tax collector a sworn statement that the spouse is 90
unmarried. Any such vehicle or motorcycle when so registered 91
shall be exempt from all ad valorem and privilege taxes. 92
(2) Any person who is entitled to obtain license tags under 93
subsection (1) of this section may be issued one (1) additional 94
such license tag for any other vehicle registered in his or her 95
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name upon payment of the road and bridge privilege taxes, ad 96
valorem taxes and registration fees as otherwise prescribed by law 97
for the particular vehicle. 98
(3) The Department of Revenue is directed to furnish each 99
person obtaining a license tag under this section an emblem, which 100
the person shall attach securely to the tag, showing that the tag 101
was issued to a disabled American veteran. 102
(4) A license issued under this section shall not be 103
transferable to any other person. 104
(5) Any person evading or violating any of the provisions of 105
this section, or attempting to secure benefits under this section 106
to which he is not entitled, shall be guilty of a misdemeanor and, 107
upon conviction, shall be fined not less than One Thousand Dollars 108
($1,000.00) or imprisoned in the county jail for not less than 109
ninety (90) days, or both. 110
(6) From and after July 1, 2022, the special tag authorized 111
under this section shall bear the name and emblem of each branch 112
of the United States Armed Forces. 113
SECTION 2. Section 27-19-11, Mississippi Code of 1972, is 114
amended as follows: 115
27-19-11. (1) On each carrier of property, for each 116
commercial motor vehicle, truck-tractor or road tractor, and on 117
each bus, there is hereby levied an annual highway privilege tax 118
in accordance with the following schedule, except that the gross 119
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vehicle weight of buses shall be the gross weight of the vehicle 120
plus one hundred fifty (150) pounds per each regular seat. 121
RATE OF TAX 122
GROSS WEIGHT COMMON AND PRIVATE PRIVATE 123
OF VEHICLE CONTRACT COMMERCIAL CARRIERS 124
NOT TO EXCEED CARRIERS OF AND OF 125
IN POUNDS PROPERTY NONCOMMERCIAL PROPERTY 126
CARRIERS OF 127
PROPERTY 128
0000 - 6000 $ 7.20 $ 7.20 $ 7.20 129
6001 - 10000 33.60 25.20 16.80 130
10001 - 16000 78.40 70.70 39.20 131
16001 - 20000 156.00 129.00 78.00 132
20001 - 26000 228.00 192.00 114.00 133
26001 - 30000 300.00 247.00 150.00 134
30001 - 36000 384.00 318.00 192.00 135
36001 - 40000 456.00 378.00 228.00 136
40001 - 42000 504.00 420.00 264.00 137
42001 - 44000 528.00 444.00 276.00 138
44001 - 46000 552.00 456.00 282.00 139
46001 - 48000 588.00 492.00 300.00 140
48001 - 50000 612.00 507.00 312.00 141
50001 - 52000 660.00 540.00 336.00 142
52001 - 54000 684.00 564.00 348.00 143
54001 - 56000 708.00 588.00 360.00 144
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56001 - 58000 756.00 624.00 384.00 145
58001 - 60000 780.00 642.00 396.00 146
60001 - 62000 828.00 828.00 420.00 147
62001 - 64000 852.00 852.00 432.00 148
64001 - 66000 900.00 900.00 482.00 149
66001 - 68000 936.00 936.00 504.00 150
68001 - 70000 972.00 972.00 516.00 151
70001 - 72000 996.00 996.00 528.00 152
72001 - 74000 1,128.00 1,128.00 576.00 153
74001 - 76000 1,248.00 1,248.00 612.00 154
76001 - 78000 1,380.00 1,380.00 720.00 155
78001 - 80000 1,512.00 1,512.00 864.00 156
80001 - 88000 1,776.00 1,776.00 1,152.00 157
The purchase of the license tag exceeding eighty thousand 158
(80,000) gross vehicle weight is limited to the transport of 159
products as provided for harvest permits as defined in Section 160
27-19-81(4). Such license tag shall be a "HP" license tag with 161
weight allowance printed on the cab card only. 162
In addition to the above levied annual highway privilege tax 163
on vehicles with a gross weight exceeding ten thousand (10,000) 164
pounds, there is levied and shall be collected an additional 165
privilege tax in the amount of One Thousand Eight Hundred 166
Seventy-five Dollars ($1,875.00) for each current or later year 167
model vehicle based upon a licensed weight of eighty-eight 168
thousand (88,000) pounds. This additional privilege tax shall be 169
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reduced by the amount of One Hundred Seventy-five Dollars 170
($175.00) for each year of age to a minimum of Fifty Dollars 171
($50.00) and further reduced by the ratio of licensed weight to 172
the maximum weight of eighty-eight thousand (88,000) pounds. 173
During the first year only, the privilege tax monies collected 174
under the provisions of this paragraph shall be distributed to the 175
various counties of the state on the basis of the ratio of the 176
last year of annual ad valorem taxes collected by such counties on 177
such vehicles to the total ad valorem taxes collected by all 178
counties on such vehicles in the same year. In all subsequent 179
years, the distribution to the counties shall be made on the basis 180
of the ratio of the number of motor vehicles registered in excess 181
of ten thousand (10,000) pounds, in each taxing district in each 182
county, to the total number of such vehicles registered statewide. 183
The counties shall then distribute these proceeds as they would if 184
these collections were ad valorem taxes. 185
From the privilege tax monies collected under this section, 186
Three Million Seven Hundred Thirty-two Thousand Four Hundred Three 187
Dollars and Eleven Cents ($3,732,403.11) shall be earmarked and 188
set aside to be apportioned and paid to the counties of the state 189
in the manner provided by Section 27-19-159, Mississippi Code of 190
1972. Any excess privilege tax monies collected under this 191
section shall be deposited into the State Highway Fund for the 192
construction, maintenance and reconstruction of highways and roads 193
of the State of Mississippi or the payment of interest and 194
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principal on bonds authorized by the 1972 Regular Session of the 195
Legislature for construction and reconstruction of highways. 196
No privilege license shall be issued for any period of time 197
for less than One Dollar ($1.00). Any person making an 198
application for the license tag under this section is required to 199
sign an affidavit attesting to facts indicating the applicability 200
of this section. Proof of purchase of a valid harvest permit for 201
the vehicle must be presented at the time of purchase of the 202
license tag. 203
The annual highway privilege tax imposed on operators engaged 204
exclusively in the transportation of household goods shall be the 205
same as the tax imposed upon private commercial carriers by this 206
section. In determining the amount of privilege taxes due under 207
the provisions of this section, there shall be allowed a maximum 208
tolerance of five hundred (500) pounds on all classes of carriers 209
except carriers of liquefied compressed gases and in the case of 210
carriers of liquefied compressed gases there shall be allowed a 211
maximum tolerance of two thousand (2,000) pounds. 212
Any owner or operator who operates a motor vehicle on the 213
public highways, with a license tag attached to it which was 214
issued for another or different vehicle, shall be liable for the 215
privilege tax on said vehicle for twelve (12) months plus a 216
penalty thereon of twenty-five percent (25%). 217
Carriers of property duly registered and licensed in another 218
state and being used to transport farm harvesting machinery or 219
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equipment to and from a particular county in this state may, upon 220
adoption of a resolution by the board of supervisors of the county 221
where such machinery or equipment is being exclusively used in 222
harvesting farm crops within the county, be exempt from the taxes 223
herein levied when the resolution is filed with the Department of 224
Revenue. However, the exemption shall not exceed a period of 225
forty (40) days for any annual period without a second resolution 226
of approval by the board of supervisors who shall have the 227
authority to extend the exemption not to exceed an additional 228
period of twenty (20) days during any annual period. 229
A private commercial carrier of property hauling interstate 230
may purchase a common and contract carrier of property license 231
plate at the prescribed fee to allow the carrier to lease on a 232
one-way basis per trip without qualifying with the Public Service 233
Commission. 234
(2) Beginning January 1, 2024, an owner of a carrier of 235
property whose gross vehicle weight does not exceed ten thousand 236
(10,000) pounds may choose a license tag with a black background 237
and a white pinstripe border. "Mississippi" shall be printed at 238
the top, and the name of the county shall be printed at the 239
bottom. The application and the additional fee of Thirty-eight 240
Dollars and Twenty-five Cents ($38.25), less Two Dollars ($2.00) 241
to be remitted to the Department of Revenue License Tag 242
Acquisition Fund created in Section 27-19-179, shall be remitted 243
to the department on a monthly basis as prescribed by the 244
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ST: Car tags; clarify privilege tax not paid on
$1 tags for certain veterans with service-
connected disabilities.
department. The remaining Thirty-six Dollars and Twenty-five 245
Cents ($36.25) of the additional fee shall be deposited to the 246
credit of the Law Enforcement Officers and Fire Fighters Death 247
Benefits Trust Fund established in Section 45-2-1. In all other 248
respects, tags issued under this subsection (2) shall follow the 249
guidelines for tags issued under subsection (1) of this section. 250
(3) The tax imposed in this section shall not apply to 251
vehicles with license tags purchased under Section 27-19-53. 252
SECTION 3. This act shall take effect and be in force from 253
and after July 1, 2026. 254