Sales tax; distribute revenue from a municipal historical hamlet to the applicable county, to be spent solely in the hamlet.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Barrett

SENATE BILL NO. 2876

AN ACT TO AMEND SECTION 17-27-5, MISSISSIPPI CODE OF 1972, TO 1
PROVIDE FOR THE DISTRIBUTION OF STATE SALES TAX REVENUE GENERATED 2
WITHIN THE BOUNDARIES OF A MUNICIPAL HISTORICAL HAMLET TO THE 3
COUNTY IN WHICH SUCH HAMLET IS LOCATED; TO PROVIDE THAT THE BOARD 4
OF SUPERVISORS OF SUCH COUNTY SHALL APPROPRIATE SUCH REVENUE 5
SOLELY WITHIN THE BOUNDARIES OF SUCH HAMLET; TO PROVIDE THAT THE 6
TAX ASSESSOR OF THE COUNTY IN WHICH A HAMLET IS LOCATED SHALL LIST 7
ALL BUSINESSES WITHIN SUCH HAMLET SUBJECT TO THE STATE SALES TAX 8
AND SHALL PROVIDE SUCH LIST TO THE DEPARTMENT OF REVENUE ANNUALLY 9
FOR PROPER DISTRIBUTION OF SALES TAX REVENUE GENERATED WITHIN SUCH 10
HAMLET; TO AMEND SECTION 27-65-75, MISSISSIPPI CODE OF 1972, TO 11
CONFORM; AND FOR RELATED PURPOSES. 12
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 13
SECTION 1. Section 17-27-5, Mississippi Code of 1972, is 14
amended as follows: 15
17-27-5. (1) For purposes of this chapter, the term 16
"municipal historical hamlet" or "hamlet" means any former city, 17
town or village with a current population of less than six hundred 18
(600) inhabitants that lost its charter before 1945. 19
(2) After the creation of a municipal historical hamlet, as 20
prescribed in Sections 17-27-7 through 17-27-11, the powers of 21
such historical hamlet shall be as follows: 22
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(a) To designate the county seat of government located 23
at a county courthouse within the jurisdiction where the hamlet is 24
located as the municipal historical hamlet meeting place; 25
(b) To be recognized for historical districts within a 26
municipal historical hamlet; and 27
(c) To work with a planning and development district in 28
promoting economic, community and human resources within a 29
municipal historical hamlet and to apply for any type of grant to 30
improve the infrastructure of such hamlet, including any small 31
municipalities grant programs authorized, such as in Sections 32
21-17-1 and 21-27-23. 33
(3) The board of supervisors of the county in which a 34
municipal historical hamlet is located, acting for and on the 35
behalf of the hamlet, may exercise any powers authorized under 36
this section. 37
(4) Taxes or fees shall not be imposed by or against any 38
municipal historical hamlet for any general or special purpose; 39
however, all state sales tax revenues generated within a hamlet's 40
boundaries, as indicated by the county records, shall be provided 41
to the county in which such hamlet is located, in accordance with 42
Section 27-65-75. Moreover: 43
(a) The funds from such distributed sales tax revenues 44
shall be appropriated by the board of supervisors solely within 45
the boundaries of the hamlet in which the revenue was generated; 46
and 47
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(b) The tax assessor of the county in which a hamlet is 48
located shall list all businesses within such hamlet subject to 49
the state sales tax and shall provide such list to the Department 50
of Revenue annually for proper distribution of sales tax revenue 51
generated within such hamlet. 52
(5) A municipal historical hamlet shall not be considered as 53
one (1) of the classes of municipal corporations which are 54
prescribed in Section 21-1-1 but shall be considered an 55
unincorporated area zoned for consideration of issues affecting 56
the designated community through any application or process 57
recognizing the area specifically within any county or counties. 58
SECTION 2. Section 27-65-75, Mississippi Code of 1972, is 59
amended as follows: 60
27-65-75. On or before the fifteenth day of each month, the 61
revenue collected under the provisions of this chapter during the 62
preceding month shall be paid and distributed as follows: 63
(1) (a) On or before August 15, 1992, and each succeeding 64
month thereafter through July 15, 1993, eighteen percent (18%) of 65
the total sales tax revenue collected during the preceding month 66
under the provisions of this chapter, except that collected under 67
the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 68
business activities within a municipal corporation shall be 69
allocated for distribution to the municipality and paid to the 70
municipal corporation. Except as otherwise provided in this 71
paragraph (a), on or before August 15, 1993, and each succeeding 72
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month thereafter through August 15, 2025, eighteen and one-half 73
percent (18-1/2%) of the total sales tax revenue collected during 74
the preceding month under the provisions of this chapter, except 75
that collected under the provisions of Sections 27-65-15, 76
27-65-19(3), 27-65-21 and 27-65-24, on business activities within 77
a municipal corporation shall be allocated for distribution to the 78
municipality and paid to the municipal corporation. Except as 79
otherwise provided in this paragraph (a), on or before September 80
15, 2025, and each succeeding month thereafter, eighteen and 81
one-half percent (18.5%) of the total sales tax revenue collected 82
during the preceding month under this chapter, except that 83
collected under Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3), 84
27-65-21 and 27-65-24, on business activities within a municipal 85
corporation shall be allocated for distribution and paid to the 86
municipal corporation. On or before September 15, 2025, and each 87
succeeding month thereafter, twenty-five and nine-tenths percent 88
(25.9%) of the total sales tax revenue collected during the 89
preceding month under Section 27-65-17(1)(n) on business 90
activities within a municipal corporation shall be allocated for 91
distribution and paid to the municipal corporation. However, in 92
the event the State Auditor issues a certificate of noncompliance 93
pursuant to Section 21-35-31, the department shall withhold ten 94
percent (10%) of the allocations and payments to the municipality 95
that would otherwise be payable to the municipality under this 96
paragraph (a) until such time that the department receives written 97
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notice of the cancellation of a certificate of noncompliance from 98
the State Auditor. 99
A municipal corporation, for the purpose of distributing the 100
tax under this subsection, shall mean and include all incorporated 101
cities, towns and villages, as well as all municipal historical 102
hamlets as defined in Section 17-27-5; however, the sales tax 103
revenue distributed under this paragraph (a) on business 104
activities within a municipal historical hamlet shall be 105
distributed to the county in which the hamlet is located. 106
Monies allocated for distribution and credited to a municipal 107
corporation under this paragraph may be pledged as security for a 108
loan if the distribution received by the municipal corporation is 109
otherwise authorized or required by law to be pledged as security 110
for such a loan. 111
In any county having a county seat that is not an 112
incorporated municipality, the distribution provided under this 113
subsection shall be made as though the county seat was an 114
incorporated municipality; however, the distribution to the 115
municipality shall be paid to the county treasury in which the 116
municipality is located, and those funds shall be used for road, 117
bridge and street construction or maintenance in the county. 118
(b) On or before August 15, 2006, and each succeeding 119
month thereafter through August 15, 2025, eighteen and one-half 120
percent (18-1/2%) of the total sales tax revenue collected during 121
the preceding month under the provisions of this chapter, except 122
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that collected under the provisions of Sections 27-65-15, 123
27-65-19(3) and 27-65-21, on business activities on the campus of 124
a state institution of higher learning or community or junior 125
college whose campus is not located within the corporate limits of 126
a municipality, shall be allocated for distribution to the state 127
institution of higher learning or community or junior college and 128
paid to the state institution of higher learning or community or 129
junior college. On or before September 15, 2025, and each 130
succeeding month thereafter, eighteen and one-half percent (18.5%) 131
of the total sales tax revenue collected during the preceding 132
month under this chapter, except that collected under Sections 133
27-65-15, 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on business 134
activities on the campus of a state institution of higher learning 135
or community or junior college whose campus is not located within 136
the corporate limits of a municipality, shall be allocated for 137
distribution and paid to the state institution of higher learning 138
or community or junior college. On or before September 15, 2025, 139
and each succeeding month thereafter, twenty-five and nine-tenths 140
percent (25.9%) of the total sales tax revenue collected during 141
the preceding month under Section 27-65-17(1)(n) on business 142
activities on the campus of a state institution of higher learning 143
or community or junior college whose campus is not located within 144
the corporate limits of a municipality, shall be allocated for 145
distribution and paid to the state institution of higher learning 146
or community or junior college. 147
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(c) On or before August 15, 2018, and each succeeding 148
month thereafter until August 14, 2019, two percent (2%) of the 149
total sales tax revenue collected during the preceding month under 150
the provisions of this chapter, except that collected under the 151
provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 152
27-65-24, on business activities within the corporate limits of 153
the City of Jackson, Mississippi, shall be deposited into the 154
Capitol Complex Improvement District Project Fund created in 155
Section 29-5-215. On or before August 15, 2019, and each 156
succeeding month thereafter until August 14, 2020, four percent 157
(4%) of the total sales tax revenue collected during the preceding 158
month under the provisions of this chapter, except that collected 159
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 160
and 27-65-24, on business activities within the corporate limits 161
of the City of Jackson, Mississippi, shall be deposited into the 162
Capitol Complex Improvement District Project Fund created in 163
Section 29-5-215. On or before August 15, 2020, and each 164
succeeding month thereafter through July 15, 2023, six percent 165
(6%) of the total sales tax revenue collected during the preceding 166
month under the provisions of this chapter, except that collected 167
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 168
and 27-65-24, on business activities within the corporate limits 169
of the City of Jackson, Mississippi, shall be deposited into the 170
Capitol Complex Improvement District Project Fund created in 171
Section 29-5-215. On or before August 15, 2023, and each 172
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succeeding month thereafter through August 15, 2025, nine percent 173
(9%) of the total sales tax revenue collected during the preceding 174
month under the provisions of this chapter, except that collected 175
under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 176
and 27-65-24, on business activities within the corporate limits 177
of the City of Jackson, Mississippi, shall be deposited into the 178
Capitol Complex Improvement District Project Fund created in 179
Section 29-5-215. On or before September 15, 2025, and each 180
succeeding month thereafter, nine percent (9%) of the total sales 181
tax revenue collected during the preceding month under this 182
chapter, except that collected under Sections 27-65-15, 183
27-65-17(1)(n), 27-65-19(3), 27-65-21 and 27-65-24, on business 184
activities within the corporate limits of the City of Jackson, 185
Mississippi, shall be deposited into the Capitol Complex 186
Improvement District Project Fund created in Section 27-5-215. On 187
or before September 15, 2025, and each succeeding month 188
thereafter, twelve and six-tenths percent (12.6%) of the total 189
sales tax revenue collected during the preceding month under 190
Section 27-65-17(1)(n) on business activities within the corporate 191
limits of the City of Jackson, Mississippi, shall be deposited 192
into the Capitol Complex Improvement District Project Fund created 193
in Section 27-5-215. 194
(d) (i) Except as otherwise provided in this paragraph 195
(d), on or before the fifteenth day of the month that the 196
diversion authorized by this section begins, and each succeeding 197
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month thereafter, eighteen and one-half percent (18-1/2%) of the 198
total sales tax revenue collected during the preceding month under 199
the provisions of this chapter, except that collected under the 200
provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 201
business activities within a redevelopment project area developed 202
under a redevelopment plan adopted under the Tax Increment 203
Financing Act (Section 21-45-1 et seq.) shall be allocated for 204
distribution to the county in which the project area is located 205
if: 206
1. The county: 207
a. Borders on the Mississippi Sound and 208
the State of Alabama, or 209
b. Is Harrison County, Mississippi, and 210
the project area is within a radius of two (2) miles from the 211
intersection of Interstate 10 and Menge Avenue; 212
2. The county has issued bonds under Section 213
21-45-9 to finance all or a portion of a redevelopment project in 214
the redevelopment project area; 215
3. Any debt service for the indebtedness 216
incurred is outstanding; and 217
4. A development with a value of Ten Million 218
Dollars ($10,000,000.00) or more is, or will be, located in the 219
redevelopment area. 220
(ii) For a county that is eligible to receive 221
funds under this paragraph (d), as determined by the department 222
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under this paragraph (d), from and after September 15, 2025, and 223
each succeeding month thereafter, eighteen and one-half percent 224
(18.5%) of the total sales tax revenue collected during the 225
preceding month under this chapter, except that collected under 226
Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on 227
business activities within a redevelopment project area developed 228
under a redevelopment plan adopted under the Tax Increment 229
Financing Act (Section 21-45-1 et seq.) shall be allocated for 230
distribution to the county in which the project is located, and 231
twenty-five and nine-tenths percent (25.9%) of the total sales tax 232
revenue collected during the preceding month under Section 233
27-65-17(1)(n) shall be allocated for distribution to that county. 234
(iii) Before any sales tax revenue may be 235
allocated for distribution to a county under this paragraph (d), 236
the county shall certify to the Department of Revenue that the 237
requirements of this paragraph (d) have been met, the amount of 238
bonded indebtedness that has been incurred by the county for the 239
redevelopment project and the expected date the indebtedness 240
incurred by the county will be satisfied. 241
(iv) The diversion of sales tax revenue authorized 242
by this paragraph (d) shall begin the month following the month in 243
which the Department of Revenue determines that the requirements 244
of this paragraph (d) have been met. The diversion shall end the 245
month the indebtedness incurred by the county is satisfied. All 246
revenue received by the county under this paragraph (d) shall be 247
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deposited in the fund required to be created in the tax increment 248
financing plan under Section 21-45-11 and be utilized solely to 249
satisfy the indebtedness incurred by the county. 250
(2) On or before September 15, 1987, and each succeeding 251
month thereafter, from the revenue collected under this chapter 252
during the preceding month, One Million One Hundred Twenty-five 253
Thousand Dollars ($1,125,000.00) shall be allocated for 254
distribution to municipal corporations as defined under subsection 255
(1) of this section in the proportion that the number of gallons 256
of gasoline and diesel fuel sold by distributors to consumers and 257
retailers in each such municipality during the preceding fiscal 258
year bears to the total gallons of gasoline and diesel fuel sold 259
by distributors to consumers and retailers in municipalities 260
statewide during the preceding fiscal year. The Department of 261
Revenue shall require all distributors of gasoline and diesel fuel 262
to report to the department monthly the total number of gallons of 263
gasoline and diesel fuel sold by them to consumers and retailers 264
in each municipality during the preceding month. The Department 265
of Revenue shall have the authority to promulgate such rules and 266
regulations as is necessary to determine the number of gallons of 267
gasoline and diesel fuel sold by distributors to consumers and 268
retailers in each municipality. In determining the percentage 269
allocation of funds under this subsection for the fiscal year 270
beginning July 1, 1987, and ending June 30, 1988, the Department 271
of Revenue may consider gallons of gasoline and diesel fuel sold 272
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for a period of less than one (1) fiscal year. For the purposes 273
of this subsection, the term "fiscal year" means the fiscal year 274
beginning July 1 of a year. 275
(3) On or before September 15, 1987, and on or before the 276
fifteenth day of each succeeding month, until the date specified 277
in Section 65-39-35, the proceeds derived from contractors' taxes 278
levied under Section 27-65-21 on contracts for the construction or 279
reconstruction of highways designated under the highway program 280
created under Section 65-3-97 shall, except as otherwise provided 281
in Section 31-17-127, be deposited into the State Treasury to the 282
credit of the State Highway Fund to be used to fund that highway 283
program. The Mississippi Department of Transportation shall 284
provide to the Department of Revenue such information as is 285
necessary to determine the amount of proceeds to be distributed 286
under this subsection. 287
(4) On or before August 15, 1994, and on or before the 288
fifteenth day of each succeeding month through July 15, 1999, from 289
the proceeds of gasoline, diesel fuel or kerosene taxes as 290
provided in Section 27-5-101(a)(ii)1, Four Million Dollars 291
($4,000,000.00) shall be deposited in the State Treasury to the 292
credit of a special fund designated as the "State Aid Road Fund," 293
created by Section 65-9-17. On or before August 15, 1999, and on 294
or before the fifteenth day of each succeeding month through 295
August 15, 2026, from the total amount of the proceeds of 296
gasoline, diesel fuel or kerosene taxes apportioned by Section 297
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27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an 298
amount equal to twenty-three and one-fourth percent (23-1/4%) of 299
those funds, whichever is the greater amount, shall be deposited 300
in the State Treasury to the credit of the "State Aid Road Fund," 301
created by Section 65-9-17. After August 15, 2025, from the total 302
amount of the proceeds of gasoline, diesel fuel or kerosene taxes 303
apportioned by Section 27-5-101(a)(ii)1 and (iii), Five Million 304
Dollars ($5,000,000.00) or an amount equal to twenty-three and 305
one-fourth percent (23-1/4%) of those funds, whichever is greater, 306
shall be deposited in the State Treasury to the credit of the 307
"State Aid Road Fund" on or before September 15, 2025, and on or 308
before the fifteenth day of each succeeding month through August 309
15, 2026, and Six Million Five Hundred Thousand Dollars 310
($6,500,000.00) or an amount equal to twenty-three and one-fourth 311
percent (23-1/4%) of those funds, whichever is greater, shall be 312
deposited in the State Treasury to the credit of the "State Aid 313
Road Fund" on or before September 15, 2026, and on or before the 314
fifteenth day of each succeeding month through August 15, 2027, 315
and Eight Million Dollars ($8,000,000.00) or an amount equal to 316
twenty-three and one-fourth percent (23-1/4%) of those funds, 317
whichever is greater, shall be deposited in the State Treasury to 318
the credit of the "State Aid Road Fund" on or before September 15, 319
2027, and on or before the fifteenth day of each succeeding month. 320
From the amount of taxes paid into the special fund under this 321
subsection and subsection (9) of this section, there shall be 322
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first deducted and paid the amount necessary to pay the expenses 323
of the Office of State Aid Road Construction, as authorized by the 324
Legislature for all other general and special fund agencies. The 325
remainder of the funds shall be allocated monthly to the several 326
counties in accordance with the following formula: 327
(a) One-third (1/3) shall be allocated to all counties 328
in equal shares; 329
(b) One-third (1/3) shall be allocated to counties 330
based on the proportion that the total number of rural road miles 331
in a county bears to the total number of rural road miles in all 332
counties of the state; and 333
(c) One-third (1/3) shall be allocated to counties 334
based on the proportion that the rural population of the county 335
bears to the total rural population in all counties of the state, 336
according to the latest federal decennial census. 337
For the purposes of this subsection, the term "gasoline, 338
diesel fuel or kerosene taxes" means such taxes as defined in 339
paragraph (f) of Section 27-5-101. 340
The amount of funds allocated to any county under this 341
subsection for any fiscal year after fiscal year 1994 shall not be 342
less than the amount allocated to the county for fiscal year 1994. 343
Any reference in the general laws of this state or the 344
Mississippi Code of 1972 to Section 27-5-105 shall mean and be 345
construed to refer and apply to subsection (4) of Section 346
27-65-75. 347
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(5) On or before August 15, 2024, and each succeeding month 348
thereafter, One Million Six Hundred Sixty-six Thousand Six Hundred 349
Sixty-six Dollars ($1,666,666.00) shall be paid into the special 350
fund known as the Education Enhancement Fund created and existing 351
under the provisions of Section 37-61-33. 352
(6) An amount each month beginning August 15, 1983, through 353
November 15, 1986, as specified in Section 6, Chapter 542, Laws of 354
1983, shall be paid into the special fund known as the 355
Correctional Facilities Construction Fund created in Section 6, 356
Chapter 542, Laws of 1983. 357
(7) On or before August 15, 1992, and each succeeding month 358
thereafter through July 15, 2000, two and two hundred sixty-six 359
one-thousandths percent (2.266%) of the total sales tax revenue 360
collected during the preceding month under the provisions of this 361
chapter, except that collected under the provisions of Section 362
27-65-17(2), shall be deposited by the department into the School 363
Ad Valorem Tax Reduction Fund created under Section 37-61-35. On 364
or before August 15, 2000, and each succeeding month thereafter 365
through August 15, 2025, two and two hundred sixty-six 366
one-thousandths percent (2.266%) of the total sales tax revenue 367
collected during the preceding month under the provisions of this 368
chapter, except that collected under the provisions of Section 369
27-65-17(2), shall be deposited into the School Ad Valorem Tax 370
Reduction Fund created under Section 37-61-35 until such time that 371
the total amount deposited into the fund during a fiscal year 372
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equals Forty-two Million Dollars ($42,000,000.00). Thereafter, 373
the amounts diverted under this subsection (7) during the fiscal 374
year in excess of Forty-two Million Dollars ($42,000,000.00) shall 375
be deposited into the Education Enhancement Fund created under 376
Section 37-61-33 for appropriation by the Legislature as other 377
education needs and shall not be subject to the percentage 378
appropriation requirements set forth in Section 37-61-33. On or 379
before September 15, 2025, and each succeeding month thereafter, 380
two and two hundred sixty-six one-thousandths percent (2.266%) of 381
the total sales tax revenue collected during the preceding month 382
under this chapter, except that collected under Section 383
27-65-17(1)(n) and (2), and three and seventeen one-hundredths 384
percent (3.17%) of the total sales tax revenue collected during 385
the preceding month under Section 27-65-17(1)(n), shall be 386
deposited into the School Ad Valorem Tax Reduction Fund created 387
under Section 37-61-35 until such time that the total amount 388
deposited into the fund during a fiscal year equals Forty-two 389
Million Dollars ($42,000,000.00). Thereafter, the amounts 390
diverted under this subsection (7) during the fiscal year in 391
excess of Forty-two Million Dollars ($42,000,000.00) shall be 392
deposited into the Education Enhancement Fund created under 393
Section 37-61-33 for appropriation by the Legislature as other 394
education needs and shall not be subject to the percentage 395
appropriation requirements set forth in Section 37-61-33. 396
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(8) On or before August 15, 1992, and each succeeding month 397
thereafter through August 15, 2025, nine and seventy-three 398
one-thousandths percent (9.073%) of the total sales tax revenue 399
collected during the preceding month under the provisions of this 400
chapter, except that collected under the provisions of Section 401
27-65-17(2), shall be deposited into the Education Enhancement 402
Fund created under Section 37-61-33. On or before September 15, 403
2025, and each succeeding month thereafter, nine and seventy-three 404
one-thousandths percent (9.073%) of the total sales tax revenue 405
collected during the preceding month under this chapter, except 406
that collected under Section 27-65-17(1)(n) and (2), and twelve 407
and seven-tenths percent (12.7%) of the total sales tax revenue 408
collected during the preceding month under Section 27-65-17(1)(n), 409
shall be deposited into the Education Enhancement Fund created 410
under Section 37-61-33. 411
(9) On or before August 15, 1994, and each succeeding month 412
thereafter, from the revenue collected under this chapter during 413
the preceding month, Two Hundred Fifty Thousand Dollars 414
($250,000.00) shall be paid into the State Aid Road Fund. 415
(10) On or before August 15, 1994, and each succeeding month 416
thereafter through August 15, 1995, from the revenue collected 417
under this chapter during the preceding month, Two Million Dollars 418
($2,000,000.00) shall be deposited into the Motor Vehicle Ad 419
Valorem Tax Reduction Fund established in Section 27-51-105. 420
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(11) Notwithstanding any other provision of this section to 421
the contrary, on or before February 15, 1995, and each succeeding 422
month thereafter, the sales tax revenue collected during the 423
preceding month under the provisions of Section 27-65-17(2) and 424
the corresponding levy in Section 27-65-23 on the rental or lease 425
of private carriers of passengers and light carriers of property 426
as defined in Section 27-51-101 shall be deposited, without 427
diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund 428
established in Section 27-51-105. 429
(12) Notwithstanding any other provision of this section to 430
the contrary, on or before August 15, 1995, and each succeeding 431
month thereafter, the sales tax revenue collected during the 432
preceding month under the provisions of Section 27-65-17(1) on 433
retail sales of private carriers of passengers and light carriers 434
of property, as defined in Section 27-51-101 and the corresponding 435
levy in Section 27-65-23 on the rental or lease of these vehicles, 436
shall be deposited, after diversion, into the Motor Vehicle Ad 437
Valorem Tax Reduction Fund established in Section 27-51-105. 438
(13) On or before July 15, 1994, and on or before the 439
fifteenth day of each succeeding month thereafter, that portion of 440
the avails of the tax imposed in Section 27-65-22 that is derived 441
from activities held on the Mississippi State Fairgrounds Complex 442
shall be paid into a special fund that is created in the State 443
Treasury and shall be expended upon legislative appropriation 444
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solely to defray the costs of repairs and renovation at the Trade 445
Mart and Coliseum. 446
(14) On or before August 15, 1998, and each succeeding month 447
thereafter through July 15, 2005, that portion of the avails of 448
the tax imposed in Section 27-65-23 that is derived from sales by 449
cotton compresses or cotton warehouses and that would otherwise be 450
paid into the General Fund shall be deposited in an amount not to 451
exceed Two Million Dollars ($2,000,000.00) into the special fund 452
created under Section 69-37-39. On or before August 15, 2007, and 453
each succeeding month thereafter through July 15, 2010, that 454
portion of the avails of the tax imposed in Section 27-65-23 that 455
is derived from sales by cotton compresses or cotton warehouses 456
and that would otherwise be paid into the General Fund shall be 457
deposited in an amount not to exceed Two Million Dollars 458
($2,000,000.00) into the special fund created under Section 459
69-37-39 until all debts or other obligations incurred by the 460
Certified Cotton Growers Organization under the Mississippi Boll 461
Weevil Management Act before January 1, 2007, are satisfied in 462
full. On or before August 15, 2010, and each succeeding month 463
thereafter through July 15, 2011, fifty percent (50%) of that 464
portion of the avails of the tax imposed in Section 27-65-23 that 465
is derived from sales by cotton compresses or cotton warehouses 466
and that would otherwise be paid into the General Fund shall be 467
deposited into the special fund created under Section 69-37-39 468
until such time that the total amount deposited into the fund 469
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during a fiscal year equals One Million Dollars ($1,000,000.00). 470
On or before August 15, 2011, and each succeeding month 471
thereafter, that portion of the avails of the tax imposed in 472
Section 27-65-23 that is derived from sales by cotton compresses 473
or cotton warehouses and that would otherwise be paid into the 474
General Fund shall be deposited into the special fund created 475
under Section 69-37-39 until such time that the total amount 476
deposited into the fund during a fiscal year equals One Million 477
Dollars ($1,000,000.00). 478
(15) Notwithstanding any other provision of this section to 479
the contrary, on or before September 15, 2000, and each succeeding 480
month thereafter, the sales tax revenue collected during the 481
preceding month under the provisions of Section 482
27-65-19(1)(d)(i)2, and 27-65-19(1)(d)(i)3 shall be deposited, 483
without diversion, into the Telecommunications Ad Valorem Tax 484
Reduction Fund established in Section 27-38-7. 485
(16) (a) On or before August 15, 2000, and each succeeding 486
month thereafter, the sales tax revenue collected during the 487
preceding month under the provisions of this chapter on the gross 488
proceeds of sales of a project as defined in Section 57-30-1 shall 489
be deposited, after all diversions except the diversion provided 490
for in subsection (1) of this section, into the Sales Tax 491
Incentive Fund created in Section 57-30-3. 492
(b) On or before August 15, 2007, and each succeeding 493
month thereafter, eighty percent (80%) of the sales tax revenue 494
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collected during the preceding month under the provisions of this 495
chapter from the operation of a tourism project under the 496
provisions of Sections 57-26-1 through 57-26-5, shall be 497
deposited, after the diversions required in subsections (7) and 498
(8) of this section, into the Tourism Project Sales Tax Incentive 499
Fund created in Section 57-26-3. 500
(17) Notwithstanding any other provision of this section to 501
the contrary, on or before April 15, 2002, and each succeeding 502
month thereafter, the sales tax revenue collected during the 503
preceding month under Section 27-65-23 on sales of parking 504
services of parking garages and lots at airports shall be 505
deposited, without diversion, into the special fund created under 506
Section 27-5-101(d). 507
(18) [Repealed] 508
(19) (a) On or before August 15, 2005, and each succeeding 509
month thereafter, the sales tax revenue collected during the 510
preceding month under the provisions of this chapter on the gross 511
proceeds of sales of a business enterprise located within a 512
redevelopment project area under the provisions of Sections 513
57-91-1 through 57-91-11, and the revenue collected on the gross 514
proceeds of sales from sales made to a business enterprise located 515
in a redevelopment project area under the provisions of Sections 516
57-91-1 through 57-91-11 (provided that such sales made to a 517
business enterprise are made on the premises of the business 518
enterprise), shall, except as otherwise provided in this 519
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subsection (19), be deposited, after all diversions, into the 520
Redevelopment Project Incentive Fund as created in Section 521
57-91-9. 522
(b) For a municipality participating in the Economic 523
Redevelopment Act created in Sections 57-91-1 through 57-91-11, 524
the diversion provided for in subsection (1) of this section 525
attributable to the gross proceeds of sales of a business 526
enterprise located within a redevelopment project area under the 527
provisions of Sections 57-91-1 through 57-91-11, and attributable 528
to the gross proceeds of sales from sales made to a business 529
enterprise located in a redevelopment project area under the 530
provisions of Sections 57-91-1 through 57-91-11 (provided that 531
such sales made to a business enterprise are made on the premises 532
of the business enterprise), shall be deposited into the 533
Redevelopment Project Incentive Fund as created in Section 534
57-91-9, as follows: 535
(i) For the first six (6) years in which payments 536
are made to a developer from the Redevelopment Project Incentive 537
Fund, one hundred percent (100%) of the diversion shall be 538
deposited into the fund; 539
(ii) For the seventh year in which such payments 540
are made to a developer from the Redevelopment Project Incentive 541
Fund, eighty percent (80%) of the diversion shall be deposited 542
into the fund; 543
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(iii) For the eighth year in which such payments 544
are made to a developer from the Redevelopment Project Incentive 545
Fund, seventy percent (70%) of the diversion shall be deposited 546
into the fund; 547
(iv) For the ninth year in which such payments are 548
made to a developer from the Redevelopment Project Incentive Fund, 549
sixty percent (60%) of the diversion shall be deposited into the 550
fund; and 551
(v) For the tenth year in which such payments are 552
made to a developer from the Redevelopment Project Incentive Fund, 553
fifty percent (50%) of the funds shall be deposited into the fund. 554
(20) On or before January 15, 2007, and each succeeding 555
month thereafter, eighty percent (80%) of the sales tax revenue 556
collected during the preceding month under the provisions of this 557
chapter from the operation of a tourism project under the 558
provisions of Sections 57-28-1 through 57-28-5 shall be deposited, 559
after the diversions required in subsections (7) and (8) of this 560
section, into the Tourism Sales Tax Incentive Fund created in 561
Section 57-28-3. 562
(21) (a) On or before April 15, 2007, and each succeeding 563
month thereafter through June 15, 2013, One Hundred Fifty Thousand 564
Dollars ($150,000.00) of the sales tax revenue collected during 565
the preceding month under the provisions of this chapter shall be 566
deposited into the MMEIA Tax Incentive Fund created in Section 567
57-101-3. 568
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(b) On or before July 15, 2013, and each succeeding 569
month thereafter, One Hundred Fifty Thousand Dollars ($150,000.00) 570
of the sales tax revenue collected during the preceding month 571
under the provisions of this chapter shall be deposited into the 572
Mississippi Development Authority Job Training Grant Fund created 573
in Section 57-1-451. 574
(22) On or before June 1, 2024, and each succeeding month 575
thereafter until December 31, 2057, an amount determined annually 576
by the Mississippi Development Authority of the sales tax revenue 577
collected during the preceding month under the provisions of this 578
chapter shall be deposited into the MMEIA Tax Incentive Fund 579
created in Section 57-125-3. This amount shall be based on 580
estimated payments due within the upcoming year to construction 581
contractors pursuant to construction contracts subject to the tax 582
imposed by Section 27-65-21 for construction to be performed on 583
the project site of a project defined under Section 584
57-75-5(f)(xxxiii) for the coming year. 585
(23) Notwithstanding any other provision of this section to 586
the contrary, on or before August 15, 2009, and each succeeding 587
month thereafter, the sales tax revenue collected during the 588
preceding month under the provisions of Section 27-65-201 shall be 589
deposited, without diversion, into the Motor Vehicle Ad Valorem 590
Tax Reduction Fund established in Section 27-51-105. 591
(24) (a) On or before August 15, 2019, and each month 592
thereafter through July 15, 2020, one percent (1%) of the total 593
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sales tax revenue collected during the preceding month from 594
restaurants and hotels shall be allocated for distribution to the 595
Mississippi Development Authority Tourism Advertising Fund 596
established under Section 57-1-64, to be used exclusively for the 597
purpose stated therein. On or before August 15, 2020, and each 598
month thereafter through July 15, 2021, two percent (2%) of the 599
total sales tax revenue collected during the preceding month from 600
restaurants and hotels shall be allocated for distribution to the 601
Mississippi Development Authority Tourism Advertising Fund 602
established under Section 57-1-64, to be used exclusively for the 603
purpose stated therein. On or before August 15, 2021, and each 604
month thereafter, three percent (3%) of the total sales tax 605
revenue collected during the preceding month from restaurants and 606
hotels shall be allocated for distribution to the Mississippi 607
Development Authority Tourism Advertising Fund established under 608
Section 57-1-64, to be used exclusively for the purpose stated 609
therein. The revenue diverted pursuant to this subsection shall 610
not be available for expenditure until February 1, 2020. 611
(b) The Joint Legislative Committee on Performance 612
Evaluation and Expenditure Review (PEER) must provide an annual 613
report to the Legislature indicating the amount of funds deposited 614
into the Mississippi Development Authority Tourism Advertising 615
Fund established under Section 57-1-64, and a detailed record of 616
how the funds are spent. 617
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(25) The remainder of the amounts collected under the 618
provisions of this chapter shall be paid into the State Treasury 619
to the credit of the General Fund. 620
(26) (a) It shall be the duty of the municipal officials of 621
any municipality that expands its limits, or of any community that 622
incorporates as a municipality, to notify the commissioner of that 623
action thirty (30) days before the effective date. Failure to so 624
notify the commissioner shall cause the municipality to forfeit 625
the revenue that it would have been entitled to receive during 626
this period of time when the commissioner had no knowledge of the 627
action. 628
(b) (i) Except as otherwise provided in subparagraph 629
(ii) of this paragraph, if any funds have been erroneously 630
disbursed to any municipality or any overpayment of tax is 631
recovered by the taxpayer, the commissioner may make correction 632
and adjust the error or overpayment with the municipality by 633
withholding the necessary funds from any later payment to be made 634
to the municipality. 635
(ii) Subject to the provisions of Sections 636
27-65-51 and 27-65-53, if any funds have been erroneously 637
disbursed to a municipality under subsection (1) of this section 638
for a period of three (3) years or more, the maximum amount that 639
may be recovered or withheld from the municipality is the total 640
amount of funds erroneously disbursed for a period of three (3) 641
years beginning with the date of the first erroneous disbursement. 642
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ST: Sales tax; distribute revenue from a
municipal historical hamlet to the applicable
county, to be spent solely in the hamlet.
However, if during such period, a municipality provides written 643
notice to the Department of Revenue indicating the erroneous 644
disbursement of funds, then the maximum amount that may be 645
recovered or withheld from the municipality is the total amount of 646
funds erroneously disbursed for a period of one (1) year beginning 647
with the date of the first erroneous disbursement. 648
SECTION 3. This act shall take effect and be in force from 649
and after July 1, 2026. 650