Appropriation; Revenue, Department of.

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To: Appropriations
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Hopson, DeBar, DeLano,
Barnett, McLendon, Sparks, Suber

SENATE BILL NO. 3090
(As Sent to Governor)

AN ACT MAKING AN APPROPRIATION FOR THE PURPOSE OF DEFRAYING 1
THE EXPENSES OF THE MISSISSIPPI DEPARTMENT OF REVENUE, INCLUDING 2
THE HOMESTEAD EXEMPTION DIVISION, THE MOTOR VEHICLE COMPTROLLER 3
FUNCTIONS, THE ALCOHOLIC BEVERAGE CONTROL DIVISION LIQUOR 4
DISTRIBUTION CENTER, THE ENFORCEMENT DIVISION, AND FOR THE PURPOSE 5
OF REIMBURSING THE COUNTIES, COUNTY DISTRICTS AND MUNICIPAL 6
SEPARATE SCHOOL DISTRICTS FOR TAX LOSSES INCURRED BY REASON OF THE 7
EXEMPTION OF HOMES FROM CERTAIN AD VALOREM TAXES, AND FOR THE 8
PURPOSE OF PURCHASING MOTOR VEHICLE LICENSE TAGS FOR FISCAL YEAR 9
2027. 10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 11
SECTION 1. The following sum, or so much thereof as may be 12
necessary, is hereby appropriated out of any money in the State 13
General Fund not otherwise appropriated, for the purpose of 14
defraying the expenses of the Mississippi Department of Revenue, 15
including the Homestead Exemption Division, the Motor Vehicle 16
Comptroller functions, the Alcoholic Beverage Control Division 17
Liquor Distribution Center, and the Enforcement Division for the 18
fiscal year beginning July 1, 2026, and ending June 30, 2027...... 19
............................................... $ 58,282,512.00. 20
SECTION 2. The following sum, or so much thereof as may be 21
necessary, is hereby appropriated out of any money in the special 22
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fund in the State Treasury to the credit of the Mississippi 23
Department of Revenue which are collected by or otherwise become 24
available for the purpose of defraying the expenses of the 25
department for the fiscal year beginning July 1, 2026, and ending 26
June 30, 2027.................................. $ 25,251,874.00. 27
SECTION 3. Of the funds appropriated under the provisions of 28
this act, not more than the following amount of funds, with the 29
exception of the provisions in this section, shall be expended 30
only for "Personal Services," which includes "Vacancy Funding," 31
for the following authorized number of employment headcount: 32
FUNDING: 33
General Funds: $ 46,190,068.00 34
Special Funds: $ 0.00 35
Total Funds: $ 46,190,068.00 36
PERSONAL SERVICES: 37
Employee Salaries, Wages and 38
Fringe Benefits: $ 44,878,326.00 39
Progressions: $ 0.00 40
Vacancy Funding: $ 1,311,742.00 41
Total Personal Services: $ 46,190,068.00 42
AUTHORIZED HEADCOUNT: 43
Permanent: 604 44
Time-Limited: 0 45
As used in this section, the term "Personal Services" shall 46
mean funds provided under the major object of expenditure category 47
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Personal Services for Salaries, Wages, and Fringe Benefits. Funds 48
in this category shall not be transferred to any other category. 49
It is the intention of the Legislature to ensure compliance 50
with the Variable Compensation Plan, as outlined in Section 51
25-9-147, Mississippi Code of 1972. Payment from these funds 52
shall be in accordance with the Variable Compensation Plan 53
promulgated by the Mississippi State Personnel Board. It is the 54
Legislature's intention that no employee's salary falls below the 55
minimum salary established by the Mississippi State Personnel 56
Board. 57
The State Personnel Board shall determine and publish the 58
projected annual cost of "Personal Services" based on monthly and 59
year-to-date payroll expenditures in compliance with the 60
provisions of this act. 61
With the funds herein appropriated, it shall be the agency's 62
responsibility to ensure that no single personnel action or 63
combination of personnel actions, when annualized, exceeds the 64
Fiscal Year 2027 appropriation for "Personal Services" with the 65
exception of escalated funds. Further, it shall be the agency's 66
responsibility to ensure that funds required to be appropriated 67
for "Personal Services" for Fiscal Year 2028 do not exceed Fiscal 68
Year 2027 funds appropriated for that purpose unless programs or 69
positions are added to the agency's Fiscal Year 2027 budget by the 70
Mississippi Legislature. 71
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If, at the time the agency takes any action to change 72
"Personal Services," the State Personnel Board determines that the 73
agency has taken or will take an action that would cause the 74
agency to exceed the funds appropriated in this act when 75
annualized for Fiscal Year 2027 or increase the need for "Personal 76
Services" for Fiscal Year 2028, when annualized, the State 77
Personnel Board shall process no salary actions until such time as 78
the requirements of the provisions of this section are met with 79
the exception of new hires determined to be essential for the 80
agency. 81
When used in this section, "Vacancy Funding" shall mean funds 82
included in the Total Personal Services amount listed above and 83
designated for approved vacancies in Fiscal Year 2027. These 84
funds are to be utilized to increase the number of filled 85
headcounts that were authorized but unfilled as of the last day of 86
Fiscal Year 2026. If the agency fills additional headcounts after 87
March 1, 2026, until the end of Fiscal Year 2026, the amount of 88
available Vacancy Funding may be proportionally adjusted to 89
reflect the updated number of filled headcounts. The agency shall 90
be responsible for ensuring that "Vacancy Funding" is used to 91
increase headcounts and not for promotions, title changes, 92
in-range salary adjustments, or any other mechanism for increasing 93
salaries for current employees. 94
Any transfers or escalations shall be made in accordance with 95
the terms, conditions, and procedures established by law or 96
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allowable under the terms set forth within this act. The State 97
Personnel Board shall not escalate positions or increase the 98
Personal Services total without written approval from the 99
Department of Finance and Administration. The Department of 100
Finance and Administration shall not provide written approval to 101
escalate any funds for salaries and/or headcounts without proof of 102
availability of new or additional funds above the appropriated 103
level. Unless specifically noted, all Fiscal Year 2026 escalated 104
headcounts have been accounted for and shall be converted to 105
authorized time-limited headcounts. 106
No general funds authorized to be expended herein shall be 107
used to replace federal funds and/or other special funds used for 108
salaries authorized under the provisions of this act and which are 109
withdrawn and no longer available. 110
None of the funds herein appropriated shall be used in 111
violation of the Internal Revenue Service's Publication 15-A 112
relating to the reporting of income paid to contract employees, as 113
interpreted by the Office of the State Auditor. 114
If the agency's total authorized headcount decreases from 115
Fiscal Year 2026 to Fiscal Year 2027, it will be the agency's 116
discretion as to what headcounts are removed. 117
SECTION 4. It shall be the duty of the Commissioner of the 118
Mississippi Department of Revenue, and he is hereby empowered to 119
select in the manner provided by Section 27-3-13, Mississippi Code 120
of 1972, such employees as may be necessary to the administration 121
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of all acts relating to the exemption of homesteads and the 122
reimbursement of tax losses to the several taxing units of the 123
state, and to assign them to the use of the Mississippi Department 124
of Revenue. 125
SECTION 5. The money herein appropriated may be used for any 126
expenses which the Department may legally incur. Provided, 127
however, that no part of the money herein appropriated shall be 128
used for the payment of attorney's fees, except upon 129
recommendation of the Governor with the approval of the Attorney 130
General, nor shall any of said funds be used either directly or 131
indirectly for the purpose of paying any clerk, stenographer, 132
assistant, deputy or other employee who may be related by blood or 133
marriage within the third degree, computed by the rule of civil 134
law, to the official employing or having the right of employment 135
or selection thereof, except that when the relationship is by 136
affinity and the person is dead through whom the relationship was 137
established, this rule shall not apply. In the event of any such 138
payment, then the official or person approving and making such 139
payment shall be liable to return to the State of Mississippi and 140
to pay into the State Treasury to the credit of the General Fund 141
three (3) times any such amount so paid to be recovered at suit by 142
the Attorney General. 143
SECTION 6. In compliance with the "Mississippi Performance 144
Budget and Strategic Planning Act of 1994," it is the intent of 145
the Legislature that the funds provided herein shall be utilized 146
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in the most efficient and effective manner possible to achieve the 147
intended mission of this agency. Based on the funding authorized, 148
this agency shall make every effort to attain the targeted 149
performance measures provided below: 150
FY2027 151
Performance Measures Target 152
Tax Administration 153
Cost per Unit of Work (Item/Case/Call) 13.87 154
Cost per Call Center Call Answered 8.55 155
Audit 156
Cost per Audit 2,079.07 157
Tax Production per Audit 15,000 158
Tax Enforcement 159
Cost per Dollar Collected in Recovery 160
Actions 0.05 161
General Administration 162
Average Cost per Return Processed 4.46 163
ROI - Revenue Collected per Dollar of 164
Expense 128.36 165
Property & Motor Vehicle Services 166
Cost per Homestead Exemption Application 3.79 167
Cost per Title Issued 3.02 168
ABC Liquor Distribution Center 169
Cost per Case Shipped 3.60 170
ROI - GF Dollars Returned per Dollar of Cost 8.12 171
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Enforcement 172
Number of Permits-Alcohol 2,700 173
Number of Permits-Medical Cannabis 250 174
Number of Violations-Medical Cannabis 100 175
Average Number of Days to Issue 176
Permit-Alcohol 10 177
Average Number of Days to Issue 178
Permit-Medical Cannabis 5 179
Enforcement and Permitting Cost-Alcohol 1,341.00 180
Enforcement and Permitting Cost-Medical 181
Cannabis 1,610.27 182
Percent Of Medical Cannabis Permits 183
Receiving Administrative Action 5.00 184
Percent of Medical Cannabis Permits 185
Receiving Criminal Action 5.00 186
Percent of Medical Cannabis Permits 187
Inspected 100.00 188
Percent of Permit Applications 189
Approved-Medical Cannabis 90.00 190
A reporting of the degree to which the performance targets 191
set above have been or are being achieved shall be provided in the 192
agency's budget request submitted to the Joint Legislative Budget 193
Committee for Fiscal Year 2028. 194
SECTION 7. In addition to all other sums herein 195
appropriated, the following sum, or so much thereof as may be 196
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necessary, is hereby appropriated out of any money in the State 197
General Fund not otherwise appropriated, to the Mississippi 198
Department of Revenue for the purpose of reimbursing the counties 199
of the state, the road districts and school districts therein and 200
the municipal separate school districts, for tax losses incurred 201
by reason of the exemption of homes from certain ad valorem taxes 202
under the provisions of Section 27-33-1 et seq., Mississippi Code 203
of 1972, for the fiscal year beginning July 1, 2026, and ending 204
June 30, 2027.................................. $ 94,000,000.00. 205
SECTION 8. Each county, road district, school district and 206
municipal separate school district which has incurred a tax loss 207
that is reimbursable under Section 7 of this act shall be 208
reimbursed a sum which is equivalent to the amount of tax loss 209
produced by the application of tax rates annually fixed for 210
maintenance and current expenses to the assessed value of homes, 211
or so much thereof as has been lawfully authorized under the 212
provisions of Section 27-33-1 et seq., Mississippi Code of 1972. 213
The disbursements from the funds appropriated under the 214
provisions of Section 7 of this act shall be based upon the 215
certificates required of the clerks of the county boards of 216
supervisors and of the clerks of the municipalities, which 217
certificates shall conform strictly in every respect to the 218
requirements of the provisions of Section 27-33-1 et seq., 219
Mississippi Code of 1972. 220
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All disbursements from the funds appropriated under the 221
provisions of Section 7 of this act shall be made strictly in 222
accordance with the provisions of Section 27-33-1 et seq., 223
Mississippi Code of 1972, and no disbursements other than those 224
clearly authorized by those sections shall be made, the provisions 225
of any other law to the contrary notwithstanding. 226
SECTION 9. None of the funds appropriated under the 227
provisions of Section 7 of this act may be distributed to any 228
county, municipality, school district or other taxing district in 229
which the assessed valuation of the taxing district has increased 230
as a result of reappraisal of the property of the taxing district 231
unless the governing board of the taxing district has published a 232
notice in a newspaper having a general circulation in the taxing 233
district, stating the lower millage rate that would produce the 234
same amount of revenue from ad valorem taxation on property of the 235
taxing district that was produced in the fiscal year before the 236
property of the taxing district was reappraised. 237
SECTION 10. In addition to all other sums herein 238
appropriated, the following sum, or so much thereof as may be 239
necessary, is hereby appropriated out of any money in the State 240
Treasury to the credit of the Mississippi Department of Revenue – 241
License Tag Commission from any other special source funds made 242
available to the License Tag Commission, for the fiscal year 243
beginning July 1, 2026, and ending June 30, 2027.................. 244
............................................... $ 6,850,000.00. 245
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SECTION 11. None of the funds appropriated in Section 10 of 246
this act shall be expended to purchase motor vehicle license tags 247
made or manufactured by any department, agency or instrumentality 248
of a state other than the State of Mississippi. None of the funds 249
appropriated in this section shall be used for the purchase of 250
bolts, nuts or other fastening devices for attaching said motor 251
vehicle license tags. Provided further, that all motor vehicles 252
belonging to any state department, agency, commission, institution 253
or any other division of state government shall have license tags 254
which shall bear the words "Government" at the bottom of such 255
license tags. 256
SECTION 12. It is the intention of the Legislature that 257
whenever two (2) or more bids are received by this agency for the 258
purchase of commodities or equipment, and whenever all things 259
stated in such received bids are equal with respect to price, 260
quality and service, the Mississippi Industries for the Blind 261
shall be given preference. A similar preference shall be given to 262
the Mississippi Industries for the Blind whenever purchases are 263
made without competitive bids. 264
SECTION 13. It is the intention of the Legislature that the 265
Mississippi Department of Revenue shall maintain complete 266
accounting and personnel records related to the expenditure of all 267
funds appropriated under this act and that such records shall be 268
in the same format and level of detail as maintained for Fiscal 269
Year 2026. It is further the intention of the Legislature that 270
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the agency's budget request for Fiscal Year 2028 shall be 271
submitted to the Joint Legislative Budget Committee in a format 272
and level of detail comparable to the format and level of detail 273
provided during the Fiscal Year 2027 budget request process. 274
SECTION 14. Of the funds appropriated in this act, it is the 275
intention of the Legislature that up to Eight Hundred Eleven 276
Thousand Seven Hundred Forty Dollars ($811,740.00) shall be 277
allocated as follows: to the Municipal Court Collections Program 278
Four Hundred Five Thousand Eight Hundred Seventy Dollars 279
($405,870.00) and to the Justice Court Collections Program Four 280
Hundred Five Thousand Eight Hundred Seventy Dollars ($405,870.00) 281
to be supported from General Fund court assessments. 282
SECTION 15. It is the intention of the Legislature that the 283
funds herein appropriated shall be expended in compliance with 284
Section 27-104-25, Mississippi Code of 1972, that no state agency 285
shall incur obligations or indebtedness in excess of their 286
appropriation and that the responsible officers, either personally 287
or upon their official bonds, shall be held responsible for 288
actions contrary to this provision. 289
SECTION 16. The following sum, or so much thereof as may be 290
necessary, is reappropriated out of any money in the Capital 291
Expense Fund not otherwise appropriated for the Department of 292
Revenue for the purpose of reauthorizing the expenditure of 293
Capital Expense Funds, to defray the expenses of the Department of 294
Revenue, as authorized in SB 2036, 2025 First Extraordinary 295
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Session, for the fiscal year beginning July 1, 2026, and ending 296
June 30, 2027.................................... $ 1,039,064.00. 297
This appropriation is made for the purpose of reauthorizing 298
the expenditure of funds as allocated herein: 299
(a) Provisions pursuant to Section 67-1-205(2), Mississippi 300
Code of 1972, related to contracting with a third-party entity to 301
operate the Alcohol Beverage Control Liquor Distribution Center... 302
................................................. $ 616,018.00. 303
(b) Computer Hardware and Equipment........ $ 85,306.00. 304
(c) Purchasing High Speed Scanners......... $ 337,740.00. 305
Notwithstanding the amount reappropriated under this section, 306
the amount that may be expended under the authority of this 307
section, shall not exceed the unexpended balance of the funds 308
remaining as of June 30, 2026, from the amount authorized for the 309
previous fiscal year. In addition, this reappropriation shall not 310
change the purpose for which the funds were originally authorized. 311
SECTION 17. Of the funds appropriated under the provisions 312
of Section 2, Two Hundred Ten Thousand Dollars ($210,000.00), or 313
so much thereof, shall be derived out of any money in the State 314
Treasury to the credit of the Capital Expense Fund, as created in 315
Section 27-103-303, Mississippi Code of 1972, and allocated in a 316
manner as determined by the State Treasurer. These funds are 317
provided for technology purchases, repairs, and upgrades. 318
SECTION 18. Of the funds appropriated in Section 1, Three 319
Hundred Seventy-five Thousand Dollars ($375,000.00), is provided 320
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ST: Appropriation; Revenue, Department of.
for implementation of the directory, enforcement, and other 321
provisions as outlined in Section 75-101-5 Mississippi Code of 322
1972. 323
SECTION 19. The money herein appropriated shall be paid by 324
the State Treasurer out of any money in the State Treasury to the 325
credit of the proper fund or funds as set forth in this act, upon 326
warrants issued by the State Fiscal Officer; and the Fiscal 327
Officer shall issue his warrants upon requisitions signed by the 328
proper person, officer or officers, in the manner provided by law. 329
SECTION 20. This act shall take effect and be in force from 330
and after July 1, 2026. 331