Sales tax; authorize levy of additional 1% by counties within the metropolitan planning area of an MPO.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Johnson

SENATE BILL NO. 3115

AN ACT TO AUTHORIZE THE BOARDS OF SUPERVISORS OF CERTAIN 1
COUNTIES TO IMPOSE A SPECIAL SALES TAX OF NOT MORE THAN 1% ON THE 2
GROSS PROCEEDS OF ALL SALES OR THE GROSS INCOME OF BUSINESSES IN 3
THE COUNTY DERIVED FROM ACTIVITIES TAXED AT THE CURRENT RATE OF 7% 4
OR MORE UNDER THE MISSISSIPPI SALES TAX LAW; TO PROVIDE CERTAIN 5
EXEMPTIONS FROM THE SPECIAL SALES TAX AUTHORIZED BY THIS ACT; TO 6
PROVIDE THAT THE SPECIAL SALES TAX SHALL NOT BE LEVIED UNLESS 7
AUTHORIZED BY AT LEAST 60% OF THE VOTES CAST AT AN ELECTION CALLED 8
AND HELD FOR SUCH PURPOSE; TO PROVIDE THE PURPOSES FOR WHICH THE 9
REVENUE COLLECTED FROM THE SPECIAL SALES TAX MAY BE USED AND 10
EXPENDED; TO PROVIDE FOR THE EXPIRATION OF THE TAX EVERY FOUR 11
YEARS UNLESS RENEWAL OF THE TAX IS APPROVED BY THE VOTERS IN AN 12
ELECTION HELD BEFORE THE EXPIRATION OF THE TAX; AND FOR RELATED 13
PURPOSES. 14
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 15
SECTION 1. (1) As used in this section, "county" means any 16
county in the State of Mississippi that is wholly located within 17
the metropolitan planning area of a metropolitan planning 18
organization (MPO) designated in accordance with 23 USC § 134 19
and/or 49 USC § 5303. 20
(2) (a) The board of supervisors of a county may impose 21
upon all persons as a privilege for engaging or continuing in 22
business or doing business within such county, a special sales tax 23
at the rate of not more than one percent (1%) of the gross 24
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proceeds of sales or gross income of the business, as the case may 25
be, derived from any of the activities taxed under Section 26
27-65-17(1)(a). 27
(b) The tax levied under this section shall apply to 28
every person making sales of tangible personal property or 29
services within the county but shall not apply to: 30
(i) Sales exempted by Section 27-65-19, 27-65-101, 31
27-65-103, 27-65-105, 27-65-107, 27-65-109 or 27-65-111; 32
(ii) Gross proceeds of sales or gross income of 33
restaurants derived from the sale of food and beverages; or 34
(iii) Gross proceeds of sales or gross income of 35
hotels and motels derived from the sale of hotel rooms and motel 36
rooms for lodging purposes. 37
(3) (a) Before any tax authorized under this section may be 38
imposed, the county board of supervisors shall adopt a resolution 39
declaring its intention to levy the tax, setting forth the amount 40
of the tax to be imposed, the purposes for which the revenue 41
collected pursuant to the tax levy may be used and expended, the 42
date upon which the tax shall become effective, the date upon 43
which the tax shall be repealed, and calling for an election to be 44
held on the question. The date of the election shall be specified 45
in the resolution and must be the date of a statewide general 46
election. Notice of the election shall be published once each 47
week for at least three (3) consecutive weeks in a newspaper 48
published or having a general circulation in the county, with the 49
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first publication of the notice to be made not less than 50
twenty-one (21) days before the date fixed in the resolution for 51
the election and the last publication to be made not more than 52
seven (7) days before the election. At the election, all 53
qualified electors of the county may vote. The ballots used at 54
the election shall have printed thereon a brief description of the 55
sales tax, the amount of the sales tax levy, a description of the 56
purposes for which the tax revenue may be used and expended and 57
the words "FOR THE LOCAL SALES TAX" and "AGAINST THE LOCAL SALES 58
TAX" and the voter shall vote by placing a cross (X) or check mark 59
(√) opposite his choice on the proposition. When the results of 60
the election have been canvassed by the election commissioners of 61
the county and certified by them to the county board of 62
supervisors, it shall be the duty of the board of supervisors to 63
determine and adjudicate whether at least sixty percent (60%) of 64
the qualified electors who voted in the election voted in favor of 65
the tax. If at least sixty percent (60%) of the qualified 66
electors who voted in the election voted in favor of the tax, the 67
board of supervisors shall adopt a resolution declaring the levy 68
and collection of the tax provided in this section and shall set 69
the first day of the second month following the date of such 70
adoption as the effective date of the tax levy. A certified copy 71
of this resolution, together with the result of the election, 72
shall be furnished to the department not less than thirty (30) 73
days before the effective date of the levy. 74
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(b) After the initial levy of the tax authorized under 75
this section, the authority for the tax shall expire at the end of 76
the month four (4) years from the month in which the electors 77
previously approved the tax, unless the tax is reauthorized by at 78
least sixty percent (60%) of the qualified electors in a new 79
election held before the expiration of the tax. The tax shall be 80
subject to the same reapproval by the electors at each subsequent 81
election. Before each election, the board of supervisors shall 82
adopt a resolution declaring its intention to continue the levy of 83
the tax authorized under this section and previously approved by 84
the electors, and calling for an election to be held on the 85
question of the continuation of the tax. The date of the election 86
shall be set in the resolution and, for the continuation of an 87
existing tax, need not be the date of a statewide general 88
election. No later than the end of the month in which the 89
electors reauthorize the tax, the governing authorities shall 90
furnish to the department a certified copy of the resolution 91
evidencing the continuation of the tax. Except as otherwise 92
provided in this paragraph (b), the provisions of paragraph (a) of 93
this subsection shall apply to each election and notice therefor. 94
(4) The revenue collected pursuant to the tax levy imposed 95
under this section may be expended to pay the costs of road, 96
street and bridge repair, reconstruction and resurfacing projects 97
based on traffic patterns, need and usage, to pay the costs of 98
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water, sewer, drainage and stormwater projects, and to support law 99
enforcement and fire service. 100
(5) (a) The special sales tax authorized by this section 101
shall be collected by the department, shall be accounted for 102
separately from the amount of sales tax collected for the state in 103
the county and shall be paid to the county. The department may 104
retain one percent (1%) of the proceeds of such tax for the 105
purpose of defraying the costs incurred by the department in the 106
collection of the tax. Payments to the county shall be made by 107
the department on or before the fifteenth day of the month 108
following the month in which the tax was collected. However, if a 109
county fails to comply with audit, reporting and/or report filing 110
requirements of paragraph (b) of this subsection and does not 111
remedy such noncompliance within thirty (30) days after receiving 112
written notice of noncompliance, the department shall withhold 113
payments otherwise payable to the county under this paragraph (a) 114
until the department receives written notice that the county has 115
complied with such requirements. 116
(b) The proceeds of the special sales tax shall be 117
placed into a special county fund apart from the county general 118
fund and any other funds of the county, and shall be expended by 119
the county solely for the purposes authorized in subsection (4) of 120
this section. The records reflecting the receipts and 121
expenditures of the revenue from the special sales tax shall be 122
audited annually by an independent certified public accountant. 123
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The accountant shall make a report of his findings to the county 124
board of supervisors and file a copy of his report with the 125
Secretary of the Senate and the Clerk of the House of 126
Representatives. The audit shall be made and completed as soon as 127
practical after the close of the fiscal year of the county, and 128
expenses of the audit shall be paid from the funds derived by the 129
county pursuant to this section. 130
(c) All provisions of this chapter applicable to filing 131
of returns, discounts to the taxpayer, remittances to the 132
department, enforced collection, rights of taxpayers, recovery of 133
improper taxes, refunds of overpaid taxes or other provisions of 134
law providing for imposition and collection of the state sales tax 135
shall apply to the special sales tax authorized by this section, 136
except where there is a conflict, in which case this section shall 137
control. Any damages, penalties or interest collected for the 138
nonpayment of taxes imposed under this section, or for 139
noncompliance with this section, shall be paid to the county on 140
the same basis and in the same manner as the tax proceeds. Any 141
overpayment of tax for any reason that has been disbursed to a 142
county or any payment of the tax to a county in error may be 143
adjusted by the department on any subsequent payment to the county 144
under this chapter. The department may, from time to time, make 145
such rules and regulations not inconsistent with this section as 146
may be deemed necessary to administer this section, and such rules 147
and regulations shall have the full force and effect of law. 148
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ST: Sales tax; authorize levy of additional 1%
by counties within the metropolitan planning
area of an MPO.
SECTION 2. Section 1 of this act shall be codified in 149
Chapter 65, Title 27, Mississippi Code of 1972. 150
SECTION 3. This act shall take effect and be in force from 151
and after July 1, 2026. 152