Sales tax; reduce to 1/2% for groceries, and adjust distribution to avoid impact on municipalities.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Simmons (12th)

SENATE BILL NO. 3119

AN ACT TO AMEND SECTION 27-65-17, MISSISSIPPI CODE OF 1972, 1
TO TAX RETAIL SALES OF GROCERIES AT 1/2% FROM AND AFTER JULY 1, 2
2026; TO AMEND SECTION 27-65-75, MISSISSIPPI CODE OF 1972, TO 3
CONFORM, AND TO ADJUST THE DISTRIBUTION OF SALES TAX REVENUE IN 4
ORDER TO MAINTAIN THE DISTRIBUTION TO MUNICIPALITIES AS IF THE 5
GROCERY TAX HAD NOT BEEN REDUCED; AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. Section 27-65-17, Mississippi Code of 1972, is 8
amended as follows: 9
27-65-17. (1) (a) Except as otherwise provided in this 10
section, upon every person engaging or continuing within this 11
state in the business of selling any tangible personal property 12
whatsoever there is hereby levied, assessed and shall be collected 13
a tax equal to seven percent (7%) of the gross proceeds of the 14
retail sales of the business. 15
(b) Retail sales of farm tractors and parts and labor 16
used to maintain and/or repair such tractors shall be taxed at the 17
rate of one and one-half percent (1-1/2%) when made to farmers for 18
agricultural purposes. 19
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(c) (i) Retail sales of farm implements sold to 20
farmers and used directly in the production of poultry, ratite, 21
domesticated fish as defined in Section 69-7-501, livestock, 22
livestock products, agricultural crops or ornamental plant crops 23
or used for other agricultural purposes, and parts and labor used 24
to maintain and/or repair such implements, shall be taxed at the 25
rate of one and one-half percent (1-1/2%) when used on the farm. 26
(ii) The one and one-half percent (1-1/2%) rate 27
shall also apply to all equipment used in logging, pulpwood 28
operations or tree farming, and parts and labor used to maintain 29
and/or repair such equipment, which is either: 30
1. Self-propelled, or 31
2. Mounted so that it is permanently attached 32
to other equipment which is self-propelled or attached to other 33
equipment drawn by a vehicle which is self-propelled. 34
In order to be eligible for the rate of tax provided for in 35
this subparagraph (ii), such sales must be made to a professional 36
logger. For the purposes of this subparagraph (ii), a 37
"professional logger" is a person, corporation, limited liability 38
company or other entity, or an agent thereof, who possesses a 39
professional logger's permit issued by the Department of Revenue 40
and who presents the permit to the seller at the time of purchase. 41
The department shall establish an application process for a 42
professional logger's permit to be issued, which shall include a 43
requirement that the applicant submit a copy of documentation 44
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verifying that the applicant is certified according to Sustainable 45
Forestry Initiative guidelines. Upon a determination that an 46
applicant is a professional logger, the department shall issue the 47
applicant a numbered professional logger's permit. 48
(d) Except as otherwise provided in subsection (3) of 49
this section, retail sales of aircraft, automobiles, trucks, 50
truck-tractors, semitrailers and manufactured or mobile homes 51
shall be taxed at the rate of three percent (3%). 52
(e) Sales of manufacturing machinery or manufacturing 53
machine parts when made to a manufacturer or custom processor for 54
plant use only when the machinery and machine parts will be used 55
exclusively and directly within this state in manufacturing a 56
commodity for sale, rental or in processing for a fee shall be 57
taxed at the rate of one and one-half percent (1-1/2%). 58
(f) Sales of machinery and machine parts when made to a 59
technology intensive enterprise for plant use only when the 60
machinery and machine parts will be used exclusively and directly 61
within this state for industrial purposes, including, but not 62
limited to, manufacturing or research and development activities, 63
shall be taxed at the rate of one and one-half percent (1-1/2%). 64
In order to be considered a technology intensive enterprise for 65
purposes of this paragraph: 66
(i) The enterprise shall meet minimum criteria 67
established by the Mississippi Development Authority; 68
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(ii) The enterprise shall employ at least ten (10) 69
persons in full-time jobs; 70
(iii) At least ten percent (10%) of the workforce 71
in the facility operated by the enterprise shall be scientists, 72
engineers or computer specialists; 73
(iv) The enterprise shall manufacture plastics, 74
chemicals, automobiles, aircraft, computers or electronics; or 75
shall be a research and development facility, a computer design or 76
related facility, or a software publishing facility or other 77
technology intensive facility or enterprise as determined by the 78
Mississippi Development Authority; 79
(v) The average wage of all workers employed by 80
the enterprise at the facility shall be at least one hundred fifty 81
percent (150%) of the state average annual wage; and 82
(vi) The enterprise must provide a basic health 83
care plan to all employees at the facility. 84
A medical cannabis establishment, as defined in the 85
Mississippi Medical Cannabis Act, shall not be considered to be a 86
technology intensive enterprise for the purposes of this paragraph 87
(f). 88
(g) Sales of materials for use in track and track 89
structures to a railroad whose rates are fixed by the Interstate 90
Commerce Commission or the Mississippi Public Service Commission 91
shall be taxed at the rate of three percent (3%). 92
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(h) Sales of tangible personal property to electric 93
power associations for use in the ordinary and necessary operation 94
of their generating or distribution systems shall be taxed at the 95
rate of one percent (1%). 96
(i) Wholesale sales of food and drink for human 97
consumption to full-service vending machine operators to be sold 98
through vending machines located apart from and not connected with 99
other taxable businesses shall be taxed at the rate of eight 100
percent (8%). 101
(j) Sales of equipment used or designed for the purpose 102
of assisting disabled persons, such as wheelchair equipment and 103
lifts, that is mounted or attached to or installed on a private 104
carrier of passengers or light carrier of property, as defined in 105
Section 27-51-101, at the time when the private carrier of 106
passengers or light carrier of property is sold shall be taxed at 107
the same rate as the sale of such vehicles under this section. 108
(k) Sales of the factory-built components of modular 109
homes, panelized homes and precut homes, and panel constructed 110
homes consisting of structural insulated panels, shall be taxed at 111
the rate of three percent (3%). 112
(l) Sales of materials used in the repair, renovation, 113
addition to, expansion and/or improvement of buildings and related 114
facilities used by a dairy producer shall be taxed at the rate of 115
three and one-half percent (3-1/2%). For the purposes of this 116
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paragraph (l), "dairy producer" means any person engaged in the 117
production of milk for commercial use. 118
(m) Sales of equipment and materials used in connection 119
with geophysical surveying, exploring, developing, drilling, 120
redrilling, completing, working over, producing, distributing, or 121
testing of oil, gas and other mineral resources shall be taxed at 122
the rate of four and one-half percent (4-1/2%). Operators that 123
rebill sales of equipment and materials to nonoperating working 124
interest owners on behalf of a joint account through the joint 125
interest billing (JIB), where the sales tax has been paid or 126
accrued by the operator shall not be charged a sales tax on the 127
JIB as services income. 128
(n) Retail sales of food or drink for human consumption 129
not purchased with food stamps issued by the United States 130
Department of Agriculture or other federal agency, but which would 131
be exempt under Section 27-65-111(o) from the taxes imposed by 132
this chapter if the food items were purchased with food stamps, 133
shall be taxed at the rate of * * * one-half percent (1/2%) from 134
and after July 1, * * * 2026. 135
(2) From and after January 1, 1995, retail sales of private 136
carriers of passengers and light carriers of property, as defined 137
in Section 27-51-101, shall be taxed an additional two percent 138
(2%). 139
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(3) A manufacturer selling at retail in this state shall be 140
required to make returns of the gross proceeds of such sales and 141
pay the tax imposed in this section. 142
SECTION 2. Section 27-65-75, Mississippi Code of 1972, is 143
amended as follows: 144
27-65-75. On or before the fifteenth day of each month, the 145
revenue collected under the provisions of this chapter during the 146
preceding month shall be paid and distributed as follows: 147
(1) (a) * * * Except as otherwise provided in this 148
paragraph (a), on or before September 15, 2025, and each 149
succeeding month thereafter eighteen and one-half percent (18.5%) 150
of the total sales tax revenue collected during the preceding 151
month under this chapter, except that collected under Sections 152
27-65-15, 27-65-17(1)(n), 27-65-19(3), 27-65-21 and 27-65-24, on 153
business activities within a municipal corporation shall be 154
allocated for distribution and paid to the municipal corporation. 155
On or before September 15, 2025, and each succeeding month 156
thereafter through August 15, 2026, twenty-five and nine-tenths 157
percent (25.9%) of the total sales tax revenue collected during 158
the preceding month under Section 27-65-17(1)(n) on business 159
activities within a municipal corporation shall be allocated for 160
distribution and paid to the municipal corporation. On or before 161
September 15, 2026, and each succeeding month thereafter, two 162
hundred fifty-nine percent (259%) of the total sales tax revenue 163
collected during the preceding month under Section 27-65-17(1)(n) 164
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on business activities within a municipal corporation shall be 165
allocated for distribution and paid to the municipal corporation. 166
However, in the event the State Auditor issues a certificate of 167
noncompliance pursuant to Section 21-35-31, the department shall 168
withhold ten percent (10%) of the allocations and payments to the 169
municipality that would otherwise be payable to the municipality 170
under this paragraph (a) until such time that the department 171
receives written notice of the cancellation of a certificate of 172
noncompliance from the State Auditor. 173
A municipal corporation, for the purpose of distributing the 174
tax under this subsection, shall mean and include all incorporated 175
cities, towns and villages. 176
Monies allocated for distribution and credited to a municipal 177
corporation under this paragraph may be pledged as security for a 178
loan if the distribution received by the municipal corporation is 179
otherwise authorized or required by law to be pledged as security 180
for such a loan. 181
In any county having a county seat that is not an 182
incorporated municipality, the distribution provided under this 183
subsection shall be made as though the county seat was an 184
incorporated municipality; however, the distribution to the 185
municipality shall be paid to the county treasury in which the 186
municipality is located, and those funds shall be used for road, 187
bridge and street construction or maintenance in the county. 188
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(b) * * * On or before September 15, 2025, and each 189
succeeding month thereafter, eighteen and one-half percent (18.5%) 190
of the total sales tax revenue collected during the preceding 191
month under this chapter, except that collected under Sections 192
27-65-15, 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on business 193
activities on the campus of a state institution of higher learning 194
or community or junior college whose campus is not located within 195
the corporate limits of a municipality, shall be allocated for 196
distribution and paid to the state institution of higher learning 197
or community or junior college. On or before September 15, 2025, 198
and each succeeding month thereafter, twenty-five and nine-tenths 199
percent (25.9%) of the total sales tax revenue collected during 200
the preceding month under Section 27-65-17(1)(n) on business 201
activities on the campus of a state institution of higher learning 202
or community or junior college whose campus is not located within 203
the corporate limits of a municipality, shall be allocated for 204
distribution and paid to the state institution of higher learning 205
or community or junior college. 206
(c) * * * On or before September 15, 2025, and each 207
succeeding month thereafter, nine percent (9%) of the total sales 208
tax revenue collected during the preceding month under this 209
chapter, except that collected under Sections 27-65-15, 210
27-65-17(1)(n), 27-65-19(3), 27-65-21 and 27-65-24, on business 211
activities within the corporate limits of the City of Jackson, 212
Mississippi, shall be deposited into the Capitol Complex 213
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Improvement District Project Fund created in Section 27-5-215. On 214
or before September 15, 2025, and each succeeding month 215
thereafter, twelve and six-tenths percent (12.6%) of the total 216
sales tax revenue collected during the preceding month under 217
Section 27-65-17(1)(n) on business activities within the corporate 218
limits of the City of Jackson, Mississippi, shall be deposited 219
into the Capitol Complex Improvement District Project Fund created 220
in Section 27-5-215. 221
(d) (i) Except as otherwise provided in this paragraph 222
(d), on or before the fifteenth day of the month that the 223
diversion authorized by this section begins, and each succeeding 224
month thereafter, eighteen and one-half percent (18-1/2%) of the 225
total sales tax revenue collected during the preceding month under 226
the provisions of this chapter, except that collected under the 227
provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 228
business activities within a redevelopment project area developed 229
under a redevelopment plan adopted under the Tax Increment 230
Financing Act (Section 21-45-1 et seq.) shall be allocated for 231
distribution to the county in which the project area is located 232
if: 233
1. The county: 234
a. Borders on the Mississippi Sound and 235
the State of Alabama, or 236
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b. Is Harrison County, Mississippi, and 237
the project area is within a radius of two (2) miles from the 238
intersection of Interstate 10 and Menge Avenue; 239
2. The county has issued bonds under Section 240
21-45-9 to finance all or a portion of a redevelopment project in 241
the redevelopment project area; 242
3. Any debt service for the indebtedness 243
incurred is outstanding; and 244
4. A development with a value of Ten Million 245
Dollars ($10,000,000.00) or more is, or will be, located in the 246
redevelopment area. 247
(ii) For a county that is eligible to receive 248
funds under this paragraph (d), as determined by the department 249
under this paragraph (d), from and after September 15, 2025, and 250
each succeeding month thereafter, eighteen and one-half percent 251
(18.5%) of the total sales tax revenue collected during the 252
preceding month under this chapter, except that collected under 253
Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on 254
business activities within a redevelopment project area developed 255
under a redevelopment plan adopted under the Tax Increment 256
Financing Act (Section 21-45-1 et seq.) shall be allocated for 257
distribution to the county in which the project is located, and 258
twenty-five and nine-tenths percent (25.9%) of the total sales tax 259
revenue collected during the preceding month under Section 260
27-65-17(1)(n) shall be allocated for distribution to that county. 261
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(iii) Before any sales tax revenue may be 262
allocated for distribution to a county under this paragraph (d), 263
the county shall certify to the Department of Revenue that the 264
requirements of this paragraph (d) have been met, the amount of 265
bonded indebtedness that has been incurred by the county for the 266
redevelopment project and the expected date the indebtedness 267
incurred by the county will be satisfied. 268
(iv) The diversion of sales tax revenue authorized 269
by this paragraph (d) shall begin the month following the month in 270
which the Department of Revenue determines that the requirements 271
of this paragraph (d) have been met. The diversion shall end the 272
month the indebtedness incurred by the county is satisfied. All 273
revenue received by the county under this paragraph (d) shall be 274
deposited in the fund required to be created in the tax increment 275
financing plan under Section 21-45-11 and be utilized solely to 276
satisfy the indebtedness incurred by the county. 277
(2) On or before September 15, 1987, and each succeeding 278
month thereafter, from the revenue collected under this chapter 279
during the preceding month, One Million One Hundred Twenty-five 280
Thousand Dollars ($1,125,000.00) shall be allocated for 281
distribution to municipal corporations as defined under subsection 282
(1) of this section in the proportion that the number of gallons 283
of gasoline and diesel fuel sold by distributors to consumers and 284
retailers in each such municipality during the preceding fiscal 285
year bears to the total gallons of gasoline and diesel fuel sold 286
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by distributors to consumers and retailers in municipalities 287
statewide during the preceding fiscal year. The Department of 288
Revenue shall require all distributors of gasoline and diesel fuel 289
to report to the department monthly the total number of gallons of 290
gasoline and diesel fuel sold by them to consumers and retailers 291
in each municipality during the preceding month. The Department 292
of Revenue shall have the authority to promulgate such rules and 293
regulations as is necessary to determine the number of gallons of 294
gasoline and diesel fuel sold by distributors to consumers and 295
retailers in each municipality. In determining the percentage 296
allocation of funds under this subsection for the fiscal year 297
beginning July 1, 1987, and ending June 30, 1988, the Department 298
of Revenue may consider gallons of gasoline and diesel fuel sold 299
for a period of less than one (1) fiscal year. For the purposes 300
of this subsection, the term "fiscal year" means the fiscal year 301
beginning July 1 of a year. 302
(3) On or before September 15, 1987, and on or before the 303
fifteenth day of each succeeding month, until the date specified 304
in Section 65-39-35, the proceeds derived from contractors' taxes 305
levied under Section 27-65-21 on contracts for the construction or 306
reconstruction of highways designated under the highway program 307
created under Section 65-3-97 shall, except as otherwise provided 308
in Section 31-17-127, be deposited into the State Treasury to the 309
credit of the State Highway Fund to be used to fund that highway 310
program. The Mississippi Department of Transportation shall 311
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provide to the Department of Revenue such information as is 312
necessary to determine the amount of proceeds to be distributed 313
under this subsection. 314
(4) * * * On or before August 15, 1999, and on or before the 315
fifteenth day of each succeeding month through August 15, 2026, 316
from the total amount of the proceeds of gasoline, diesel fuel or 317
kerosene taxes apportioned by Section 27-5-101(a)(ii)1, Four 318
Million Dollars ($4,000,000.00) or an amount equal to twenty-three 319
and one-fourth percent (23-1/4%) of those funds, whichever is the 320
greater amount, shall be deposited in the State Treasury to the 321
credit of the "State Aid Road Fund," created by Section 65-9-17. 322
After August 15, 2025, from the total amount of the proceeds of 323
gasoline, diesel fuel or kerosene taxes apportioned by Section 324
27-5-101(a)(ii)1 and (iii), Five Million Dollars ($5,000,000.00) 325
or an amount equal to twenty-three and one-fourth percent 326
(23-1/4%) of those funds, whichever is greater, shall be deposited 327
in the State Treasury to the credit of the "State Aid Road Fund" 328
on or before September 15, 2025, and on or before the fifteenth 329
day of each succeeding month through August 15, 2026, and Six 330
Million Five Hundred Thousand Dollars ($6,500,000.00) or an amount 331
equal to twenty-three and one-fourth percent (23-1/4%) of those 332
funds, whichever is greater, shall be deposited in the State 333
Treasury to the credit of the "State Aid Road Fund" on or before 334
September 15, 2026, and on or before the fifteenth day of each 335
succeeding month through August 15, 2027, and Eight Million 336
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Dollars ($8,000,000.00) or an amount equal to twenty-three and 337
one-fourth percent (23-1/4%) of those funds, whichever is greater, 338
shall be deposited in the State Treasury to the credit of the 339
"State Aid Road Fund" on or before September 15, 2027, and on or 340
before the fifteenth day of each succeeding month. From the 341
amount of taxes paid into the special fund under this subsection 342
and subsection (9) of this section, there shall be first deducted 343
and paid the amount necessary to pay the expenses of the Office of 344
State Aid Road Construction, as authorized by the Legislature for 345
all other general and special fund agencies. The remainder of the 346
funds shall be allocated monthly to the several counties in 347
accordance with the following formula: 348
(a) One-third (1/3) shall be allocated to all counties 349
in equal shares; 350
(b) One-third (1/3) shall be allocated to counties 351
based on the proportion that the total number of rural road miles 352
in a county bears to the total number of rural road miles in all 353
counties of the state; and 354
(c) One-third (1/3) shall be allocated to counties 355
based on the proportion that the rural population of the county 356
bears to the total rural population in all counties of the state, 357
according to the latest federal decennial census. 358
For the purposes of this subsection, the term "gasoline, 359
diesel fuel or kerosene taxes" means such taxes as defined in 360
paragraph (f) of Section 27-5-101. 361
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The amount of funds allocated to any county under this 362
subsection for any fiscal year after fiscal year 1994 shall not be 363
less than the amount allocated to the county for fiscal year 1994. 364
Any reference in the general laws of this state or the 365
Mississippi Code of 1972 to Section 27-5-105 shall mean and be 366
construed to refer and apply to subsection (4) of Section 367
27-65-75. 368
(5) On or before August 15, 2024, and each succeeding month 369
thereafter, One Million Six Hundred Sixty-six Thousand Six Hundred 370
Sixty-six Dollars ($1,666,666.00) shall be paid into the special 371
fund known as the Education Enhancement Fund created and existing 372
under the provisions of Section 37-61-33. 373
(6) An amount each month beginning August 15, 1983, through 374
November 15, 1986, as specified in Section 6, Chapter 542, Laws of 375
1983, shall be paid into the special fund known as the 376
Correctional Facilities Construction Fund created in Section 6, 377
Chapter 542, Laws of 1983. 378
(7) * * * On or before September 15, 2025, and each 379
succeeding month thereafter, two and two hundred sixty-six 380
one-thousandths percent (2.266%) of the total sales tax revenue 381
collected during the preceding month under this chapter, except 382
that collected under Section 27-65-17(1)(n) and (2), and three and 383
seventeen one-hundredths percent (3.17%) of the total sales tax 384
revenue collected during the preceding month under Section 385
27-65-17(1)(n), shall be deposited into the School Ad Valorem Tax 386
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Reduction Fund created under Section 37-61-35 until such time that 387
the total amount deposited into the fund during a fiscal year 388
equals Forty-two Million Dollars ($42,000,000.00). Thereafter, 389
the amounts diverted under this subsection (7) during the fiscal 390
year in excess of Forty-two Million Dollars ($42,000,000.00) shall 391
be deposited into the Education Enhancement Fund created under 392
Section 37-61-33 for appropriation by the Legislature as other 393
education needs and shall not be subject to the percentage 394
appropriation requirements set forth in Section 37-61-33. 395
(8) * * * On or before September 15, 2025, and each 396
succeeding month thereafter, nine and seventy-three 397
one-thousandths percent (9.073%) of the total sales tax revenue 398
collected during the preceding month under this chapter, except 399
that collected under Section 27-65-17(1)(n) and (2), and twelve 400
and seven-tenths percent (12.7%) of the total sales tax revenue 401
collected during the preceding month under Section 27-65-17(1)(n), 402
shall be deposited into the Education Enhancement Fund created 403
under Section 37-61-33. 404
(9) On or before August 15, 1994, and each succeeding month 405
thereafter, from the revenue collected under this chapter during 406
the preceding month, Two Hundred Fifty Thousand Dollars 407
($250,000.00) shall be paid into the State Aid Road Fund. 408
(10) * * * [Deleted] 409
(11) Notwithstanding any other provision of this section to 410
the contrary, on or before February 15, 1995, and each succeeding 411
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month thereafter, the sales tax revenue collected during the 412
preceding month under the provisions of Section 27-65-17(2) and 413
the corresponding levy in Section 27-65-23 on the rental or lease 414
of private carriers of passengers and light carriers of property 415
as defined in Section 27-51-101 shall be deposited, without 416
diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund 417
established in Section 27-51-105. 418
(12) Notwithstanding any other provision of this section to 419
the contrary, on or before August 15, 1995, and each succeeding 420
month thereafter, the sales tax revenue collected during the 421
preceding month under the provisions of Section 27-65-17(1) on 422
retail sales of private carriers of passengers and light carriers 423
of property, as defined in Section 27-51-101 and the corresponding 424
levy in Section 27-65-23 on the rental or lease of these vehicles, 425
shall be deposited, after diversion, into the Motor Vehicle Ad 426
Valorem Tax Reduction Fund established in Section 27-51-105. 427
(13) On or before July 15, 1994, and on or before the 428
fifteenth day of each succeeding month thereafter, that portion of 429
the avails of the tax imposed in Section 27-65-22 that is derived 430
from activities held on the Mississippi State Fairgrounds Complex 431
shall be paid into a special fund that is created in the State 432
Treasury and shall be expended upon legislative appropriation 433
solely to defray the costs of repairs and renovation at the Trade 434
Mart and Coliseum. 435
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(14) * * * On or before August 15, 2011, and each succeeding 436
month thereafter, that portion of the avails of the tax imposed in 437
Section 27-65-23 that is derived from sales by cotton compresses 438
or cotton warehouses and that would otherwise be paid into the 439
General Fund shall be deposited into the special fund created 440
under Section 69-37-39 until such time that the total amount 441
deposited into the fund during a fiscal year equals One Million 442
Dollars ($1,000,000.00). 443
(15) Notwithstanding any other provision of this section to 444
the contrary, on or before September 15, 2000, and each succeeding 445
month thereafter, the sales tax revenue collected during the 446
preceding month under the provisions of Section 447
27-65-19(1)(d)(i)2, and 27-65-19(1)(d)(i)3 shall be deposited, 448
without diversion, into the Telecommunications Ad Valorem Tax 449
Reduction Fund established in Section 27-38-7. 450
(16) (a) On or before August 15, 2000, and each succeeding 451
month thereafter, the sales tax revenue collected during the 452
preceding month under the provisions of this chapter on the gross 453
proceeds of sales of a project as defined in Section 57-30-1 shall 454
be deposited, after all diversions except the diversion provided 455
for in subsection (1) of this section, into the Sales Tax 456
Incentive Fund created in Section 57-30-3. 457
(b) On or before August 15, 2007, and each succeeding 458
month thereafter, eighty percent (80%) of the sales tax revenue 459
collected during the preceding month under the provisions of this 460
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chapter from the operation of a tourism project under the 461
provisions of Sections 57-26-1 through 57-26-5, shall be 462
deposited, after the diversions required in subsections (7) and 463
(8) of this section, into the Tourism Project Sales Tax Incentive 464
Fund created in Section 57-26-3. 465
(17) Notwithstanding any other provision of this section to 466
the contrary, on or before April 15, 2002, and each succeeding 467
month thereafter, the sales tax revenue collected during the 468
preceding month under Section 27-65-23 on sales of parking 469
services of parking garages and lots at airports shall be 470
deposited, without diversion, into the special fund created under 471
Section 27-5-101(d). 472
(18) [Repealed] 473
(19) (a) On or before August 15, 2005, and each succeeding 474
month thereafter, the sales tax revenue collected during the 475
preceding month under the provisions of this chapter on the gross 476
proceeds of sales of a business enterprise located within a 477
redevelopment project area under the provisions of Sections 478
57-91-1 through 57-91-11, and the revenue collected on the gross 479
proceeds of sales from sales made to a business enterprise located 480
in a redevelopment project area under the provisions of Sections 481
57-91-1 through 57-91-11 (provided that such sales made to a 482
business enterprise are made on the premises of the business 483
enterprise), shall, except as otherwise provided in this 484
subsection (19), be deposited, after all diversions, into the 485
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Redevelopment Project Incentive Fund as created in Section 486
57-91-9. 487
(b) For a municipality participating in the Economic 488
Redevelopment Act created in Sections 57-91-1 through 57-91-11, 489
the diversion provided for in subsection (1) of this section 490
attributable to the gross proceeds of sales of a business 491
enterprise located within a redevelopment project area under the 492
provisions of Sections 57-91-1 through 57-91-11, and attributable 493
to the gross proceeds of sales from sales made to a business 494
enterprise located in a redevelopment project area under the 495
provisions of Sections 57-91-1 through 57-91-11 (provided that 496
such sales made to a business enterprise are made on the premises 497
of the business enterprise), shall be deposited into the 498
Redevelopment Project Incentive Fund as created in Section 499
57-91-9, as follows: 500
(i) For the first six (6) years in which payments 501
are made to a developer from the Redevelopment Project Incentive 502
Fund, one hundred percent (100%) of the diversion shall be 503
deposited into the fund; 504
(ii) For the seventh year in which such payments 505
are made to a developer from the Redevelopment Project Incentive 506
Fund, eighty percent (80%) of the diversion shall be deposited 507
into the fund; 508
(iii) For the eighth year in which such payments 509
are made to a developer from the Redevelopment Project Incentive 510
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Fund, seventy percent (70%) of the diversion shall be deposited 511
into the fund; 512
(iv) For the ninth year in which such payments are 513
made to a developer from the Redevelopment Project Incentive Fund, 514
sixty percent (60%) of the diversion shall be deposited into the 515
fund; and 516
(v) For the tenth year in which such payments are 517
made to a developer from the Redevelopment Project Incentive Fund, 518
fifty percent (50%) of the funds shall be deposited into the fund. 519
(20) On or before January 15, 2007, and each succeeding 520
month thereafter, eighty percent (80%) of the sales tax revenue 521
collected during the preceding month under the provisions of this 522
chapter from the operation of a tourism project under the 523
provisions of Sections 57-28-1 through 57-28-5 shall be deposited, 524
after the diversions required in subsections (7) and (8) of this 525
section, into the Tourism Sales Tax Incentive Fund created in 526
Section 57-28-3. 527
(21) * * * On or before July 15, 2013, and each succeeding 528
month thereafter, One Hundred Fifty Thousand Dollars ($150,000.00) 529
of the sales tax revenue collected during the preceding month 530
under the provisions of this chapter shall be deposited into the 531
Mississippi Development Authority Job Training Grant Fund created 532
in Section 57-1-451. 533
(22) On or before June 1, 2024, and each succeeding month 534
thereafter until December 31, 2057, an amount determined annually 535
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by the Mississippi Development Authority of the sales tax revenue 536
collected during the preceding month under the provisions of this 537
chapter shall be deposited into the MMEIA Tax Incentive Fund 538
created in Section 57-125-3. This amount shall be based on 539
estimated payments due within the upcoming year to construction 540
contractors pursuant to construction contracts subject to the tax 541
imposed by Section 27-65-21 for construction to be performed on 542
the project site of a project defined under Section 543
57-75-5(f)(xxxiii) for the coming year. 544
(23) Notwithstanding any other provision of this section to 545
the contrary, on or before August 15, 2009, and each succeeding 546
month thereafter, the sales tax revenue collected during the 547
preceding month under the provisions of Section 27-65-201 shall be 548
deposited, without diversion, into the Motor Vehicle Ad Valorem 549
Tax Reduction Fund established in Section 27-51-105. 550
(24) (a) * * * On or before August 15, 2021, and each month 551
thereafter, three percent (3%) of the total sales tax revenue 552
collected during the preceding month from restaurants and hotels 553
shall be allocated for distribution to the Mississippi Development 554
Authority Tourism Advertising Fund established under Section 555
57-1-64, to be used exclusively for the purpose stated 556
therein. * * * 557
(b) The Joint Legislative Committee on Performance 558
Evaluation and Expenditure Review (PEER) must provide an annual 559
report to the Legislature indicating the amount of funds deposited 560
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into the Mississippi Development Authority Tourism Advertising 561
Fund established under Section 57-1-64, and a detailed record of 562
how the funds are spent. 563
(25) The remainder of the amounts collected under the 564
provisions of this chapter shall be paid into the State Treasury 565
to the credit of the General Fund. 566
(26) (a) It shall be the duty of the municipal officials of 567
any municipality that expands its limits, or of any community that 568
incorporates as a municipality, to notify the commissioner of that 569
action thirty (30) days before the effective date. Failure to so 570
notify the commissioner shall cause the municipality to forfeit 571
the revenue that it would have been entitled to receive during 572
this period of time when the commissioner had no knowledge of the 573
action. 574
(b) (i) Except as otherwise provided in subparagraph 575
(ii) of this paragraph, if any funds have been erroneously 576
disbursed to any municipality or any overpayment of tax is 577
recovered by the taxpayer, the commissioner may make correction 578
and adjust the error or overpayment with the municipality by 579
withholding the necessary funds from any later payment to be made 580
to the municipality. 581
(ii) Subject to the provisions of Sections 582
27-65-51 and 27-65-53, if any funds have been erroneously 583
disbursed to a municipality under subsection (1) of this section 584
for a period of three (3) years or more, the maximum amount that 585
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ST: Sales tax; reduce to 1/2% for groceries,
and adjust distribution to avoid impact on
municipalities.
may be recovered or withheld from the municipality is the total 586
amount of funds erroneously disbursed for a period of three (3) 587
years beginning with the date of the first erroneous disbursement. 588
However, if during such period, a municipality provides written 589
notice to the Department of Revenue indicating the erroneous 590
disbursement of funds, then the maximum amount that may be 591
recovered or withheld from the municipality is the total amount of 592
funds erroneously disbursed for a period of one (1) year beginning 593
with the date of the first erroneous disbursement. 594
SECTION 3. This act shall take effect and be in force from 595
and after July 1, 2026. 596