HB 1 — "Build Up Mississippi Act"; create.

TO PROVIDE THAT THE REMAINDER SHALL BE REMITTED TO THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM FOR APPLICATION TO THE ACCRUED LIABILITY CONTRIBUTION FUND;

TO REPEAL SECTION 25-11-415, MISSISSIPPI CODE OF 1972, WHICH PROVIDES THAT THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM MAY DEDUCT NOT MORE THAN 2% OF ALL EMPLOYERS' CONTRIBUTIONS AND TRANSFER SUCH DEDUCTIONS TO THE EXPENSE FUND OF THE SYSTEM TO DEFRAY THE COST OF ADMINISTERING THE OPTIONAL RETIREMENT PROGRAM;

ThisSection act27-7-5, shallMississippi beCode knownof and1972, mayis beamended cited as thefollows: "Build Up Mississippi Act".

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 2(BS\JAB)3(BS\JAB) SECTION27-7-5. 2.

(1) (a) SubjectExcept toas theotherwise provisionsprovided ofin this subsection,section, fromthere andis afterhereby Julyassessed 1,and 2026,levied, theto governingbe authoritiescollected ofand apaid municipality shall impose upon all persons as ahereinafter privilegeprovided, for engagingthe orcalendar continuingyear in1983 businessand orfiscal doingyears businessending withinduring such municipality, a sales tax at the ratecalendar ofyear one1983 and one-halfall percenttaxable (1-1/2%)years ofthereafter, upon the grossentire proceedsnet of sales or gross income of theevery business,resident asindividual, thecorporation, caseassociation, maytrust be,or derivedestate, fromin anyexcess of the activitiescredits withinprovided, thea municipalitytax which are taxed at the ratefollowing ofrates: seven percent (7%) under the provisions of this chapter and from activities within the municipality which are taxed under Section 27-65-17(1)(n).

The(i) governing1. authorities of a municipality, by a vote entered upon their minutes before July 1, 2026, may opt out of imposing the tax provided for in this subsection.

TheThrough governingcalendar authoritiesyear of2017, theon municipality shall provide a notice in accordance with the Openfirst MeetingsFive ActThousand (SectionDollars 25-41-1($5,000.00) et seq.) of itstaxable intentincome, ofor holdingany apart votethereof, regardingthe optingrate outshall ofbe imposingthree thepercent tax.(3%);

(b)2. The tax imposed under this subsection shall apply to every person making sales, delivery or installations of tangible personal property or services within any municipality levying the tax provided for in this subsection but shall not apply to sales exempted by Sections 27-65-19, 27-65-101, 27-65-103, 27-65-105, 27-65-107, 27-65-109 and 27-65-111.

(c)For Acalendar municipalityyear may2018, useon revenuethe derivedfirst fromOne theThousand Dollars ($1,000.00) of taxable income there shall be no tax imposedlevied, underand thison subsectionthe fornext anyFour purposeThousand forDollars which($4,000.00) of taxable income, or any part thereof, the H.rate shall be three percent (3%);

3.

For calendar year 2019, on the first Two Thousand Dollars ($2,000.00) of taxable income there shall be no tax levied, and on the next Three Thousand Dollars ($3,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);

4.

For calendar year 2020, on the first Three Thousand Dollars ($3,000.00) of taxable income there shall be no tax levied, and on the next Two Thousand Dollars ($2,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);

H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 3(BS\JAB)4(BS\JAB) municipality5. may use monies distributed to it under the provisions of Section 27-65-75(1)(a).

(d)For Thecalendar salesyear tax2021, authorizedon bythe thisfirst subsectionFour shallThousand beDollars collected($4,000.00) byof thetaxable Departmentincome ofthere Revenue, shall be accountedno fortax separatelylevied, fromand on the amountnext ofOne salesThousand taxDollars collected($1,000.00) forof thetaxable stateincome, inor theany municipalitypart andthereof, the rate shall be paidthree topercent the(3%); municipality in which collected.

Payments6. to the municipality shall be made by the Department of Revenue on or before the fifteenth day of the month following the month in which the tax was collected.

(2)For (a)calendar Subjectyear to2022 the provisions of this subsection, from and afterall Julytaxable 1,years 2026,thereafter, thethere board of supervisors of a county shall imposebe uponno all persons as a privilege for engaging or continuing in business or doing business within such county outside of the municipalities in the county, a sales tax atlevied theon rate of one and one-half percent (1-1/2%) of the grossfirst proceedsFive ofThousand salesDollars or($5,000.00) gross income of thetaxable business,income; as the case may be, derived from any of the activities within the county that occur outside of the municipalities in the county which are taxed at the rate of seven percent (7%) under the provisions of this chapter and from activities within the county that occur outside of the municipalities in the county which are taxed under Section 27-65-17(1)(n).

The(ii) boardOn oftaxable supervisorsincome ofin aexcess county,of byFive aThousand voteDollars entered($5,000.00) uponup itsto minutesand beforeincluding JulyTen 1,Thousand 2026,Dollars may($10,000.00), optor outany ofpart imposingthereof, the taxrate providedshall forbe infour thispercent subsection.(4%);

Theand board(iii) ofOn supervisorsall taxable income in excess of aTen countyThousand shallDollars provide($10,000.00), athe noticerate inshall accordancebe withfive H.percent (5%).

(b) (i) For calendar year 2023 and all calendar years thereafter, there shall be no tax levied under subparagraph (ii) of paragraph (a) of this subsection on the taxable income of individuals in excess of Five Thousand Dollars ($5,000.00) up to and including Ten Thousand Dollars ($10,000.00), or any part thereof;

and (ii) For calendar year 2024 and all calendar years thereafter, the tax imposed under subparagraph (iii) of paragraph (a) of this subsection upon all taxable income of individuals in excess of Ten Thousand Dollars ($10,000.00), shall be at the following rates:

H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 4(BS\JAB)5(BS\JAB) the1. Open Meetings Act (Section 25-41-1 et seq.) of its intent of holding a vote regarding opting out of imposing the tax.

IfFor acalendar countyyear opts2024, outon ofsuch imposingtaxable theincome, tax provided for in this subsection, the countyrate mayshall notbe receivefour anyand assistanceseven-tenths frompercent the(4.7%); State Aid Road Fund created in Section 65-9-17 which is derived from monies deposited into the fund from revenue derived from the tax imposed by counties under this subsection.

(b)2. The tax imposed under this subsection shall apply to every person making sales, delivery or installations of tangible personal property or services within any county imposing the tax provided for in this subsection but shall not apply to sales exempted by Sections 27-65-19, 27-65-101, 27-65-103, 27-65-105, 27-65-107, 27-65-109 and 27-65-111.

(c)For Thecalendar revenueyear derived2025, fromon thesuch taxtaxable imposedincome, underthe thisrate subsection shall be depositedfour intoand thefour-tenths Statepercent Aid(4.4%); Road Fund created in Section 65-9-17.

(d)* The* sales* tax3. authorized by this subsection shall be collected by the Department of Revenue, shall be accounted for separately from the amount of sales tax collected for the state in the county and shall be paid as provided in paragraph (c) of this subsection.

PaymentsFor shallcalendar beyear made2026 by* the* Department*, of Revenue on orsuch beforetaxable theincome, fifteenth day of the monthrate followingshall thebe monthfour inpercent which(4%) the* tax* was*; collected.

(3)4. If a municipality imposing a tax under subsection (1) of this section expands its corporate boundaries into a county that H.

For calendar year 2027, on such taxable income, the rate shall be three and three-quarters percent (3.75%);

5.

For calendar year 2028, on such taxable income, the rate shall be three and one-half percent (3.5%);

6.

For calendar year 2029, on such taxable income, the rate shall be three and one-quarter percent (3.25%);

and 7.

For calendar year 2030 and all calendar years thereafter, except as otherwise provided in Section 2 of this act, on such taxable income, the rate shall be three percent (3%).

* * * (2) An S corporation, as defined in Section 27-8-3(1)(g), shall not be subject to the income tax imposed under this section.

(3) A like tax is hereby imposed to be assessed, collected and paid annually, except as hereinafter provided, at the rate specified in this section and as hereinafter provided, upon and H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 5(BS\JAB)6(BS\JAB) iswith imposingrespect ato taxthe underentire subsectionnet (2)income, offrom thisall section,property theowned municipalityor shallsold, imposeand thefrom taxevery underbusiness, subsectiontrade (1)or ofoccupation thiscarried sectionon in thethis expandedstate corporateby boundariesindividuals, andcorporations, thepartnerships, countytrusts shallor ceaseestates, tonot imposeresidents the tax under subsection (2) of this section in the expandedState municipalof corporateMississippi. boundaries.

The(4) municipalityIn shallthe begincase toof imposetaxpayers andhaving thea countyfiscal shallyear ceasebeginning toin imposea thecalendar respectiveyear taxeswith ona therate firstin dayeffect ofthat is different than the monthrate followingin effect for the monthnext calendar year and ending in whichthe next calendar year, the municipaltax expansiondue becomesfor official.that taxable year shall be determined by:

(a) Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year in which the fiscal year begins;

and (b) Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year in which the fiscal year ends;

and (c) Applying to the tax computed under paragraph (a) the ratio which the number of months falling within the earlier calendar year bears to the total number of months in the fiscal year;

and (d) Applying to the tax computed under paragraph (b) the ratio which the number of months falling within the later calendar year bears to the total number of months within the fiscal year;

and H.

B.

No.

1 *HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223SG PAGE 7(BS\JAB) (e) Adding to the tax determined under paragraph (c) the tax determined under paragraph (d) the sum of which shall be the amount of tax due for the fiscal year.

SECTION 2.

(1) As used in this section:

(a) "Adjusted General Fund Revenue Collections" means State General Fund revenue collections adjusted by removing any nonrecurring State General Fund revenue collections, which figure shall be provided annually to the commissioner by the Legislative Budget Office on or before October 1 for the prior fiscal year (beginning October 1, 2029, for fiscal year 2029 revenue collections) and presented at the next meeting of the Joint Legislative Budget Committee.

(b) "Appropriations" means the total amount contained in all deficit appropriations bills that are recurring expenses in State Support Funds and all General Fund appropriation bills passed into law, but not including any additional appropriations in excess of statutory required employer rate for the Public Employees' Retirement System of Mississippi, which figure shall be provided annually to the commissioner by the Legislative Budget Office on or before October 1 for the current fiscal year (beginning October 1, 2029, for fiscal year 2030 appropriations) and presented at the next meeting of the Joint Legislative Budget Committee.

(c) "Cost of a one percent (1%) cut" means the reduction in individual income tax collections that would result H.

B.

No.

1 *HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223SG PAGE 8(BS\JAB) from a one percent (1%) reduction in the tax on all taxable income of individuals in excess of Ten Thousand Dollars ($10,000.00), which figure shall be provided annually by the commissioner to the Legislative Budget Office on or before December 15, based on data from the prior calendar year (beginning December 15, 2029, for calendar year 2028);

however, if any filing extensions were granted by the commissioner under Section 27-7-50, the commissioner shall provide the Legislative Budget Office with an updated cost of a one percent (1%) cut before the end of the next regular legislative session.

(2) For calendar year 2031 and any calendar year thereafter, if the Working Cash-Stabilization Reserve Fund is fully funded as provided in Section 27-103-213, the tax imposed under Section 27-7-5(b)(ii) on all taxable income of individuals in excess of Ten Thousand Dollars ($10,000.00) shall be reduced by a percentage as indicated below, depending on the percentage by which the Adjusted General Fund Revenue Collections for a fiscal year (beginning with fiscal year 2029) exceed the Appropriations for the following fiscal year (beginning with fiscal year 2030):

(a) If the excess is at least eighty-five one-hundredths percent (0.85%), but less than one percent (1%), of the cost of a one percent (1%) cut, the tax shall be reduced by two-tenths percent (0.2%);

(b) If excess is at least one percent (1%), but less than one and fifteen one-hundredths percent (1.15%), of the cost H.

B.

No.

1 *HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223SG PAGE 9(BS\JAB) of a one percent (1%) cut, the tax shall be reduced by one-quarter percent (0.25%);

and (c) If excess is at least one and fifteen one-hundredths percent (1.15%) of the cost of a one percent (1%) cut, the tax shall be reduced by three-tenths percent (0.3%).

(3) The tax reduction provided for in this section shall be effective for the calendar year beginning after the close of the fiscal year pertaining to the Appropriations figure used in the calculation for subsection (2) of this section.

(4) When the application of the tax reduction provided for in this section results in a tax of zero percent (0%) on all taxable income of individuals in excess of Ten Thousand Dollars ($10,000.00), such tax shall be eliminated.

(c) (i) Retail sales of farm implements sold to farmers and used directly in the production of poultry, ratite, domesticated fish as defined in Section 69-7-501, livestock, livestock products, agricultural crops or ornamental plant crops or used for other agricultural purposes, and parts and labor used H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 6(BS\JAB)10(BS\JAB) (c) (i) Retail sales of farm implements sold to farmers and used directly in the production of poultry, ratite, domesticated fish as defined in Section 69-7-501, livestock, livestock products, agricultural crops or ornamental plant crops or used for other agricultural purposes, and parts and labor used to maintain and/or repair such implements, shall be taxed at the rate of one and one-half percent (1-1/2%) when used on the farm.

The department shall establish an application process for a professional logger's permit to be issued, which shall include a requirement that the applicant submit a copy of documentation verifyingH. that the applicant is certified according to Sustainable Forestry Initiative guidelines.

Upon a determination that an applicant is a professional logger, the department shall issue the applicant a numbered professional logger's permit.

H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 7(BS\JAB)11(BS\JAB) (d)verifying Exceptthat asthe otherwiseapplicant providedis incertified subsectionaccording (3)to ofSustainable thisForestry section,Initiative retailguidelines. sales of aircraft, automobiles, trucks, truck-tractors, semitrailers and manufactured or mobile homes shall be taxed at the rate of three percent (3%).

Upon a determination that an applicant is a professional logger, the department shall issue the applicant a numbered professional logger's permit.

(d) Except as otherwise provided in subsection (3) of this section, retail sales of aircraft, automobiles, trucks, truck-tractors, semitrailers and manufactured or mobile homes shall be taxed at the rate of three percent (3%).

(ii) The enterprise shall employ at least ten (10) persons in full-time jobs;

(iii) At least ten percent (10%) of the workforce in the facility operated by the enterprise shall be scientists, engineers or computer specialists;

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 8(BS\JAB)12(BS\JAB) (iv)(ii) The enterprise shall manufactureemploy plastics,at chemicals,least automobiles,ten aircraft,(10) computerspersons orin electronics;full-time jobs;

(iii) At least ten percent (10%) of the workforce in the facility operated by the enterprise shall be scientists, engineers or computer specialists;

(iv) The enterprise shall manufacture plastics, chemicals, automobiles, aircraft, computers or electronics;

(h)H. Sales of tangible personal property to electric power associations for use in the ordinary and necessary operation of their generating or distribution systems shall be taxed at the rate of one percent (1%).

(i) Wholesale sales of food and drink for human consumption to full-service vending machine operators to be sold H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 9(BS\JAB)13(BS\JAB) through(h) vendingSales machinesof locatedtangible apartpersonal fromproperty to electric power associations for use in the ordinary and notnecessary connectedoperation withof othertheir taxablegenerating businessesor distribution systems shall be taxed at the rate of eightone percent (8%).(1%).

(i) Wholesale sales of food and drink for human consumption to full-service vending machine operators to be sold through vending machines located apart from and not connected with other taxable businesses shall be taxed at the rate of eight percent (8%).

For the purposes of this paragraphH. (l), "dairy producer" means any person engaged in the production of milk for commercial use.

B.

No.

1 *HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223SG PAGE 14(BS\JAB) paragraph (l), "dairy producer" means any person engaged in the production of milk for commercial use.

Operators that H.rebill sales of equipment and materials to nonoperating working interest owners on behalf of a joint account through the joint interest billing (JIB), where the sales tax has been paid or accrued by the operator shall not be charged a sales tax on the JIB as services income.

(n) Retail sales of food or drink for human consumption not purchased with food stamps issued by the United States Department of Agriculture or other federal agency, but which would be exempt under Section 27-65-111(o) from the taxes imposed by this chapter if the food items were purchased with food stamps, shall be taxed at the rate of five percent (5%) from and after July 1, 2025.

(2) From and after January 1, 1995, retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101, shall be taxed an additional two percent (2%).

H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 10(BS\JAB)15(BS\JAB) rebill(3) salesA ofmanufacturer equipmentselling andat materialsretail toin nonoperatingthis workingstate interestshall ownersbe onrequired behalfto ofmake areturns jointof account through the jointgross interestproceeds billingof (JIB),such where the sales taxand haspay been paid or accrued by the operator shall not be charged a sales tax onimposed thein JIBthis assection. services income.

(n)SECTION From4. and after July 1, 2026, retail sales of food for human consumption not purchased with food stamps issued by the United States Department of Agriculture, or other federal agency, but which would be exempt under Section 27-65-111(o) from the taxes imposed by this chapter if the food items were purchased with food stamps, shall be taxed as follows:

(i)Section From27-65-241, andMississippi afterCode July 1, 2026, through June 30, 2027, such sales shall be taxed at the rate of four1972, andis one-halfamended percentas (4.5%);follows:

(ii)27-65-241. From and after July 1, 2027, through June 30, 2028, such sales shall be taxed at the rate of four and three-tenths percent (4.3%);

(iii)(1) FromAs andused afterin Julythis 1,section, 2028,the throughfollowing Juneterms 30,shall 2029,have suchthe salesmeanings shallascribed beto taxedthem atin thethis ratesection ofunless fourotherwise andclearly one-tenthsindicated percentby (4.1%);the context in which they are used:

(iv)(a) From"Hotel" or "motel" means and afterincludes Julya 1,place 2029,of throughlodging Junethat 30,at 2030,any suchone salestime shallwill beaccommodate taxedtransient atguests theon ratea ofdaily threeor weekly basis and nine-tenthsthat percentis (3.9%);known to the trade as such.

Such terms shall not include a place of lodging with ten (10) or less rental units.

(b) "Municipality" means any municipality in the State of Mississippi with a population of one hundred fifty thousand (150,000) or more according to the most recent federal decennial census.

(c) "Restaurant" means and includes all places where prepared food is sold and whose annual gross proceeds of sales or gross income for the preceding calendar year equals or exceeds One Hundred Thousand Dollars ($100,000.00).

The term "restaurant" shall not include any nonprofit organization that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code.

For the purpose of calculating gross proceeds of sales or gross income, the sales or income of all establishments H.

B.

No.

1 *HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223SG PAGE 16(BS\JAB) owned, operated or controlled by the same person, persons or corporation shall be aggregated.

(2) (a) Subject to the provisions of this section, the governing authorities of a municipality may impose upon all persons as a privilege for engaging or continuing in business or doing business within such municipality, a special sales tax at the rate of not more than one percent (1%) of the gross proceeds of sales or gross income of the business, as the case may be, derived from any of the activities taxed at the rate of seven percent (7%) or more under the Mississippi Sales Tax Law, Section 27-65-1 et seq.

(b) The tax levied under this section shall apply to every person making sales of tangible personal property or services within the municipality but shall not apply to:

(i) Sales exempted by Sections 27-65-19, 27-65-101, 27-65-103, 27-65-105, 27-65-107, 27-65-109 and 27-65-111 of the Mississippi Sales Tax Law;

(ii) Gross proceeds of sales or gross income of restaurants derived from the sale of food and beverages;

(iii) Gross proceeds of sales or gross income of hotels and motels derived from the sale of hotel rooms and motel rooms for lodging purposes;

* * * ( * * *iv) Gross income of businesses engaging or continuing in the business of TV cable systems, subscription TV H.

B.

No.

1 *HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223SG PAGE 17(BS\JAB) services, and other similar activities, including, but not limited to, cable Internet services;

( * * *v) Wholesale sales of food and drink for human consumption sold to full service vending machine operators;

and ( * * *vi) Wholesale sales of light wine, light spirit product, beer and alcoholic beverages.

(3) (a) Before any tax authorized under this section may be imposed, the governing authorities of the municipality shall adopt a resolution declaring its intention to levy the tax, setting forth the amount of the tax to be imposed, the purposes for which the revenue collected pursuant to the tax levy may be used and expended, the date upon which the tax shall become effective, the date upon which the tax shall be repealed, and calling for an election to be held on the question.

The date of the election shall be set in the resolution.

Notice of the election shall be published once each week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the municipality, with the first publication of the notice to be made not less than twenty-one (21) days before the date fixed in the resolution for the election and the last publication to be made not more than seven (7) days before the election.

At the election, all qualified electors of the municipality may vote.

The ballots used at the election shall have printed thereon a brief description of the sales tax, the amount of the sales tax H.

B.

No.

1 *HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223SG PAGE 18(BS\JAB) levy, a description of the purposes for which the tax revenue may be used and expended and the words "FOR THE LOCAL SALES TAX" and "AGAINST THE LOCAL SALES TAX" and the voter shall vote by placing a cross (X) or check mark (√) opposite his choice on the proposition.

When the results of the election have been canvassed by the election commissioners of the municipality and certified by them to the governing authorities, it shall be the duty of such governing authorities to determine and adjudicate whether at least three-fifths (3/5) of the qualified electors who voted in the election voted in favor of the tax.

If at least three-fifths (3/5) of the qualified electors who voted in the election voted in favor of the tax, the governing authorities shall adopt a resolution declaring the levy and collection of the tax provided in this section and shall set the first day of the second month following the date of such adoption as the effective date of the tax levy.

A certified copy of this resolution, together with the result of the election, shall be furnished to the Department of Revenue not less than thirty (30) days before the effective date of the levy.

(b) A municipality shall not hold more than two (2) elections under this subsection.

(4) The revenue collected pursuant to the tax levy imposed under this section may be expended to pay the cost of road and street repair, reconstruction and resurfacing projects based on traffic patterns, need and usage, and to pay the costs of water, H.

B.

No.

1 *HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223SG PAGE 19(BS\JAB) sewer and drainage projects in accordance with a master plan adopted by the commission established pursuant to subsection (7).

(5) (a) The special sales tax authorized by this section shall be collected by the Department of Revenue, shall be accounted for separately from the amount of sales tax collected for the state in the municipality and shall be paid to the municipality.

The Department of Revenue may retain one percent (1%) of the proceeds of such tax for the purpose of defraying the costs incurred by the department in the collection of the tax.

Payments to the municipality shall be made by the Department of Revenue on or before the fifteenth day of the month following the month in which the tax was collected.

However, if a municipality fails to comply with the audit, reporting and/or report filing requirements of paragraph (b) of this subsection and does not remedy such noncompliance within thirty (30) days after receiving written notice of noncompliance, the Department of Revenue shall withhold payments otherwise payable to the municipality under this paragraph (a) until the department receives written notice that the municipality has complied with such requirements.

(b) The proceeds of the special sales tax shall be placed into a special municipal fund apart from the municipal general fund and any other funds of the municipality, and shall be expended by the municipality solely for the purposes authorized in subsection (4) of this section.

The records reflecting the receipts and expenditures of the revenue from the special sales H.

B.

No.

1 *HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223SG PAGE 20(BS\JAB) tax shall be provided in detail to the members of the commission monthly, to include the name of the vendor and the project, and the dates and amounts received and paid, and shall also be audited annually by an independent certified public accountant.

The accountant shall make a report of his findings to the governing authorities of the municipality and file a copy of his report with the Secretary of the Senate and the Clerk of the House of Representatives and the commission members.

The audit shall be made and completed as soon as practical after the close of the fiscal year of the municipality, and expenses of the audit shall be paid from the funds derived by the municipality pursuant to this section.

(c) Any expenditure from the special municipal fund defined in paragraph (b) above that was not for a project approved by the commission, or was in excess of the amount approved by the commission, shall be reimbursed by the city to the special fund.

(d) All provisions of the Mississippi Sales Tax Law applicable to filing of returns, discounts to the taxpayer, remittances to the Department of Revenue, enforced collection, rights of taxpayers, recovery of improper taxes, refunds of overpaid taxes or other provisions of law providing for imposition and collection of the state sales tax shall apply to the special sales tax authorized by this section, except where there is a conflict, in which case the provisions of this section shall control.

Any damages, penalties or interest collected for the H.

B.

No.

1 *HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223SG PAGE 21(BS\JAB) nonpayment of taxes imposed under this section, or for noncompliance with the provisions of this section, shall be paid to the municipality on the same basis and in the same manner as the tax proceeds.

Any overpayment of tax for any reason that has been disbursed to a municipality or any payment of the tax to a municipality in error may be adjusted by the Department of Revenue on any subsequent payment to the municipality pursuant to the provisions of the Mississippi Sales Tax Law.

The Department of Revenue may, from time to time, make such rules and regulations not inconsistent with this section as may be deemed necessary to carry out the provisions of this section, and such rules and regulations shall have the full force and effect of law.

(6) If a municipality expands its corporate boundaries, the governing authorities of the municipality may not impose the special sales tax in the annexed area unless the tax is approved at an election conducted, as far as is practicable, in the manner provided in subsection (3) of this section, except that only qualified electors in the annexed area may vote in the election.

(7) (a) Any municipality that levies the special sales tax authorized under this section shall establish a commission as provided for in this section.

Expenditures of revenue from the special sales tax authorized by this section shall be in accordance with a master plan adopted by the commission pursuant to this subsection.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 11(BS\JAB)22(BS\JAB) (v)(b) FromThe andcommission aftershall Julybe 1,composed 2030,of throughten June(10) 30,voting 2031,members suchwho sales shall be taxedknown atas thecommissioners rateappointed ofas threefollows: and seven-tenths percent (3.7%);

(vi)(i) FromFour and(4) aftermembers Julyrepresenting 1,the 2031,business throughcommunity Junein 30,the 2032,municipality suchappointed salesby shallthe belocal taxedchamber atof thecommerce ratefor initial terms of threeone (1), two (2), four (4) and one-halffive percent(5) (3.5%);years respectively.

(vii)The Frommembers andappointed afterpursuant Julyto 1,this 2032,paragraph throughshall Junebe 30,persons 2033,who suchrepresent salesbusinesses shalllocated bewithin taxed at the ratecity limits of threethe andmunicipality. three-tenths percent (3.3%);

(viii)(ii) FromThree and(3) aftermembers Julyshall 1,be 2033,appointed throughat Junelarge 30,by 2034,the suchmayor salesof shallthe bemunicipality, taxedwith atthe advice and consent of the ratelegislative body of the municipality, for initial terms of two (2), three (3) and one-tenthsfour percent(4) (3.1%);years respectively.

(ix)All Fromappointments andmade afterby Julythe 1,mayor 2034,pursuant throughto Junethis 30,paragraph 2035, such sales shall be taxedresidents atof the ratemunicipality. of two and nine-tenths percent (2.9%);

(x)(iii) FromOne and(1) aftermember Julyshall 1,be 2035,appointed throughat Junelarge 30,by 2036,the suchGovernor salesfor shallan beinitial taxedterm at the rate of twofour and(4) seven-tenthsyears. percent (2.7%);

andAll (xi)appointments Frommade andby afterthe JulyGovernor 1,pursuant 2036,to suchthis salesparagraph shall be taxedresidents atof the ratemunicipality. of two and one-half percent (2.5%).

(2)(iv) FromOne and(1) aftermember Januaryshall 1,be 1995,appointed retailat saleslarge ofby privatethe carriersLieutenant ofGovernor passengersfor andan lightinitial carriersterm of property,four as(4) definedyears. in Section 27-51-101, shall be taxed an additional two percent (2%).

All appointments made by the Lieutenant Governor pursuant to this paragraph shall be residents of the municipality.

(v) One (1) member shall be appointed at large by the Speaker of the House of Representatives for a term of four (4) years.

All appointments made by the Speaker of the House of H.

B.

No.

1 *HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223SG PAGE 23(BS\JAB) Representatives pursuant to this paragraph shall be residents of the municipality.

(c) The terms of all appointments made subsequent to the initial appointment shall be made for five (5) years.

Any vacancy which may occur shall be filled in the same manner as the original appointment and shall be made for the unexpired term.

(d) The mayor of the municipality shall designate a chairman of the commission from among the membership of the commission.

The vice chairman and secretary shall be elected by the commission from among the membership of the commission for a term of two (2) years.

The vice chairman and secretary may be reelected, and the chairman may be reappointed.

(e) The commissioners shall serve without compensation.

(f) Any commissioner shall be disqualified and shall be removed from office for either of the following reasons:

(i) Conviction of a felony in any state court or in federal court;

or (ii) Failure to attend three (3) consecutive meetings without just cause.

If a commissioner is removed for any of the above reasons, the vacancy shall be filled in the manner prescribed in this section and shall be made for the unexpired term.

(g) A quorum shall consist of six (6) voting members of the commission.

The commission shall adopt such rules and H.

B.

No.

1 *HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223SG PAGE 24(BS\JAB) regulations as may govern the time and place for holding meetings, regular and special.

(h) The commission shall, with input from the municipality, establish a master plan for road and street repair, reconstruction and resurfacing projects based on traffic patterns, need and usage, and for water, sewer and drainage projects.

Expenditures of the revenue from the tax authorized to be imposed pursuant to this section shall be made at the discretion of the governing authorities of the municipality if the expenditures comply with the master plan.

The commission shall monitor the compliance of the municipality with the master plan.

(8) The governing authorities of any municipality that levies the special sales tax authorized under this section are authorized to incur debt, including bonds, notes or other evidences of indebtedness, for the purpose of paying the costs of road and street repair, reconstruction and resurfacing projects based on traffic patterns, need and usage, and to pay the costs of water, sewer and drainage projects in accordance with a master plan adopted by the commission established pursuant to subsection (7) of this section.

Any bonds or notes issued to pay such costs may be secured by the proceeds of the special sales tax levied pursuant to this section or may be general obligations of the municipality and shall satisfy the requirements for the issuance of debt provided by Sections 21-33-313 through 21-33-323.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 12(BS\JAB)25(BS\JAB) (3)(9) AThis manufacturersection selling at retail in this state shall bestand requiredrepealed tofrom make returns of the gross proceeds of such sales and payafter theJuly tax1, imposed2035. in this section.

SECTION 4.5.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 13(BS\JAB)26(BS\JAB) The tax collector or the commissioner is expressly prohibited from issuing a license tag to any applicant without collecting the tax levied by this article, unless positive proof is filed, together with the application for the license tag, that the Mississippi tax has been paid, or that the sale was exempt by Section 27-67-7.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 14(BS\JAB)27(BS\JAB) the payment of the tax, in a form prescribed and furnished by the commissioner, which shall serve as proof of payment to the tax collector of the county in which the license is to be issued.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 15(BS\JAB)28(BS\JAB) SECTION 5.6.

Section 27-65-19,27-55-11, Mississippi Code of 1972, is amended as follows:

27-65-19.27-55-11.

(1)Any (a)person (i)in Exceptbusiness as otherwisea provideddistributor of gasoline or who acts as a distributor of gasoline, as defined in this subsection,article, uponshall everypay personfor sellingthe privilege of engaging in such business or acting as such distributor an excise tax equal to consumers,Eighteen electricity,Cents current,(18¢) power,per potablegallon water,through steam,June coal,30, natural2025, gas,Twenty-one liquefiedCents petroleum(21¢) gasper orgallon otherfrom fuel,July there1, is2025, herebythrough levied,June assessed30, and2026, shallTwenty-four beCents collected(24¢) aper taxgallon equalfrom toJuly seven1, percent2026, (7%)through ofJune 30, 2027, Twenty-seven Cents (27¢) per gallon from July 1, 2027, until the grossdate incomespecified ofin Section 65-39-35, and Fourteen and Four-tenths Cents (14.4¢) per gallon thereafter, on all gasoline and blend stock stored, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, use on the business.highways, storage, distribution, or for any purpose.

Provided,Any grossperson incomein frombusiness salesas toa consumersdistributor of electricity,aviation current,gasoline, power,or naturalwho gas,acts liquefiedas petroleuma gasdistributor orof otheraviation fuelgasoline, shall pay for residentialthe heating,privilege lightingof orengaging otherin residentialsuch noncommercialbusiness or nonagriculturalacting use,as such distributor an excise tax equal to Six and salesFour-tenths ofCents potable(6.4¢) waterper forgallon residential,on noncommercialall aviation gasoline stored, sold, distributed, manufactured, refined, distilled, blended or nonagriculturalcompounded usein shallthis bestate excludedor fromreceived taxablein grossthis incomestate offor thesale, business.storage, distribution or for any purpose.

ProvidedH. further, upon every such seller using electricity, current, power, potable water, steam, coal, natural gas, liquefied petroleum gas or other fuel for nonindustrial purposes, there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) of the cost or value of the product or service used.

(ii) Gross income from retail sales of motor fuels that are not exempt under Section 27-65-111(n) shall be taxed at the rate of five percent (5%).

( * * *iii) Gross income from sales to a church that is exempt from federal income taxation under 26 USCS Section 501(c)(3) of electricity, current, power, natural gas, liquefied H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 16(BS\JAB)29(BS\JAB) petroleumBeginning gasJuly or1, other2029, fueland foron heating,July lighting1 orof every other use,year andthereafter, salesthe ofexcise potabletax waterrate toprovided suchin athis churchsection shall be excludedadjusted fromby taxablethe grosspercentage incomechange ofin the businessyearly ifaverage of the electricity,National current,Highway power,Construction naturalCost gas,Index liquefied(NHCCI) petroleumissued gasby orthe potableU.S. water is utilized on property that is primarily used for religious or educational purposes.

(b)Federal (i)Highway ThereAdministration is(FHWA) herebyfor levied,the assessedmost andrecent shalltwelve-month bepublished collectedperiod aending taxDecember equal31, compared to onethe andbase one-halfyear percentaverage, (1-1/2%)which ofis the grossaverage incomefor of the businesstwelve-month fromperiod theending saleDecember of31, naturally2025, occurring carbon dioxide and anthropogenicrounded carbonto dioxide lawfully injected into the earthnearest for:whole cent.

1.The maximum amount of increase in the excise tax rate shall not exceed One Cent (1¢) per net gallon of gasoline or special fuel and shall take effect every other year.

UseThe inDepartment anof enhancedRevenue oilshall recoverynotify project,each including,terminal butsupplier, notposition limitedholder, to,licensed usedistributors fordistributor, cycling,and repressuringimporter of the tax rate adjustment applicable under this paragraph on or liftingbefore ofMarch oil;1.

orThe 2.excise taxes collected under this section shall be paid and distributed in accordance with Section 27-5-101.

PermanentThe sequestrationtax herein imposed and assessed shall be collected and paid to the State of Mississippi but once in arespect geologicalto formation.any gasoline.

(ii) The onebasis andfor one-halfdetermining percentthe (1-1/2%)tax rateliability providedshall forbe inthe thiscorrect subsectioninvoiced shallgallons, applyadjusted to electricity,sixty current,(60) power,degrees steam,Fahrenheit coal,at naturalthe gas,refinery liquefied petroleum gas or otherpoint fuelof thatorigin is sold to a producer of oilshipment andwhen gassuch forshipment useis directlymade inby enhancedtank oilcar recoveryor usingby carbonmotor dioxidecarrier. and/or the permanent sequestration of carbon dioxide in a geological formation.

(c) The onepoint andof one-halforigin percentof (1-1/2%)shipment rateof providedgasoline fortransported ininto this subsectionstate by pipelines shall notbe applydeemed to salesbe ofthat fuelpoint in this state where such gasoline is withdrawn from the pipeline for storage or H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 17(BS\JAB)30(BS\JAB) automobiles,distribution, trucks,and truck-tractors,adjustment buses,to farmsixty tractors(60) ordegrees airplanes.Fahrenheit shall there be made.

(d)The (i)basis Uponfor everydetermining personthe providingtax servicesliability inon thisgasoline state,shipped thereinto isthis herebystate levied,in assessedbarge cargoes and by pipeline shall be collected:the actual number of gallons adjusted to sixty (60) degrees Fahrenheit unloaded into storage tanks or other containers in this state, such gallonage to be determined by measurement and/or gauge of storage tank or tanks or by any other method authorized by the commission.

1.The tank or tanks into which barge cargoes of gasoline are discharged, or into which gasoline transported by pipeline is discharged, shall have correct gauge tables listing capacity, such gauge tables to be prepared by some recognized calibrating agency and to be approved by the commission.

AThe tax equallevied toherein sevenshall percentaccrue (7%)at of the grosstime incomegasoline receivedis withdrawn from alla chargesrefinery forin intrastatethis telecommunicationsstate services.except when withdrawal is by pipeline, barge, ship or vessel.

2.The refiner shall pay to the commission the tax levied herein when gasoline is sold or delivered to persons who do not hold gasoline distributor permits.

AThe taxrefiner equalshall report to seventhe percentcommission (7%)all ofsales theand grossdeliveries incomeof receivedgasoline fromto allbonded chargesdistributors forof interstategasoline. telecommunications services.

3.The bonded distributor of gasoline who purchases, receives or acquires gasoline from a refinery in this state shall report such gasoline and pay the tax levied herein.

AGasoline taximported equalby tocommon sevencarrier percentshall (7%)be ofdeemed theto grossbe income received fromby allthe chargesdistributor forof internationalgasoline, telecommunicationsand services.the tax levied herein H.

4.

A tax equal to seven percent (7%) of the gross income received from all charges for ancillary services.

Sales of computer software, computer software services, specified digital products, or other products delivered electronically, including, but not limited to, music, games, reading materials or ring tones, shall be taxed as provided in other sections of this chapter.

(ii) A person, upon proof that he has paid a tax in another state on an event described in subparagraph (i) of this paragraph (d), shall be allowed a credit against the tax imposed in this paragraph (d) on interstate telecommunications service charges to the extent that the amount of such tax is properly due H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 18(BS\JAB)31(BS\JAB) andshall actuallyaccrue, paidwhen in such other state and to the extentcar thator thetank ratetruck ofcontaining sales tax imposed by and paid in such othergasoline stateis doesunloaded notby exceed the ratecarrier. of sales tax imposed by this paragraph (d).

(iii)With Chargesrespect byto onedistributors (1)or telecommunicationsother providerpersons towho anotherbring, telecommunicationsship, providerhave holdingtransported, or have brought into this state gasoline by means other than through a permitcommon issuedcarrier, underthe Sectiontax 27-65-27accrues forand servicesthe thattax areliability resoldattaches byon suchthe distributor or other telecommunicationsperson provider,for including,each butgallon notof limitedgasoline to,brought accessinto charges,the shallstate notat bethe subjecttime towhen and at the taxpoint leviedwhere pursuantsuch togasoline thisis paragraphbrought (d).into the state.

(iv)The Fortax purposeslevied ofherein thisshall paragraphaccrue (d):on blend stock at the time it is blended with gasoline.

1.The blender shall pay to the commission the tax levied herein when blend stock is sold or delivered to persons who do not hold gasoline distributor permits.

"TelecommunicationsThe service"blender meansshall report to the electroniccommission transmission,all conveyancesales orand routingdeliveries of voice,blend data,stock audio, video or any other information or signals to abonded point,distributors orof betweengasoline. points.

The termbonded "telecommunicationsdistributor service" includes such transmission, conveyance or routing in which computer processing applications are used to act on the form, code or protocol of thegasoline contentwho forpurchases, purposesreceives of transmission, conveyance or routingacquires withoutblend regardstock tofrom whethera suchblender servicein isthis referredstate toshall asreport Voiceblend overstock Internetand Protocolpay services or is classified by the Federaltax Communicationslevied Commissionherein. as enhanced or value added.

TheSECTION term7. "telecommunications service" shall not include:

a.Section 27-55-519, Mississippi Code of 1972, is amended as follows:

Data27-55-519. processing and information services that allow data to be generated, acquired, stored, processed or retrieved and delivered by an electronic transmission H.

(1) Any person engaged in business as a distributor of special fuel or who acts as a distributor of special fuel, as defined in this article, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax on all special fuel stored, used, sold, distributed, manufactured, refined, distilled, blended or H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 19(BS\JAB)32(BS\JAB) tocompounded ain purchaserthis wherestate suchor purchaser'sreceived primaryin purposethis state for thesale, underlyingstorage, transactiondistribution isor thefor processedany datapurpose, oradjusted information;to sixty (60) degrees Fahrenheit.

b.The excise tax shall become due and payable when:

Installation(a) orSpecial maintenancefuel ofis wiringwithdrawn orfrom equipmentstorage onat a customer'srefinery, premises;marine or pipeline terminal, except when withdrawal is by barge or pipeline.

c.(b) Special fuel imported by a common carrier is unloaded by that carrier unless the special fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.

Tangible(c) personalSpecial property;fuel imported by any person other than a common carrier enters the State of Mississippi unless the special fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.

d.(d) Special fuel is blended in this state unless such blending occurs in a refinery, marine or pipeline terminal.

Advertising,(e) including,Special butfuel notis limitedacquired to,tax directoryfree. advertising;

e.(2) The special fuel excise tax shall be as follows:

Billing(a) and* collection* services* providedOn toundyed thirddiesel parties;fuel, Eighteen Cents (18¢) per gallon through June 30, 2025, Twenty-one Cents (21¢) per gallon from July 1, 2025, through June 30, 2026, Twenty-four Cents (24¢) per gallon from July 1, 2026, through June 30, 2027, Twenty-seven Cents (27¢) per gallon from July 1, 2027, until the H.

f.

Internet access service;

g.

Radio and television audio and video programming services regardless of the medium, including the furnishing of transmission, conveyance and routing of such services by the programming service provider.

Radio and television audio and video programming services shall include, but not be limited to, cable service as defined in 47 USCS 522(6) and audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 CFR 20.3;

h.

Ancillary services;

or i.

Digital products delivered electronically, including, but not limited to, computer software, computer software services, electronically stored or maintained data, music, video, reading materials, specified digital products, or ring tones.

H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 20(BS\JAB)33(BS\JAB) 2.date specified in Section 65-39-35, and Fourteen and Three-fourths Cents (14.75¢) per gallon thereafter;

"Ancillary(b) services"Five meansand servicesThree-fourths thatCents are(5.75¢) associatedper withgallon oron incidentalall tospecial thefuel provisionexcept ofundyed telecommunicationsdiesel services,fuel including,and butspecial notfuel limitedused to,as detailedfuels telecommunicationsin billing,aircraft; directory assistance, vertical service and voice mail service.

a.and (c) Five and One-fourth Cents (5.25¢) per gallon on special fuel used as fuel in aircraft.

"Conference(3) bridging"Beginning meansJuly an1, ancillary2029, serviceand thaton linksJuly two1 (2)of orevery moreother participantsyear ofthereafter, anthe audioexcise ortax videorate conferenceprovided callin andthis maysection includeshall be adjusted by the provisionpercentage change in the yearly average of athe telephoneNational number.Highway Construction Cost Index (NHCCI) issued by the U.S.

ConferenceFederal bridgingHighway doesAdministration not(FHWA) includefor the telecommunicationsmost servicesrecent usedtwelve-month published period ending December 31, compared to reachthe base year average, which is the conferenceaverage bridge.for the twelve-month period ending December 31, 2025, and rounded to the nearest whole cent.

b.The maximum amount of increase in the excise tax rate shall not exceed One Cent (1¢) per net gallon of gasoline or special fuel and shall take effect every other year.

"DetailedThe telecommunicationsDepartment billingof service"Revenue meansshall annotify ancillaryeach serviceterminal supplier, position holder, licensed distributors distributor, and importer of separatelythe statingtax informationrate pertainingadjustment toapplicable individualunder callsthis paragraph on aor customer'sbefore billingMarch statement.1.

c.SECTION 8.

"DirectorySection assistance"27-55-521, meansMississippi anCode ancillary service of providing1972, telephoneis numberamended informationas and/orfollows: address information.

d.27-55-521.

"Vertical(1) service"An meansexcise antax ancillaryat servicethe thatrate isof offeredEighteen inCents connection(18¢) withper onegallon orthrough moreJune telecommunications30, services,2025, whichTwenty-one offersCents advanced(21¢) callingper featuresH. that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services.

e.

"Voice mail service" means an ancillary service that enables the customer to store, send or H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 21(BS\JAB)34(BS\JAB) receivegallon recordedfrom messages.July 1, 2025, through June 30, 2026, Twenty-four Cents (24¢) per gallon from July 1, 2026, through June 30, 2027, Twenty-seven Cents (27¢) per gallon from July 1, 2027, until the date specified in Section 65-39-35, * * * and Fourteen and Three-fourths Cents (14.75¢) per gallon thereafter is levied on any person engaged in business as a distributor of special fuel or who acts as such who sells:

Voice(a) mailSpecial servicefuel doesfor notuse includein anyperforming verticalcontracts servicesfor thatconstruction, reconstruction, maintenance or repairs, where such contracts are entered into with the customerState mayof beMississippi, requiredany topolitical havesubdivision inof orderthe toState utilizeof Mississippi, or any department, agency, institution of the voiceState mailof service.Mississippi or any political subdivision thereof.

3.(b) Dyed diesel fuel or kerosene to a state or local governmental entity for use on the highways in a motor vehicle.

"Intrastate"(c) meansSpecial telecommunicationsfuel servicefor thatuse originateson in one (1) United States state or United States territory or possession, and terminates in the samehighway. United States state or United States territory or possession.

4.(2) An excise tax at the rate of Eighteen Cents (18¢) per gallon through June 30, 2025, Twenty-one Cents (21¢) per gallon from July 1, 2025, through June 30, 2026, Twenty-four Cents (24¢) per gallon from July 1, 2026, through June 30, 2027, Twenty-seven Cents (27¢) per gallon from July 1, 2027, until the date specified in Section 65-39-35, * * * and Fourteen and Three-fourths Cents (14.75¢) per gallon thereafter is levied on any person who:

"Interstate" means a telecommunications service that originates in one (1) United States state or United States territory or possession, and terminates in a different United States state or United States territory or possession.

5.

"International" means a telecommunications service that originates or terminates in the United States and terminates or originates outside the United States, respectively.

(v) For purposes of paragraph (d), the following sourcing rules shall apply:

1.

Except for the defined telecommunications services in item 3 of this subparagraph, the sales of telecommunications services sold on a call-by-call basis shall be sourced to:

a.

Each level of taxing jurisdiction where the call originates and terminates in that jurisdiction, or b.

Each level of taxing jurisdiction where the call either originates or terminates and in which the service address is also located.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 22(BS\JAB)35(BS\JAB) 2.(a) Uses dyed diesel fuel or kerosene in a motor vehicle on the highways of this state in violation of Section 27-55-539.

Except(b) forPurchases theor definedacquires telecommunicationsundyed servicesdiesel infuel itemor 3kerosene offor thisnonhighway subparagraph,use aand salesubsequently ofuses telecommunicationssuch servicesdiesel soldfuel onor akerosene basisin other than a call-by-callmotor basis,vehicle ison sourced to the customer'shighways place of primarythis use.state.

3.(c) Purchases or acquires special fuel for use in performing contracts as specified in this section.

The(3) saleBeginning July 1, 2029, and on July 1 of every other year thereafter, the followingexcise telecommunicationstax servicesrate provided in this section shall be sourcedadjusted toby eachthe levelpercentage change in the yearly average of taxingthe jurisdictionNational asHighway follows:Construction Cost Index (NHCCI) issued by the U.S.

a.Federal Highway Administration (FHWA) for the most recent twelve-month published period ending December 31, compared to the base year average, which is the average for the twelve-month period ending December 31, 2025, and rounded to the nearest whole cent.

AThe salemaximum amount of mobileincrease telecommunicationsin servicesthe otherexcise thantax air-to-groundrate radiotelephoneshall servicenot andexceed prepaidOne callingCent service(1¢) isper sourcednet togallon the customer's place of primarygasoline useor asspecial requiredfuel byand theshall Mobiletake Telecommunicationeffect Sourcingevery Act.other year.

A.The Department of Revenue shall notify each terminal supplier, position holder, licensed distributors distributor, and importer of the tax rate adjustment applicable under this paragraph on or before March 1.

ASECTION home9. service provider shall be responsible for obtaining and maintaining the customer's place of primary use.

TheSection home27-55-12, serviceMississippi providerCode shallof be1972, entitled to rely on the applicable residential or business street address supplied by such customer, if the home service provider's reliance is inamended goodas faith;follows:

andH. the home service provider shall be held harmless from liability for any additional taxes based on a different determination of the place of primary use for taxes that are customarily passed on to the customer as a separate itemized charge.

A home service provider shall be allowed to treat the address used for purposes of the tax levied by this chapter for any customer under a service contract in effect on August 1, 2002, H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 23(BS\JAB)36(BS\JAB) as27-55-12. that customer's place of primary use for the remaining term of such service contract or agreement, excluding any extension or renewal of such service contract or agreement.

Month-to-month(1) servicesThe providedUnited afterStates government, the expirationState of aMississippi, contractcounties, municipalities, school districts and all other political subdivisions of the state, and volunteer fire departments chartered under the laws of the State of Mississippi as nonprofit corporations shall be treatedexempt asfrom anexcise extensiontaxes oron renewalgasoline, ofspecial suchfuel contractand orcompressed agreement.gas as follows:

(a) From the excise tax rate in excess of Nine Cents (9¢) per gallon of gasoline and from the excise tax rate in excess of One Cent (1¢) per gallon of aviation gasoline levied under Section 27-55-11, Mississippi Code of 1972, Five and Four-tenths Cents (5.4¢) thereof shall be exempt as provided in Section 27-55-19, Mississippi Code of 1972.

(b) From the excise tax rate in excess of Ten Cents (10¢) per gallon of special fuel levied * * * under Sections 27-55-519 and 27-55-521 and subject to reduction on the date specified in Section 65-39-35, Four and Three-fourths Cents (4.75¢) thereof shall be exempt.

(c) From the excise tax rate in excess of One Cent (1¢) per gallon of special fuel taxed at Five and Three-fourths Cents (5.75¢) per gallon and from the excise tax rate in excess of One-half Cent (1/2¢) per gallon of special fuel used in aircraft levied under Section 27-55-519, Four and Three-fourths Cents (4.75¢) thereof shall be exempt.

(d) From the portion of the excise tax rate on compressed gas used as a motor fuel that exceeds the rate of tax H.

IfNo. the commissioner determines that the address used by a home service provider as a customer's place of primary use does not meet the definition of the term "place of primary use" as defined in subitem a.A.

of1 this*HR31/R1223SG* item~ 3,OFFICIAL the~ commissioner25/HR31/R1223SG shallPAGE give37(BS\JAB) bindingin noticeeffect to the home service provider to change the place of primary use on aJune prospective30, basis1987, fromThree theCents date(3¢) ofthereof noticeshall ofbe determination;exempt.

however,(2) theThe customerexemption shallprovided havein thesubsection opportunity,(1) priorof tothis suchsection noticefor sales of determination,gasoline, special fuel and compressed gas to demonstratevolunteer thatfire suchdepartments addressshall satisfiesapply theonly definition.to sales of gasoline, special fuel and compressed gas for use in a vehicle owned by a volunteer fire department and used for department purposes.

C.(3) The exemption provided in subsection (1) of this section for sales of gasoline, special fuel and compressed gas also shall apply to sales of gasoline, special fuel and compressed gas to an entity described in Section 27-51-41(2)(u) for use in buses and other motor vehicles that are exempt from ad valorem taxation under Section 27-51-41(2)(u).

The(4) departmentAny hasperson theother rightthan toa collectbonded anydistributor taxesof duegasoline, directlybonded fromdistributor theof homespecial servicefuel provider'sor customerbonded thatdistributor hasof failedcompressed togas providewho ansells addressor thatdelivers meetsany thegasoline, definitionspecial offuel theor termcompressed "placegas, ofsubject primaryto use"the whichexemption resultedset forth in this section, is required to obtain credit for such exemption from a failurebonded distributor of taxgasoline, otherwisespecial duefuel beingor remitted.compressed gas.

b.SECTION 10.

ASection sale27-55-523, ofMississippi postpaidCode callingof service1972, is sourcedamended to the origination point of the telecommunications signal as firstfollows: identified by either:

A.27-55-523.

TheFor seller'sthe telecommunicationspurpose system;of determining the amount of his liability for the tax imposed by this article, each bonded distributor of special fuel shall, not later than the twentieth day of the month next following the month in which this article H.

or H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 24(BS\JAB)38(BS\JAB) B.becomes effective, and not later than the twentieth day of each month thereafter, file with the department a monthly report which shall include a statement of the number of gallons of special fuel received and sold by such distributor of special fuel within this state during the preceding calendar month, and such other information as may be reasonably necessary for the proper administration of this article.

InformationAt receivedthe bytime of filing each monthly report with the sellerdepartment, froma itsdistributor servicemay provider,take wherea thecredit systemfor usedthe tonumber transportof suchgallons signalsof isspecial notfuel that ofhe purchased during the seller.preceding calendar month from a distributor who pays the excise tax imposed by this article on such special fuel.

c.At the time of filing each monthly report with the department, each distributor of special fuel shall pay to the department the full amount of the special fuel tax due from such distributor for the preceding calendar month.

AReports saleand ofpayments amust prepaidbe callingfiled serviceelectronically orby prepaidthe wirelessdue callingdate servicein shallorder to be subjectconsidered totimely filed, except when the taxdue imposeddate byfalls thison paragrapha ifweekend or holiday, in which case such reports and payments must be filed electronically by the salefirst takesworking placeday following the due date in thisorder state.to be considered timely filed.

IfThe monthly report of the customerdistributor physicallyof purchasesspecial afuel prepaidshall callingbe serviceprepared orand prepaidfiled wirelesswith callingthe servicedepartment aton forms prescribed by the vendor'sdepartment, placeor the distributor of business,special thefuel salemay, iswith deemedthe toapproval takeof placethe atdepartment, furnish the vendor'srequired placeinformation ofon business.H.

If the customer does not physically purchase the service at the vendor's place of business, the sale of a prepaid calling card or prepaid wireless calling card is deemed to take place at the first of the following locations that applies to the sale:

A.

The customer's shipping address, if the sale involves a shipment;

TheNo. customer's billing address;

C.1 *HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223SG PAGE 39(BS\JAB) machine-prepared schedules.

AnySuch othermonthly addressreports ofor schedules shall be signed by the customerdistributor or his duly authorized agent and shall contain a declaration that isthe knownstatements bycontained in such report are true and correct and are made under the vendor;penalty of perjury.

When special fuel, which would otherwise be taxable under the provisions of this article, is imported, sold, delivered or D.exported, under conditions which will exclude such special fuel from the tax levied under this article by reasons of one or more of the exemptions provided in this article, deduction for such exempt special fuel may be taken without prior approval of the department on the monthly report of the bonded distributor of special fuel importing, selling, delivering or exporting such special fuel.

TheProvided, addresshowever, ofthat the vendor,department ormay alternatively,require inproof theto casebe furnished of asuch prepaiddeduction wirelessfor callingexempt service,special thefuel. location associated with the mobile telephone number.

4.When the Five and Three-fourths Cents (5.75¢) per gallon tax has accrued or has been paid on special fuel that is taxed * * * under Sections 27-55-519 and 27-55-521 and subject to reduction on the date specified in Section 65-39-35, a deduction of Five and Three-fourths Cents (5.75¢) per gallon may be made.

ASECTION sale11. of a private communication service is sourced as follows:

H.Section 27-5-101, Mississippi Code of 1972, is amended as follows:

[With regard to any county which is exempt from the provisions of Section 19-2-3, this section shall read as follows:] H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 25(BS\JAB)40(BS\JAB) a.27-5-101.

ServiceUnless forotherwise aprovided separatein chargethis relatedsection, toon aor customerbefore channelthe terminationfifteenth pointday isof sourcedeach tomonth, eachall levelgasoline, ofdiesel jurisdictionfuel inor kerosene taxes which suchare customerlevied channelunder terminationthe pointlaws isof located.this state and collected during the previous month shall be paid and apportioned by the * * * Department of Revenue as follows:

b.(a) (i) Except as otherwise provided in Section 31-17-127, from the gross amount of gasoline, diesel fuel or kerosene taxes produced by the state, there shall be deducted an amount equal to one-sixth (1/6) of principal and interest certified by the State Treasurer to the * * * Department of Revenue to be due on the next semiannual bond and interest payment date, as required under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue on a parity with the bonds issued under authority of said Chapter 130.

ServiceThe whereState allTreasurer customershall terminationcertify pointsto arethe located* entirely* within* oneDepartment (1)of jurisdictionRevenue on or levelsbefore the fifteenth day of jurisdictioneach ismonth sourcedthe inamount suchto jurisdictionbe inpaid whichto the customer"Highway channelBonds terminationSinking pointsFund" areas located.provided by said Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, on a parity with the bonds issued under authority of said Chapter 130;

c.and the * * * Department of Revenue shall, on or before the twenty-fifth day of each month, pay into the State Treasury for credit to the "Highway Bonds Sinking Fund" the amount so certified to him by the State Treasurer due to be paid into H.

ServiceB. for segments of a channel between two (2) customer channel termination points located in different jurisdictions and which segments of a channel are separately charged is sourced fifty percent (50%) in each level of jurisdiction in which the customer channel termination points are located.

d.No.

Service1 for*HR31/R1223SG* segments~ ofOFFICIAL a~ channel25/HR31/R1223SG locatedPAGE in41(BS\JAB) moresuch thanfund one (1) jurisdiction or levels of jurisdiction and which segments are not separately billed is sourced in each jurisdictionmonth. based on the percentage determined by dividing the number of customer channel termination points in such jurisdiction by the total number of customer channel termination points.

5.The payments to the "Highway Bonds Sinking Fund" shall be made out of gross gasoline, diesel fuel or kerosene tax collections before deductions of any nature are considered;

Ahowever, salesuch ofpayments ancillaryshall servicesbe isdeducted sourcedfrom the allocation to the customer'sMississippi placeDepartment of primaryTransportation use.under paragraph (c) of this section.

(ii) From collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, up to and including Eighteen Cents (18¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521 * * * that exceeds Ten Cents (10¢) per gallon, up to and including Eighteen Cents (18¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) per gallon that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5 there shall be deducted:

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 26(BS\JAB)42(BS\JAB) (vi)1. For purposes of subparagraph (v) of this paragraph (d):

1.An amount as provided in Section 27-65-75(4) to the credit of a special fund designated as the "Office of State Aid Road Construction." 2.

"Air-to-groundAn radiotelephoneamount service"equal meansto athe radiotax service,collections asderived thatfrom termTwo isCents defined(2¢) inper 47gallon CFRof 22.99,the ingasoline whichexcise commontax carriersfor aredistribution authorizedto the State Highway Fund to offerbe used exclusively for the construction, reconstruction and providemaintenance radioof telecommunicationshighways serviceof forthe hireState toof subscribersMississippi inor aircraft.the payment of interest and principal on bonds when specifically authorized by the Legislature for that purpose.

2.

"Call-by-call basis" means any method of charging for telecommunications services where the price is measured by individual calls.

"CommunicationsThe channel"balance meansshall abe physicaldeposited orin virtualthe pathState ofTreasury communicationsto overthe whichcredit signalsof arethe transmittedState betweenHighway orFund. among customer channel termination points.

4.(iii) From collections derived from the portion of the gasoline excise tax that exceeds Eighteen Cents (18¢) per gallon, and from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521 that exceeds Eighteen Cents (18¢) per gallon, and from the portion of the gasoline excise tax and the diesel excise tax in excess of Eighteen Cents (18¢) per gallon under Section 27-61-5, there shall be deducted:

"Customer"1. means the person or entity that contracts with the seller of telecommunications services.

IfTwenty-three theand endone-fourth userpercent (23.25%) of telecommunicationssuch servicesamount isto not the contractingcredit party, the end user of thea telecommunicationsspecial servicefund isdesignated as the customer"Office of theState telecommunicationsAid service.Road Construction." 2.

CustomerTwo doesand notthree-fourths includepercent a(2.75%) reseller of telecommunicationssuch serviceamount or for mobile telecommunications service of a serving carrier under an agreement to serve the customerStrategic outsideMulti-Modal theInvestments homeFund servicecreated provider'sin licensedSection service65-1-901. area.

5.

"Customer channel termination point" means the location where the customer either inputs or receives the communications.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 27(BS\JAB)43(BS\JAB) 6.3.

"EndSeventy-four user"percent means(74%) of such amount to the personMississippi whoDepartment utilizesof Transportation for constructing, maintaining or improving segments of highways and bridges under its jurisdiction, and for operational improvements on such segments, in accordance with a project schedule as reported in the telecommunicationsthree-year service.plan as adopted, amended by or reissued by the Mississippi Transportation Commission under Section 65-1-141.

In(b) Subject to the caseprovisions that said basis of andistribution entity,shall "endin user"nowise meansaffect adversely the individualamount whospecifically utilizespledged in paragraph (a) of this section to be paid into the service"Highway Bonds Sinking Fund," the following shall be deducted from the amount produced by the state tax on behalfgasoline, diesel fuel or kerosene tax collections, excluding collections derived from the portion of the entity.gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) per gallon that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on H.

7.

"Home service provider" has the meaning ascribed to such term in Section 124(5) of Public Law 106-252 (Mobile Telecommunications Sourcing Act).

8.

"Mobile telecommunications service" has the meaning ascribed to such term in Section 124(7) of Public Law 106-252 (Mobile Telecommunications Sourcing Act).

9.

"Place of primary use" means the street address representative of where the customer's use of the telecommunications service primarily occurs, which must be the residential street address or the primary business street address of the customer.

In the case of mobile telecommunications services, the place of primary use must be within the licensed service area of the home service provider.

10.

"Post-paid calling service" means the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card or debit card, or by charge made to a telephone number which is not associated with the origination or termination of the telecommunications service.

A post-paid calling service includes a telecommunications service, except a prepaid wireless calling H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 28(BS\JAB)44(BS\JAB) serviceJune that30, would1987, beand afrom prepaidthe callingportion serviceof exceptthe itgasoline isexcise nottax exclusivelyin aexcess telecommunicationsof service.Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5:

11.(i) Twenty percent (20%) of such amount which shall be earmarked and set aside for the construction, reconstruction and maintenance of the highways and roads of the state, provided that if such twenty percent (20%) should reduce any county to a lesser amount than that received in the fiscal year ending June 30, 1966, then such twenty percent (20%) shall be reduced to a percentage to provide that no county shall receive less than its portion for the fiscal year ending June 30, 1966;

"Prepaid(ii) callingThe service"amount meansallowed theas rightrefund toon accessgasoline exclusivelyor telecommunicationsas services,tax whichcredit muston bediesel paidfuel for in advance and which enables the origination of calls using an access number or authorizationkerosene code,used whetherfor manuallyagricultural, ormaritime, electronicallyindustrial, dialed,domestic, and thatnonhighway ispurposes; sold in predetermined units or dollars of which the number declines with use in a known amount.

12.(iii) Five percent (5%) of such amount shall be paid to the State Highway Fund;

"Prepaid(iv) wirelessThe callingamount service"or meansportion athereof telecommunicationsauthorized serviceby thatlegislative providesappropriation the right to utilize mobile wireless service as well as other nontelecommunications services, including the downloadFisheries of digital products delivered electronically, content and ancillaryWildlife service,Fund whichcreated mustunder beSection paid59-21-25; for in advance that is sold in predetermined units or dollars of which the number declines with use in a known amount.

13.(v) The amount for deposit into the special aviation fund under paragraph (d) of this section;

"Privateand communication(vi) service"The meansremainder ashall telecommunicationsbe servicedivided thaton entitles the customer to exclusive or priority use of a communicationsbasis channel or group of channelsnine-fourteenths between(9/14) orand amongfive-fourteenths termination(5/14) points,(being regardless of the mannersame inbasis whichas suchFour channeland orOne-half channelsCents are(4-1/2¢) connected, and includesTwo switching capacity, extension lines, stations and anyOne-half otherCents associated(2-1/2¢) servicesis thatto areSeven providedCents in(7¢) connectionon withgasoline, theand useH. of such channel or channels.

14.

"Service address" means:

H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 29(BS\JAB)45(BS\JAB) a.six and forty-three one-hundredths (6.43) and three and fifty-seven one-hundredths (3.57) is to Ten Cents (10¢) on diesel fuel or kerosene).

The locationamount ofproduced by the telecommunicationsnine-fourteenths equipment(9/14) division shall be allocated to whichthe a* customer's* call* isDepartment chargedof Transportation and frompaid whichinto the callState originatesTreasury oras terminates,provided regardlessin ofthis wheresection and in Section 27-5-103 and the callfive-fourteenths is(5/14) billeddivision orshall paid.be returned to the counties of the state on the following basis:

b.1.

IfIn theeach locationfiscal inyear, subitemeach acounty ofshall thisbe itempaid 14each ismonth notthe known,same percentage of the originationmonthly pointtotal ofto be distributed as was paid to that county during the signalsame ofmonth in the telecommunicationsfiscal servicesyear firstwhich identifiedended byApril either9, 1960, until the seller'scounty telecommunicationsreceives systemOne orHundred inNinety informationThousand receivedDollars by($190,000.00) thein sellersuch fromfiscal itsyear, serviceat provider,which wheretime thefunds systemshall usedbe todistributed transportunder suchthe signalsprovisions isof notparagraph that(b)(vi)4 of thethis seller.section.

c.

If the location in subitems a and b of this item 14 are not known, the location of the customer's place of primary use.

(vii) 1.

For purposes of this subparagraph (vii), "bundled transaction" means a transaction that consists of distinct and identifiable properties or services which are sold for a single nonitemized price but which are treated differently for tax purposes.

InIf after payments in 1 above, any county has not received a total of One Hundred Ninety Thousand Dollars ($190,000.00) at the caseend of athe bundledfiscal transactionyear thatending includesJune telecommunications30, services,1961, ancillaryand services,each Internetfiscal access,year orthereafter, audiothen orany videoavailable programmingfunds servicesnot taxeddistributed under this1 chapterabove inshall whichbe theused priceto ofbring thesuch bundledcounty transactionor iscounties attributableup to propertiesOne Hundred Ninety Thousand Dollars ($190,000.00) or servicessuch thatfunds areshall taxablebe anddivided nontaxable,equally theamong portionsuch ofcounties thenot pricereaching thatOne isHundred attributableNinety toThousand anyDollars nontaxable($190,000.00) propertyif orthere serviceis shallnot besufficient subjectmoney to bring all the taxcounties unlessto H.said One Hundred Ninety Thousand Dollars ($190,000.00).

H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 30(BS\JAB)46(BS\JAB) the3. provider can reasonably identify that portion from its books and records kept in the regular course of business.

3.When a county has been paid an amount equal to the total which was paid to the same county during the fiscal year ended April 9, 1960, such county shall receive no further payments during the then current fiscal year until the last month of such current fiscal year, at which time distribution will be made under 2 above, except as set out in 4 below.

In the case of a bundled transaction that includes telecommunications services, ancillary services, internet access, audio or video programming services subject to tax under this chapter in which the price is attributable to properties or services that are subject to the tax but the tax revenue from the different properties or services are dedicated to different funds or purposes, the provider shall allocate the price among the properties or services:

a.

By reasonably identifying the portion of the price attributable to each of the properties and services from its books and records kept in the regular course of business;

or b.

Based on a reasonable allocation methodology approved by the department.

ThisDuring subparagraphthe (vii)last shallmonth notof createthe acurrent rightfiscal ofyear, actionshould forit abe customerdetermined to require that thethere providerare orfunds theavailable department,in forexcess purposes of determining the amount ofdistributed taxfor applicablethe toyear aunder bundled1 transaction,and allocate2 theabove, pricethen tosuch theexcess differentfunds portionsshall ofbe thedistributed transactionamong in order to minimize the amountvarious ofcounties taxas chargedfollows: to the customer.

AOne-third customer(1/3) shall not be entitled to rely on the fact that a portion of thesuch priceexcess is attributable to propertiesbe ordivided servicesequally notamong subject to tax unless the providercounties; elects, after receiving a written request from the H.

One-third (1/3) of such excess to be paid to the counties in the proportion which the population of each county bears to the total population of the state according to the last federal census;

One-third (1/3) of such excess to be paid to the counties in the proportion which the number of square miles of each county bears to the total square miles in the state.

5.

It is the declared purpose and intent of the Legislature that no county shall be paid less than was paid during the year ended April 9, 1960, unless the amount to be distributed to all counties in any year is less than the amount distributed to all counties during the year ended April 9, 1960.

H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 31(BS\JAB)47(BS\JAB) customerThe inMunicipal theAid formFund requiredas established by theSection provider,27-5-103 toshall providenot verifiableparticipate data based upon the provider's books and records that are kept in theany regularportion course of businessany thatfunds reasonablyallocated identifiesto theany portioncounty ofhereunder theover priceand attributableabove toOne theHundred propertiesNinety orThousand servicesDollars not($190,000.00). subject to the tax.

(2)In Personsany makingcounty saleshaving tocountywide consumersroad ofor electricity,bridge current,bonds, power,or naturalsupervisors gas,district liquefiedor petroleumdistrict gasroad or otherbridge fuelbonds foroutstanding, residentialwhich heating,exceed, lightingin orthe otheraggregate, residentialtwelve noncommercialpercent or(12%) nonagriculturalof usethe orassessed salesvaluation of potablethe watertaxable forproperty residential,of noncommercialthe county or nonagriculturaldistrict, useit shall indicatebe onthe eachduty statementof renderedthe board of supervisors to customersset thataside not less than sixty percent (60%) of such chargescounty's areshare exemptor fromdistrict's salesshare taxes.of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

(3)In Thereany iscounty herebyhaving levied,such countywide road or bridge bonds or district road or bridge bonds outstanding which exceed, in the aggregate, eight percent (8%) of the assessed andvaluation shallof bethe paidtaxable onproperty transportationof chargesthe oncounty, shipmentsbut movingwhich betweendo pointsnot withinexceed, thisin statethe whenaggregate, paidtwelve directlypercent by(12%) of the consumer,assessed avaluation taxof equalthe taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than thirty-five percent (35%) of such county's share of the rategasoline, applicablediesel fuel or kerosene taxes to be used in paying the saleprincipal and interest of thesuch propertyroad beingor transported.bridge bonds as they mature.

SuchIn taxany shallcounty behaving reportedsuch andcountywide paidroad directlyor tobridge thebonds Departmentor ofdistrict Revenueroad byor bridge bonds outstanding which exceed, in the consumer.H.

SECTION 6.

Section 27-65-75, Mississippi Code of 1972, is amended as follows:

27-65-75.

On or before the fifteenth day of each month, the revenue collected under the provisions of this chapter during the preceding month shall be paid and distributed as follows:

(1) (a) On or before August 15, 1992, and each succeeding month thereafter through July 15, 1993, eighteen percent (18%) of H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 32(BS\JAB)48(BS\JAB) aggregate, five percent (5%) of the totalassessed salesvaluation taxof revenuethe collectedtaxable duringproperty of the precedingcounty, monthbut underwhich do not exceed, in the provisionsaggregate, eight percent (8%) of thisthe chapter,assessed exceptvaluation thatof collectedthe undertaxable property of the provisionscounty, it shall be the duty of Sectionsthe 27-65-15,board 27-65-19(3)of andsupervisors 27-65-21,to onset businessaside activitiesnot withinless athan municipaltwenty corporationpercent shall(20%) beof allocatedsuch forcounty's distributionshare toof the municipalitygasoline, anddiesel paidfuel or kerosene taxes to be used in paying the municipalprincipal corporation.and interest of such road and bridge bonds as they mature.

ExceptIn asany otherwisecounty providedhaving insuch thiscountywide paragraphroad (a), on or beforebridge Augustbonds 15,or 1993,district androad eachor succeedingbridge monthbonds thereafteroutstanding throughwhich Augustdo 15,not 2026,exceed, eighteenin andthe one-halfaggregate, five percent (18-1/2%)(5%) of the totalassessed salesvaluation taxof revenuethe collectedtaxable duringproperty of the precedingcounty, monthit undershall be the provisionsduty of thisthe chapter,board exceptof thatsupervisors collectedto underset theaside provisionsnot ofless Sectionsthan 27-65-15,ten 27-65-19(3),percent 27-65-21(10%) andof 27-65-24,such oncounty's businessshare activitiesof withinthe agasoline, municipaldiesel corporationfuel shallor bekerosene allocatedtaxes forto distributionbe toused in paying the municipalityprincipal and paidinterest toon thesuch municipalroad corporation.or bridge bonds as they mature.

ExceptThe asportion otherwiseof providedany insuch thiscounty's paragraphshare (a),of onthe orgasoline, beforediesel Septemberfuel 15,or 2026,kerosene andtaxes eachthus succeedingset monthaside thereafter,for eighteenthe andpayment one-half percent (18-1/2%) of the totalprincipal salesand taxinterest revenueof collectedroad duringor thebridge precedingbonds, monthas underprovided thefor provisionsin of this chapter,section, exceptshall (i)be thatused collectedfirst underin paying the provisionscurrently ofmaturing Sectionsinstallments 27-65-15,of 27-65-17(1)(n),the 27-65-19(1)(a)(ii)principal and (3),interest 27-65-21of andsuch 27-65-24,countywide onroad businessor activitiesbridge withinbonds, aif municipalthere corporationbe andany (ii)such thatcountywide collectedroad onor businessbridge activitiesbonds withinoutstanding, aand municipalsecondly, corporationin whichpaying arethe taxedcurrently atmaturing ainstallments rate of sevenprincipal percentand (7%)interest under the provisions of thisdistrict chapter,road shallor bebridge allocatedbonds foroutstanding. distribution to the municipality and paid to the municipal H.

It shall be the duty H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 33(BS\JAB)49(BS\JAB) corporation.of the board of supervisors to pay bonds and interest maturing in each supervisors district out of the supervisors district's share of the gasoline, diesel fuel or kerosene taxes of such district.

However,The inremaining theportion eventof thesuch Statecounty's Auditorshare issuesof athe certificategasoline, ofdiesel noncompliancefuel pursuantor tokerosene Sectiontaxes, 21-35-31,after thesetting Departmentaside ofthe Revenueportion shallabove withholdprovided tenfor percentthe (10%)payment of the allocationsprincipal and paymentsinterest toof bonds, shall be used in the municipalityconstruction thatand wouldmaintenance otherwiseof beany payablepublic tohighways, bridges, or culverts of the municipalitycounty, underincluding thisthe paragraphroads (a)in untilspecial suchor timeseparate thatroad districts, in the departmentdiscretion receivesof writtenthe noticeboard of supervisors, or in paying the cancellationinterest and principal of acounty certificateroad ofand noncompliancebridge frombonds or district road and bridge bonds, in the Statediscretion Auditor.of the board of supervisors.

AIn municipalany corporation,county forhaving theno purposecountywide ofroad distributingor bridge bonds or district road or bridge bonds outstanding, all such county's share of the taxgasoline, underdiesel thisfuel subsection,or kerosene taxes shall meanbe used in the construction, reconstruction, and includemaintenance allof incorporatedthe cities,public townshighways, andbridges, villages.or culverts of the county as the board of supervisors may determine.

MoniesIn allocatedevery forcounty distributionin andwhich creditedthere toare acounty municipalroad corporationbonds underor thisseawall paragraphor mayroad beprotection pledgedbonds asoutstanding securitywhich forwere aissued loanfor if the distributionpurpose receivedof bybuilding thebridges municipalor corporationconstructing ispublic otherwiseroads authorized or requiredseawalls, bysuch lawfunds toshall be pledgedused asin securitythe formanner suchprovided aby loan.law.

In(c) anyFrom countythe havingamount aproduced countyby seatthe thatnine-fourteenths is(9/14) notdivision anallocated incorporatedto municipality, the distribution* provided* under* thisDepartment subsectionof Transportation, there shall be madededucted: as though the county seat was an incorporated municipality;

however,H. the distribution to the municipality shall be paid to the county treasury in which the municipality is located, and those funds shall be used for road, bridge and street construction or maintenance in the county.

(b) On or before August 15, 2006, and each succeeding month thereafter through August 15, 2026, eighteen and one-half H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 34(BS\JAB)50(BS\JAB) percent(i) (18-1/2%)The ofamount thepaid totalto sales tax revenue collected during the precedingState monthTreasurer underfor the provisions"Highway ofBonds thisSinking chapter,Fund" except that collected under theparagraph provisions(a) of Sectionsthis 27-65-15,section; 27-65-19(3) and 27-65-21, on business activities on the campus of a state institution of higher learning or community or junior college whose campus is not located within the corporate limits of a municipality, shall be allocated for distribution to the state institution of higher learning or community or junior college and paid to the state institution of higher learning or community or junior college.

On(ii) orAny beforeamounts Septemberdue 15,counties 2026,in andaccordance eachwith succeedingSection month65-33-45 thereafter,which eighteenhave andoutstanding one-halfbonds percentissued (18-1/2%)for ofseawall theor totalroad salesprotection taxpurposes, revenueissued collected during the preceding month under the provisions of thisChapter chapter,319, exceptLaws that collected under the provisions of Sections1924, 27-65-15, 27-65-17(1)(n), 27-65-19(1)(a)(ii) and (3)amendments andthereto; 27-65-21, on business activities on the campus of a state institution of higher learning or community or junior college whose campus is not located within the corporate limits of a municipality, shall be allocated for distribution to the state institution of higher learning or community or junior college and paid to the state institution of higher learning or community or junior college.

On(iii) orExcept beforeas Septemberotherwise 15,provided 2026,in andSection each31-17-127, succeedingthe monthremainder thereaftershall throughbe Augustpaid 15,by 2027,the twenty-eight* and* seventy-eight* one-hundredthsDepartment percentof (28.78%)Revenue ofto the totalState salesTreasurer taxon revenuethe collectedfifteenth duringday theof precedingeach month undernext succeeding the provisionsmonth in which the gasoline, diesel fuel or kerosene taxes were collected to the credit of H.the State Highway Fund.

The funds allocated for the construction, reconstruction, and improvement of state highways, bridges, and culverts, or so much thereof as may be necessary, shall first be used in conjunction with funds supplied by the federal government for such purposes and allocated to the * * * Department of Transportation to be expended on the state highway system.

It is specifically provided hereby that the necessary portion of such funds hereinabove allocated to the * * * Department of Transportation may be used for the prompt payment of principal and interest on highway bonds heretofore issued, including such bonds issued or to be issued under the provisions of Chapter 312, Laws of 1956, and amendments thereto.

H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 35(BS\JAB)51(BS\JAB) SectionNothing 27-65-17(1)(n)contained onin businessthis activitiessection onshall thebe campusconstrued ofto areduce statethe institutionamount of highersuch learninggasoline, ordiesel communityfuel or juniorkerosene collegeexcise whosetaxes campuslevied isby notthe locatedstate, withinallotted under the corporateprovisions limits of aTitle municipality,65, shallChapter be33, allocatedMississippi forCode distributionof 1972, to thecounties statein institutionwhich ofthere higherare learningoutstanding orbonds communityissued for seawall or juniorroad collegeprotection andpurposes paidissued tounder the stateprovisions institution of higherChapter learning319, orLaws communityof or1924, juniorand college.amendments thereto;

Onthe oramount beforeof Septembersaid 15,gasoline, 2027,diesel andfuel eachor succeedingkerosene monthexcise thereaftertaxes throughdesignated Augustin 15,this 2028,section thirtyfor andthe twelvepayment one-hundredths percent (30.12%) of thebonds totaland salesinterest taxauthorized revenueand collectedissued duringor theto precedingbe monthissued under the provisions of SectionChapter 27-65-17(1)(n)130, onLaws businessof activities1938, onand subsequent acts authorizing the campusissuance of abonds statepayable institutionfrom ofgasoline, higherdiesel learningfuel or communitykerosene ortax juniorrevenue, collegeshall, whosein campussuch iscounties, notbe locatedconsidered withinas being paid "into the corporateState limitsTreasury ofto athe municipality,credit shallof bethe allocatedState forHighway distributionFund" towithin the statemeaning institution of higherSection learning65-33-45 orin communitycomputing orthe junioramount collegeto andbe paid to such counties under the stateprovisions institutionof said section, and this section shall be administered in connection with Title 65, Chapter 33, Mississippi Code of higher1972, learningand orSections community65-33-45, or65-33-47 juniorand college.65-33-49 dealing with seawalls, as if made a part of this section.

On(d) orThe beforeproceeds Septemberof 15,the 2028,Five and eachOne-fourth succeedingCents month(5.25¢) thereafterof throughthe Augusttax 15,per 2029,gallon thirty-oneon andoils fifty-nineused one-hundredthsas percenta (31.59%)propellant offor thejet totalaircraft salesengines, taxand revenueSix collectedand duringFour-tenths theCents preceding(6.4¢) monthof under the provisionstax ofper Sectiongallon 27-65-17(1)(n) on businessaviation activitiesgasoline onand the campustax of aOne stateCent institution(1¢) ofper highergallon learningfor oreach communitygallon orof juniorgasoline collegefor whosewhich campus is not located within the corporate limits of a municipality,refund shallhas bebeen allocatedmade forpursuant distribution to theSection state27-55-23 institutionbecause ofsuch highergasoline learningwas orused community or junior H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 36(BS\JAB)52(BS\JAB) collegefor andaviation purposes, shall be paid to the stateState institutionTreasury ofinto highera learningspecial orfund communityto orbe juniorused college.exclusively, pursuant to legislative appropriation, for the support and development of aeronautics as defined in Section 61-1-3.

On(e) orState beforehighway Septemberfunds 15,in 2029,an andamount eachequal succeedingto monththe thereafterdifference throughbetween AugustForty-two 15,Million 2030,Dollars thirty-three($42,000,000.00) and twenty-one one-hundredths percent (33.21%) of the totalannual salesdebt taxservice revenuepayable collected during the preceding month under the provisions of Section 27-65-17(1)(n) on business activities on the campusstate's ofhighway arevenue staterefunding institutionbonds, ofSeries higher1985, learning or community or junior college whose campus is not located within the corporate limits of a municipality, shall be allocatedexpended for distribution to the stateconstruction institution of higher learning or communityreconstruction orof juniorhighways collegedesignated andunder paid to the statehighway institutionprogram ofcreated higherunder learningSection or65-3-97. community or junior college.

On(f) or"Gasoline, beforediesel Septemberfuel 15,or 2030,kerosene andtaxes" eachas succeedingused monthin thereafterthis throughsection Augustshall 15,be 2031,deemed thirty-fiveto percentmean (35%)and ofinclude thestate totalgasoline, salesdiesel taxfuel revenueor collectedkerosene duringtaxes thelevied precedingand monthimposed under the provisions of Section 27-65-17(1)(n) on businessdistributors activities on the campus of agasoline, statediesel institutionfuel of higher learning or communitykerosene, orand juniorall collegestate whoseexcise campustaxes isderived notfrom locatedany withinfuel theused corporate limits of a municipality, shall be allocated for distribution to thepropel statevehicles institutionupon of higher learning or community or junior college and paid to the statehighways institution of higherthis learningstate, orwhen communitylevied orby juniorany college.statute.

On[With orregard beforeto Septemberany 15,county 2031,which andis eachrequired succeedingto monthoperate thereafteron througha Augustcountywide 15,system 2032, thirty-seven percent (37%) of theroad totaladministration salesas taxdescribed revenuein collectedSection during19-2-3, thethis precedingsection monthshall underread theas provisionsfollows:] of27-5-101. Section 27-65-17(1)(n) on H.

Unless otherwise provided in this section, on or before the fifteenth day of each month, all gasoline, diesel fuel or kerosene taxes which are levied under the laws of this state and collected during the previous month shall be paid and apportioned by the * * * Department of Revenue as follows:

H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 37(BS\JAB)53(BS\JAB) business(a) activities(i) onExcept theas campusotherwise ofprovided ain stateSection institution31-17-127, from the gross amount of highergasoline, learningdiesel fuel or communitykerosene ortaxes juniorproduced collegeby whosethe campusstate, isthere notshall locatedbe withindeducted thean corporateamount limitsequal to one-sixth (1/6) of aprincipal municipality,and shallinterest becertified allocatedby forthe distributionState Treasurer to the state* institution* * Department of higherRevenue learningto orbe communitydue oron juniorthe collegenext semiannual bond and paidinterest topayment date, as required under the stateprovisions institutionof Chapter 130, Laws of higher1938, learningand orsubsequent communityacts authorizing the issuance of bonds payable from gasoline, diesel fuel or juniorkerosene college.tax revenue on a parity with the bonds issued under authority of said Chapter 130.

OnThe orState beforeTreasurer Septembershall 15,certify 2032,to andthe each* succeeding* month* thereafterDepartment throughof AugustRevenue 15,on 2033,or thirty-ninebefore andthe twenty-fourfifteenth one-hundredthsday percent (39.24%) of theeach total sales tax revenue collected during the preceding month under the provisionsamount ofto Sectionbe 27-65-17(1)(n)paid onto business activities on the campus"Highway ofBonds aSinking stateFund" institutionas ofprovided higherby learningsaid orChapter community130, orLaws juniorof college1938, whoseand campussubsequent isacts notauthorizing located within the corporateissuance limits of abonds municipality,payable shallfrom begasoline, allocateddiesel forfuel distribution to the state institution of higher learning or communitykerosene ortax juniorrevenue, collegeon anda paidparity towith the statebonds institutionissued ofunder higherauthority learningof orsaid communityChapter or130; junior college.

On or before September 15, 2033, and each succeeding month thereafter through August 15, 2034, forty-one and seventy-seven one-hundredths percent (41.77%) of the total* sales* tax* revenueDepartment collected during the preceding month under the provisions of SectionRevenue 27-65-17(1)(n)shall, on businessor activitiesbefore on the campustwenty-fifth ofday a state institution of highereach learningmonth, orpay communityinto orthe juniorState collegeTreasury whosefor campuscredit isto not located within the corporate"Highway limitsBonds ofSinking aFund" municipality,the shallamount beso allocatedcertified forto distributionhim toby the stateState institutionTreasurer ofdue higherto learningbe orpaid communityinto orsuch juniorfund H.each month.

The payments to the "Highway Bonds Sinking Fund" shall be made out of gross gasoline, diesel fuel or kerosene tax collections before deductions of any nature are considered;

however, such payments shall be deducted from the allocation to H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 38(BS\JAB)54(BS\JAB) collegethe and* paid* to* theDepartment state institution of higherTransportation learningunder orparagraph community(c) orof juniorthis college.section.

On(ii) orFrom beforecollections Septemberderived 15,from 2034,the andportion eachof succeedingthe monthgasoline thereafterexcise throughtax Augustthat 15,exceeds 2035,Seven forty-fourCents (7¢) per gallon, up to and sixty-sixincluding one-hundredthsEighteen percentCents (44.66%)(18¢) ofper gallon, from the totalportion salesof the tax revenueon collectedaviation duringgas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the precedingportion monthof the special fuel tax levied under Sections 27-55-519 and 27-55-521 * * * that exceeds Ten Cents (10¢) per gallon, up to and including Eighteen Cents (18¢) per gallon, from the provisionsportion of the taxes levied under Section 27-65-17(1)(n)27-55-519, at Five and Three-fourths Cents (5.75¢) per gallon that exceeds One Cent (1¢) per gallon on businessspecial activitiesfuel and Five and One-fourth Cents (5.25¢) per gallon on thespecial campusfuel ofused aas stateaircraft institutionfuel, from the portion of higherthe learningexcise ortax communityon orcompressed juniorgas collegeused whoseas campusa ismotor notfuel locatedthat withinexceeds the corporaterate limits of atax municipality,in shalleffect beon allocatedJune for30, distribution1987, toand from the stateportion institution of higherthe learninggasoline orexcise communitytax orin juniorexcess collegeof andSeven paidCents to(7¢) per gallon and the statediesel institutionexcise tax in excess of higherTen learningCents or(10¢) communityper orgallon juniorunder college.Section 27-61-5 there shall be deducted:

On1. or before September 15, 2035, and each succeeding month thereafter through August 15, 2036, forty-seven and ninety-six one-hundredths percent (47.96%) of the total sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1)(n) on business activities on the campus of a state institution of higher learning or community or junior college whose campus is not located within the corporate limits of a municipality, shall be allocated for distribution to the state institution of higher learning or community or junior college and paid to the state institution of higher learning or community or junior college.

OnAn oramount beforeas Septemberprovided 15,in 2036,Section and27-65-75(4) eachto succeedingthe monthcredit thereafter, fifty-one and eighty one-hundredths percent (51.80%) of thea totalspecial salesfund taxdesignated revenueas collected during the preceding"Office monthof underState theAid provisionsRoad ofConstruction." H.2.

An amount equal to the tax collections derived from Two Cents (2¢) per gallon of the gasoline excise tax for distribution to the State Highway Fund to be used exclusively H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 39(BS\JAB)55(BS\JAB) Sectionfor 27-65-17(1)(n)the onconstruction, businessreconstruction activitiesand onmaintenance the campus of ahighways state institution of higher learning or community or junior college whose campus is not located within the corporateState limits of aMississippi municipality,or shall be allocated for distribution to the statepayment institution of higherinterest learningand orprincipal communityon orbonds juniorwhen collegespecifically andauthorized paidby to the stateLegislature institutionfor ofthat higherpurpose. learning or community or junior college.

(c)3. On or before August 15, 2018, and each succeeding month thereafter until August 14, 2019, two percent (2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 27-65-24, on business activities within the corporate limits of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215.

OnThe orbalance beforeshall Augustbe 15,deposited 2019,in and each succeeding month thereafter until August 14, 2020, four percent (4%) of the totalState salesTreasury taxto revenue collected during the precedingcredit month under the provisions of this chapter, except that collected under the provisionsState ofHighway SectionsFund. 27-65-15, 27-65-19(3), 27-65-21 and 27-65-24, on business activities within the corporate limits of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215.

On(iii) orFrom beforecollections Augustderived 15,from 2020,the portion of the gasoline excise tax that exceeds Eighteen Cents (18¢) per gallon, and eachfrom succeedingthe monthportion thereafterof throughthe Julyspecial 15,fuel 2023,tax sixlevied percentunder H.Sections 27-55-519 and 27-55-521 that exceeds Eighteen Cents (18¢) per gallon, and from the portion of the gasoline excise tax and the diesel excise tax in excess of Eighteen Cents (18¢) per gallon under Section 27-61-5, there shall be deducted:

1.

Twenty-three and one-fourth percent (23.25%) of such amount to the credit of a special fund designated as the "Office of State Aid Road Construction." 2.

Two and three-fourths percent (2.75%) of such amount to the Strategic Multi-Modal Investments Fund created in Section 65-1-901.

3.

Seventy-four percent (74%) of such amount to the Mississippi Department of Transportation for constructing, maintaining or improving segments of highways and bridges under its jurisdiction, and for operational improvements on such segments, in accordance with a project schedule as reported in the H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 40(BS\JAB)56(BS\JAB) (6%)three-year ofplan theas totaladopted, salesamended taxby revenueor collectedreissued duringby the precedingMississippi monthTransportation underCommission the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 27-65-24, on business activities within the corporate limits of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215.65-1-141.

On(b) orSubject beforeto Augustthe 15,provisions 2023,that andsaid eachbasis succeedingof monthdistribution thereaftershall throughin Augustnowise 15,affect 2026,adversely ninethe percentamount (9%)specifically pledged in paragraph (a) of this section to be paid into the total"Highway salesBonds taxSinking revenueFund," collectedthe duringfollowing shall be deducted from the precedingamount monthproduced underby the provisionsstate tax on gasoline, diesel fuel or kerosene tax collections, excluding collections derived from the portion of thisthe chapter,gasoline exceptexcise tax that collectedexceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the provisionsportion of the special fuel tax levied under Sections 27-65-15,27-55-519 27-65-19(3),and 27-65-2127-55-521, at Eighteen Cents (18¢) per gallon, that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and 27-65-24,Three-fourths Cents (5.75¢) that exceeds One Cent (1¢) per gallon on businessspecial activitiesfuel withinand theFive corporateand limitsOne-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the Cityexcise tax on compressed gas used as a motor fuel that exceeds the rate of Jackson,tax Mississippi,in shalleffect beon depositedJune into30, 1987, and from the Capitolportion Complexof Improvementthe Districtgasoline Projectexcise Fundtax createdin excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 29-5-215.27-61-5:

On(i) orTwenty before September 15, 2026, and each succeeding month thereafter, nine percent (9%)(20%) of thesuch totalamount saleswhich taxshall revenuebe collectedearmarked during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-17(1)(n), 27-65-19(1)(a)(ii) and (3),set 27-65-21aside andfor 27-65-24, on business activities within the corporateconstruction, limitsH. of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215.

On or before September 15, 2026, and each succeeding month thereafter through August 15, 2027, fourteen percent (14%) of the total sales H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 41(BS\JAB)57(BS\JAB) taxreconstruction revenueand collectedmaintenance duringof the precedinghighways monthand underroads of the provisionsstate, ofprovided Sectionthat 27-65-17(1)(n)if onsuch businesstwenty activitiespercent within(20%) theshould corporatereduce limitsany ofcounty to a lesser amount than that received in the Cityfiscal ofyear Jackson,ending Mississippi,June 30, 1966, then such twenty percent (20%) shall be depositedreduced intoto thea Capitolpercentage Complexto Improvementprovide Districtthat Projectno Fundcounty createdshall inreceive Sectionless 29-5-215.than its portion for the fiscal year ending June 30, 1966;

On(ii) orThe beforeamount Septemberallowed 15,as 2027,refund andon eachgasoline succeedingor monthas thereafter through August 15, 2028, fourteen and sixty-five one-hundredths percent (14.65%) of the total sales tax revenuecredit collected during the preceding month under the provisions of Section 27-65-17(1)(n) on businessdiesel activitiesfuel withinor thekerosene corporateused limitsfor ofagricultural, themaritime, Cityindustrial, ofdomestic Jackson,and Mississippi,nonhighway shallpurposes; be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215.

On(iii) orFive before September 15, 2028, and each succeeding month thereafter through August 15, 2029, fifteen and thirty-seven one-hundredths percent (15.37%)(5%) of thesuch totalamount sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1)(n) on business activities within the corporate limits of the City of Jackson, Mississippi, shall be depositedpaid intoto the CapitolState ComplexHighway ImprovementFund; District Project Fund created in Section 29-5-215.

On(iv) orThe beforeamount Septemberor 15,portion 2029,thereof andauthorized eachby succeedinglegislative monthappropriation thereafterto throughthe AugustFisheries 15, 2030, sixteen and fifteenWildlife one-hundredthsFund percentcreated (16.15%) of the total sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1)(n)59-21-25; on business activities within the corporate limits of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex H.

(v) The amount for deposit into the special aviation fund under paragraph (d) of this section;

and (vi) The remainder shall be divided on a basis of nine-fourteenths (9/14) and five-fourteenths (5/14) (being the same basis as Four and One-half Cents (4-1/2¢) and Two and One-half Cents (2-1/2¢) is to Seven Cents (7¢) on gasoline, and six and forty-three one-hundredths (6.43) and three and fifty-seven one-hundredths (3.57) is to Ten Cents (10¢) on diesel fuel or kerosene).

The amount produced by the nine-fourteenths (9/14) division shall be allocated to the * * * Department of Transportation and paid into the State Treasury as provided in H.

1 *HR31/R1223PH**HR31/R1223SG* ~ OFFICIAL ~ 25/HR31/R1223PH25/HR31/R1223SG PAGE 42(BS\JAB)58(BS\JAB) Improvementthis Districtsection Projectand Fund created in Section 29-5-215.27-5-103 and the five-fourteenths (5/14) division shall be returned to the counties of the state on the following basis:

On or before September 15, 2030, and each succeeding month thereafter through August 15, 2031, seventeen and three one-hundredths percent (17.03%) of the total sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1)(n) on business activities within the corporate limits of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215.

On or before September 15, 2031, and each succeeding month thereafter through August 15, 2032, eighteen percent (18%) of the total sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1)(n) on business activities within the corporate limits of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215.

On or before September 15, 2032, and each succeeding month thereafter through August 15, 2033, nineteen and nine one-hundredths percent (19.09%) of the total sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1)(n) on business activities within the corporate limits of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215.