Amendment vs bill Committee Amendment No 1 (Adopted) (Voice Vote) vs As Passed the lower

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MISSISSIPPI LEGISLATURE REGULAR SESSION 2025 By:
Adopted COMMITTEE AMENDMENT NO 1 PROPOSED TO House Bill No.
Representatives Lamar, White, Steverson, To:
1 BY:
Ways and Means Bounds, Deweese, Newman, Calvert, Smith, Keen, Massengill, Hale, Eubanks HOUSE BILL NO.
Committee Amend by striking all after the enacting clause and inserting in lieu thereof the following:
1 (As Passed the House) AN ACT TO CREATE THE "BUILD UP MISSISSIPPI ACT";
TO AUTHORIZE THE GOVERNING AUTHORITIES OF A MUNICIPALITY TO IMPOSE A SALES TAX ON THE GROSS PROCEEDS OF ALL SALES OR THE GROSS INCOME OF BUSINESSES IN THE MUNICIPALITY DERIVED FROM ACTIVITIES TAXED AT THE RATE OF SEVEN PERCENT UNDER THE MISSISSIPPI SALES TAX LAW AND ON RETAIL SALES OF FOOD FOR HUMAN CONSUMPTION NOT PURCHASED WITH FOOD STAMPS BUT WHICH WOULD BE EXEMPT FROM SALES TAX IF PURCHASED WITH FOOD STAMPS;
TO PROVIDE THAT THE GOVERNING 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 ACT;
TO AUTHORIZE THE BOARD OF SUPERVISORS OF A COUNTY TO IMPOSE A SALES TAX ON THE GROSS PROCEEDS OF ALL SALES OR THE GROSS INCOME OF BUSINESSES IN THE COUNTY OUTSIDE OF THE MUNICIPALITIES IN THE COUNTY DERIVED FROM ACTIVITIES TAXED AT THE RATE OF SEVEN PERCENT UNDER THE MISSISSIPPI SALES TAX LAW AND ON RETAIL SALES OF FOOD FOR HUMAN CONSUMPTION NOT PURCHASED WITH FOOD STAMPS BUT WHICH WOULD BE EXEMPT FROM SALES TAX IF PURCHASED WITH FOOD STAMPS;
TO PROVIDE THAT THE BOARD OF SUPERVISORS OF A COUNTY, BY A VOTE ENTERED UPON ITS MINUTES BEFORE JULY 1, 2026, MAY OPT OUT OF IMPOSING THE TAX PROVIDED FOR IN THIS ACT;
TO AMEND SECTION 27-65-17, MISSISSIPPI CODE OF 1972, TO REDUCE THE SALES TAX RATE ON RETAIL SALES OF FOOD FOR HUMAN CONSUMPTION NOT PURCHASED WITH FOOD STAMPS BUT WHICH WOULD BE EXEMPT FROM SALES TAX IF PURCHASED WITH FOOD STAMPS;
TO BRING FORWARD SECTION 27-67-5, MISSISSIPPI CODE OF 1972, WHICH REQUIRES THE IMPOSITION OF A USE TAX, FOR PURPOSES OF POSSIBLE AMENDMENT;
TO AMEND SECTION 27-65-19, MISSISSIPPI CODE OF 1972, TO LEVY A TAX ON THE GROSS INCOME FROM RETAIL SALES OF CERTAIN MOTOR FUELS;
TO AMEND SECTION 27-65-75, MISSISSIPPI CODE OF 1972, TO REVISE THE AMOUNT OF STATE SALES TAX REVENUE THAT IS DISTRIBUTED TO MUNICIPALITIES;
TO REVISE THE DISTRIBUTION OF STATE SALES TAX REVENUE COLLECTED FROM RETAIL SALES OF FOOD FOR HUMAN CONSUMPTION NOT PURCHASED WITH FOOD STAMPS BUT WHICH WOULD BE EXEMPT FROM SALES TAX IF PURCHASED WITH FOOD STAMPS;
TO PROVIDE THAT SALES TAX REVENUE DERIVED FROM RETAIL H.
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ R3/5 25/HR31/R1223PH PAGE 1 (BS\JAB) SALES OF CERTAIN MOTOR FUELS SHALL BE DEPOSITED INTO THE MAINTENANCE AND CAPACITY PROJECTS FUND CREATED IN THIS ACT;
TO PROVIDE FOR THE TEMPORARY DISTRIBUTION OF CERTAIN STATE SALES REVENUE INTO THE BUDGET STABILIZATION FUND CREATED IN THIS ACT;
TO AMEND SECTION 27-65-111, MISSISSIPPI CODE OF 1972, TO REVISE THE SALES TAX EXEMPTION ON SALES OF CERTAIN MOTOR FUEL;
TO CREATE THE "BUDGET STABILIZATION FUND" AS A SPECIAL FUND IN THE STATE TREASURY;
TO PROVIDE THAT MONIES IN THE FUND SHALL BE APPROPRIATED BY THE LEGISLATURE TO FURTHER THE PURPOSES OF THIS ACT;
TO AMEND SECTION 27-7-5, MISSISSIPPI CODE OF 1972, TO PHASE OUT THE STATE INCOME TAX ON THE TAXABLE INCOME OF INDIVIDUALS;
TO AMEND SECTION 65-9-17, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF A COUNTY OPTS OUT OF IMPOSING THE TAX PROVIDED FOR IN THIS ACT, THE COUNTY MAY NOT RECEIVE ANY ASSISTANCE FROM THE STATE AID ROAD FUND WHICH IS DERIVED FROM MONIES DEPOSITED INTO THE FUND FROM REVENUE DERIVED FROM THE TAX IMPOSED BY COUNTIES UNDER THIS ACT;
TO AMEND SECTION 27-115-85, MISSISSIPPI CODE OF 1972, TO REVISE THE DISTRIBUTION OF NET PROCEEDS GENERATED BY THE ALYCE G.
CLARKE MISSISSIPPI LOTTERY LAW TO PROVIDE THAT $100,000,000.00 OF THE NET PROCEEDS SHALL BE PAID INTO THE EMPLOYER'S ACCUMULATION ACCOUNT OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM UNTIL THE FUNDED RATIO FOR THE SYSTEM IS 80% AT THE END OF A FISCAL YEAR AND THEREAFTER, FOR EACH MONTH AFTER THAT FISCAL YEAR SUCH NET PROCEEDS SHALL BE PAID INTO THE STATE GENERAL FUND AND THAT ALL SUCH MONIES DEPOSITED INTO THE LOTTERY PROCEEDS FUND OVER $100,000,000.00 SHALL BE TRANSFERRED INTO THE EDUCATION ENHANCEMENT FUND FOR THE PURPOSES OF FUNDING THE EARLY CHILDHOOD LEARNING COLLABORATIVE, THE CLASSROOM SUPPLY FUND AND/OR OTHER EDUCATIONAL PURPOSES AND INTO THE STRATEGIC MULTI-MODAL INVESTMENTS FUND;
TO CREATE THE "MAINTENANCE AND CAPACITY PROJECTS FUND" AS A SPECIAL FUND IN THE STATE TREASURY;
TO PROVIDE THAT MONEY IN THE FUND SHALL BE UTILIZED BY THE MISSISSIPPI DEPARTMENT OF TRANSPORTATION, WITH THE ADVICE OF THE MAINTENANCE AND CAPACITY PROJECTS FUND ADVISORY BOARD, TO PROVIDE FUNDING FOR MAINTENANCE AND CAPACITY PROJECTS;
TO CREATE THE MAINTENANCE AND CAPACITY PROJECTS FUND ADVISORY BOARD AND PROVIDE FOR ITS MEMBERSHIP;
TO PROVIDE THAT THE MAINTENANCE AND CAPACITY PROJECTS FUND ADVISORY BOARD SHALL PROVIDE NONBINDING ADVICE TO THE DEPARTMENT OF TRANSPORTATION REGARDING THE EXPENDITURE OF MONEY IN THE MAINTENANCE AND CAPACITY PROJECTS FUND;
TO BRING FORWARD SECTION 27-115-51, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR THE DEPOSIT OF MONIES RECEIVED FROM LOTTERY TICKET SALES INTO A CORPORATE OPERATING ACCOUNT AND THE TRANSFER OF NET PROCEEDS FROM THE CORPORATE OPERATING ACCOUNT TO THE LOTTERY PROCEEDS FUND FOR THE PURPOSES OF POSSIBLE AMENDMENT;
AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
This act shall be known and may be cited as the "Build Up Mississippi Act".
Section 27-7-5, Mississippi Code of 1972, is amended as follows:
H.
27-7-5.
B.
(1) (a) Except as otherwise provided in this section, there is hereby assessed and levied, to be collected and paid as hereinafter provided, for the calendar year 1983 and fiscal years ending during the calendar year 1983 and all taxable years thereafter, upon the entire net income of every resident individual, corporation, association, trust or estate, in excess of the credits provided, a tax at the following rates:
No.
25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 1 (i) 1.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 2(BS\JAB) SECTION 2.
Through calendar year 2017, on the first Five Thousand Dollars ($5,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
(1) (a) Subject to the provisions of this subsection, from and after July 1, 2026, the governing authorities of a municipality shall impose upon all persons as a privilege for engaging or continuing in business or doing business within such municipality, a sales tax at the rate of one and one-half percent (1-1/2%) of the gross proceeds of sales or gross income of the business, as the case may be, derived from any of the activities within the municipality which are taxed at the rate of 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).
2.
The governing 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.
For calendar year 2018, on the first One Thousand Dollars ($1,000.00) of taxable income there shall be no tax levied, and on the next Four Thousand Dollars ($4,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
The governing authorities of the municipality shall provide a notice in accordance with the Open Meetings Act (Section 25-41-1 et seq.) of its intent of holding a vote regarding opting out of imposing the tax.
3.
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(b) 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.
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%);
(c) A municipality may use revenue derived from the tax imposed under this subsection for any purpose for which the H.
4.
B.
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%);
No.
5.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 3(BS\JAB) municipality may use monies distributed to it under the provisions of Section 27-65-75(1)(a).
For calendar year 2021, on the first Four Thousand Dollars ($4,000.00) of taxable income there shall be no tax levied, and on the next One Thousand Dollars ($1,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
(d) The sales tax 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 municipality and shall be paid to the municipality in which collected.
25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 2 6.
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.
For calendar year 2022 and all taxable years thereafter, there shall be no tax levied on the first Five Thousand Dollars ($5,000.00) of taxable income;
(2) (a) Subject to the provisions of this subsection, from and after July 1, 2026, the board of supervisors of a county shall impose upon 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 at the rate of one and one-half percent (1-1/2%) of the gross proceeds of sales or gross income of the business, 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).
(ii) On taxable income in excess of Five Thousand Dollars ($5,000.00) up to and including Ten Thousand Dollars ($10,000.00), or any part thereof, the rate shall be four percent (4%);
The board of supervisors of a county, by a vote entered upon its minutes before July 1, 2026, may opt out of imposing the tax provided for in this subsection.
and (iii) On all taxable income in excess of Ten Thousand Dollars ($10,000.00), the rate shall be five percent (5%).
The board of supervisors of a county shall provide a notice in accordance with H.
(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;
B.
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:
No.
1.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 4(BS\JAB) the Open Meetings Act (Section 25-41-1 et seq.) of its intent of holding a vote regarding opting out of imposing the tax.
For calendar year 2024, on such taxable income, the rate shall be four and seven-tenths percent (4.7%);
If a county opts out of imposing the tax provided for in this subsection, the county may not receive any assistance from the 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.
2.
(b) 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.
For calendar year 2025, on such taxable income, the rate shall be four and four-tenths percent (4.4%);
(c) The revenue derived from the tax imposed under this subsection shall be deposited into the State Aid Road Fund created in Section 65-9-17.
* * * 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 3 3.
(d) The sales tax 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.
For calendar year 2026 * * *, on such taxable income, the rate shall be four percent (4%) * * *;
Payments 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.
4.
(3) 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%);
B.
5.
No.
For calendar year 2028, on such taxable income, the rate shall be three and one-half percent (3.5%);
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 5(BS\JAB) is imposing a tax under subsection (2) of this section, the municipality shall impose the tax under subsection (1) of this section in the expanded corporate boundaries and the county shall cease to impose the tax under subsection (2) of this section in the expanded municipal corporate boundaries.
6.
The municipality shall begin to impose and the county shall cease to impose the respective taxes on the first day of the month following the month in which the municipal expansion becomes official.
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 with respect to the entire net income, from all property owned or sold, and from every business, trade or occupation carried on in this state by individuals, corporations, partnerships, trusts or estates, not residents of the State of Mississippi.
25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 4 (4) In the case of taxpayers having a fiscal year beginning in a calendar year with a rate in effect that is different than the rate in effect for the next calendar year and ending in the next calendar year, the tax due for 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 (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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 5 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, regardless of the source fund, and all General Fund appropriation bills passed into law, but not including appropriations 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 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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 6 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 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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 7 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.
(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.
B.
25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 8 (ii) The one and one-half percent (1-1/2%) rate shall also apply to all equipment used in logging, pulpwood operations or tree farming, and parts and labor used to maintain and/or repair such equipment, which is either:
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 6(BS\JAB) 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.
(ii) The one and one-half percent (1-1/2%) rate shall also apply to all equipment used in logging, pulpwood operations or tree farming, and parts and labor used to maintain and/or repair such equipment, which is either:
H.
(d) Except as otherwise provided in subsection (3) of this section, retail sales of aircraft, automobiles, trucks, 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 9 truck-tractors, semitrailers and manufactured or mobile homes shall be taxed at the rate of three percent (3%).
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 7(BS\JAB) (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%).
H.
(iv) The enterprise shall manufacture plastics, chemicals, automobiles, aircraft, computers or electronics;
B.
or 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 10 shall be a research and development facility, a computer design or related facility, or a software publishing facility or other technology intensive facility or enterprise as determined by the Mississippi Development Authority;
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 8(BS\JAB) (iv) The enterprise shall manufacture plastics, chemicals, automobiles, aircraft, computers or electronics;
or shall be a research and development facility, a computer design or related facility, or a software publishing facility or other technology intensive facility or enterprise as determined by the Mississippi Development Authority;
(i) Wholesale sales of food and drink for human consumption to full-service vending machine operators to be sold H.
(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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 11 other taxable businesses shall be taxed at the rate of eight percent (8%).
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 9(BS\JAB) through vending machines located apart from and not connected with other taxable businesses shall be taxed at the rate of eight percent (8%).
Operators that H.
Operators that rebill sales of equipment and materials to nonoperating working 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 12 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.
B.
(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.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 10(BS\JAB) 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) From 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) From and after July 1, 2026, through June 30, 2027, such sales shall be taxed at the rate of four and one-half percent (4.5%);
(ii) 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) From and after July 1, 2028, through June 30, 2029, such sales shall be taxed at the rate of four and one-tenths percent (4.1%);
(iv) From and after July 1, 2029, through June 30, 2030, such sales shall be taxed at the rate of three and nine-tenths percent (3.9%);
H.
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 11(BS\JAB) (v) From and after July 1, 2030, through June 30, 2031, such sales shall be taxed at the rate of three and seven-tenths percent (3.7%);
(vi) From and after July 1, 2031, through June 30, 2032, such sales shall be taxed at the rate of three and one-half percent (3.5%);
(vii) From and after July 1, 2032, through June 30, 2033, such sales shall be taxed at the rate of three and three-tenths percent (3.3%);
(viii) From and after July 1, 2033, through June 30, 2034, such sales shall be taxed at the rate of three and one-tenths percent (3.1%);
(ix) From and after July 1, 2034, through June 30, 2035, such sales shall be taxed at the rate of two and nine-tenths percent (2.9%);
(x) From and after July 1, 2035, through June 30, 2036, such sales shall be taxed at the rate of two and seven-tenths percent (2.7%);
and (xi) From and after July 1, 2036, such sales shall be taxed at the rate of two and one-half percent (2.5%).
H.
(3) A manufacturer selling at retail in this state shall be required to make returns of the gross proceeds of such sales and pay the tax imposed in this section.
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 12(BS\JAB) (3) A manufacturer selling at retail in this state shall be required to make returns of the gross proceeds of such sales and pay the tax imposed in this section.
Section 27-65-241, Mississippi Code of 1972, is amended as follows:
27-65-241.
(1) As used in this section, the following terms shall have the meanings ascribed to them in this section unless otherwise clearly indicated by the context in which they are used:
(a) "Hotel" or "motel" means and includes a place of lodging that at any one time will accommodate transient guests on 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 13 a daily or weekly basis and that is 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 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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 14 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 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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 15 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 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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 16 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, 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.
25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 17 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 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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 18 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 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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 19 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.
(b) The commission shall be composed of ten (10) voting members who shall be known as commissioners appointed as follows:
(i) Four (4) members representing the business community in the municipality appointed by the local chamber of commerce for initial terms of one (1), two (2), four (4) and five (5) years respectively.
The members appointed pursuant to this paragraph shall be persons who represent businesses located within the city limits of the municipality.
(ii) Three (3) members shall be appointed at large by the mayor of the municipality, with the advice and consent of 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 20 the legislative body of the municipality, for initial terms of two (2), three (3) and four (4) years respectively.
All appointments made by the mayor pursuant to this paragraph shall be residents of the municipality.
(iii) One (1) member shall be appointed at large by the Governor for an initial term of four (4) years.
All appointments made by the Governor pursuant to this paragraph shall be residents of the municipality.
(iv) One (1) member shall be appointed at large by the Lieutenant Governor for an initial term of four (4) years.
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 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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 21 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 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.
25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 22 (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.
(9) This section shall stand repealed from and after July 1, 2035.
SECTION 5.
(a) The use tax hereby imposed and levied shall be collected at the same rates as imposed under Section 27-65-20, and Sections 27-65-17, 27-65-18, 27-65-19, 27-65-24, 27-65-25 and 27-65-26 computed on the purchase or sales price, or value, as defined in this article.
(a) The use tax hereby imposed and levied shall be collected at the same rates as imposed under Section 27-65-20, and Sections 27-65-17, 27-65-18, 27-65-19, 27-65-24, 27-65-25 and 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 23 27-65-26 computed on the purchase or sales price, or value, as defined in this article.
H.
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.
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 13(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.
Receipts for all such payments shall be given to taxpayers in a form prescribed and furnished by the Department of Revenue.
Receipts for all such payments shall 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 24 be given to taxpayers in a form prescribed and furnished by the Department of Revenue.
A dealer authorized to collect and remit the tax to the Department of Revenue shall give to the purchaser a receipt for H.
A dealer authorized to collect and remit the tax to the Department of Revenue shall give to the purchaser a receipt for 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.
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 14(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.
Any error in the report and remittance to the commissioner may be adjusted on a subsequent report.
25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 25 Any error in the report and remittance to the commissioner may be adjusted on a subsequent report.
H.
SECTION 6.
B.
Section 27-55-11, Mississippi Code of 1972, is amended as follows:
No.
27-55-11.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 15(BS\JAB) SECTION 5.
Any person in business as a distributor of gasoline or who acts as a distributor of gasoline, as defined in this article, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax equal to 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 Four-tenths Cents (14.4¢) per gallon thereafter, on all gasoline and blend stock stored, sold, distributed, manufactured, refined, 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 26 distilled, blended or compounded in this state or received in this state for sale, use on the highways, storage, distribution, or for any purpose.
Section 27-65-19, Mississippi Code of 1972, is amended as follows:
Any person in business as a distributor of aviation gasoline, or who acts as a distributor of aviation gasoline, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax equal to Six and Four-tenths Cents (6.4¢) per gallon on all aviation gasoline stored, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, storage, distribution or for any purpose.
27-65-19.
Beginning July 1, 2029, and on July 1 of every other year thereafter, the excise tax rate provided in this section shall be adjusted by the percentage change in the yearly average of the National Highway Construction Cost Index (NHCCI) issued by the U.S.
(1) (a) (i) Except as otherwise provided in this subsection, upon every person selling to consumers, electricity, current, power, potable water, steam, coal, natural gas, liquefied petroleum gas or other fuel, there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross income of the business.
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.
Provided, gross income from sales to consumers of electricity, current, power, natural gas, liquefied petroleum gas or other fuel for residential heating, lighting or other residential noncommercial or nonagricultural use, and sales of potable water for residential, noncommercial or nonagricultural use shall be excluded from taxable gross income of the business.
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.
Provided 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.
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.
(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%).
25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 27 The excise taxes collected under this section shall be paid and distributed in accordance with Section 27-5-101.
( * * *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.
The tax herein imposed and assessed shall be collected and paid to the State of Mississippi but once in respect to any gasoline.
B.
The basis for determining the tax liability shall be the correct invoiced gallons, adjusted to sixty (60) degrees Fahrenheit at the refinery or point of origin of shipment when such shipment is made by tank car or by motor carrier.
No.
The point of origin of shipment of gasoline transported into this state by pipelines shall be deemed to be that point in this state where such gasoline is withdrawn from the pipeline for storage or distribution, and adjustment to sixty (60) degrees Fahrenheit shall there be made.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 16(BS\JAB) petroleum gas or other fuel for heating, lighting or other use, and sales of potable water to such a church shall be excluded from taxable gross income of the business if the electricity, current, power, natural gas, liquefied petroleum gas or potable water is utilized on property that is primarily used for religious or educational purposes.
The basis for determining the tax liability on gasoline shipped into this state in barge cargoes and by pipeline shall be 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.
(b) (i) There is hereby levied, assessed and shall be collected a tax equal to one and one-half percent (1-1/2%) of the gross income of the business from the sale of naturally occurring carbon dioxide and anthropogenic carbon dioxide lawfully injected into the earth for:
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.
25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 28 The tax levied herein shall accrue at the time gasoline is withdrawn from a refinery in this state except when withdrawal is by pipeline, barge, ship or vessel.
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.
The refiner shall report to the commission all sales and deliveries of gasoline to bonded distributors of gasoline.
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.
Gasoline imported by common carrier shall be deemed to be received by the distributor of gasoline, and the tax levied herein shall accrue, when the car or tank truck containing such gasoline is unloaded by the carrier.
With respect to distributors or other persons who bring, ship, have transported, or have brought into this state gasoline by means other than through a common carrier, the tax accrues and the tax liability attaches on the distributor or other person for each gallon of gasoline brought into the state at the time when and at the point where such gasoline is brought into the state.
The tax levied herein shall accrue on blend stock at the time it is blended with gasoline.
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.
The blender shall report to the commission all sales and 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 29 deliveries of blend stock to bonded distributors of gasoline.
The bonded distributor of gasoline who purchases, receives or acquires blend stock from a blender in this state shall report blend stock and pay the tax levied herein.
SECTION 7.
Section 27-55-519, Mississippi Code of 1972, is amended as follows:
27-55-519.
(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 compounded in this state or received in this state for sale, storage, distribution or for any purpose, adjusted to sixty (60) degrees Fahrenheit.
The excise tax shall become due and payable when:
(a) Special fuel is withdrawn from storage at a refinery, marine or pipeline terminal, except when withdrawal is by barge or pipeline.
(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.
(c) Special fuel imported by any person other than a common carrier enters the State of Mississippi unless the special 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 30 fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.
(d) Special fuel is blended in this state unless such blending occurs in a refinery, marine or pipeline terminal.
(e) Special fuel is acquired tax free.
(2) The special fuel excise tax shall be as follows:
(a) * * * On undyed diesel 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 date specified in Section 65-39-35, and Fourteen and Three-fourths Cents (14.75¢) per gallon thereafter;
(b) Five and Three-fourths Cents (5.75¢) per gallon on all special fuel except undyed diesel fuel and special fuel used as fuels in aircraft;
and (c) Five and One-fourth Cents (5.25¢) per gallon on special fuel used as fuel in aircraft.
(3) Beginning July 1, 2029, and on July 1 of every other year thereafter, the excise tax rate provided in this section shall be adjusted by the percentage change in the yearly average of the National Highway Construction Cost Index (NHCCI) issued by the U.S.
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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 31 period ending December 31, 2025, and rounded to the nearest whole cent.
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.
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.
SECTION 8.
Section 27-55-521, Mississippi Code of 1972, is amended as follows:
27-55-521.
(1) 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 engaged in business as a distributor of special fuel or who acts as such who sells:
(a) Special fuel for use in performing contracts for construction, reconstruction, maintenance or repairs, where such contracts are entered into with the State of Mississippi, any political subdivision of the State of Mississippi, or any department, agency, institution of the State of Mississippi or any political subdivision thereof.
25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 32 (b) Dyed diesel fuel or kerosene to a state or local governmental entity for use on the highways in a motor vehicle.
(c) Special fuel for use on the highway.
(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:
(a) Uses dyed diesel fuel or kerosene in a motor vehicle on the highways of this state in violation of Section 27-55-539.
(b) Purchases or acquires undyed diesel fuel or kerosene for nonhighway use and subsequently uses such diesel fuel or kerosene in a motor vehicle on the highways of this state.
(c) Purchases or acquires special fuel for use in performing contracts as specified in this section.
(3) Beginning July 1, 2029, and on July 1 of every other year thereafter, the excise tax rate provided in this section shall be adjusted by the percentage change in the yearly average of the National Highway Construction Cost Index (NHCCI) issued by the U.S.
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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 33 period ending December 31, 2025, and rounded to the nearest whole cent.
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.
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.
SECTION 9.
Section 27-55-12, Mississippi Code of 1972, is amended as follows:
27-55-12.
(1) The United States government, the State of Mississippi, counties, 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 exempt from excise taxes on gasoline, special fuel and compressed 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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 34 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 in effect on June 30, 1987, Three Cents (3¢) thereof shall be exempt.
(2) The exemption provided in subsection (1) of this section for sales of gasoline, special fuel and compressed gas to volunteer fire departments shall apply only 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.
(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).
(4) Any person other than a bonded distributor of gasoline, bonded distributor of special fuel or bonded distributor of 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 35 compressed gas who sells or delivers any gasoline, special fuel or compressed gas, subject to the exemption set forth in this section, is required to obtain credit for such exemption from a bonded distributor of gasoline, special fuel or compressed gas.
SECTION 10.
Section 27-55-523, Mississippi Code of 1972, is amended as follows:
27-55-523.
For the purpose 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 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.
At the time of filing each monthly report with the department, a distributor may take a credit for the number of gallons of special fuel that he purchased during the preceding calendar month from a distributor who pays the excise tax imposed by this article on such special fuel.
At the time of filing each monthly report with the department, each distributor of special fuel shall pay to the 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 36 department the full amount of the special fuel tax due from such distributor for the preceding calendar month.
Reports and payments must be filed electronically by the due date in order to be considered timely filed, except when the due date falls on a weekend or holiday, in which case such reports and payments must be filed electronically by the first working day following the due date in order to be considered timely filed.
The monthly report of the distributor of special fuel shall be prepared and filed with the department on forms prescribed by the department, or the distributor of special fuel may, with the approval of the department, furnish the required information on machine-prepared schedules.
Such monthly reports or schedules shall be signed by the distributor or his duly authorized agent and shall contain a declaration that the statements contained in such report are true and correct and are made under the penalty of perjury.
When special fuel, which would otherwise be taxable under the provisions of this article, is imported, sold, delivered or 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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 37 special fuel.
Provided, however, that the department may require proof to be furnished of such deduction for exempt special fuel.
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.
SECTION 11.
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:] 27-5-101.
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:
(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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 38 parity with the bonds issued under authority of said Chapter 130.
The State Treasurer shall certify to the * * * Department of Revenue on or before the fifteenth day of each month the amount to be paid to the "Highway Bonds Sinking Fund" as 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;
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 such fund 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 the Mississippi Department of Transportation 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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 39 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:
Use in an enhanced oil recovery project, including, but not limited to, use for cycling, repressuring or lifting of oil;
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.
or 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 for the construction, reconstruction and maintenance of highways of the State of Mississippi or the payment of interest and principal on bonds when specifically authorized by the Legislature for that purpose.
Permanent sequestration in a geological formation.
3.
(ii) The one and one-half percent (1-1/2%) rate provided for in this subsection shall apply to electricity, current, power, steam, coal, natural gas, liquefied petroleum gas or other fuel that is sold to a producer of oil and gas for use directly in enhanced oil recovery using carbon dioxide and/or the permanent sequestration of carbon dioxide in a geological formation.
The balance shall be deposited in the State Treasury to the credit of the State Highway Fund.
(c) The one and one-half percent (1-1/2%) rate provided for in this subsection shall not apply to sales of fuel for H.
(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¢) 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 40 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:
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 17(BS\JAB) automobiles, trucks, truck-tractors, buses, farm tractors or airplanes.
(d) (i) Upon every person providing services in this state, there is hereby levied, assessed and shall be collected:
A tax equal to seven percent (7%) of the gross income received from all charges for intrastate telecommunications services.
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.
2.
Two and three-fourths percent (2.75%) of such amount to the Strategic Multi-Modal Investments Fund created in Section 65-1-901.
A tax equal to seven percent (7%) of the gross income received from all charges for interstate telecommunications services.
A tax equal to seven percent (7%) of the gross income received from all charges for international telecommunications services.
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 three-year plan as adopted, amended by or reissued by the Mississippi Transportation Commission under Section 65-1-141.
4.
(b) Subject to the provisions that said basis of distribution shall in nowise affect adversely the amount specifically pledged in paragraph (a) of this section to be paid into the "Highway Bonds Sinking Fund," the following shall be deducted from the amount produced by the state tax on gasoline, diesel fuel or kerosene tax collections, excluding collections derived from the portion of the 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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 41 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 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:
A tax equal to seven percent (7%) of the gross income received from all charges for ancillary services.
(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;
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) The amount allowed as refund on gasoline or as tax credit on diesel fuel or kerosene used for agricultural, maritime, industrial, domestic, and nonhighway purposes;
(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.
(iii) Five percent (5%) of such amount shall be paid to the State Highway Fund;
B.
25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 42 (iv) The amount or portion thereof authorized by legislative appropriation to the Fisheries and Wildlife Fund created under Section 59-21-25;
No.
(v) The amount for deposit into the special aviation fund under paragraph (d) of this section;
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 18(BS\JAB) and actually paid in such other state and to the extent that the rate of sales tax imposed by and paid in such other state does not exceed the rate of sales tax imposed by this paragraph (d).
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).
(iii) Charges by one (1) telecommunications provider to another telecommunications provider holding a permit issued under Section 27-65-27 for services that are resold by such other telecommunications provider, including, but not limited to, access charges, shall not be subject to the tax levied pursuant to this paragraph (d).
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 this section and in Section 27-5-103 and the five-fourteenths (5/14) division shall be returned to the counties of the state on the following basis:
(iv) For purposes of this paragraph (d):
"Telecommunications service" means the electronic transmission, conveyance or routing of voice, data, audio, video or any other information or signals to a point, or between points.
In each fiscal year, each county shall be paid each month the same percentage of the monthly total to be distributed as was paid to that county during the same month in the fiscal year which ended April 9, 1960, until the county receives One Hundred Ninety Thousand Dollars ($190,000.00) in such fiscal year, at which time funds shall be distributed under the provisions of paragraph (b)(vi)4 of this section.
The term "telecommunications service" includes such transmission, conveyance or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such service is referred to as Voice over Internet Protocol services or is classified by the Federal Communications Commission as enhanced or value added.
25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 43 2.
The term "telecommunications service" shall not include:
If after payments in 1 above, any county has not received a total of One Hundred Ninety Thousand Dollars ($190,000.00) at the end of the fiscal year ending June 30, 1961, and each fiscal year thereafter, then any available funds not distributed under 1 above shall be used to bring such county or counties up to One Hundred Ninety Thousand Dollars ($190,000.00) or such funds shall be divided equally among such counties not reaching One Hundred Ninety Thousand Dollars ($190,000.00) if there is not sufficient money to bring all the counties to said One Hundred Ninety Thousand Dollars ($190,000.00).
a.
Data processing and information services that allow data to be generated, acquired, stored, processed or retrieved and delivered by an electronic transmission H.
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 19(BS\JAB) to a purchaser where such purchaser's primary purpose for the underlying transaction is the processed data or information;
b.
Installation or maintenance of wiring or equipment on a customer's premises;
c.
Tangible personal property;
d.
Advertising, including, but not limited to, directory advertising;
e.
Billing and collection services provided to third parties;
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.
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 20(BS\JAB) 2.
"Ancillary services" means services that are associated with or incidental to the provision of telecommunications services, including, but not limited to, detailed telecommunications billing, directory assistance, vertical service and voice mail service.
a.
"Conference bridging" means an ancillary service that links two (2) or more participants of an audio or video conference call and may include the provision of a telephone number.
Conference bridging does not include the telecommunications services used to reach the conference bridge.
b.
"Detailed telecommunications billing service" means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement.
c.
"Directory assistance" means an ancillary service of providing telephone number information and/or address information.
d.
"Vertical service" means an ancillary service that is offered in connection with one or more telecommunications services, which offers advanced calling features 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.
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 21(BS\JAB) receive recorded messages.
Voice mail service does not include any vertical services that the customer may be required to have in order to utilize the voice mail service.
"Intrastate" means telecommunications service that originates in one (1) United States state or United States territory or possession, and terminates in the same United States state or United States territory or possession.
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.
"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.
During the last month of the current fiscal year, should it be determined that there are funds available in excess of the amount distributed for the year under 1 and 2 above, then such excess funds shall be distributed among the various counties as follows:
One-third (1/3) of such excess to be divided equally among the counties;
One-third (1/3) of such excess to be paid to the counties in the proportion which the population of each 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 44 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.
"International" means a telecommunications service that originates or terminates in the United States and terminates or originates outside the United States, respectively.
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.
(v) For purposes of paragraph (d), the following sourcing rules shall apply:
The Municipal Aid Fund as established by Section 27-5-103 shall not participate in any portion of any funds allocated to any county hereunder over and above One Hundred Ninety Thousand Dollars ($190,000.00).
In any county having countywide road or bridge bonds, or supervisors district or district road or bridge bonds outstanding, which exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county or district, it shall be the duty of the board of supervisors to set aside not less than sixty percent (60%) of such county's share or district's share 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.
In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which exceed, in the 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 45 aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the 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 gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road or bridge bonds as they mature.
In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than twenty percent (20%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road and bridge bonds as they mature.
In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which do not exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than ten percent (10%) of such county's share of the gasoline, diesel fuel or kerosene taxes 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 46 to be used in paying the principal and interest on such road or bridge bonds as they mature.
The portion of any such county's share of the gasoline, diesel fuel or kerosene taxes thus set aside for the payment of the principal and interest of road or bridge bonds, as provided for in this section, shall be used first in paying the currently maturing installments of the principal and interest of such countywide road or bridge bonds, if there be any such countywide road or bridge bonds outstanding, and secondly, in paying the currently maturing installments of principal and interest of district road or bridge bonds outstanding.
It shall be the duty 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.
The remaining portion of such county's share of the gasoline, diesel fuel or kerosene taxes, after setting aside the portion above provided for the payment of the principal and interest of bonds, shall be used in the construction and maintenance of any public highways, bridges, or culverts of the county, including the roads in special or separate road districts, in the discretion of the board of supervisors, or in paying the interest and principal of county road and bridge bonds or district road and bridge bonds, in the discretion of the board of supervisors.
In any county having no countywide road or bridge bonds or district road or bridge bonds outstanding, all such county's share 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 47 of the gasoline, diesel fuel or kerosene taxes shall be used in the construction, reconstruction, and maintenance of the public highways, bridges, or culverts of the county as the board of supervisors may determine.
In every county in which there are county road bonds or seawall or road protection bonds outstanding which were issued for the purpose of building bridges or constructing public roads or seawalls, such funds shall be used in the manner provided by law.
(c) From the amount produced by the nine-fourteenths (9/14) division allocated to the * * * Department of Transportation, there shall be deducted:
(i) The amount paid to the State Treasurer for the "Highway Bonds Sinking Fund" under paragraph (a) of this section;
(ii) Any amounts due counties in accordance with Section 65-33-45 which have outstanding bonds issued for seawall or road protection purposes, issued under provisions of Chapter 319, Laws of 1924, and amendments thereto;
(iii) Except as otherwise provided in Section 31-17-127, the remainder shall be paid by the * * * Department of Revenue to the State Treasurer on the fifteenth day of each month next succeeding the month in which the gasoline, diesel fuel or kerosene taxes were collected to the credit of the State Highway Fund.
The funds allocated for the construction, reconstruction, and improvement of state highways, bridges, and culverts, or so much 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 48 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.
Nothing contained in this section shall be construed to reduce the amount of such gasoline, diesel fuel or kerosene excise taxes levied by the state, allotted under the provisions of Title 65, Chapter 33, Mississippi Code of 1972, to counties in which there are outstanding bonds issued for seawall or road protection purposes issued under the provisions of Chapter 319, Laws of 1924, and amendments thereto;
the amount of said gasoline, diesel fuel or kerosene excise taxes designated in this section for the payment of bonds and interest authorized and issued or to be issued 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, shall, in such counties, be considered as being paid "into the State Treasury to the credit of the State Highway Fund" within the meaning of Section 65-33-45 in computing the amount to be paid to such 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 49 counties under the provisions of said section, and this section shall be administered in connection with Title 65, Chapter 33, Mississippi Code of 1972, and Sections 65-33-45, 65-33-47 and 65-33-49 dealing with seawalls, as if made a part of this section.
(d) The proceeds of the Five and One-fourth Cents (5.25¢) of the tax per gallon on oils used as a propellant for jet aircraft engines, and Six and Four-tenths Cents (6.4¢) of the tax per gallon on aviation gasoline and the tax of One Cent (1¢) per gallon for each gallon of gasoline for which a refund has been made pursuant to Section 27-55-23 because such gasoline was used for aviation purposes, shall be paid to the State Treasury into a special fund to be used exclusively, pursuant to legislative appropriation, for the support and development of aeronautics as defined in Section 61-1-3.
(e) State highway funds in an amount equal to the difference between Forty-two Million Dollars ($42,000,000.00) and the annual debt service payable on the state's highway revenue refunding bonds, Series 1985, shall be expended for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97.
(f) "Gasoline, diesel fuel or kerosene taxes" as used in this section shall be deemed to mean and include state gasoline, diesel fuel or kerosene taxes levied and imposed on distributors of gasoline, diesel fuel or kerosene, and all state 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 50 excise taxes derived from any fuel used to propel vehicles upon the highways of this state, when levied by any statute.
[With regard to any county which is required to operate on a countywide system of road administration as described in Section 19-2-3, this section shall read as follows:] 27-5-101.
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:
(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.
The State Treasurer shall certify to the * * * Department of Revenue on or before the fifteenth day of each month the amount to be paid to the "Highway Bonds Sinking Fund" as provided by said Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 51 tax revenue, on a parity with the bonds issued under authority of said Chapter 130;
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 such fund 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 the * * * Department of Transportation 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 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 52 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:
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:
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.
a.
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 for the construction, reconstruction and maintenance of highways of the State of Mississippi or the payment of interest and principal on bonds when specifically authorized by the Legislature for that purpose.
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.
H.
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 22(BS\JAB) 2.
Except for the defined telecommunications services in item 3 of this subparagraph, a sale of telecommunications services sold on a basis other than a call-by-call basis, is sourced to the customer's place of primary use.
The sale of the following telecommunications services shall be sourced to each level of taxing jurisdiction as follows:
The balance shall be deposited in the State Treasury to the credit of the State Highway Fund.
a.
(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:
A sale of mobile telecommunications services other than air-to-ground radiotelephone service and prepaid calling service is sourced to the customer's place of primary use as required by the Mobile Telecommunication Sourcing Act.
A.
A home service provider shall be responsible for obtaining and maintaining the customer's place of primary use.
The home service provider shall be entitled to rely on the applicable residential or business street address supplied by such customer, if the home service provider's reliance is in good faith;
and 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.
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 23(BS\JAB) as 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 services provided after the expiration of a contract shall be treated as an extension or renewal of such contract or agreement.
B.
If 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.
of this item 3, the commissioner shall give binding notice to the home service provider to change the place of primary use on a prospective basis from the date of notice of determination;
however, the customer shall have the opportunity, prior to such notice of determination, to demonstrate that such address satisfies the definition.
C.
The department has the right to collect any taxes due directly from the home service provider's customer that has failed to provide an address that meets the definition of the term "place of primary use" which resulted in a failure of tax otherwise due being remitted.
b.
A sale of postpaid calling service is sourced to the origination point of the telecommunications signal as first identified by either:
A.
The seller's telecommunications system;
or H.
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 24(BS\JAB) B.
Information received by the seller from its service provider, where the system used to transport such signals is not that of the seller.
c.
A sale of a prepaid calling service or prepaid wireless calling service shall be subject to the tax imposed by this paragraph if the sale takes place in this state.
If the customer physically purchases a prepaid calling service or prepaid wireless calling service at the vendor's place of business, the sale is deemed to take place at the vendor's place of business.
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;
B.
The customer's billing address;
C.
Any other address of the customer that is known by the vendor;
or D.
The address of the vendor, or alternatively, in the case of a prepaid wireless calling service, the location associated with the mobile telephone number.
4.
A sale of a private communication service is sourced as follows:
H.
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 25(BS\JAB) a.
Service for a separate charge related to a customer channel termination point is sourced to each level of jurisdiction in which such customer channel termination point is located.
b.
Service where all customer termination points are located entirely within one (1) jurisdiction or levels of jurisdiction is sourced in such jurisdiction in which the customer channel termination points are located.
c.
Service 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.
Service for segments of a channel located in more than one (1) jurisdiction or levels of jurisdiction and which segments are not separately billed is sourced in each jurisdiction 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.
A sale of ancillary services is sourced to the customer's place of primary use.
H.
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 26(BS\JAB) (vi) For purposes of subparagraph (v) of this paragraph (d):
"Air-to-ground radiotelephone service" means a radio service, as that term is defined in 47 CFR 22.99, in which common carriers are authorized to offer and provide radio telecommunications service for hire to subscribers in aircraft.
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." 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 53 2.
2.
Two and three-fourths percent (2.75%) of such amount to the Strategic Multi-Modal Investments Fund created in Section 65-1-901.
"Call-by-call basis" means any method of charging for telecommunications services where the price is measured by individual calls.
"Communications channel" means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points.
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 three-year plan as adopted, amended by or reissued by the Mississippi Transportation Commission under Section 65-1-141.
4.
(b) Subject to the provisions that said basis of distribution shall in nowise affect adversely the amount specifically pledged in paragraph (a) of this section to be paid into the "Highway Bonds Sinking Fund," the following shall be deducted from the amount produced by the state tax on gasoline, diesel fuel or kerosene tax collections, excluding collections derived from the portion of the 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¢) that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 54 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:
"Customer" means the person or entity that contracts with the seller of telecommunications services.
(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;
If the end user of telecommunications services is not the contracting party, the end user of the telecommunications service is the customer of the telecommunications service.
(ii) The amount allowed as refund on gasoline or as tax credit on diesel fuel or kerosene used for agricultural, maritime, industrial, domestic and nonhighway purposes;
Customer does not include a reseller of telecommunications service or for mobile telecommunications service of a serving carrier under an agreement to serve the customer outside the home service provider's licensed service area.
(iii) Five percent (5%) of such amount shall be paid to the State Highway Fund;
5.
(iv) The amount or portion thereof authorized by legislative appropriation to the Fisheries and Wildlife Fund created under Section 59-21-25;
"Customer channel termination point" means the location where the customer either inputs or receives the communications.
(v) The amount for deposit into the special aviation fund under paragraph (d) of this section;
H.
and 25/SS08/HB1A.1J *SS08/HB1A.1J* PAGE 55 (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).
B.
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 this section and in Section 27-5-103 and the five-fourteenths (5/14) division shall be returned to the counties of the state on the following basis:
No.
1.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 27(BS\JAB) 6.
In each fiscal year, each county shall be paid each month the same percentage of the monthly total to be distributed as was paid to that county during the same month in the fiscal year which ended April 9, 1960, until the county receives One Hundred Ninety Thousand Dollars ($190,000.00) in such fiscal year, at which time funds shall be distributed under the provisions of paragraph (b)(vi)4 of this section.
"End user" means the person who utilizes the telecommunications service.
In the case of an entity, "end user" means the individual who utilizes the service on behalf of the entity.
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.
B.
No.
1 *HR31/R1223PH* ~ OFFICIAL ~ 25/HR31/R1223PH PAGE 28(BS\JAB) service that would be a prepaid calling service except it is not exclusively a telecommunications service.
11.