Amendment vs bill Committee Amendment No 1 (Adopted) (Voice Vote) vs Current version

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MISSISSIPPI LEGISLATURE REGULAR SESSION 2025 By:
Adopted COMMITTEE AMENDMENT NO 1 PROPOSED TO Senate Bill No.
Senator(s) Harkins, Michel, Blackwell, To:
3095 BY:
Finance Younger, Parks, Rhodes, Hopson, Robinson, McCaughn, Fillingane, Boyd, England, Wiggins, Berry, DeBar, DeLano, Chassaniol, Sparks, Suber, Kirby, Polk COMMITTEE SUBSTITUTE FOR SENATE BILL NO.
Committee Amend by striking all after the enacting clause and inserting in lieu thereof the following:
3095 AN ACT TO AMEND SECTION 27-7-5, MISSISSIPPI CODE OF 1972, TO REDUCE THE TAX ON ALL TAXABLE INCOME IN EXCESS OF $10,000.00 TO 3.75% FOR 2027, 3.5% FOR 2028, 3.25% FOR 2029, AND 2.99% FOR 2030 AND ALL SUBSEQUENT YEARS;
TO AMEND SECTION 27-65-17, MISSISSIPPI CODE OF 1972, TO TAX RETAIL SALES OF GROCERIES AT 5% FROM AND AFTER JULY 1, 2025;
TO AMEND SECTION 27-65-241, MISSISSIPPI CODE OF 1972, TO CONFORM;
TO BRING FORWARD SECTION 27-67-5, MISSISSIPPI CODE OF 1972, WHICH REQUIRES THE IMPOSITION OF A USE TAX, FOR THE PURPOSE OF POSSIBLE AMENDMENT;
TO AMEND SECTIONS 27-55-11, 27-55-519 AND 27-55-521, MISSISSIPPI CODE OF 1972, TO INCREASE THE EXCISE TAXES ON GASOLINE AND CERTAIN SPECIAL FUELS TO 21¢ PER GALLON FROM JULY 1, 2025, THROUGH JUNE 30, 2026, 24¢ PER GALLON FROM JULY 1, 2026, THROUGH JUNE 30, 2027, AND 27¢ PER GALLON FROM JULY 1, 2027, UNTIL THE FIRST DAY OF THE MONTH IMMEDIATELY FOLLOWING THE DATE UPON WHICH THE MISSISSIPPI TRANSPORTATION COMMISSION AND THE STATE TREASURER MAKE CERTAIN CERTIFICATIONS;
TO PROVIDE FOR THE INDEXING OF SUCH TAXES;
TO AMEND SECTIONS 27-55-12 AND 27-55-523, MISSISSIPPI CODE OF 1972, TO CONFORM;
TO AMEND SECTIONS 27-5-101 AND 27-65-75, MISSISSIPPI CODE OF 1972, TO ADJUST THE DISTRIBUTION OF REVENUE FROM CERTAIN GASOLINE AND SPECIAL FUEL TAXES;
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 AMEND SECTION 27-67-31, MISSISSIPPI CODE OF 1972, TO ADJUST THE DISTRIBUTION OF USE TAX REVENUE TO MUNICIPALITIES AND COUNTIES FOR INFRASTRUCTURE;
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 "House Bill No.
1 of the 2025 Regular Session, the Build Up Mississippi Act".
SECTION 2.
S.
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 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) individual, corporation, association, trust or estate, in excess of the credits provided, a tax at the following rates:
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ R3/5 25/SS08/R479CS PAGE 1 27-7-5.
(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:
S.
5.
B.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 2 5.
6.
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 6.
S.
1.
B.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 3 1.
2.
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 2.
For calendar year 2026 * * *, on such taxable income, the rate shall be four percent (4%) * * *;
For calendar year 2026 * * *, on such taxable income, the rate shall be four percent (4%);
For calendar year 2027, on such taxable income, the rate shall be three and three-fourths percent (3.75%);
For calendar year 2027, on such taxable income, the rate shall be three and five-tenths percent (3.5%);
For calendar year 2028, on such taxable income, the rate shall be three and one-half percent (3.5%);
For calendar year 2028, on such taxable income, the rate shall be three percent (3.0%);
For calendar year 2029, on such taxable income, the rate shall be three and one-fourth percent (3.25%);
For calendar year 2029, on such taxable income, the rate shall be two and seven-tenths percent (2.7%);
and 7.
7.
For calendar year 2030 and all calendar years thereafter, on such taxable income, the rate shall be two and ninety-nine-hundredths percent (2.99%).
For calendar year 2030, on such taxable income, the rate shall be two and four-tenths percent (2.4%);
It is the intent of the Legislature that before calendar year * * * 2030, the Legislature will consider whether the revised tax rates provided for in this subparagraph (ii) will be further decreased for calendar years after calendar year * * * 2030.
8.
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If the revised tax rates provided for in this subparagraph (ii) are further decreased for calendar years after calendar year * * * 2030 to the extent that there is no tax levied on the taxable S.
For calendar year 2031, on such taxable income, the rate shall be two and one-tenths percent (2.1%);
B.
9.
No.
For calendar year 2032, on such taxable income, the rate shall be one and eight-tenths percent (1.8%);
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 4 income of individuals under this subparagraph (ii), the individual income tax shall stand repealed.
10.
For calendar year 2033, on such taxable income, the rate shall be one and five-tenths percent (1.5%);
11.
For calendar year 2034, on such taxable income, the rate shall be one and two-tenths percent (1.2%);
12.
For calendar year 2035, on such taxable income, the rate shall be nine-tenths of one percent (.9%);
13.
For calendar year 2036, on such taxable income, the rate shall be six-tenths of one percent (.6%);
and 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 14.
For calendar year 2037 and all calendar years thereafter, there shall be no tax levied under subparagraph (iii) of paragraph (a) of this subsection upon taxable income of individuals in excess of Ten Thousand Dollars ($10,000.00).
* * * (c) However, notwithstanding any other provision of this section to the contrary, for calendar year 2025 and each calendar year thereafter, the tax imposed under this section, upon all taxable income of individuals that is derived from illegal activity and for income derived from producing, distributing, directing, manufacturing, issuing, publishing or advertising any depiction of sexually explicit conduct shall be at the rate of five percent (5%).
For the purposes of this paragraph (c), "sexually explicit conduct" has the meaning ascribed to such term in Section 97-5-31, notwithstanding whether depicting conduct by an adult or child.
(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:
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) (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:
and (c) Applying to the tax computed under paragraph (a) the ratio which the number of months falling within the earlier S.
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;
B.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 5 calendar year bears to the total number of months in the fiscal year;
SECTION 2.
SECTION 3.
27-65-17.
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 27-65-17.
(1) (a) Except as otherwise provided in this section, upon every person engaging or continuing within this state in the business of selling any tangible personal property whatsoever there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross proceeds of the retail sales of the business.
(1) (a) Except as otherwise provided in this section, upon every person engaging or continuing within this state in the business of selling any tangible personal property whatsoever there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) through June 30, 2026, seven and one-half percent (7.5%) from and after July 1, 2026, through June 30, 2027, and eight percent (8%) from and after July 1, 2027, of the gross proceeds of the retail sales of the business.
(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 S.
(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.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 6 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.
Self-propelled, or 2.
Self-propelled, or 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 2.
S.
(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%).
B.
(e) Sales of manufacturing machinery or manufacturing machine parts when made to a manufacturer or custom processor for plant use only when the machinery and machine parts will be used exclusively and directly within this state in manufacturing a 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) commodity for sale, rental or in processing for a fee shall be taxed at the rate of one and one-half percent (1-1/2%).
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 7 (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%).
(e) Sales of manufacturing machinery or manufacturing machine parts when made to a manufacturer or custom processor for plant use only when the machinery and machine parts will be used exclusively and directly within this state in manufacturing a commodity for sale, rental or in processing for a fee shall be taxed at the rate of one and one-half percent (1-1/2%).
S.
(iv) The enterprise shall manufacture plastics, chemicals, automobiles, aircraft, computers or electronics;
B.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 8 (iv) The enterprise shall manufacture plastics, chemicals, automobiles, aircraft, computers or electronics;
(v) The average wage of all workers employed by the enterprise at the facility shall be at least one hundred fifty percent (150%) of the state average annual wage;
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) (v) The average wage of all workers employed by the enterprise at the facility shall be at least one hundred fifty percent (150%) of the state average annual wage;
(i) Wholesale sales of food and drink for human consumption to full-service vending machine operators to be sold S.
(i) Wholesale sales of food and drink for human consumption to full-service vending machine operators to be sold through vending machines located apart from and not connected with other taxable businesses shall be taxed at the rate of eight percent (8%).
B.
(j) Sales of equipment used or designed for the purpose of assisting disabled persons, such as wheelchair equipment and lifts, that is mounted or attached to or installed on a private 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) carrier of passengers or light carrier of property, as defined in Section 27-51-101, at the time when the private carrier of passengers or light carrier of property is sold shall be taxed at the same rate as the sale of such vehicles under this section.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 9 through vending machines located apart from and not connected with other taxable businesses shall be taxed at the rate of eight percent (8%).
(j) Sales of equipment used or designed for the purpose of assisting disabled persons, such as wheelchair equipment and lifts, that is mounted or attached to or installed on a private carrier of passengers or light carrier of property, as defined in Section 27-51-101, at the time when the private carrier of passengers or light carrier of property is sold shall be taxed at the same rate as the sale of such vehicles under this section.
Operators that S.
Operators that 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.
B.
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) (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 at the rate of five percent (5%).
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 10 rebill sales of equipment and materials to nonoperating working interest owners on behalf of a joint account through the joint interest billing (JIB), where the sales tax has been paid or accrued by the operator shall not be charged a sales tax on the JIB as services income.
(n) Retail sales of food or drink for human consumption not purchased with food stamps issued by the United States Department of Agriculture or other federal agency, but which would be exempt under Section 27-65-111(o) from the taxes imposed by this chapter if the food items were purchased with food stamps, shall be taxed at the rate of five percent (5%) from and after July 1, 2025.
SECTION 3.
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:
S.
B.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 11 (a) "Hotel" or "motel" means and includes a place of lodging that at any one time will accommodate transient guests on 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, S.
B.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 12 derived from any of the activities taxed at the rate of seven percent (7%) or more under the Mississippi Sales Tax Law, Section 27-65-1 et seq.
(b) The tax levied under this section shall apply to every person making sales of tangible personal property or services within the municipality but shall not apply to:
(i) Sales exempted by Sections 27-65-19, 27-65-101, 27-65-103, 27-65-105, 27-65-107, 27-65-109 and 27-65-111 of the Mississippi Sales Tax Law;
(ii) Gross proceeds of sales or gross income of restaurants derived from the sale of food and beverages;
(iii) Gross proceeds of sales or gross income of hotels and motels derived from the sale of hotel rooms and motel rooms for lodging purposes;
* * * ( * * *iv) Gross income of businesses engaging or continuing in the business of TV cable systems, subscription TV 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.
S.
B.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 13 (3) (a) Before any tax authorized under this section may be imposed, the governing authorities of the municipality shall adopt a resolution declaring its intention to levy the tax, setting forth the amount of the tax to be imposed, the purposes for which the revenue collected pursuant to the tax levy may be used and expended, the date upon which the tax shall become effective, the date upon which the tax shall be repealed, and calling for an election to be held on the question.
The date of the election shall be set in the resolution.
Notice of the election shall be published once each week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the municipality, with the first publication of the notice to be made not less than twenty-one (21) days before the date fixed in the resolution for the election and the last publication to be made not more than seven (7) days before the election.
At the election, all qualified electors of the municipality may vote.
The ballots used at the election shall have printed thereon a brief description of the sales tax, the amount of the sales tax 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 S.
B.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 14 governing authorities to determine and adjudicate whether at least three-fifths (3/5) of the qualified electors who voted in the election voted in favor of the tax.
If at least three-fifths (3/5) of the qualified electors who voted in the election voted in favor of the tax, the governing authorities shall adopt a resolution declaring the levy and collection of the tax provided in this section and shall set the first day of the second month following the date of such adoption as the effective date of the tax levy.
A certified copy of this resolution, together with the result of the election, shall be furnished to the Department of Revenue not less than thirty (30) days before the effective date of the levy.
(b) A municipality shall not hold more than two (2) elections under this subsection.
(4) The revenue collected pursuant to the tax levy imposed under this section may be expended to pay the cost of road and street repair, reconstruction and resurfacing projects based on traffic patterns, need and usage, and to pay the costs of water, 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 S.
B.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 15 (1%) of the proceeds of such tax for the purpose of defraying the costs incurred by the department in the collection of the tax.
Payments to the municipality shall be made by the Department of Revenue on or before the fifteenth day of the month following the month in which the tax was collected.
However, if a municipality fails to comply with the audit, reporting and/or report filing requirements of paragraph (b) of this subsection and does not remedy such noncompliance within thirty (30) days after receiving written notice of noncompliance, the Department of Revenue shall withhold payments otherwise payable to the municipality under this paragraph (a) until the department receives written notice that the municipality has complied with such requirements.
(b) The proceeds of the special sales tax shall be placed into a special municipal fund apart from the municipal general fund and any other funds of the municipality, and shall be expended by the municipality solely for the purposes authorized in subsection (4) of this section.
The records reflecting the receipts and expenditures of the revenue from the special sales 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 S.
B.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 16 Representatives and the commission members.
The audit shall be made and completed as soon as practical after the close of the fiscal year of the municipality, and expenses of the audit shall be paid from the funds derived by the municipality pursuant to this section.
(c) Any expenditure from the special municipal fund defined in paragraph (b) above that was not for a project approved by the commission, or was in excess of the amount approved by the commission, shall be reimbursed by the city to the special fund.
(d) All provisions of the Mississippi Sales Tax Law applicable to filing of returns, discounts to the taxpayer, remittances to the Department of Revenue, enforced collection, rights of taxpayers, recovery of improper taxes, refunds of overpaid taxes or other provisions of law providing for imposition and collection of the state sales tax shall apply to the special sales tax authorized by this section, except where there is a conflict, in which case the provisions of this section shall control.
Any damages, penalties or interest collected for the 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 S.
B.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 17 provisions of the Mississippi Sales Tax Law.
The Department of Revenue may, from time to time, make such rules and regulations not inconsistent with this section as may be deemed necessary to carry out the provisions of this section, and such rules and regulations shall have the full force and effect of law.
(6) If a municipality expands its corporate boundaries, the governing authorities of the municipality may not impose the special sales tax in the annexed area unless the tax is approved at an election conducted, as far as is practicable, in the manner provided in subsection (3) of this section, except that only qualified electors in the annexed area may vote in the election.
(7) (a) Any municipality that levies the special sales tax authorized under this section shall establish a commission as provided for in this section.
Expenditures of revenue from the special sales tax authorized by this section shall be in accordance with a master plan adopted by the commission pursuant to this subsection.
(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.
S.
B.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 18 (ii) Three (3) members shall be appointed at large by the mayor of the municipality, with the advice and consent of 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 S.
B.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 19 commission.
The vice chairman and secretary shall be elected by the commission from among the membership of the commission for a term of two (2) years.
The vice chairman and secretary may be reelected, and the chairman may be reappointed.
(e) The commissioners shall serve without compensation.
(f) Any commissioner shall be disqualified and shall be removed from office for either of the following reasons:
(i) Conviction of a felony in any state court or in federal court;
or (ii) Failure to attend three (3) consecutive meetings without just cause.
If a commissioner is removed for any of the above reasons, the vacancy shall be filled in the manner prescribed in this section and shall be made for the unexpired term.
(g) A quorum shall consist of six (6) voting members of the commission.
The commission shall adopt such rules and 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 S.
B.
No.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 20 comply with the master plan.
The commission shall monitor the compliance of the municipality with the master plan.
(8) The governing authorities of any municipality that levies the special sales tax authorized under this section are authorized to incur debt, including bonds, notes or other evidences of indebtedness, for the purpose of paying the costs of road and street repair, reconstruction and resurfacing projects based on traffic patterns, need and usage, and to pay the costs of water, sewer and drainage projects in accordance with a master plan adopted by the commission established pursuant to subsection (7) of this section.
Any bonds or notes issued to pay such costs may be secured by the proceeds of the special sales tax levied pursuant to this section or may be general obligations of the municipality and shall satisfy the requirements for the issuance of debt provided by Sections 21-33-313 through 21-33-323.
(9) This section shall stand repealed from and after July 1, 2035.
Section 27-67-5, Mississippi Code of 1972, is brought forward as follows:
Section 27-65-19, Mississippi Code of 1972, is amended as follows:
27-67-5.
27-65-19.
There is hereby levied, assessed and shall be collected from every person a tax for the privilege of using, storing or consuming, within this state, any tangible personal property or specified digital product possession of which is acquired in any manner.
(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%) through June 30, 2026, seven and one-half percent (7.5%) from and after July 1, 2026, through June 30, 2027, and eight percent (8%) from and after July 1, 2027, of the gross income of the business.
S.
Provided, gross income from sales to consumers of electricity, current, power, natural gas, liquefied 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 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.
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%) through June 30, 2026, seven and one-half percent (7.5%) from and after July 1, 2026, through June 30, 2027, and eight percent (8%) from and after July 1, 2027, of the cost or value of the product or service used.
(ii) 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 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.
(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 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) carbon dioxide and anthropogenic carbon dioxide lawfully injected into the earth for:
1.
Use in an enhanced oil recovery project, including, but not limited to, use for cycling, repressuring or lifting of oil;
or 2.
Permanent sequestration in a geological formation.
(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.
(c) The one and one-half percent (1-1/2%) rate provided for in this subsection shall not apply to sales of fuel for 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:
1.
A tax equal to seven percent (7%) through June 30, 2026, seven and one-half percent (7.5%) from and after July 1, 2026, through June 30, 2027, and eight percent (8%) from and after July 1, 2027, of the gross income received from all charges for intrastate telecommunications services.
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 2.
A tax equal to seven percent (7%) through June 30, 2026, seven and one-half percent (7.5%) from and after July 1, 2026, through June 30, 2027, and eight percent (8%) from and after July 1, 2027, of the gross income received from all charges for interstate telecommunications services.
3.
A tax equal to seven percent (7%) through June 30, 2026, seven and one-half percent (7.5%) from and after July 1, 2026, through June 30, 2027, and eight percent (8%) from and after July 1, 2027, of the gross income received from all charges for international telecommunications services.
4.
A tax equal to seven percent (7%) through June 30, 2026, seven and one-half percent (7.5%) from and after July 1, 2026, through June 30, 2027, and eight percent (8%) from and after July 1, 2027, of the gross income received from all charges for ancillary services.
Sales of computer software, computer software services, specified digital products, or other products delivered electronically, including, but not limited to, music, games, reading materials or ring tones, shall be taxed as provided in other sections of this chapter.
(ii) A person, upon proof that he has paid a tax in another state on an event described in subparagraph (i) of this paragraph (d), shall be allowed a credit against the tax imposed in this paragraph (d) on interstate telecommunications service charges to the extent that the amount of such tax is properly due 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 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).
(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).
(iv) For purposes of this paragraph (d):
1.
"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.
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.
The term "telecommunications service" shall not include:
a.
Data processing and information services that allow data to be generated, acquired, stored, processed or retrieved and delivered by an electronic transmission 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 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.
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 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 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 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.
3.
"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.
4.
"Interstate" means a telecommunications service that originates in one (1) United States state or United States territory or possession, and terminates in a different United States state or United States territory or possession.
5.
"International" means a telecommunications service that originates or terminates in the United States and terminates or originates outside the United States, respectively.
(v) For purposes of paragraph (d), the following sourcing rules shall apply:
1.
Except for the defined telecommunications services in item 3 of this subparagraph, the sales of telecommunications services sold on a call-by-call basis shall be sourced to:
a.
Each level of taxing jurisdiction where the call originates and terminates in that jurisdiction, or b.
Each level of taxing jurisdiction where the call either originates or terminates and in which the service address is also located.
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 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.
3.
The sale of the following telecommunications services shall be sourced to each level of taxing jurisdiction as follows:
a.
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, 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 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.
No.
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.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 21 (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.
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;
(b) It shall be the duty of the tax collectors of the several counties, or the commissioner, as the case may be, to collect, remit and account for the tax on the use of all vehicles licensed or registered by the State of Mississippi for the first time, except when the Mississippi use tax was collected by an authorized out-of-state dealer at the time of purchase, or when the use thereof was exempt by Section 27-67-7.
however, the customer shall have the opportunity, prior to such notice of determination, to demonstrate that such address satisfies the definition.
The tax collector or the commissioner shall give to the person registering the vehicle a receipt in a form prescribed and furnished by the Department of Revenue for the amount of tax collected.
C.
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.
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.
Persons not engaging and continuing in business so as to be registered for payment of sales and/or use tax may pay use tax due on the first use of boats, airplanes, equipment or other tangible personal property and specified digital products to county tax S.
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 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 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;
No.
The customer's billing address;
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 22 collectors who are hereby authorized to accept such payments on behalf of the commissioner.
C.
Receipts for all such payments shall be given to taxpayers in a form prescribed and furnished by the Department of Revenue.
Any other address of the customer that is known by the vendor;
County tax collectors and the commissioner shall be liable for the tax they are required hereby to collect, and taxes which are in fact collected under authority of this section;
or D.
and failure to properly collect or maintain proper records shall not relieve them of liability for payment to the commissioner.
The address of the vendor, or alternatively, in the case of a prepaid wireless calling service, the location associated with the mobile telephone number.
Deficiencies in collection or payment shall be assessed against the tax collector or the commissioner in the same manner and subject to the same penalties and provisions for appeal as are deficiencies assessed against taxpayers.
4.
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.
A sale of a private communication service is sourced as follows:
Each tax collector of the several counties shall, on or before the twentieth day of each month, file a report with and pay to the commissioner all funds collected under the provisions of this article, less a commission of five percent (5%) which shall be retained by the tax collector as a commission for collecting such tax and be deposited in the county general fund.
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) a.
The report required to be filed shall cover all collections made during the S.
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.
b.
No.
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.
3095 *SS08/R479CS* ~ OFFICIAL ~ 25/SS08/R479CS PAGE 23 calendar month next preceding the date on which the report is due and filed.
c.
Any error in the report and remittance to the commissioner may be adjusted on a subsequent report.
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.
If the error was in the collection by the tax collector, it shall be adjusted through the tax collector with the taxpayer before credit is allowed by the commissioner.
d.
All information relating to the collection of use tax by tax collectors and such records as the commissioner may require shall be preserved in the tax collector's office for a period of three (3) years for audit by the commissioner.
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.
Computer software maintained on a server located outside the state and accessible for use only via the internet is not a taxable use, storage or consumption under this chapter.
5.
A sale of ancillary services is sourced to the customer's place of primary use.
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) (vi) For purposes of subparagraph (v) of this paragraph (d):
1.
"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.
2.
"Call-by-call basis" means any method of charging for telecommunications services where the price is measured by individual calls.
3.
"Communications channel" means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points.
4.
"Customer" means the person or entity that contracts with the seller of telecommunications services.
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.
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.
5.
"Customer channel termination point" means the location where the customer either inputs or receives the communications.
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 6.
"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 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) service that would be a prepaid calling service except it is not exclusively a telecommunications service.
11.
"Prepaid calling service" means the right to access exclusively telecommunications services, which must be paid for in advance and which enables the origination of calls using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount.
12.
"Prepaid wireless calling service" means a telecommunications service that provides the right to utilize mobile wireless service as well as other nontelecommunications services, including the download of digital products delivered electronically, content and ancillary service, which must be paid for in advance that is sold in predetermined units or dollars of which the number declines with use in a known amount.
13.
"Private communication service" means a telecommunications service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations and any other associated services that are provided in connection with the use of such channel or channels.
14.
"Service address" means:
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) a.
The location of the telecommunications equipment to which a customer's call is charged and from which the call originates or terminates, regardless of where the call is billed or paid.
b.
If the location in subitem a of this item 14 is not known, the origination point of the signal of the telecommunications services first identified by either the seller's telecommunications system or in information received by the seller from its service provider, where the system used to transport such signals is not that of the seller.
c.
If the location in subitems a and b of this item 14 are not known, the location of the customer's place of primary use.
(vii) 1.
For purposes of this subparagraph (vii), "bundled transaction" means a transaction that consists of distinct and identifiable properties or services which are sold for a single nonitemized price but which are treated differently for tax purposes.
2.
In the case of a bundled transaction that includes telecommunications services, ancillary services, internet access, or audio or video programming services taxed under this chapter in which the price of the bundled transaction is attributable to properties or services that are taxable and nontaxable, the portion of the price that is attributable to any nontaxable property or service shall be subject to the tax unless 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) the provider can reasonably identify that portion from its books and records kept in the regular course of business.
3.
In the case of a bundled transaction that includes telecommunications services, ancillary services, internet access, audio or video programming services subject to tax under this chapter in which the price is attributable to properties or services that are subject to the tax but the tax revenue from the different properties or services are dedicated to different funds or purposes, the provider shall allocate the price among the properties or services:
a.
By reasonably identifying the portion of the price attributable to each of the properties and services from its books and records kept in the regular course of business;
or b.
Based on a reasonable allocation methodology approved by the department.
4.
This subparagraph (vii) shall not create a right of action for a customer to require that the provider or the department, for purposes of determining the amount of tax applicable to a bundled transaction, allocate the price to the different portions of the transaction in order to minimize the amount of tax charged to the customer.
A customer shall not be entitled to rely on the fact that a portion of the price is attributable to properties or services not subject to tax unless the provider elects, after receiving a written request from the 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) customer in the form required by the provider, to provide verifiable data based upon the provider's books and records that are kept in the regular course of business that reasonably identifies the portion of the price attributable to the properties or services not subject to the tax.
(2) Persons making 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 or sales of potable water for residential, noncommercial or nonagricultural use shall indicate on each statement rendered to customers that such charges are exempt from sales taxes.
(3) There is hereby levied, assessed and shall be paid on transportation charges on shipments moving between points within this state when paid directly by the consumer, a tax equal to the rate applicable to the sale of the property being transported.
Such tax shall be reported and paid directly to the Department of Revenue by the consumer.
Section 27-65-22, Mississippi Code of 1972, is amended as follows:
27-65-22.
(1) Upon every person engaging or continuing in any amusement business or activity, which shall include all manner and forms of entertainment and amusement, all forms of diversion, sport, recreation or pastime, shows, exhibitions, contests, displays, games or any other and all methods of obtaining 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) admission charges, donations, contributions or monetary charges of any character, from the general public or a limited or selected number thereof, directly or indirectly in return for other than tangible property or specific personal or professional services, whether such amusement is held or conducted in a public or private building, hotel, tent, pavilion, lot or resort, enclosed or in the open, there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) through June 30, 2026, seven and one-half percent (7.5%) from and after July 1, 2026, through June 30, 2027, and eight percent (8%) from and after July 1, 2027, of the gross income received as admission, except as otherwise provided herein.
In lieu of the rate set forth above, there is hereby imposed, levied and assessed, to be collected as hereinafter provided, a tax of three percent (3%) of gross revenue derived from sales of admission to publicly owned enclosed coliseums and auditoriums (except admissions to athletic contests between colleges and universities).
There is hereby imposed, levied and assessed a tax of seven percent (7%) through June 30, 2026, seven and one-half percent (7.5%) from and after July 1, 2026, through June 30, 2027, and eight percent (8%) from and after July 1, 2027, of gross revenue derived from sales of admission to events conducted on property managed by the Mississippi Veterans Memorial Stadium, which tax shall be administered in the manner prescribed in this chapter, subject, however, to the provisions of Sections 55-23-3 through 55-23-11.
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) (2) The operator of any place of amusement in this state shall collect the tax imposed by this section, in addition to the price charged for admission to any place of amusement, and under all circumstances the person conducting the amusement shall be liable for, and pay the tax imposed based upon the actual charge for such admission.
Where permits are obtained for conducting temporary amusements by persons who are not the owners, lessees or custodians of the buildings, lots or places where the amusements are to be conducted, or where such temporary amusement is permitted by the owner, lessee or custodian of any place to be conducted without the procurement of a permit as required by this chapter, the tax imposed by this chapter shall be paid by the owner, lessee or custodian of such place where such temporary amusement is held or conducted, unless paid by the person conducting the amusement, and the applicant for such temporary permit shall furnish with the application therefor, the name and address of the owner, lessee or custodian of the premises upon which such amusement is to be conducted, and such owner, lessee or custodian shall be notified by the commission of the issuance of such permit, and of the joint liability for such tax.
(3) The tax imposed by this section shall not be levied or collected upon:
(a) Any admissions charged at any place of amusement operated by a religious, charitable or educational organization, or by a nonprofit civic club or fraternal organization (i) when 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) the net proceeds of such admissions do not inure to any one or more individuals within such organization and are to be used solely for religious, charitable, educational or civic purposes;
or (ii) when the entire net proceeds are used to defray the normal operating expenses of such organization, such as loan payments, maintenance costs, repairs and other operating expenses;
(b) Any admissions charged to hear gospel singing when promoted by a duly constituted local, bona fide nonprofit charitable or religious organization, irrespective of the fact that the performers and promoters are paid out of the proceeds of admissions collected, provided the program is composed entirely of gospel singing and not generally mixed with hillbilly or popular singing;
(c) Any admissions charged at any athletic games or contests between high schools or between grammar schools;
(d) Any admissions or tickets to or for baseball games between teams operated under a professional league franchise;
(e) Any admissions to county, state or community fairs, or any admissions to entertainments presented in community homes or houses which are publicly owned and controlled, and the proceeds of which do not inure to any individual or individuals;
(f) Any admissions or tickets to organized garden pilgrimages and to antebellum and historic houses when sponsored by an organized civic or garden club;
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) (g) Any admissions to any golf tournament held under the auspices of the Professional Golf Association or United States Golf Association wherein touring professionals compete, if such tournament is sponsored by a nonprofit association incorporated under the laws of the State of Mississippi where no dividends are declared and the proceeds do not inure to any individual or group;
(h) Any admissions to university or community college conference, state, regional or national playoffs or championships;
(i) Any admissions or fees charged by any county or municipally owned and operated swimming pools, golf courses and tennis courts other than sales or rental of tangible personal property;
(j) Any admissions charged for the performance of symphony orchestras, operas, vocal or instrumental artists in which professional or amateur performers are compensated out of the proceeds of such admissions, when sponsored by local music or charity associations, or amateur dramatic performances or professional dramatic productions when sponsored by a children's dramatic association, where no dividends are declared, profits received, nor any salary or compensation paid to any of the members of such associations, or to any person for procuring or producing such performance;
(k) Any admissions or tickets to or for hockey games between teams operated under a professional league franchise;
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) (l) Any admissions or tickets to or for events sanctioned by the Mississippi Athletic Commission that are held within publicly owned enclosed coliseums and auditoriums;
(m) Guided tours on any navigable waters of this state, which include providing accommodations, guide services and/or related equipment operated by or under the direction of the person providing the tour, for the purposes of outdoor tourism;
(n) Any admissions to events held solely for religious or charitable purposes at livestock facilities, agriculture facilities or other facilities constructed, renovated or expanded with funds from the grant program authorized under Section 18 of Chapter 530, Laws of 1995;
and (o) (i) Any admissions charged at events, activities or entertainments:
1.
Which are open to the public and held in or on parks, lands or buildings which are publicly owned, leased, used and/or controlled by a municipality, or any agency thereof;
2.
Which are created and sponsored by the municipality, or an agency thereof;
and 3.
The proceeds of which do not inure to the benefit of any individual or individuals;
however, (ii) The governing authorities of a municipality may require the tax imposed by this section to be levied and collected at events, activities or entertainments described in subparagraph (i) of this paragraph by:
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 1.
Adopting an ordinance requiring the levy and collection of the tax;
2.
Providing the Department of Revenue with a certified copy of the ordinance requiring the tax to be levied and assessed at least thirty (30) days prior to the effective date of the ordinance;
(iii) If the ordinance described in subparagraph (ii) of this paragraph is repealed, the municipality shall provide the Department of Revenue with a certified copy of the repeal of the ordinance at least thirty (30) days prior to the effective date of the repeal.
SECTION 6.
Section 27-65-23, Mississippi Code of 1972, is amended as follows:
27-65-23.
Upon every person engaging or continuing in any of the following businesses or activities there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) through June 30, 2026, seven and one-half percent (7.5%) from and after July 1, 2026, through June 30, 2027, and eight percent (8%) from and after July 1, 2027, of the gross income of the business, except as otherwise provided:
Air-conditioning installation or repairs;
Automobile, motorcycle, boat or any other vehicle repairing or servicing;
Billiards, pool or domino parlors;
Bowling or tenpin alleys;
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) Burglar and fire alarm systems or services;
Car washing — automatic, self-service, or manual;
Computer software services actually performed within this state;
Cotton compresses or cotton warehouses;
Custom creosoting or treating, custom planing, custom sawing;
Custom meat processing;
Electricians, electrical work, wiring, all repairs or installation of electrical equipment;
Elevator or escalator installing, repairing or servicing;
Film developing or photo finishing;
Foundries, machine or general repairing;
Furniture repairing or upholstering;
Grading, excavating, ditching, dredging or landscaping;
Hotels (as defined in Section 41-49-3), motels, tourist courts or camps, trailer parks;
Insulating services or repairs;
Jewelry or watch repairing;
Laundering, cleaning, pressing or dyeing;
Marina services;
Mattress renovating;
Office and business machine repairing;
Parking garages and lots;
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) Plumbing or pipe fitting;
Public storage warehouses (There shall be no tax levied on gross income of a public storage warehouse derived from the temporary storage of tangible personal property in this state pending shipping or mailing of the property to another state.);
Refrigerating equipment repairs;
Radio or television installing, repairing, or servicing;
Renting or leasing personal property used within this state;
Services performed in connection with geophysical surveying, exploring, developing, drilling, producing, distributing, or testing of water resources not related to development of oil, gas and other mineral resources;
Shoe repairing;
Storage lockers;
Telephone answering or paging services;
Termite or pest control services;
Tin and sheet metal shops;
TV cable systems, subscription TV services, and other similar activities;
Vulcanizing, repairing or recapping of tires or tubes;
Welding;
and Woodworking or wood-turning shops.
Income from services taxed herein performed for electric power associations in the ordinary and necessary operation of 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) their generating or distribution systems shall be taxed at the rate of one percent (1%).
Income from services taxed herein performed on materials for use in track or track structures to a railroad whose rates are fixed by the Interstate Commerce Commission or the Mississippi Public Service Commission shall be taxed at the rate of three percent (3%).
Income from services performed in connection with geophysical surveying, exploring, developing, drilling, redrilling, completing, working over, producing, distributing, or testing of oil, gas and other mineral resources, including overhead services shall be taxed at the rate of four and one-half percent (4-1/2%).
Operators that rebill services to nonoperating working interest owners on behalf of the 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.
Income from renting or leasing tangible personal property used within this state shall be taxed at the same rates as sales of the same property.
Persons doing business in this state who rent transportation equipment with a situs within or without the state to common, contract or private commercial carriers are taxed on that part of the income derived from use within this state.
If specific 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) accounting is impracticable, a formula may be used with approval of the commissioner.
A lessor may deduct from the tax computed on the rental income from tangible personal property a credit for sales or use tax paid to this state at the time of purchase of the specific personal property being leased or rented until such credit has been exhausted.
Charges for custom processing and repairing services may be excluded from gross taxable income when the property on which the service was performed is delivered to the customer in another state either by common carrier or in the seller's equipment.
When a taxpayer performs services covered by this section, which are performed both in intrastate and interstate commerce, the taxpayer may utilize any reasonable formulae of apportionment which will apportion to this state, for taxation, that portion of the services which are performed within the State of Mississippi.
SECTION 7.
Section 27-65-25, Mississippi Code of 1972, is amended as follows:
27-65-25.
Upon every person engaging or continuing within this state in the business of selling alcoholic beverages at retail, the sales of which are legal under the provisions of Chapter 1 of Title 67, Mississippi Code of 1972, there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) through June 30, 2026, seven and one-half percent (7.5%) from and after July 1, 2026, through June 30, 2027, and 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) eight percent (8%) from and after July 1, 2027, of the gross proceeds of the retail sales of the business.
SECTION 8.
Section 27-65-26, Mississippi Code of 1972, is amended as follows:
27-65-26.
(1) Upon every person engaging or continuing within this state in the business of selling, renting or leasing specified digital products, there shall be levied, assessed and shall be collected a tax equal to seven percent (7%) through June 30, 2026, seven and one-half percent (7.5%) from and after July 1, 2026, through June 30, 2027, and eight percent (8%) from and after July 1, 2027, of the gross income of the business.
The sale of a digital code that allows the purchaser to obtain a specified digital product shall be taxed in the same manner as the sale of a specified digital product.
The tax is imposed when:
(a) The sale is to an end user;
(b) The seller grants the right of permanent or less than permanent use of the products transferred electronically;
or (c) The sale is conditioned or not conditioned upon continued payment.
(2) Charges by one (1) specified digital products provider to another specified digital products provider holding a permit issued under Section 27-65-27 for services that are resold by such other specified digital products provider shall not be subject to the tax levied pursuant to this section.
(3) For purposes of this section:
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) (a) "Specified digital products" means electronically transferred digital audio-visual works, digital audio works and digital books.
(b) "Digital audio-visual works" means a series of related images which, when shown in succession, impart an impression of motion, together with accompanying sounds, if any.
(c) "Digital audio works" means works that result from the fixation of a series of musical, spoken or other sounds, including ringtones.
"Ringtones" means digitized sound files that are downloaded onto a device and that may be used to alert the customer with respect to a communication.
(d) "Digital books" means works that are generally recognized in the ordinary and usual sense as "books." (e) "Electronically transferred" means obtained by the purchaser by means other than tangible storage media.
(f) "End user" means any person other than a person who receives by contract a product transferred electronically for further commercial broadcast, rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution or exhibition of the product, in whole or in part, to another person or persons.
(g) "Permanent use" means for purposes of this section for perpetual or for an indefinite or unspecified length of time.
(h) "Digital code" means a code that permits a purchaser to obtain a specified digital product at a later date.
25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) SECTION 9.
Section 27-65-75, Mississippi Code of 1972, is amended as follows:
27-65-75.
On or before the fifteenth day of each month, the revenue collected under the provisions of this chapter during the preceding month shall be paid and distributed as follows:
(1) (a) On or before August 15, 1992, and each succeeding month thereafter through July 15, 1993, eighteen percent (18%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation.
Except as otherwise provided in this paragraph (a), on or before August 15, 1993, and each succeeding month thereafter through August 15, 2026, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 27-65-24, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation.
Except as otherwise provided in this paragraph (a), on or before September 15, 2026, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) chapter, except that collected under the provisions of Sections 27-65-15, 27-65-17(1)(n), 27-65-19(3), 27-65-21 and 27-65-24, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation.
Except as otherwise provided in this paragraph (a), on or before September 15, 2026, and each succeeding month thereafter, twenty-five and nine-tenths percent (25.9%) of the total sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1)(n) on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation.
However, in the event the State Auditor issues a certificate of noncompliance pursuant to Section 21-35-31, the Department of Revenue shall withhold ten percent (10%) of the allocations and payments to the municipality that would otherwise be payable to the municipality under this paragraph (a) until such time that the department receives written notice of the cancellation of a certificate of noncompliance from the State Auditor.
A municipal corporation, for the purpose of distributing the tax under this subsection, shall mean and include all incorporated cities, towns and villages.
Monies allocated for distribution and credited to a municipal corporation under this paragraph may be pledged as security for a loan if the distribution received by the municipal corporation is 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) otherwise authorized or required by law to be pledged as security for such a loan.
In any county having a county seat that is not an incorporated municipality, the distribution provided under this subsection shall be made as though the county seat was an incorporated municipality;
however, the distribution to the municipality shall be paid to the county treasury in which the municipality is located, and those funds shall be used for road, bridge and street construction or maintenance in the county.
(b) On or before August 15, 2006, and each succeeding month thereafter through August 15, 2026, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities on the campus of a state institution of higher learning or community or junior college whose campus is not located within the corporate limits of a municipality, shall be allocated for distribution to the state institution of higher learning or community or junior college and paid to the state institution of higher learning or community or junior college.
On or before September 15, 2026, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) 27-65-17(1)(n), 27-65-19(3) and 27-65-21, on business activities on the campus of a state institution of higher learning or community or junior college whose campus is not located within the corporate limits of a municipality, shall be allocated for distribution to the state institution of higher learning or community or junior college and paid to the state institution of higher learning or community or junior college.
On or before September 15, 2026, and each succeeding month thereafter, twenty- five and nine-tenths percent (25.9%) of the total sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1)(n) on business activities on the campus of a state institution of higher learning or community or junior college whose campus is not located within the corporate limits of a municipality, shall be allocated for distribution to the state institution of higher learning or community or junior college and paid to the state institution of higher learning or community or junior college.
(c) On or before August 15, 2018, and each succeeding month thereafter until August 14, 2019, two percent (2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 27-65-24, on business activities within the corporate limits of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in 25/HR26/SB3095A.3J *HR26/SB3095A.3J* P(BS/KW) Section 29-5-215.
On or before August 15, 2019, and each succeeding month thereafter until August 14, 2020, four percent (4%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 27-65-24, on business activities within the corporate limits of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215.
On or before August 15, 2020, and each succeeding month thereafter through July 15, 2023, six percent (6%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 27-65-24, on business activities within the corporate limits of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215.
On or before August 15, 2023, and each succeeding month thereafter through August 15, 2026, nine percent (9%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 27-65-24, on business activities within the corporate limits of the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215.