HB 1163 — Sales tax; revise definition of "installation charges" to exclude labor services in connection with residential roofing.

(i) "Operator" — One who holds all or a fraction of the working or operating rights in an oil or gas lease, and is obligated for the costs of production either as a fee owner or under a lease or any other form of contract creating working or operating rights.

(ii) "Bottom-hole contribution" — Money or property given to an operator for his use in the drilling of a well on property in which the payor has no interest.

The contribution is payable whether the well is productive or nonproductive.

(iii) "Dry-hole contribution" — Money or property given to an operator for his use in the drilling of a well on property in which the payor has no interest.

Such contribution is payable only in the event the well is found to be nonproductive.

(iv) "Turnkey drilling contract" — A contract for the drilling of a well which requires the driller to drill a well and, if commercial production is obtained, to equip the well to such stage that the lessee or operator may turn a valve and the oil will flow into a tank.

(v) "Total contract price or compensation received" — As related to oil and gas well contractors, shall H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 5(BS\KW) include amounts received as compensation for all costs of performing a turnkey drilling contract;

amounts received or to be received under assignment as dry-hole money or bottom-hole money;

and shall mean and include anything of value received by the contractor as remuneration for services taxable hereunder.

When the kind and amount of compensation received by the contractor is contingent upon production, the taxable amount shall be the total compensation receivable in the event the well is a dry hole.

The taxable amount in the event of production when the contractor receives a production interest of an undetermined value in lieu of a fixed compensation shall be an amount equal to the compensation to the contractor if the well had been a dry hole.

(3) (a) When the work to be performed under any contract is sublet by the prime contractor to different persons, or in separate contracts to the same persons, each such subcontractor performing any part of said work shall be liable for the amount of the tax which accrues on account of the work performed by such person when the tax heretofore imposed has not been paid upon the whole contract by the prime contractor.

(b) When a person engaged in any business on which a tax is levied in Sections 27-65-17, 27-65-20 or 27-65-23, also qualifies as a contractor, and contracts with the owner of any project to perform any services in excess of Ten Thousand Dollars ($10,000.00) herein taxed, such person shall pay the tax imposed H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 6(BS\KW) by this section in lieu of the tax imposed by Sections 27-65-17, 27-65-20 or 27-65-23, as applicable.

(c) (i) Any person entering into any contract over Seventy-five Thousand Dollars ($75,000.00) as defined in this section shall, before beginning the performance of such contract or contracts, either pay the contractors' tax in advance, together with any use taxes due under Section 27-67-5, or execute and file with the commissioner a good and valid bond in a surety company authorized to do business in this state, or with sufficient sureties to be approved by the commissioner conditioned that all taxes which may accrue to the State of Mississippi under this chapter, or under Section 27-67-5 and Section 27-7-5, will be paid when due.

Such bonds shall be either (a) "job bonds" which guarantee payment when due of the aforesaid taxes resulting from performance of a specified job or activity regardless of date of completion;

or (b) "blanket bonds" which guarantee payment when due of the aforesaid taxes resulting from performance of all jobs or activities taxable under this section begun during the period specified therein, regardless of date of completion.

The payments of the taxes due or the execution and filing of a surety bond shall be a condition precedent to the commencing work on any contract taxed hereunder.

Provided, that when any bond is filed in lieu of the prepayment of the tax under this section, that the tax shall be payable monthly on the amount received during the previous month, and any use taxes due shall be payable on or H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 7(BS\KW) before the twentieth day of the month following the month in which the property is brought into Mississippi.

(ii) Any person failing either to execute any bond herein provided, or to pay the taxes in advance, before beginning the performance of any contract shall be denied the right to perform such contract until he complies with such requirements, and the commissioner is hereby authorized to proceed either under Section 27-65-59, under Section 27-65-61 or by injunction to prevent any activity in the performance of such contract until either a satisfactory bond is executed and filed, or all taxes are paid in advance, and a temporary injunction enjoining the execution of such contract shall be granted without notice by any judge or chancellor now authorized by law to grant injunctions.

(4) (a) Any person liable for a tax under this section may apply for and obtain a material purchase certificate from the commissioner which may entitle the holder to purchase materials and services that are to become a component part of the structure to be erected or repaired with no tax due.

Provided, that the contractor applying for the contractor's material purchase certificate shall furnish the Department of Revenue a list of all work sublet to others, indicating the amount of work to be performed, and the names and addresses of each subcontractor.

(b) Any person liable for a tax under this section may apply for and obtain a material purchase certificate from the commissioner on a per contract basis or on an annual basis.

If H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 8(BS\KW) the material purchase certificate issued by the commissioner is issued to a person on an annual basis, then the material purchase certificate may be used for all contracts entered into by the person liable for a tax under this section during any calendar year, and renewed each calendar year, thereafter.

SECTION 2.

Section 27-65-3, Mississippi Code of 1972, is amended as follows:

27-65-3.

The words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them herein.

(a) "Tax Commission" or "department" means the Department of Revenue of the State of Mississippi.

(b) "Commissioner" means the Commissioner of Revenue of the Department of Revenue.

(c) "Person" means and includes any individual, firm, copartnership, joint venture, association, corporation, promoter of a temporary event, estate, trust or other group or combination acting as a unit, and includes the plural as well as the singular in number.

"Person" shall include husband or wife, or both, where joint benefits are derived from the operation of a business taxed hereunder.

"Person" shall also include any state, county, municipal or other agency or association engaging in a business taxable under this chapter.

(d) "Tax year" or "taxable year" means either the calendar year or the taxpayer's fiscal year.

H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 9(BS\KW) (e) "Taxpayer" means any person liable for or having paid any tax to the State of Mississippi under the provisions of this chapter.

A taxpayer is required to obtain a sales tax permit under Section 27-65-27 before engaging in business in this state.

If a taxpayer fails to obtain a sales tax permit before engaging in business in this state, the taxpayer shall pay the retail rate on all purchases of tangible personal property and/or services in this state, even if purchased for resale.

Upon obtaining a sales tax permit, a previously unregistered taxpayer shall file sales tax returns for all tax periods during which he engaged in business in this state without a sales tax permit, and report and pay the sales tax accruing from his operation during this period and any applicable penalties and interest.

On such return, the taxpayer may take a credit for any sales taxes paid during the period he operated without a sales tax permit on a purchase that would have constituted a wholesale sale if the taxpayer had a sales tax permit at the time of the purchase and if proper documentation exists to substantiate a wholesale sale.

This credit may also be allowed in any audit of the taxpayer.

Any penalties and interest owed by the taxpayer on the return or in an audit for a period during which he operated without a sales tax permit may be determined based on the sales tax accruing from the taxpayer's operation for that period after the taking of this credit.

H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 10(BS\KW) (f) "Sale" or "sales" includes the barter or exchange of property as well as the sale thereof for money or other consideration, and every closed transaction by which the title to taxable property passes shall constitute a taxable event.

"Sale" shall also include the passing of title to property for a consideration of coupons, trading stamps or by any other means when redemption is subsequent to the original sale by which the coupon, stamp or other obligation was created.

The situs of a sale for the purpose of distributing taxes to municipalities shall be the same as the location of the business from which the sale is made except that:

(i) Retail sales along a route from a vehicle or otherwise by a transient vendor shall take the situs of delivery to the customer.

(ii) The situs of wholesale sales of tangible personal property taxed at wholesale rates, the amount of which is allowed as a credit against the sales tax liability of the retailer, shall be the same as the location of the business of the retailer receiving the credit.

(iii) The situs of wholesale sales of tangible personal property taxed at wholesale rates, the amount of which is not allowed as a credit against the sales tax liability of the retailer, shall have a rural situs.

H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 11(BS\KW) (iv) Income received from the renting or leasing of property used for transportation purposes between cities or counties shall have a rural situs.

(g) "Delivery charges" shall mean and include any expenses incurred by a seller in acquiring merchandise for sale in the regular course of business commonly known as "freight-in" or "transportation costs-in." "Delivery charges" also include any charges made by the seller for delivery of property sold to the purchaser.

(h) "Gross proceeds of sales" means the value proceeding or accruing from the full sale price of tangible personal property, including installation charges, without any deduction for delivery charges, cost of property sold, other expenses or losses, or taxes of any kind except those expressly exempt by this chapter.

"Gross proceeds of sales" includes consideration received by the seller from third parties if:

(i) The seller actually received consideration from a party other than the purchaser and the consideration is directly related to a price reduction or discount on the sale;

(ii) The seller has an obligation to pass the price reduction or discount through to the purchaser;

(iii) The amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale of the item to the purchaser;

and H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 12(BS\KW) (iv) One (1) of the following criteria is met:

1.

The purchaser presents a coupon, certificate or other documentation to the seller to claim a price reduction or discount where the coupon, certificate or documentation is authorized, distributed or granted by a third party with the understanding that the third party will reimburse any seller to whom the coupon, certificate or documentation is presented;

2.

The purchaser identified himself or herself to the seller as a member of a group or organization entitled to a price reduction or discount (a "preferred customer" card that is available to any patron does not constitute membership in such a group);

or 3.

The price reduction or discount is identified as a third-party price reduction or discount on the invoice received by the purchaser or on a coupon, certificate or other documentation presented by the purchaser.

Where a trade-in is taken as part payment on tangible personal property sold, "gross proceeds of sales" shall include only the difference received between the selling price of the tangible personal property and the amount allowed for a trade-in of property of the same kind.

When the trade-in is subsequently sold, the selling price thereof shall be included in "gross proceeds of sales." H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 13(BS\KW) "Gross proceeds of sales" shall include the value of any goods, wares, merchandise or property purchased at wholesale or manufactured, and any mineral or natural resources produced, which are withdrawn or used from an established business or from the stock in trade for consumption or any other use in the business or by the owner.

However, "gross proceeds of sales" does not include meals prepared by a restaurant and provided at no charge to employees of the restaurant or donated to a charitable organization that regularly provides food to the needy and the indigent and which has been granted exemption from the federal income tax as an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986.

"Gross proceeds of sales" shall not include bad check or draft service charges as provided for in Section 97-19-57.

"Gross proceeds of sales" does not include finance charges, carrying charges or any other addition to the selling price as a result of deferred payments by the purchaser.

(i) "Gross income" means the total charges for service or the total receipts (actual or accrued) derived from trades, business or commerce by reason of the investment of capital in the business engaged in, including the sale or rental of tangible personal property, compensation for labor and services performed, and including the receipts from the sales of property retained as toll, without any deduction for rebates, cost of property sold, H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 14(BS\KW) cost of materials used, labor costs, interest paid, losses or any expense whatever.

"Gross income" shall also include the cost of property given as compensation when the property is consumed by a person performing a taxable service for the donor.

However, "gross income" or "gross proceeds of sales" shall not be construed to include the value of goods returned by customers when the total sale price is refunded either in cash or by credit, or cash discounts allowed and taken on sales.

Cash discounts shall not include the value of trading stamps given with a sale of property.

(j) "Tangible personal property" means personal property perceptible to the human senses or by chemical analysis as opposed to real property or intangibles and shall include property sold on an installed basis which may become a part of real or personal property.

(k) "Installation charges" shall mean and include the charge for the application of tangible personal property to real or personal property without regard to whether or not it becomes a part of the real property or retains its personal property classification.

It shall include, but not be limited to, sales in place of roofing, tile, glass, carpets, drapes, fences, awnings, window air-conditioning units, gasoline pumps, window guards, floor coverings, carports, store fixtures, aluminum and plastic siding, tombstones and similar personal property.

"Installation H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 15(BS\KW) charges" shall not include charges for labor services in connection with the application or repair of residential roofing.

(l) "Newspaper" means a periodical which:

(i) Is not published primarily for advertising purposes and has not contained more than seventy-five percent (75%) advertising in more than one-half (1/2) of its issues during any consecutive twelve-month period excluding separate advertising supplements inserted into but separately identifiable from any regular issue or issues;

(ii) Has been established and published continuously for at least twelve (12) months;

(iii) Is regularly issued at stated intervals no less frequently than once a week, bears a date of issue, and is numbered consecutively;

provided, however, that publication on legal holidays of this state or of the United States and on Saturdays and Sundays shall not be required, and failure to publish not more than two (2) regular issues in any calendar year shall not exclude a periodical from this definition;

(iv) Is issued from a known office of publication, which shall be the principal public business office of the newspaper and need not be the place at which the periodical is printed and a newspaper shall be deemed to be "published" at the place where its known office of publication is located;

(v) Is formed of printed sheets;

provided, however, that a periodical that is reproduced by the stencil, H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 16(BS\KW) mimeograph or hectograph process shall not be considered to be a "newspaper";

and (vi) Is originated and published for the dissemination of current news and intelligence of varied, broad and general public interest, announcements and notices, opinions as editorials on a regular or irregular basis, and advertising and miscellaneous reading matter.

The term "newspaper" shall include periodicals which are designed primarily for free circulation or for circulation at nominal rates as well as those which are designed for circulation at more than a nominal rate.

The term "newspaper" shall not include a publication or periodical which is published, sponsored by, is directly supported financially by, or is published to further the interests of, or is directed to, or has a circulation restricted, in whole or in part, to any particular sect, denomination, labor or fraternal organization or other special group or class or citizens.

For purposes of this paragraph, a periodical designed primarily for free circulation or circulation at nominal rates shall not be considered to be a newspaper unless such periodical has made an application for such status to the department in the manner prescribed by the department and has provided to the department documentation satisfactory to the department showing that such periodical meets the requirements of the definition of the term "newspaper." However, if such periodical has been H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 17(BS\KW) determined to be a newspaper under action taken by the department on or before April 11, 1996, such periodical shall be considered to be a newspaper without the necessity of applying for such status.

A determination by the Department of Revenue that a publication is a newspaper shall be limited to the application of this chapter and shall not establish that the publication is a newspaper for any other purpose.

(m) "MPC" or "Material Purchase Certificate" means a certificate for which a person that is liable for the tax levy under Section 27-65-21 can apply and obtain from the commissioner, and when issued, entitles the holder to purchase materials and services that are to become a component part of a structure to be erected or repaired with no tax due.

Any person taxable under Section 27-65-21 who obtains an MPC for a project and purchases materials and services in this state that are to become a component part of a structure being erected or repaired in the project and at any time pays sales tax on these purchases may, after obtaining the MPC for the project, take a credit against his sales taxes for the sales tax paid on these purchases if proper documentation exists to substantiate the payment of the sales tax on the purchase of component materials and services.

This credit may also be allowed in any audit of the taxpayer.

Any penalties and interest owed by the taxpayer on the return or in the audit where this credit is taken may be determined based on the sales tax due after the taking of this credit.

H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 18(BS\KW) SECTION 3.

(1) The construction codes published by a nationally recognized code group which sets minimum standards and has the proper provisions to maintain up-to-date amendments are adoptedH. as minimum standard guides for building, plumbing, electrical, gas, sanitary, and other related codes in Mississippi.

B.

No.

1163 *HR26/R1354SG* ~ OFFICIAL ~ G3/5 22/HR26/R1354SG PAGE 1 (BS\KW) adopted as minimum standard guides for building, plumbing, electrical, gas, sanitary, and other related codes in Mississippi.

The provisions of this section shall not be construed to authorize the adoption of any code which applies to the installation, repair or maintenance of electric wires, pipelines, apparatus, equipment or devices by or for a utility rendering public utility services, H.required by it to be utilized in the rendition of its duly authorized service to the public.

Before any such code shall be adopted, it shall be either printed or typewritten and shall be presented in pamphlet form to the board of supervisors at a regular meeting.

The order or resolution adopting the code shall H.

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 19(BS\KW)2(BS\KW) requirednot byset itout tothe becode utilized in thefull, renditionbut ofshall itsmerely dulyidentify authorized service to the public.same.

Before any such code shall be adopted, it shall be either printed or typewritten and shall be presented in pamphlet form to the board of supervisors at a regular meeting.

The order or resolution adopting the code shall not set out the code in full, but shall merely identify the same.

H.(4) Any code adopted under the provisions of this section shall not be in operation or force until sixty (60) days have elapsed from the adoption of same;

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 20(BS\KW) (4) Any code adopted under the provisions of this section shall not be in operation or force until sixty (60) days have elapsed from the adoption of same;

Within five (5) days afterH. the adoption or passage of an order or resolution adopting that code or codes the clerk of the board of supervisors shall publish in a legal newspaper published in the county the full text of the order or resolution adopting and approving the code, and the publication shall be inserted at least three (3) times, and shall be completed within thirty (30) days after the passage of the order or resolution.

(5) Any person or persons objecting to the code or codes may object in writing to the provisions of the code or codes within sixty (60) days after the passage of the order or resolution approving same, and if the board of supervisors adjudicates that ten percent (10%) or more of the qualified electors residing in the affected unincorporated areas of the county have objected in writing to the code or codes, then in such event the code shall be inoperative and not in effect unless adopted for the immediate preservation of the public health, safety and general welfare until approved by a special election called by the board of supervisors as other special elections are called and conducted by the election commissioners of the county as other special H.

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 21(BS\KW)3(BS\KW) electionsafter arethe conducted,adoption or passage of an order or resolution adopting that code or codes the specialclerk electionof tothe beboard participatedof supervisors shall publish in bya alllegal newspaper published in the qualifiedcounty electorsthe full text of the countyorder residingor inresolution adopting and approving the unincorporatedcode, areasand the publication shall be inserted at least three (3) times, and shall be completed within thirty (30) days after the passage of the county.order or resolution.

(5) Any person or persons objecting to the code or codes may object in writing to the provisions of the code or codes within sixty (60) days after the passage of the order or resolution approving same, and if the board of supervisors adjudicates that ten percent (10%) or more of the qualified electors residing in the affected unincorporated areas of the county have objected in writing to the code or codes, then in such event the code shall be inoperative and not in effect unless adopted for the immediate preservation of the public health, safety and general welfare until approved by a special election called by the board of supervisors as other special elections are called and conducted by the election commissioners of the county as other special elections are conducted, the special election to be participated in by all the qualified electors of the county residing in the unincorporated areas of the county.

If the majority of the qualified electors voting in the specialH. election vote against the code or codes, then, in such event, the code or codes shall be void and of no force and effect, and no other code or codes dealing with that subject shall be adopted under the provisions of this section until at least two (2) years thereafter.

B.

No.

1163 *HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354SG PAGE 4(BS\KW) special election vote against the code or codes, then, in such event, the code or codes shall be void and of no force and effect, and no other code or codes dealing with that subject shall be adopted under the provisions of this section until at least two (2) years thereafter.

(7) For the purpose of promoting health, safety, morals or the general welfare of the community, the governing authority of any municipality, and, with respect to the unincorporated part of any county, the governing authority of any county, in its discretion, is empowered to regulate the height, number of stories and size of building and other structures, the percentage of lot that may be occupied, the size of the yards, courts and other open spaces, the density or population, and the location and use of buildings, structures and land for trade, industry, residence or H.other purposes, but no permits shall be required except as may be required under the terms of the "Flood Disaster Protection Act of 1973" for the erection, maintenance, repair or extension of farm buildings or farm structures outside the corporate limits of municipalities.

H.

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 22(BS\KW)5(BS\KW) other(8) purposes,The butauthority nogranted permitsin shallthis besection requiredis exceptcumulative asand maysupplemental beto requiredany underother theauthority termsgranted ofby thelaw. "Flood Disaster Protection Act of 1973" for the erection, maintenance, repair or extension of farm buildings or farm structures outside the corporate limits of municipalities.

(8) The authority granted in this section is cumulative and supplemental to any other authority granted by law.

(11) Regardless of whether a county adopts or has adopted codes, as set forth in this section, each and every county in this Statestate shall require permitting as a condition to construction within the unincorporated areas of the county, and such permits shall containcontain, on their face, in conspicuous print, (a) the contractor's material purchase certificate number to the extent furnished by the Department of Revenue pursuant to Section 27-65-21(4),27-65-21(4) or the contractor's Taxpayer Identification Number as furnished by the Internal Revenue Service, and either a copy of such material purchase certificate furnished by the Department of Revenue pursuant to Section 27-65-21(4)27-65-21(4), or a copy of the contractor's W-9, as the case may be, shall be required to be provided to the county as part of the prime contractor's application for such permit, prior to the issuance of such permit, and (b) the contractor's license or certificate of responsibility H.

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 23(BS\KW)6(BS\KW) the issuance of such permit, and (b) the contractor's license or certificate of responsibility number as required by either Section 31-3-14,31-3-14 et seq., 51-5-1,51-5-1 et seq.

or 73-59-1,73-59-1 et seq.

SECTION 4.2.

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 24(BS\KW)7(BS\KW) by posting at three (3) or more public places within the corporate limits, a notice in substantially the following form:

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 25(BS\KW)8(BS\KW) Jackson, Harrison, Hancock, Stone and Pearl River Counties shall enforce the requirements imposed under Section 17-2-1 as provided in such section.

(6) Regardless of whether the governing authority of any municipality adopts or has adopted construction codes, as set forth in this section, each and every governing authority of any municipality shall require permitting as a condition to construction within the municipality's jurisdiction, and any and all such permits shall contain on their faces, in conspicuous print, (a) the contractor's material purchase certificate number to the extent one is furnished by the Department of Revenue pursuant to Section 27-65-21(4),27-65-21(4) or the contractor's Taxpayer Identification Number as furnished by the Internal Revenue Service, and either a copy of such material purchase certificate furnished by the Department of Revenue pursuant to Section 27-65-21(4)27-65-21(4), or a copy of the contractor's W-9, as the case may be, shall be required to be provided to the governing authority of such municipality as part of the contractor's application for such permit, prior to the issuance of such permit, and (b) the contractor's license or certificate of responsibility number as required by either Section 31-3-14,31-3-14 et seq., 51-5-1,51-5-1 et seq.

73-59-1,or 73-59-1 et seq.

(7) The provisions of this section shall apply to all municipalities of this state, whether operating under the code charter,H. a special charter, commission form, or other form of government.

SECTION 5.

Section 73-59-1, Mississippi Code of 1972, is amended as follows:

H.

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 26(BS\KW)9(BS\KW) 73-59-1.charter, a special charter, commission form, or other form of government.

SECTION 3.

Section 73-59-1, Mississippi Code of 1972, is amended as follows:

73-59-1.

(d) "Residential construction" means any undertaking described in paragraph (b) of this section performed by a residential builder.

(e) "Residential improvement" means any undertaking described in paragraph (c) of this section performed by a remodeler.

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 27(BS\KW)10(BS\KW) (f)(d) "Active"Residential licensee"construction" means any builderundertaking ordescribed remodelerin licensedparagraph under(b) of this chaptersection andperformed engagedby ina buildingresidential andbuilder. remodeling.

(e) "Residential improvement" means any undertaking described in paragraph (c) of this section performed by a remodeler.

(f) "Active licensee" means any builder or remodeler licensed under this chapter and engaged in building and remodeling.

SECTION 6.4.

(1) Except as otherwise provided in Section 73-59-15 or Section 33-1-39, the following persons * * * or entitiesH. shall be licensed by the board annually as an active licensee or inactive licensee, as appropriate * * *:

(a) Persons or entities acting in the capacity as a residential builder;

(b) Persons or entities acting in the capacity as a residential remodeler;

H.

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 28(BS\KW)11(BS\KW) (c)entities Personsshall orbe entitieslicensed actingby in the capacityboard annually as aan constructionactive managerlicensee through a contract or aninactive agreementlicensee, withas theappropriate owner* of* the*: property being improved or constructed upon;

(d)(a) AnyPersons sub-contractor,or ofentities anyacting tier,in performing the followingcapacity workas ora within the following trade, on any residential constructionbuilder; or residential improvement project, no matter the dollar amount of the construction or improvements:

(b) Persons or entities acting in the capacity as a residential remodeler;

(c) Persons or entities acting in the capacity as a construction manager through a contract or an agreement with the owner of the property being improved or constructed upon;

(d) Any subcontractor, of any tier, performing the following work or within the following trade, on any residential construction or residential improvement project, no matter the dollar amount of the construction or improvements:

* * * (2) As a prerequisite to obtaining a license or renewal thereof, each of the persons or entities in subsection (1) of this section shall submit to the board:

(a)H. Proof of workers' compensation insurance, if required by applicable law;

however, workers' compensation insurance shall not be required for inactive licensees;

(b) A federal employment identification number or social security number.

( * * *3) The board may require liability insurance to be licensed under this chapter and it shall be reflected on the H.

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 29(BS\KW)12(BS\KW) certificate(a) Proof of licensure;workers' compensation insurance, if required by applicable law;

however, workers' compensation insurance shall not be required for inactive licensees;

(b) A federal employment identification number or social security number.

( * * *3) The board may require liability insurance to be licensed under this chapter and it shall be reflected on the certificate of licensure;

The remaining fees collected under this chapter shall be deposited into the special fund in the State Treasury known as the "State Board of ContractorsH. Fund" created pursuant to Section 31-3-17 and shall be used for the administration and enforcement of this chapter and as provided in Section 31-3-14.

Amounts in such fund shall not lapse into the State General Fund at the end of a fiscal year.

Interest accrued to such fund shall remain in the fund.

All expenditures from the special fund shall be by requisition to the Department of Finance and Administration, signed by the executive director of H.

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 30(BS\KW)13(BS\KW) theContractors boardFund" created pursuant to Section 31-3-17 and countersignedshall bybe theused chairmanfor orthe viceadministration chairmanand enforcement of thethis board.chapter and as provided in Section 31-3-14.

Amounts in such fund shall not lapse into the State General Fund at the end of a fiscal year.

Interest accrued to such fund shall remain in the fund.

All expenditures from the special fund shall be by requisition to the Department of Finance and Administration, signed by the executive director of the board and countersigned by the chairman or vice chairman of the board.

The board may notify by mail or e-mailemail every licensee under this chapter of the date of the expiration of his license and the amount of the fee required for renewal of the license for one (1) year.

To receive notification by e-mail,email, a licensee must notify the board of his desire to receive notification by e-mailemail and provide an e-mailemail address.

Such notice may be mailed or e-mailedemailed within thirty (30) days prior to the expiration date of the license.

A new license required toH. replace a revoked, lost, mutilated or destroyed license may be issued, subject to the rules of the board, for a charge of not more than Fifty Dollars ($50.00).

An inactive licensee may become an active licensee upon application meeting all the requirements of this section.

( * * *6) Any person who is not a resident of the State of Mississippi who desires to perform residential construction or H.

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 31(BS\KW)14(BS\KW) residentialto improvementreplace shalla revoked, lost, mutilated or destroyed license may be licensedissued, subject to performthe suchrules constructionof orthe improvementboard, asfor provideda bycharge thisof chapter.not more than Fifty Dollars ($50.00).

SECTIONAn 7.inactive licensee may become an active licensee upon application meeting all the requirements of this section.

( * * *6) Any person who is not a resident of the State of Mississippi who desires to perform residential construction or residential improvement shall be licensed to perform such construction or improvement as provided by this chapter.

SECTION 5.

* * * ( * * *2) * * * Any person or entity required to have a license under Section 73-59-3(1) who does not have the license provided by this chapter at the time construction, building or remodeling services are rendered may not bring any action, either at law or in equity, to enforce any contract for residential building or remodeling or to enforce a sales contract, but instead shall be only permitted to recover as damages actual documented expenses for labor, materials or both, incurred as a result of the construction, building or remodeling services rendered, but only H.

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 32(BS\KW)15(BS\KW) provided by this chapter at the time construction, building or remodeling services are rendered may not bring any action, either at law or in equity, to enforce any contract for residential building or remodeling or to enforce a sales contract, but instead shall be only permitted to recover as damages actual documented expenses for labor, materials or both, incurred as a result of the construction, building or remodeling services rendered, but only for those expenses which can be shown by clear and convincing evidence.

SECTION 8.6.

(c) Any person who undertakes residential construction or improvement, or who acts as a general contractor in the performanceH. of residential construction or improvement, or who acts under supervision of the owner-occupant with respect to residential construction or improvement, when the owner of such construction or improvement is related to such person by consanguinity or direct affinity, and the property or improvement will not be for sale, rent, public use or public assembly;

H.

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 33(BS\KW)16(BS\KW) (d)performance The owners of propertyresidential whoconstruction supervise,or superintend,improvement, oversee, direct or inwho anyacts mannerunder assumesupervision charge of the construction,owner-occupant alteration,with repair,respect improvement,to movement,residential demolition,construction puttingor up,improvement, tearingwhen downthe orowner maintenance of anysuch building,construction railroad,or excavation,improvement project,is development,related improvement,to plantsuch facilityperson orby anyconsanguinity otheror constructiondirect undertakingaffinity, onand suchthe property foror useimprovement by such owner and which will not be for sale, rent, public use or public assembly;

(d) The owners of property who supervise, superintend, oversee, direct or in any manner assume charge of the construction, alteration, repair, improvement, movement, demolition, putting up, tearing down or maintenance of any building, railroad, excavation, project, development, improvement, plant facility or any other construction undertaking on such property for use by such owner and which will not be for sale, rent, public use or public assembly;

(2) A person specified in subsection (1)(b) or (c) shall not make more than * * * one (1) application for a permit to construct a single residence or shall not construct more than * * * one (1) single residence within a period of one (1) year.

There shall be a rebuttable presumption that such person intends to construct for the purpose of sale, lease, rent or any similar purpose if more than * * * one (a) application is made for a permit to construct a H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 34(BS\KW) single residence or if more than * * * one (1) single residence * * * is constructed within a period of one (1) year.

SECTION 9.

Section 27-65-17, Mississippi Code of 1972, is brought forward as follows:

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.

(b) Retail sales of farm tractors and parts and labor used to maintain and/or repair such tractors shall be taxed at the rate of one and one-half percent (1-1/2%) when made to farmers for agricultural purposes.

(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.

(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:

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGE 35(BS\KW)17(BS\KW) 1.(2) A person specified in subsection (1)(b) or (c) shall not make more than * * * one (1) application for a permit to construct a single residence or shall not construct more than * * * one (1) single residence within a period of one (1) year.

Self-propelled,There shall be a rebuttable presumption that such person intends to construct for the purpose of sale, lease, rent or 2.any similar purpose if more than * * * one (1) application is made for a permit to construct a single residence or if more than * * * one (1) single residence is constructed within a period of one (1) year.

MountedSECTION so7. that it is permanently attached to other equipment which is self-propelled or attached to other equipment drawn by a vehicle which is self-propelled.

InThis orderact toshall betake eligibleeffect forand thebe rate of tax provided for in thisforce subparagraphfrom (ii),and suchafter salesJuly must1, be2022. made to a professional logger.

For the purposes of this subparagraph (ii), a "professional logger" is a person, corporation, limited liability company or other entity, or an agent thereof, who possesses a professional logger's permit issued by the Department of Revenue and who presents the permit to the seller at the time of purchase.

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

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

(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 H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 36(BS\KW) 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%).

(f) Sales of machinery and machine parts when made to a technology intensive enterprise for plant use only when the machinery and machine parts will be used exclusively and directly within this state for industrial purposes, including, but not limited to, manufacturing or research and development activities, shall be taxed at the rate of one and one-half percent (1-1/2%).

In order to be considered a technology intensive enterprise for purposes of this paragraph:

(i) The enterprise shall meet minimum criteria established by the Mississippi Development Authority;

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

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

(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;

1163 *HR26/R1354CS**HR26/R1354SG* ~ OFFICIAL ~ 22/HR26/R1354CS22/HR26/R1354SG PAGEST: 37(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;

and (vi) The enterprise must provide a basic health care plan to all employees at the facility.

(g) Sales of materials for use in track and 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%).

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

(i) Wholesale sales of beer shall be taxed at the rate of seven percent (7%), and the retailer shall file a return and compute the retail tax on retail sales but may take credit for the amount of the tax paid to the wholesaler on said return covering the subsequent sales of same property, provided adequate invoices and records are maintained to substantiate the credit.

(j) 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%).

H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 38(BS\KW) (k) 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.

(l) Sales of the factory-built components of modular homes, panelized homes and precut homes, and panel constructed homes consisting of structural insulated panels, shall be taxed at the rate of three percent (3%).

(m) Sales of materials used in the repair, renovation, addition to, expansion and/or improvement of buildings and related facilities used by a dairy producer shall be taxed at the rate of three and one-half percent (3-1/2%).

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

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

(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.

H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 39(BS\KW) SECTION 10.

Section 27-65-17.1, Mississippi Code of 1972, is brought forward as follows:

27-65-17.1.

Sellers of modular homes, panelized homes and precut homes, and panel constructed homes consisting of structural insulated panels, shall disclose to the buyers of such homes the amount of sales tax or use tax paid on the factory-built components of such homes.

The State Tax Commission shall prescribe by regulation the manner in which such disclosure shall be made.

SECTION 11.

Section 27-65-20, Mississippi Code of 1972, is brought forward as follows:

27-65-20.

Upon every person engaging or continuing within this state in the business of selling machinery, machine parts and/or equipment to an operator or lessee of any structures, facilities and lands acquired and operated or leased pursuant to any of the provisions of Chapter 9, Title 59, Mississippi Code of 1972, which machinery, machine parts and/or equipment is to be located on and used exclusively and directly in the operation of such structures, facilities and lands, there is hereby levied, assessed and shall be collected a tax equal to one and one-half percent (1-1/2%) of the gross proceeds of such retail sales of the business.

SECTION 12.

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

H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 40(BS\KW) 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, 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.

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 H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 41(BS\KW) 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 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, 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 H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 42(BS\KW) 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 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, 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 H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 43(BS\KW) the City of Jackson, Mississippi, shall be deposited into the Capitol Complex Improvement District Project Fund created in Section 29-5-215.

(d) (i) On or before the fifteenth day of the month that the diversion authorized by this section begins, 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, 27-65-19(3) and 27-65-21, on business activities within a redevelopment project area developed under a redevelopment plan adopted under the Tax Increment Financing Act (Section 21-45-1 et seq.) shall be allocated for distribution to the county in which the project area is located if:

1.

The county:

a.

Borders on the Mississippi Sound and the State of Alabama, or b.

Is Harrison County, Mississippi, and the project area is within a radius of two (2) miles from the intersection of Interstate 10 and Menge Avenue;

2.

The county has issued bonds under Section 21-45-9 to finance all or a portion of a redevelopment project in the redevelopment project area;

3.

Any debt service for the indebtedness incurred is outstanding;

and H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 44(BS\KW) 4.

A development with a value of Ten Million Dollars ($10,000,000.00) or more is, or will be, located in the redevelopment area.

(ii) Before any sales tax revenue may be allocated for distribution to a county under this paragraph, the county shall certify to the Department of Revenue that the requirements of this paragraph have been met, the amount of bonded indebtedness that has been incurred by the county for the redevelopment project and the expected date the indebtedness incurred by the county will be satisfied.

(iii) The diversion of sales tax revenue authorized by this paragraph shall begin the month following the month in which the Department of Revenue determines that the requirements of this paragraph have been met.

The diversion shall end the month the indebtedness incurred by the county is satisfied.

All revenue received by the county under this paragraph shall be deposited in the fund required to be created in the tax increment financing plan under Section 21-45-11 and be utilized solely to satisfy the indebtedness incurred by the county.

(2) On or before September 15, 1987, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, One Million One Hundred Twenty-five Thousand Dollars ($1,125,000.00) shall be allocated for distribution to municipal corporations as defined under subsection H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 45(BS\KW) (1) of this section in the proportion that the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each such municipality during the preceding fiscal year bears to the total gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in municipalities statewide during the preceding fiscal year.

The Department of Revenue shall require all distributors of gasoline and diesel fuel to report to the department monthly the total number of gallons of gasoline and diesel fuel sold by them to consumers and retailers in each municipality during the preceding month.

The Department of Revenue shall have the authority to promulgate such rules and regulations as is necessary to determine the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each municipality.

In determining the percentage allocation of funds under this subsection for the fiscal year beginning July 1, 1987, and ending June 30, 1988, the Department of Revenue may consider gallons of gasoline and diesel fuel sold for a period of less than one (1) fiscal year.

For the purposes of this subsection, the term "fiscal year" means the fiscal year beginning July 1 of a year.

(3) On or before September 15, 1987, and on or before the fifteenth day of each succeeding month, until the date specified in Section 65-39-35, the proceeds derived from contractors' taxes levied under Section 27-65-21 on contracts for the construction or reconstruction of highways designated under the highway program H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 46(BS\KW) created under Section 65-3-97 shall, except as otherwise provided in Section 31-17-127, be deposited into the State Treasury to the credit of the State Highway Fund to be used to fund that highway program.

The Mississippi Department of Transportation shall provide to the Department of Revenue such information as is necessary to determine the amount of proceeds to be distributed under this subsection.

(4) On or before August 15, 1994, and on or before the fifteenth day of each succeeding month through July 15, 1999, from the proceeds of gasoline, diesel fuel or kerosene taxes as provided in Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) shall be deposited in the State Treasury to the credit of a special fund designated as the "State Aid Road Fund," created by Section 65-9-17.

On or before August 15, 1999, and on or before the fifteenth day of each succeeding month, from the total amount of the proceeds of gasoline, diesel fuel or kerosene taxes apportioned by Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an amount equal to twenty-three and one-fourth percent (23-1/4%) of those funds, whichever is the greater amount, shall be deposited in the State Treasury to the credit of the "State Aid Road Fund," created by Section 65-9-17.

Those funds shall be pledged to pay the principal of and interest on state aid road bonds heretofore issued under Sections 19-9-51 through 19-9-77, in lieu of and in substitution for the funds previously allocated to counties under this section.

Those funds H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 47(BS\KW) may not be pledged for the payment of any state aid road bonds issued after April 1, 1981;

however, this prohibition against the pledging of any such funds for the payment of bonds shall not apply to any bonds for which intent to issue those bonds has been published for the first time, as provided by law before March 29, 1981.

From the amount of taxes paid into the special fund under this subsection and subsection (9) of this section, there shall be first deducted and paid the amount necessary to pay the expenses of the Office of State Aid Road Construction, as authorized by the Legislature for all other general and special fund agencies.

The remainder of the fund shall be allocated monthly to the several counties in accordance with the following formula:

(a) One-third (1/3) shall be allocated to all counties in equal shares;

(b) One-third (1/3) shall be allocated to counties based on the proportion that the total number of rural road miles in a county bears to the total number of rural road miles in all counties of the state;

and (c) One-third (1/3) shall be allocated to counties based on the proportion that the rural population of the county bears to the total rural population in all counties of the state, according to the latest federal decennial census.

For the purposes of this subsection, the term "gasoline, diesel fuel or kerosene taxes" means such taxes as defined in paragraph (f) of Section 27-5-101.

H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 48(BS\KW) The amount of funds allocated to any county under this subsection for any fiscal year after fiscal year 1994 shall not be less than the amount allocated to the county for fiscal year 1994.

Any reference in the general laws of this state or the Mississippi Code of 1972 to Section 27-5-105 shall mean and be construed to refer and apply to subsection (4) of Section 27-65-75.

(5) One Million Six Hundred Sixty-six Thousand Six Hundred Sixty-six Dollars ($1,666,666.00) each month shall be paid into the special fund known as the "State Public School Building Fund" created and existing under the provisions of Sections 37-47-1 through 37-47-67.

Those payments into that fund are to be made on the last day of each succeeding month hereafter.

(6) An amount each month beginning August 15, 1983, through November 15, 1986, as specified in Section 6, Chapter 542, Laws of 1983, shall be paid into the special fund known as the Correctional Facilities Construction Fund created in Section 6, Chapter 542, Laws of 1983.

(7) On or before August 15, 1992, and each succeeding month thereafter through July 15, 2000, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited by the department into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35.

On H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 49(BS\KW) or before August 15, 2000, and each succeeding month thereafter, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35 until such time that the total amount deposited into the fund during a fiscal year equals Forty-two Million Dollars ($42,000,000.00).

Thereafter, the amounts diverted under this subsection (7) during the fiscal year in excess of Forty-two Million Dollars ($42,000,000.00) shall be deposited into the Education Enhancement Fund created under Section 37-61-33 for appropriation by the Legislature as other education needs and shall not be subject to the percentage appropriation requirements set forth in Section 37-61-33.

(8) On or before August 15, 1992, and each succeeding month thereafter, nine and seventy-three one-thousandths percent (9.073%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the Education Enhancement Fund created under Section 37-61-33.

(9) On or before August 15, 1994, and each succeeding month thereafter, from the revenue collected under this chapter during H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 50(BS\KW) the preceding month, Two Hundred Fifty Thousand Dollars ($250,000.00) shall be paid into the State Aid Road Fund.

(10) On or before August 15, 1994, and each succeeding month thereafter through August 15, 1995, from the revenue collected under this chapter during the preceding month, Two Million Dollars ($2,000,000.00) shall be deposited into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(11) Notwithstanding any other provision of this section to the contrary, on or before February 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(2) and the corresponding levy in Section 27-65-23 on the rental or lease of private carriers of passengers and light carriers of property as defined in Section 27-51-101 shall be deposited, without diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(12) Notwithstanding any other provision of this section to the contrary, on or before August 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1) on retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101 and the corresponding levy in Section 27-65-23 on the rental or lease of these vehicles, shall be deposited, after diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 51(BS\KW) (13) On or before July 15, 1994, and on or before the fifteenth day of each succeeding month thereafter, that portion of the avails of the tax imposed in Section 27-65-22 that is derived from activities held on the Mississippi State Fairgrounds Complex shall be paid into a special fund that is created in the State Treasury and shall be expended upon legislative appropriation solely to defray the costs of repairs and renovation at the Trade Mart and Coliseum.

(14) On or before August 15, 1998, and each succeeding month thereafter through July 15, 2005, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited in an amount not to exceed Two Million Dollars ($2,000,000.00) into the special fund created under Section 69-37-39.

On or before August 15, 2007, and each succeeding month thereafter through July 15, 2010, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited in an amount not to exceed Two Million Dollars ($2,000,000.00) into the special fund created under Section 69-37-39 until all debts or other obligations incurred by the Certified Cotton Growers Organization under the Mississippi Boll Weevil Management Act before January 1, 2007, are satisfied in full.

On or before August 15, 2010, and each succeeding month H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 52(BS\KW) thereafter through July 15, 2011, fifty percent (50%) of that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited into the special fund created under Section 69-37-39 until such time that the total amount deposited into the fund during a fiscal year equals One Million Dollars ($1,000,000.00).

On or before August 15, 2011, and each succeeding month thereafter, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund shall be deposited into the special fund created under Section 69-37-39 until such time that the total amount deposited into the fund during a fiscal year equals One Million Dollars ($1,000,000.00).

(15) Notwithstanding any other provision of this section to the contrary, on or before September 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-19(1)(d)(i)2, and 27-65-19(1)(d)(i)3 shall be deposited, without diversion, into the Telecommunications Ad Valorem Tax Reduction Fund established in Section 27-38-7.

(16) (a) On or before August 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 53(BS\KW) proceeds of sales of a project as defined in Section 57-30-1 shall be deposited, after all diversions except the diversion provided for in subsection (1) of this section, into the Sales Tax Incentive Fund created in Section 57-30-3.

(b) On or before August 15, 2007, and each succeeding month thereafter, eighty percent (80%) of the sales tax revenue collected during the preceding month under the provisions of this chapter from the operation of a tourism project under the provisions of Sections 57-26-1 through 57-26-5, shall be deposited, after the diversions required in subsections (7) and (8) of this section, into the Tourism Project Sales Tax Incentive Fund created in Section 57-26-3.

(17) Notwithstanding any other provision of this section to the contrary, on or before April 15, 2002, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under Section 27-65-23 on sales of parking services of parking garages and lots at airports shall be deposited, without diversion, into the special fund created under Section 27-5-101(d).

(18) [Repealed] (19) (a) On or before August 15, 2005, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 54(BS\KW) 57-91-1 through 57-91-11, and the revenue collected on the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall, except as otherwise provided in this subsection (19), be deposited, after all diversions, into the Redevelopment Project Incentive Fund as created in Section 57-91-9.

(b) For a municipality participating in the Economic Redevelopment Act created in Sections 57-91-1 through 57-91-11, the diversion provided for in subsection (1) of this section attributable to the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and attributable to the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall be deposited into the Redevelopment Project Incentive Fund as created in Section 57-91-9, as follows:

(i) For the first six (6) years in which payments are made to a developer from the Redevelopment Project Incentive H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 55(BS\KW) Fund, one hundred percent (100%) of the diversion shall be deposited into the fund;

(ii) For the seventh year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, eighty percent (80%) of the diversion shall be deposited into the fund;

(iii) For the eighth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, seventy percent (70%) of the diversion shall be deposited into the fund;

(iv) For the ninth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, sixty percent (60%) of the diversion shall be deposited into the fund;

and (v) For the tenth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, fifty percent (50%) of the funds shall be deposited into the fund.

(20) On or before January 15, 2007, and each succeeding month thereafter, eighty percent (80%) of the sales tax revenue collected during the preceding month under the provisions of this chapter from the operation of a tourism project under the provisions of Sections 57-28-1 through 57-28-5 shall be deposited, after the diversions required in subsections (7) and (8) of this section, into the Tourism Sales Tax Incentive Fund created in Section 57-28-3.

H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 56(BS\KW) (21) (a) On or before April 15, 2007, and each succeeding month thereafter through June 15, 2013, One Hundred Fifty Thousand Dollars ($150,000.00) of the sales tax revenue collected during the preceding month under the provisions of this chapter shall be deposited into the MMEIA Tax Incentive Fund created in Section 57-101-3.

(b) On or before July 15, 2013, and each succeeding month thereafter, One Hundred Fifty Thousand Dollars ($150,000.00) of the sales tax revenue collected during the preceding month under the provisions of this chapter shall be deposited into the Mississippi Development Authority Job Training Grant Fund created in Section 57-1-451.

(22) Notwithstanding any other provision of this section to the contrary, on or before August 15, 2009, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-201 shall be deposited, without diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(23) (a) On or before August 15, 2019, and each month thereafter through July 15, 2020, one percent (1%) of the total sales tax revenue collected during the preceding month from restaurants and hotels shall be allocated for distribution to the Mississippi Development Authority Tourism Advertising Fund established under Section 57-1-64, to be used exclusively for the purpose stated therein.

On or before August 15, 2020, and each H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 57(BS\KW) month thereafter through July 15, 2021, two percent (2%) of the total sales tax revenue collected during the preceding month from restaurants and hotels shall be allocated for distribution to the Mississippi Development Authority Tourism Advertising Fund established under Section 57-1-64, to be used exclusively for the purpose stated therein.

On or before August 15, 2021, and each month thereafter, three percent (3%) of the total sales tax revenue collected during the preceding month from restaurants and hotels shall be allocated for distribution to the Mississippi Development Authority Tourism Advertising Fund established under Section 57-1-64, to be used exclusively for the purpose stated therein.

The revenue diverted pursuant to this subsection shall not be available for expenditure until February 1, 2020.

(b) The Joint Legislative Committee on Performance Evaluation and Expenditure Review (PEER) must provide an annual report to the Legislature indicating the amount of funds deposited into the Mississippi Development Authority Tourism Advertising Fund established under Section 57-1-64, and a detailed record of how the funds are spent.

(24) The remainder of the amounts collected under the provisions of this chapter shall be paid into the State Treasury to the credit of the General Fund.

(25) (a) It shall be the duty of the municipal officials of any municipality that expands its limits, or of any community that incorporates as a municipality, to notify the commissioner of that H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 58(BS\KW) action thirty (30) days before the effective date.

Failure to so notify the commissioner shall cause the municipality to forfeit the revenue that it would have been entitled to receive during this period of time when the commissioner had no knowledge of the action.

(b) (i) Except as otherwise provided in subparagraph (ii) of this paragraph, if any funds have been erroneously disbursed to any municipality or any overpayment of tax is recovered by the taxpayer, the commissioner may make correction and adjust the error or overpayment with the municipality by withholding the necessary funds from any later payment to be made to the municipality.

(ii) Subject to the provisions of Sections 27-65-51 and 27-65-53, if any funds have been erroneously disbursed to a municipality under subsection (1) of this section for a period of three (3) years or more, the maximum amount that may be recovered or withheld from the municipality is the total amount of funds erroneously disbursed for a period of three (3) years beginning with the date of the first erroneous disbursement.

However, if during such period, a municipality provides written notice to the Department of Revenue indicating the erroneous disbursement of funds, then the maximum amount that may be recovered or withheld from the municipality is the total amount of funds erroneously disbursed for a period of one (1) year beginning with the date of the first erroneous disbursement.

H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS PAGE 59(BS\KW) SECTION 13.

Section 73-59-17, Mississippi Code of 1972, is brought forward as follows:

73-59-17.

The building official, or other authority charged with the duty of issuing building or similar permits, of any municipality or county, shall refuse to issue a permit for any undertaking which would classify the applicant as a residential builder or remodeler under this chapter unless the applicant has furnished evidence that he is either licensed as required by this chapter or exempt from the requirements of this chapter.

The building official, or other authority charged with the duty of issuing building or similar permits, shall also report to the board the name and address of any person who, in his opinion, has violated this chapter by accepting, or contracting to accomplish, work which would classify the person as a residential builder or remodeler under this chapter without a license or acknowledgement.

SECTION 14.

This act shall take effect and be in force from and after July 1, 2022, and shall stand repealed on June 30, 2022.

H.

B.

No.

1163 *HR26/R1354CS* ~ OFFICIAL ~ 22/HR26/R1354CS ST:

revise definition of PAGE 60(BS\KW)18(BS\KW) "installation charges" to exclude labor services in connection with residential roofing.