Mississippi SB 2560: Sales tax; create diversion to counties.

Bill Text

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To: Accountability,
Efficiency, Transparency;
Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2025

By: Senator(s) Hill

SENATE BILL NO. 2560

AN ACT TO AMEND SECTION 27-65-75, MISSISSIPPI CODE OF 1972, 1
TO PROVIDE THAT 18-1/2% OF THE SALES TAX REVENUE COLLECTED FROM 2
BUSINESS ACTIVITIES OUTSIDE THE MUNICIPALITIES IN A COUNTY SHALL 3
BE PAID TO THE COUNTY; TO AMEND SECTION 27-65-53, MISSISSIPPI CODE 4
OF 1972, TO CONFORM; AND FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. Section 27-65-75, Mississippi Code of 1972, is 7
amended as follows: 8
27-65-75. On or before the fifteenth day of each month, the 9
revenue collected under the provisions of this chapter during the 10
preceding month shall be paid and distributed as follows: 11
(1) (a) On or before August 15, 1992, and each succeeding 12
month thereafter through July 15, 1993, eighteen percent (18%) of 13
the total sales tax revenue collected during the preceding month 14
under the provisions of this chapter, except that collected under 15
the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 16
business activities within a municipal corporation shall be 17
allocated for distribution to the municipality and paid to the 18
municipal corporation. Except as otherwise provided in this 19

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paragraph (a), on or before August 15, 1993, and each succeeding 20
month thereafter, eighteen and one-half percent (18-1/2%) of the 21
total sales tax revenue collected during the preceding month under 22
the provisions of this chapter, except that collected under the 23
provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 24
27-65-24, on business activities within a municipal corporation 25
shall be allocated for distribution to the municipality and paid 26
to the municipal corporation. However, in the event the State 27
Auditor issues a certificate of noncompliance pursuant to Section 28
21-35-31, the Department of Revenue shall withhold ten percent 29
(10%) of the allocations and payments to the municipality that 30
would otherwise be payable to the municipality under this 31
paragraph (a) until such time that the department receives written 32
notice of the cancellation of a certificate of noncompliance from 33
the State Auditor. 34
A municipal corporation, for the purpose of distributing the 35
tax under this subsection, shall mean and include all incorporated 36
cities, towns and villages. 37
Monies allocated for distribution and credited to a municipal 38
corporation under this paragraph may be pledged as security for a 39
loan if the distribution received by the municipal corporation is 40
otherwise authorized or required by law to be pledged as security 41
for such a loan. 42
In any county having a county seat that is not an 43
incorporated municipality, the distribution provided under this 44

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subsection shall be made as though the county seat was an 45
incorporated municipality; however, the distribution to the 46
municipality shall be paid to the county treasury in which the 47
municipality is located, and those funds shall be used for road, 48
bridge and street construction or maintenance in the county. 49
(b) On or before August 15, 2006, and each succeeding 50
month thereafter, eighteen and one-half percent (18-1/2%) of the 51
total sales tax revenue collected during the preceding month under 52
the provisions of this chapter, except that collected under the 53
provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on 54
business activities on the campus of a state institution of higher 55
learning or community or junior college whose campus is not 56
located within the corporate limits of a municipality, shall be 57
allocated for distribution to the state institution of higher 58
learning or community or junior college and paid to the state 59
institution of higher learning or community or junior college. 60
(c) On or before August 15, 2018, and each succeeding 61
month thereafter until August 14, 2019, two percent (2%) of the 62
total sales tax revenue collected during the preceding month under 63
the provisions of this chapter, except that collected under the 64
provisions of Sections 27-65-15, 27-65-19(3), 27-65-21 and 65
27-65-24, on business activities within the corporate limits of 66
the City of Jackson, Mississippi, shall be deposited into the 67
Capitol Complex Improvement District Project Fund created in 68
Section 29-5-215. On or before August 15, 2019, and each 69

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succeeding month thereafter until August 14, 2020, four percent 70
(4%) of the total sales tax revenue collected during the preceding 71
month under the provisions of this chapter, except that collected 72
under the pro