MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Ways and Means

By: Representative Saucier

AN ACT TO PROVIDE FOR A ONE-TIME MOTOR VEHICLE TITLE PRIVILEGE TAX ON PASSENGER MOTOR VEHICLES AND LIGHT TRUCKS WHENEVER TITLE TO THOSE TYPES OF VEHICLES IS TRANSFERRED; TO PROVIDE FOR AN ANNUAL RENEWAL MOTOR VEHICLE TITLE PRIVILEGE TAX ON THOSE TYPES OF VEHICLES; TO PROVIDE FOR AN ANNUAL MOTOR VEHICLE TAG FEE FOR PASSENGER MOTOR VEHICLES AND LIGHT TRUCKS; TO PROVIDE THAT THOSE TAXES AND FEES SHALL BE COLLECTED BY THE COUNTY TAX COLLECTORS AND REMITTED MONTHLY TO THE STATE TAX COMMISSION; TO PROVIDE FOR DISTRIBUTION OF THOSE FUNDS AMONG THE MOTOR VEHICLE TAX REIMBURSEMENT FUND AND THE STATE GENERAL FUND; TO ESTABLISH THE MOTOR VEHICLE TAX REIMBURSEMENT FUND IN THE STATE TREASURY; TO PROVIDE THAT THE STATE TAX COMMISSION SHALL MAKE MONTHLY PAYMENTS FROM THE MOTOR VEHICLE TAX REIMBURSEMENT FUND TO REIMBURSE THE COUNTIES, CITIES, SCHOOL DISTRICTS AND OTHER TAXING DISTRICTS FOR AD VALOREM TAXES, ROAD AND BRIDGE PRIVILEGE TAXES AND AD VALOREM TAX COLLECTION FEES LOST AS A RESULT OF THE EXEMPTIONS PROVIDED FOR IN THIS ACT; TO PROVIDE FOR PAYMENTS TO CITIES TO REIMBURSE THEM FOR SALES TAX REVENUES LOST AS A RESULT OF THE MOTOR VEHICLE SALES TAX EXEMPTION PROVIDED FOR IN THIS ACT; TO PROVIDE FOR THE ADMINISTRATION AND ENFORCEMENT OF THIS ACT; TO AMEND SECTIONS 27-19-5 AND 27-19-11, MISSISSIPPI CODE OF 1972, TO EXEMPT PASSENGER MOTOR VEHICLES AND LIGHT TRUCKS FROM THE ANNUAL ROAD AND BRIDGE PRIVILEGE TAX; TO AMEND SECTION 27-51-41, MISSISSIPPI CODE OF 1972, TO EXEMPT THOSE TYPES OF VEHICLES FROM CERTAIN AD VALOREM TAX MILLAGE; TO AMEND SECTION 27-51-33, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE AD VALOREM TAX EXEMPTION PROVIDED FOR IN THIS ACT SHALL NOT AFFECT THE TOTAL ASSESSED VALUE OF COUNTIES AND MUNICIPALITIES; TO AMEND SECTION 27-7-17, MISSISSIPPI CODE OF 1972, TO PROVIDE AN INCOME TAX DEDUCTION FOR PAYMENT OF THE MOTOR VEHICLE TITLE PRIVILEGE TAX AND MOTOR VEHICLE TAG FEE; TO AMEND SECTIONS 27-65-111 AND 27-65-201, MISSISSIPPI CODE OF 1972, TO EXEMPT SALES OF PASSENGER MOTOR VEHICLES AND LIGHT TRUCKS FROM SALES TAX; TO AMEND SECTION 25-7-21, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE TAX COLLECTOR SHALL NOT RECEIVE A FEE FOR REMITTING PAYMENTS FROM THE MOTOR VEHICLE TAX REIMBURSEMENT FUND TO THE CITIES, SCHOOL DISTRICTS AND OTHER TAXING DISTRICTS; TO AMEND SECTION 27-19-43, MISSISSIPPI CODE OF 1972, TO INCREASE THE MOTOR VEHICLE REGISTRATION FEE AND DELETE THE REFERENCES TO THAT FEE AS A "TAG FEE"; TO AMEND SECTIONS 27-19-45, 27-19-49, 27-19-56.5, 27-19-69, 27-19-71, 27-19-73, 27-19-99 AND 27-19-155, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PRECEDING SECTION; TO AMEND SECTIONS 27-29-11, 27-51-25 AND 27-51-29, MISSISSIPPI CODE OF 1972, IN CONFORMITY WITH THE PROVISIONS OF THIS ACT; TO AMEND SECTION 27-65-17, MISSISSIPPI CODE OF 1972, TO ELIMINATE THE ADDITIONAL TWO PERCENT SALES TAX ON THE RETAIL SALES OF PASSENGER MOTOR VEHICLES AND LIGHT TRUCKS; TO AMEND SECTION 27-65-75, MISSISSIPPI CODE OF 1972, TO DELETE THE PROVISIONS FOR SALES TAXES COLLECTED ON RETAIL SALES OF PASSENGER MOTOR VEHICLES AND LIGHT TRUCKS TO BE DEPOSITED INTO THE MOTOR VEHICLE AD VALOREM TAX REDUCTION FUND; TO REPEAL SECTIONS 27-51-101, 27-51-103, 27-51-105, 27-51-107, AND 27-67-35, MISSISSIPPI CODE OF 1972, WHICH PROVIDE FOR DEFINITIONS, PROVIDE FOR A CREDIT AGAINST MOTOR VEHICLE AD VALOREM TAXES FOR PASSENGER MOTOR VEHICLES AND LIGHT TRUCKS, ESTABLISH THE MOTOR VEHICLE AD VALOREM TAX REDUCTION FUND, PROVIDE FOR DISTRIBUTIONS FROM THE FUND, AND PROVIDE FOR THE PAYMENT OF CERTAIN USE TAXES INTO THE FUND; AND FOR RELATED PURPOSES.  

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) From and after October 1, 1997, whenever title to a private carrier of passengers or light carrier of property is transferred, there is imposed upon the person to whom the title is transferred a one-time initial motor vehicle title privilege tax in the following amounts:

More than $30,000.00 More than $9,000.00 $2,100.00

$30,000.00 - $25,000.00 $9,000.00 - $7,500.00 $1,750.00

$24,999.99 - $20,000.00 $7,499.99 - $6,000.00 $1,450.00

$19,999.99 - $15,000.00 $5,999.99 - $4,500.00 $1,000.00

$14,999.99 - $10,000.00 $4,499.99 - $3,000.00 $ 700.00

$ 9,999.99 - $ 5,000.00 $2,999.99 - $1,500.00 $ 500.00

$ 4,999.99 - $ 3,000.00 $1,499.99 - $ 900.00 $ 300.00

Less than $3,000.00 Less than $900.00 $ 200.00

(2) Upon each owner of a motor vehicle for which the initial motor vehicle title privilege tax was imposed under subsection (1) of this section at the time the owner acquired title to the vehicle, there is imposed annually a renewal motor vehicle title privilege tax of Two Dollars ($2.00).

(3) From and after October 1, 1997, upon each owner of a private carrier of passengers or light carrier of property, there is imposed annually a motor vehicle tag fee in the following amounts:

More than $30,000.00 More than $9,000.00 $225.00

$30,000.00 - $25,000.00 $9,000.00 - $7,500.00 $200.00

$24,999.99 - $20,000.00 $7,499.99 - $6,000.00 $150.00

$19,999.99 - $15,000.00 $5,999.99 - $4,500.00 $125.00

$14,999.99 - $10,000.00 $4,499.99 - $3,000.00 $100.00

$ 9,999.99 - $ 5,000.00 $2,999.99 - $1,500.00 $ 75.00

$ 4,999.99 - $ 3,000.00 $1,499.99 - $ 900.00 $ 50.00

Less than $3,000.00 Less than $900.00 $ 30.00

(4) All private carriers of passengers and light carriers of property that are exempt from all ad valorem taxes under state law shall be exempt from payment of the motor vehicle tag fee imposed under subsection (3) of this section.

(5) The taxes and fees provided for in this section shall be paid at the same time the registration fee imposed under Section 27-19-43 is paid, and the payment of those taxes and fees shall be a prerequisite to the issuance of a license tag or decals.

(6) As used in Sections 1 through 6 of this act, unless the context requires otherwise:

(a) "Private carrier of passengers" shall be defined as provided in Section 27-19-3, but shall not be construed to include motorcycles.

(b) "Light carrier of property" means any motor vehicle with a gross weight, as defined in Section 27-19-3, of six thousand (6,000) pounds or less that is designed and constructed for the primary purpose of transporting property on the roads and highways.

(c) "Fiscal year" means the period beginning on October 1 and ending on September 30 of the following year.

(d) "Commission" means the State Tax Commission.

SECTION 2. (1) The taxes and fees imposed under Section 1 of this act shall be collected by the county tax collectors. The tax collectors shall be liable for the taxes and fees that they are required to collect and that they actually collect under Section 1 of this act, and failure to properly collect or maintain proper records shall not relieve the tax collectors of that liability.

(2) Within twenty (20) days after the end of October 1997 and each succeeding month thereafter, each county tax collector shall file a report with the State Tax Commission on all taxes and fees collected under Section 1 of this act. The report shall cover all collections made during the calendar month next preceding the date on which the report is due and filed, and shall indicate the specific amount that was collected from each type of tax or fee. Any error in the report to the commission may be adjusted on a subsequent report. If the error was in the collection by the tax collector, it shall be adjusted through the tax collector with the owner of the motor vehicle before credit is allowed. All information relating to the collection of the taxes and fees by tax collectors under Section 1 of this act and any records as the commission may require shall be preserved in the tax collector's office for a period of three (3) years for audit by the commission.

(3) All taxes and fees collected by the tax collectors under Section 1 of this act shall be remitted monthly to the commission within twenty (20) days after the end of October 1997 and each succeeding month thereafter, along with the report filed under subsection (2) of this section. The tax collectors shall not be authorized to retain any portion of the taxes and fees collected under Section 1 of this act.

(4) Seventy-five percent (75%) of the amount collected under subsection (1) of Section 1 and all of the amount collected under subsections (2) and (3) of Section 1 shall be deposited by the commission in the Motor Vehicle Tax Reimbursement Fund created in Section 3 of this act. From the remaining twenty-five percent (25%) of the amount collected under subsection (1) of Section 1, the commission first shall make monthly payments to municipalities as provided in Section 5 of this act. After those payments have been made, the remainder of the twenty-five percent (25%) of the amount collected under subsection (1) of Section 1 shall be deposited by the commission in the State General Fund.

SECTION 3. (1) There is established in the State Treasury a special fund to be known as the Motor Vehicle Tax Reimbursement Fund, for the purpose of (a) reimbursing counties, municipalities, school districts and other taxing districts for motor vehicle ad valorem taxes that are lost as a result of the ad valorem tax exemption for private carriers of passengers and light carriers of property that is provided for in subsection (2)(h) of Section 27-51-41; (b) reimbursing counties for road and bridge privilege taxes that are lost as a result of the exemption of private carriers of passengers and light carriers of property from road and bridge privilege taxes that is provided for in Sections 27-19-5 and 27-19-11 as amended by Sections 7 and 8 of this act; and (c) reimbursing counties for fees of the county tax collectors for collecting motor vehicle ad valorem taxes for municipalities, municipal school districts and other taxing districts that are lost as a result of the ad valorem tax exemption for private carriers of passengers and light carriers of property that is provided for in subsection (2)(h) of Section 27-51-41.

(2) Monies in the fund shall be provided from the initial and renewal motor vehicle title privilege tax and the motor vehicle tag fee imposed on motor vehicles under Section 1 of this act. The fund shall be administered by the State Tax Commission, and monies in the fund shall be expended upon appropriation by the Legislature. Unexpended amounts remaining in the fund at the end of the state fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund.

SECTION 4. (1) Within fifteen (15) days after the end of November 1997 and each succeeding month thereafter, the State Tax Commission shall make payments from the Motor Vehicle Tax Reimbursement Fund established in Section 3 of this act to the county tax collectors for distribution to the counties, municipalities, school districts and other taxing district as reimbursement for motor vehicle ad valorem taxes that are lost as a result of the ad valorem tax exemption for private carriers of passengers and light carriers of property that is provided for in subsection (2)(h) of Section 27-51-41. These payments shall be in amounts that will provide each county, municipality, school district and other taxing district for which the tax collector collects motor vehicle ad valorem taxes with an aggregate amount from the fund for that purpose for each fiscal year that is equal to the total amount of ad valorem taxes that were collected on private carriers of passengers and light carriers of property in the county, municipality, school district or other taxing district during the 1996-1997 fiscal year. The amount that each county, municipality, school district and other taxing district will receive for each fiscal year under this subsection shall be determined by the commission based on documentation provided by the tax collectors about motor vehicle ad valorem taxes collected during the 1996-1997 fiscal year.

(2) At the same time as the payments under subsection (1) of this section are made, the commission shall make additional payments from the Motor Vehicle Tax Reimbursement Fund to the counties as reimbursement for road and bridge privilege taxes that are lost as a result of the exemption of private carriers of passengers and light carriers of property from road and bridge privilege taxes that is provided for in Sections 27-19-5 and 27-19-11 as amended by Sections 7 and 8 of this act. These payments shall be made to the chancery clerk for deposit in the county road fund. The payments shall be in amounts that will provide each county with an aggregate amount from the fund for that purpose for each fiscal year that is equal to the total amount of road and bridge privilege taxes that were collected on private carriers of passengers and light carriers of property in the county during the 1996-1997 fiscal year. The amount that each county will receive for each fiscal year under this subsection shall be determined by the commission based on documentation provided by the tax collectors about road and bridge privilege taxes collected during the 1995-1996 fiscal year.

(3) At the same time as the payments under subsections (1) and (2) of this section are made, the commission shall make additional payments from the Motor Vehicle Tax Reimbursement Fund to the counties as reimbursement for fees of the county tax collectors for collecting motor vehicle ad valorem taxes for municipalities, municipal school districts and other taxing districts, as provided for in Sections 25-7-21 and 27-51-29, that are lost as a result of the ad valorem tax exemption for private carriers of passengers and light carriers of property that is provided for in subsection (2)(h) of Section 27-51-41. These payments shall be made to the chancery clerk for deposit in the county general fund. The payments shall be in amounts that will provide each county with an aggregate amount from the fund for that purpose for each fiscal year that is equal to the total amount of the fees that the county tax collector retained from ad valorem taxes collected for municipalities, municipal school districts and other taxing districts on private carriers of passengers and motor vehicle carriers of property during the 1996-1997 fiscal year. The amount that each county will receive for each fiscal year under this subsection shall be determined by the commission based on documentation provided by the tax collectors about fees retained by the county tax collectors from motor vehicle ad valorem taxes collected for municipalities, municipal school districts and other taxing districts during the 1996-1997 fiscal year.

(4) If there are surplus monies in the Motor Vehicle Tax Reimbursement Fund after all the required payments under subsections (1), (2) and (3) of this section have been made for any fiscal year, the commission shall make payments of those surplus monies to the county tax collectors within forty-five (45) days after the end of the fiscal year for distribution to the counties, municipalities, school districts and other taxing districts. These payments shall be in amounts that will provide each county, municipality, school district and other taxing district for which the tax collector collects motor vehicle ad valorem taxes with its pro rata share of that surplus monies, based on the percentage of the total ad valorem taxes collected on private carriers of passengers and light carriers of property in all counties, municipalities, school districts and other taxing districts during the 1996-1997 fiscal year that were collected in the individual county, municipality, school district or other taxing district. The applicable percentage for each county, municipality, school district and other taxing district under this subsection, and the amount of any surplus monies that each county, municipality, school district and other taxing district will receive under this subsection, shall be determined by the commission based on documentation provided by the tax collectors about motor vehicle ad valorem taxes collected during the 1996-1997 fiscal year.

(5) Within ten (10) days after receipt of the payments from the commission under subsections (1) and (4) of this section, the county tax collectors shall remit the appropriate amount of the payments to the chancery clerk and to any municipalities, municipal school districts and other taxing districts for which the county tax collector collects motor vehicle ad valorem taxes. The appropriate amount to be remitted to each chancery clerk, municipality, school district and other taxing district shall be specified by the commission at the time it makes the payments to the tax collectors.

(6) Funds received by counties, municipalities, school districts and other taxing districts from the payments under subsections (1) and (4) of this section shall be considered to be, and shall be used in the same manner as, the proceeds of motor vehicle ad valorem taxes. Funds received by counties from the payments under subsection (2) of this section shall be considered to be, and shall be used in the same manner as, road and bridge privilege taxes that are deposited in the county road fund.

SECTION 5. From the twenty-five percent (25%) of the amount collected under subsection (1) of Section 1 that is not to be deposited in the Motor Vehicle Tax Reimbursement Fund, the State Tax Commission shall make monthly payments to municipalities in amounts that will provide each municipality with a total amount from those payments for each fiscal year that is not less than five hundred fifty-five thousandths percent (0.555%) of the total amount of the sales prices of all private carriers of passengers and light carriers of property that were sold within the municipality by motor vehicle dealers, as defined in Section 27-19-3, during the preceding fiscal year. The commission shall require all motor vehicle dealers to report to it on a regular basis, as specified by the commission, the total amount of the sales prices of all of those vehicles sold by each dealer in each municipality during the preceding reporting period. The payments made under this section shall be made at the same time as the payments under Section 4 are made to municipalities and shall be made directly to the municipalities for deposit in the appropriate municipal fund.

In any county having a county seat that is not an incorporated municipality, the payments made under this section shall be made as though the county seat were an incorporated municipality; however, the payments to the county seat shall be paid to the county treasury in which the county seat is located, and those funds shall be used for road, bridge and street construction or maintenance therein.

SECTION 6. (1) The motor vehicle privilege tax law (Section 27-19-1 et seq.) shall be applicable to the administration and enforcement of Sections 1 through 6 of this act to the extent that it does not conflict with those sections. The State Tax Commission shall adopt rules and regulations as necessary for the administration and enforcement of Sections 1 through 6 of this act.

(2) The motor vehicle tag fee imposed under subsection (3) of Section 1 shall be considered to be the same as the road and bridge privilege tax, highway privilege tax or privilege license tax for the purposes of the motor vehicle privilege tax law and for the purposes of any other provision that refers to the road and bridge privilege tax, highway privilege tax or privilege license tax, to the extent that the privilege tax law or other provision does not conflict with Sections 1 through 6 of this act. Application for, payment, collection and enforcement of, penalties for and refunds of the motor vehicle tag fee shall be carried out under the motor vehicle privilege tax law in the same manner as if the motor vehicle tag fee were the road and bridge privilege tax, highway privilege tax or privilege license tax, to the extent that the privilege tax law does not conflict with Sections 1 through 6 of this act. In addition, application for payment, collection and enforcement of, penalties for and refunds of the initial and renewal motor vehicle title privilege tax shall be carried out under the motor vehicle privilege tax law using the same procedures that are applicable to the road and bridge privilege tax, highway privilege tax or privilege license tax, to the extent that the privilege tax law does not conflict with Sections 1 through 6 of this act.

(3) Payment of the motor vehicle tag fee imposed under subsection (3) of Section 1 shall be considered to be the same as payment of the road and bridge privilege tax, highway privilege tax, privilege license tax or privilege license for the purposes of any provision that requires payment of that tax or license as a prerequisite for authorization to take some action or receive some benefit or privilege.

(4) Any vehicle that is required to pay the motor vehicle tag fee imposed under subsection (3) of Section 1 shall be considered to be a vehicle that is required to have a motor vehicle privilege license, and an application for payment of the motor vehicle tag fee shall be considered to be an application for a motor vehicle privilege license. The issuance of a license tag or decals to any person who has paid the motor vehicle tag fee shall be considered to be the issuance of the motor vehicle privilege license for the vehicle for which the tag or decals were issued.

SECTION 7. Section 27-19-5, Mississippi Code of 1972, is amended as follows:

27-19-5. (1) There is * * * levied the following annual highway privilege tax on operators of motorcycles as reasonable compensation for the use of the highways of this state:

On each motorcycle, per annum $8.00

(2) Private carriers of passengers are exempt from the annual highway privilege tax levied under this article.

SECTION 8. Section 27-19-11, Mississippi Code of 1972, is amended as follows:

27-19-11. On each carrier of property, for each motor vehicle, truck-tractor or road tractor used in the operation of any business as such, and on each bus, there is * * * levied an annual highway privilege tax in accordance with the following schedule, except that the gross vehicle weight of buses shall be the gross weight of the vehicle plus one hundred fifty (150) pounds per each regular seat.

RATE OF TAX

GROSS WEIGHT PRIVATE COMMERCIAL PRIVATE PRIVATE

OF VEHICLE CARRIERS OF PROPERTY COMMERCIAL CARRIERS

NOT TO EXCEED WITH A GROSS VEHICLE CARRIERS OF OF

IN POUNDS WEIGHT IN EXCESS OF PROPERTY WITH PROPERTY

60,000 POUNDS, A GROSS VEHICLE

COMMON AND CONTRACT WEIGHT OF 60,000

CARRIERS OF PROPERTY POUNDS OR LESS

AND BUSES

0000-6000 Exempt Exempt Exempt

6001-10000 $ 33.60 $ 25.20 $ 16.80

10001-16000 78.40 70.70 39.20

16001-20000 156.00 129.00 78.00

20001-26000 228.00 192.00 114.00

26001-30000 300.00 247.00 150.00

30001-36000 384.00 318.00 192.00

36001-40000 456.00 378.00 228.00

40001-42000 504.00 420.00 264.00

42001-44000 528.00 444.00 276.00

44001-46000 552.00 456.00 282.00

46001-48000 588.00 492.00 300.00

48001-50000 612.00 507.00 312.00

50001-52000 660.00 540.00 336.00

52001-54000 684.00 564.00 348.00

54001-56000 708.00 588.00 360.00

56001-58000 756.00 624.00 384.00

58001-60000 780.00 642.00 396.00

60001-62000 828.00 420.00

62001-64000 852.00 432.00

64001-66000 900.00 482.00

66001-68000 936.00 504.00 68001-70000 972.00 516.00 70001-72000 996.00 528.00

72001-74000 1,128.00 576.00

74001-76000 1,248.00 512.00

76001-78000 1,380.00 720.00

78001-80000 1,512.00 864.00

In addition to the above levied annual highway privilege tax on vehicles with a gross weight exceeding ten thousand (10,000) pounds, there is levied and shall be collected an additional privilege tax in the amount of One Thousand Three Hundred Fifty Dollars ($1,350.00) for each current or later year model vehicle based upon a licensed weight of eighty thousand (80,000) pounds. This additional privilege tax shall be reduced by the amount of One Hundred Seventy-five Dollars ($175.00) for each year of age to a minimum of Fifty Dollars ($50.00) and further reduced by the ratio of licensed weight to the maximum weight of eighty thousand (80,000) pounds. During the first year only, the privilege tax monies collected under the provisions of this paragraph shall be distributed to the various counties of the state on the basis of the ratio of the last year of annual ad valorem taxes collected by such counties on such vehicles to the total ad valorem taxes collected by all counties on such vehicles in the same year. In all subsequent years, such distribution to the counties shall be made on the basis of the ratio of the number of motor vehicles registered in excess of ten thousand (10,000) pounds, in each taxing district in each county, to the total number of such vehicles registered statewide. The counties should then distribute these proceeds as they would if these collections were ad valorem taxes.  * * * However, until July 1, 1993, vehicles which are subject to the provisions of this section and were licensed in another state shall not be subject to any other taxes when registered in this state.

From the privilege tax monies collected under this section, Three Million Seven Hundred Thirty-two Thousand Four Hundred Three Dollars and Eleven Cents ($3,732,403.11) shall be earmarked and set aside to be apportioned and paid to the counties of the state in the manner provided by Section 27-19-159. Any excess privilege tax monies collected under this section shall be deposited into the State Highway Fund for the construction, maintenance and reconstruction of highways and roads of the State of Mississippi or the payment of interest and principal on bonds authorized by the 1972 Regular Session of the Legislature for construction and reconstruction of highways.

 * * * No privilege license shall be issued for any period of time for less than One Dollar ($1.00).

All vehicles owned by the State of Mississippi or any county, levee district, school or drainage district, or any other political subdivision thereof, including municipalities, used for the transportation of property, shall be classified as private carriers of property and shall be registered as such.

The annual highway privilege tax imposed on operators engaged exclusively in the transportation of household goods shall be the same as the tax imposed upon private commercial carriers by this section. However, in determining the amount of privilege taxes due under the provisions of this section, there shall be allowed a maximum tolerance of five hundred (500) pounds on all classes of carriers except carriers of liquefied compressed gases and in the case of carriers of liquefied compressed gases there shall be allowed a maximum tolerance of two thousand (2,000) pounds.

 * * * However, any owner or operator who operates a motor vehicle on the public highways, with a license tag attached thereto which was issued for another or different vehicle, shall be liable for the privilege tax on the vehicle for twelve (12) months plus a penalty thereon of twenty-five percent (25%).

 * * * Carriers of property duly registered and licensed in another state and being used to transport farm harvesting machinery or equipment to and from a particular county in this state may, upon adoption of a resolution by the board of supervisors of the county where such machinery or equipment is being exclusively used in harvesting farm crops within the county, be exempt from the taxes herein levied when the resolution is filed with the State Tax Commission. Such exemption shall not exceed a period of forty (40) days for any annual period without a second resolution of approval by the board of supervisors who shall have the authority to extend the exemption not to exceed an additional period of twenty (20) days during any annual period.

 * * * A private commercial carrier of property hauling interstate may purchase a common and contract carrier of property license plate at the prescribed fee to allow the carrier to lease on a one-way basis per trip without qualifying with the Public Service Commission.

SECTION 9. Section 27-51-41, Mississippi Code of 1972, is amended as follows:

27-51-41. (1) The exemptions from the provisions of this chapter shall be confined to those persons or property exempted by this chapter or by the provisions of the Constitution of the United States or the State of Mississippi. No exemption as now provided by any other statute shall be valid as against the tax levied by this chapter. Any subsequent exemption from the tax levied hereunder shall be provided by amendment to this section which shall be inserted in the bill at length.

(2) The following shall be exempt from ad valorem taxation:

(a) All motor vehicles, as defined in this chapter, and including motor-propelled farm implements and vehicles, while in the hands of bona fide dealers as merchandise and which are not being operated upon the highways of this state shall be exempt from all ad valorem taxes.

(b) All motor vehicles belonging to the federal government or the State of Mississippi or any agencies or instrumentalities thereof shall be exempt from all ad valorem taxes.

(c) All motor vehicles owned by any school district in the state shall be exempt from all ad valorem taxes.

(d) All motor vehicles owned by any fire protection district incorporated in accordance with Sections 19-5-151 through 19-5-207 or by any fire protection grading district incorporated in accordance with Sections 19-5-215 through 19-5-243 shall be exempt from all ad valorem taxes.

(e) All motor vehicles owned by units of the Mississippi National Guard shall be exempt from all ad valorem taxes.

(f) All motor vehicles which are exempted from highway privilege taxes under Section 27-19-1 et seq., except for private carriers of passengers and light carriers of property, shall be exempt from ad valorem taxes. As used in this paragraph (f), "private carrier of passengers" and "light carrier of property" shall be defined as provided in subsection (6) of Section 1 of this act.

(g) All motor vehicles operated in this state as common and contract carriers of property, private commercial carriers of property, private carriers of property and buses, all of which have a gross weight in excess of ten thousand (10,000) pounds, shall be exempt from all ad valorem taxes.

(h) Each private carrier of passengers and light carrier of property shall be exempt from the number of mills of ad valorem tax that was levied for the 1996-1997 fiscal year by each respective county, municipality, school district and other taxing district in which the vehicle otherwise would be subject to ad valorem taxation during the then current taxable year; however, those vehicles shall be subject to any ad valorem tax millage levied by any such county, municipality, school district or other taxing district for the then current fiscal year that exceeds the number of mills exempted by this paragraph (h) in the county, municipality, school district or other taxing district. As used in this paragraph (h), "private carrier of passengers," "light carrier of property" and "fiscal year" shall be defined as provided in subsection (6) of Section 1 of this act.

(i) Antique automobiles as defined in Section 27-19-47 shall be exempt from all ad valorem taxes.

(j) Street rods as defined in Section 27-19-56.6 shall be exempt from all ad valorem taxes.

(k) Motor vehicles owned by disabled American veterans, or by spouses of deceased disabled American veterans, in accordance with Section 27-19-53, shall be exempt from all ad valorem taxes.

(l) One (1) motor vehicle owned by the unremarried surviving spouse of a member of the Armed Forces of the United States who, while on active duty, is killed or dies and one (1) motor vehicle owned by the unremarried surviving spouse of a member of a reserve component of the Armed Forces of the United States or of the National Guard who, while on active duty for training, is killed or dies shall be exempt from ad valorem taxes.

(m) Motor vehicles owned by recipients of the Congressional Medal of Honor or by former prisoners of war, or by spouses of such deceased persons, in accordance with Section 27-19-54, shall be exempt from all ad valorem taxes.

(n) Any religious society, ecclesiastical body or any congregation thereof shall be exempt from ad valorem taxation on one (1) private carrier of passengers, as defined in Section 27-19-3, owned by it, which is used exclusively for such society and not for profit. All motor vehicles owned by any such religious society or any educational institution having a seating capacity greater than seven (7) passengers and used exclusively for transporting passengers for religious or educational purposes and not for profit shall be exempt from all ad valorem taxes.

(o) All motor vehicles primarily used as rentals under rental agreements with a term of not more than thirty (30) continuous days each and under the control of persons who are engaged in the business of renting such motor vehicles and who are subject to the tax under Section 27-65-231 shall be exempt from all ad valorem taxes.

(3) Any claim for tax exemption by authority of the above-mentioned code sections or by any other legal authority shall be set out in the application for the road and bridge privilege license, and the specific legal authority for such tax exemption claim shall be cited in the application, and such authority cited shall be shown by the tax collector on the tax receipt as his authority for not collecting such ad valorem taxes, and the tax collector shall carry forward such information in his tax collection reports.

(4) Any motor vehicle driven over the highways of this state to the extent that the owner of such motor vehicle is required to purchase a road and bridge privilege license in this state, yet the legal situs of such motor vehicle is located in another state, shall be exempt from ad valorem taxes authorized by this chapter.

(5) If a taxpayer shall sell, trade or otherwise dispose of a motor vehicle on which the ad valorem and road and bridge privilege taxes have been paid in any county in the state, he shall remove the license plate from the vehicle. Such license plate must be surrendered to the issuing authority with the corresponding tax receipt, if required, and credit shall be allowed for the taxes paid for the remaining tax year on like privilege or ad valorem taxes due on another vehicle owned by the seller or transferor or by the seller's or transferor's spouse or dependent child. If the seller or transferor does not elect to receive such credit at the time the license plate is surrendered, the issuing authority shall issue a certificate of credit to the seller or transferor, or to the seller's or transferor's spouse or dependent child, or to any other person, business or corporation, at the direction of the seller or transferor, for the remaining unexpired taxes prorated from the first day of the month following the month in which the license plate is surrendered. The total of such credit may be used by the person or entity to whom the certificate of credit is issued, regardless of the relative amounts attributed to privilege taxes or to county, school or municipal ad valorem taxes. Any credit allowed for taxes due or any certificate of credit issued may be applied to like taxes owed in any county by the person to whom the credit is allowed or by the person possessing the certificate of credit. No credit, however, shall be allowed on the charge made for the license plate. Such license plates surrendered to the tax collector shall be retained by him, and in no event shall such license plate be attached to any motor vehicle after being surrendered to the tax collector, nor shall any license plate be transferred from one (1) motor vehicle to any other motor vehicle.

(6) If the person owning a motor vehicle subject to taxation under the provisions of this chapter does not operate such motor vehicle on the highways of this state from the date of acquisition or, if previously registered, from the end of the anniversary month of the tag and decals to the date on which he makes application for a current license tag or decals, he shall pay such ad valorem tax for a period of twelve (12) months beginning with the first day of the month in which he applies for a current license tag or decals under Chapter 19, Title 27, Mississippi Code of 1972. The owner shall submit an affidavit with an application attesting to the fact that the motor vehicle was not operated on the highways of this state from the date of acquisition or, if previously registered, from the end of the anniversary month of the tag and decals to the date on which he makes application for the current license tag or decals.

(7) Any person found violating any of the provisions of this section shall be arrested and tried, and if found guilty shall be fined in an amount double the total amount of taxes involved.

SECTION 10. Section 27-51-33, Mississippi Code of 1972, is amended as follows:

27-51-33. Upon enactment of this law, the tax assessors of the various counties and municipalities of the state shall not be required to assess motor vehicles, as defined in this chapter, in preparing their regular assessment rolls from year to year.

The total assessed value of all motor vehicles as reflected by the annual report of the county tax collector shall be considered as a legal part of the assessed value of personal property in the county and the total assessed value of motor vehicles on which taxes were paid during the next preceding fiscal year shall be used in determining the total assessed value of a county for classification purposes, and the total assessed value of all such motor vehicles of the municipality for the same period, as reflected by the annual report of the county tax collector, shall be considered as a legal part of the assessed value of personal property in the municipality in determining the total assessed value of such municipality. The assessed value of all private carriers of passengers and light carriers of property in a county or municipality that are subject to the ad valorem tax exemption provided for in subsection (2)(h) of Section 27-51-41 shall be included in the total assessed value of the county or municipality, regardless of whether any ad valorem taxes were paid on those motor vehicles during the next preceding fiscal year. As used in this paragraph, "private carrier of passengers" and "light carrier of property" shall be defined as provided in subsection (6) of Section 1 of this act.

Any order legally adopted and made of minute record by the municipal authorities directing the county tax collector to collect its ad valorem taxes on motor vehicles as provided by this chapter shall remain in force from year to year until rescinded by official order duly recorded and certified to the county tax collector and the municipal assessor. Further, any such order shall comply with the provisions of Section 27-41-2.

For any year, any municipality may adopt an order rescinding its former order authorizing the county tax collector to collect its ad valorem taxes on motor vehicles, provided that such rescinding order is duly adopted, made of minute record, and certified to the county tax collector at least sixty (60) days prior to the beginning of the ensuing fiscal year, and such order shall be published one (1) time in a newspaper having general circulation in the subject municipality.

SECTION 11. Section 27-7-17, Mississippi Code of 1972, is amended as follows:

27-7-17. In computing taxable income, there shall be allowed as deductions:

(1) Business deductions.

(a) Business expenses. All the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including a reasonable allowance for salaries or other compensation for personal services actually rendered; nonreimbursable traveling expenses incident to current employment, including a reasonable amount expended for meals and lodging while away from home in the pursuit of a trade or business; and rentals or other payments required to be made as a condition of the continued use or possession, for purposes of the trade or business of property to which the taxpayer has not taken or is not taking title or in which he had no equity. Expense incurred in connection with earning and distributing nontaxable income is not an allowable deduction. Limitations on entertainment expenses shall conform to the provisions of the Internal Revenue Code of 1986.

(b) Interest. All interest paid or accrued during the taxable year on business indebtedness, except interest upon the indebtedness for the purchase of tax-free bonds, or any stocks, the dividends from which are nontaxable under the provisions of this article; provided, however, in the case of securities dealers, interest payments or accruals on loans, the proceeds of which are used to purchase tax-exempt securities, shall be deductible if income from otherwise tax-free securities is reported as income. Investment interest expense shall be limited to investment income. Interest expense incurred for the purchase of treasury stock, to pay dividends, or incurred as a result of an undercapitalized affiliated corporation may not be deducted unless an ordinary and necessary business purpose can be established to the satisfaction of the commissioner. For the purposes of this paragraph, the phrase "interest upon the indebtedness for the purchase of tax-free bonds" applies only to the indebtedness incurred for the purpose of directly purchasing tax-free bonds and does not apply to any other indebtedness incurred in the regular course of the taxpayer's business. Any corporation, association, organization or other entity taxable under Section 27-7-23(c), shall allocate interest expense as provided in Section 27-7-23(c)(4)(H).

(c) Taxes. Taxes paid or accrued within the taxable year, except state and federal income taxes, excise taxes based on or measured by net income, estate and inheritance taxes, gift taxes, cigar and cigarette taxes, gasoline taxes, and sales and use taxes unless incurred as an item of expense in a trade or business or in the production of taxable income. In the case of an individual, taxes permitted as an itemized deduction under the provisions of subsection (2)(a) of this section are to be claimed thereunder.

(d) Business losses.

(i) Losses sustained during the taxable year not compensated for by insurance or otherwise, if incurred in trade or business, or nonbusiness transactions entered into for profit.

(ii) Limitations on losses from passive activities and rental real estate shall conform to the provisions of the Internal Revenue Code of 1986.

(e) Bad debts. Losses from debts ascertained to be worthless and charged off during the taxable year, if sustained in the conduct of the regular trade or business of the taxpayer; provided, that such losses shall be allowed only when the taxpayer has reported as income, on the accrual basis, the amount of such debt or account.

(f) Depreciation. A reasonable allowance for exhaustion, wear and tear of property used in the trade or business, or rental property, and depreciation upon buildings based upon their reasonable value as of March 16, 1912, if acquired prior thereto, and upon cost if acquired subsequent to that date.

(g) Depletion. In the case of mines, oil and gas wells, other natural deposits and timber, a reasonable allowance for depletion and for depreciation of improvements, based upon cost, including cost of development, not otherwise deducted, or fair market value as of March 16, 1912, if acquired prior to that date, such allowance to be made upon regulations prescribed by the commissioner, with the approval of the Governor.

(h) Contributions or gifts. Except as otherwise provided in subsection (2)(a) of this section for individuals, contributions or gifts made by corporations within the taxable year to corporations, organizations, associations or institutions, including Community Chest funds, foundations and trusts created solely and exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inure to the benefit of any private stockholder or individual. This deduction shall be allowed in an amount not to exceed twenty percent (20%) of the net income. Such contributions or gifts shall be allowable as deductions only if verified under rules and regulations prescribed by the commissioner, with the approval of the Governor. Contributions made in any form other than cash shall be allowed as a deduction, subject to the limitations herein provided, in an amount equal to the actual market value of the contributions at the time the contribution is actually made and consummated.

(i) Reserve funds - insurance companies. In the case of insurance companies the net additions required by law to be made within the taxable year to reserve funds when such reserve funds are maintained for the purpose of liquidating policies at maturity.

(j) Annuity income. The sums, other than dividends, paid within the taxpayer year on policy or annuity contracts when such income has been included in gross income.

(k) Contributions to employee pension plans. Contributions made by an employer to a plan or a trust forming part of a pension plan, stock bonus plan, disability or death-benefit plan, or profit-sharing plan of such employer for the exclusive benefit of some or all of his, their, or its employees, or their beneficiaries, shall be deductible from his, their, or its income only to the extent that, and for the taxable year in which, the contribution is deductible for federal income tax purposes under the Internal Revenue Code of 1986 and any other provisions of similar purport in the Internal Revenue Laws of the United States, and the rules, regulations, rulings and determinations promulgated thereunder, provided that:

(i) The plan or trust be irrevocable.

(ii) The plan or trust constitute a part of a pension plan, stock bonus plan, disability or death-benefit plan, or profit-sharing plan for the exclusive benefit of some or all of the employer's employees and/or officers, or their beneficiaries, for the purpose of distributing the corpus and income of the plan or trust to such employees and/or officers, or their beneficiaries.

(iii) No part of the corpus or income of the plan or trust can be used for purposes other than for the exclusive benefit of employees and/or officers, or their beneficiaries.

Contributions to all plans or to all trusts of real or personal property (or real and personal property combined) or to insured plans created under a retirement plan for which provision has been made under the laws of the United States of America, making such contributions deductible from income for federal income tax purposes, shall be deductible only to the same extent under the Income Tax Laws of the State of Mississippi.

(l) Net operating loss carrybacks and carryovers.

(i) A net operating loss for any taxable year ending after December 31, 1991, shall be a net operating loss carryback for one (1) taxable year preceding the taxable year of the loss. If the net operating loss for any taxable year is not exhausted by carrybacks for one (1) taxable year preceding the taxable year of the loss, then there shall be a net operating loss carryover to each of the fifteen (15) taxable years following the taxable year of the loss beginning with any taxable year after December 31, 1991.

(ii) A net operating loss for any taxable year ending after December 31, 1992, shall be a net operating loss carryback to each of the two (2) taxable years preceding the taxable year of the loss. If the net operating loss for any taxable year is not exhausted by carrybacks to the two (2) taxable years preceding the taxable year of the loss, then there shall be a net operating loss carryover to each of the fifteen (15) taxable years following the taxable year of the loss beginning with any taxable year after December 31, 1991.

(iii) A net operating loss for any taxable year ending after December 31, 1993, and taxable years thereafter, shall be a net operating loss carryback to each of the three (3) taxable years preceding the taxable year of the loss. If the net operating loss for any taxable year is not exhausted by carrybacks to the three (3) taxable years preceding the taxable year of the loss, then there shall be a net operating loss carryover to each of the fifteen (15) taxable years following the taxable year of the loss beginning with any taxable year after December 31, 1991.

The term "net operating loss," for the purposes of this paragraph, shall be the excess of the deductions allowed over the gross income; provided, however, the following deductions shall not be allowed in computing same:

1. No net operating loss deduction shall be allowed.

2. No personal exemption deduction shall be allowed.

3. Allowable deductions which are not attributable to taxpayer's trade or business shall be allowed only to the extent of the amount of gross income not derived from such trade or business.

Any taxpayer entitled to a carryback period as provided by this paragraph may elect to relinquish the entire carryback period with respect to a net operating loss for any taxable year ending after December 31, 1991. The election shall be made in the manner prescribed by the State Tax Commission and shall be made by the due date, including extensions of time, for filing the taxpayer's return for the taxable year of the net operating loss for which the election is to be in effect. The election, once made for any taxable year, shall be irrevocable for that taxable year.

(m) Amortization of pollution or environmental control facilities.

(i) Allowance of deduction. Every taxpayer, at his election, shall be entitled to a deduction with respect to the amortization of any certified pollution or environmental control facility (as defined in subsection (1)(m)(iv) of this section), based on a period of sixty (60) months. Such amortization deduction shall be an amount, with respect to each month of such period within the taxable year, equal to the amortizable basis of the pollution or environmental control facility at the end of such month divided by the number of months (including the month for which the deduction is computed) remaining in the period. Such amortizable basis at the end of the month shall be computed without regard to the amortization deduction for such month. The amortization deduction provided in this subparagraph shall be in lieu of the depreciation deduction with respect to such pollution or environmental control facility for such month provided by subsection (1)(f) of this section. The sixty-month period shall begin, as to any certified pollution or environmental control facility, at the election of the taxpayer, with the month following the month in which such facility was completed or acquired, or with the succeeding taxable year.

(ii) Election of amortization. The election of the taxpayer to take the amortization deduction authorized in this subsection shall be made only after certification of such pollution or environmental control facility by the Mississippi Air and Water Pollution Control Commission and notice of such certification is given as further provided in subsection (1)(m)(viii) of this section.

(iii) Termination of amortization deduction. A taxpayer which has elected under subsection (1)(m)(ii) of this section to take the amortization deduction provided in subsection (1)(m)(i) of this section may, at any time after making such election, discontinue the amortization deduction with respect to the remainder of the amortization period, such discontinuance to begin as of the beginning of any month specified by the taxpayer in a notice in writing filed with the Chairman of the State Tax Commission before the beginning of such month. The depreciation deduction provided under subsection (1)(f) of this section shall be allowed, beginning with the first month as to which the amortization deduction does not apply, and the taxpayer shall not be entitled to any further amortization deduction under subsection (1)(m) with respect to such pollution or environmental control facility.

(iv) Definitions. For purposes of subsection (1)(m) of this section:

1. Certified pollution or environmental control facility. The term "certified pollution or environmental control facility" means a new identifiable treatment facility which is used in connection with a plant or other property to abate or control noise, water or atmospheric pollution or contamination by removing, altering, disposing, or storing of pollutants, contaminants, wastes, or heat and which has been certified to by the Mississippi Air and Water Pollution Control Commission, as provided in subsection (1)(m)(viii) of this section, as having been constructed, reconstructed, erected, or acquired in conformity with the Mississippi program or requirements for abatement or control of noise, water or atmospheric pollution or contamination.

2. New identifiable treatment facility. For purposes of subsection (1)(m)(iv)1 of this section, the term "new identifiable treatment facility" includes only tangible property (not including a building and its structural components, other than a building which is exclusively a treatment facility) which is of a character subject to the allowance for depreciation provided in subsection (1)(f) of this section, which is identifiable as a treatment facility, and which is property:

a. The construction, reconstruction or erection of which is completed by the taxpayer after December 31, 1972; or

b. Acquired after December 31, 1972, if the original use of the property commences with the taxpayer and commences after such date.

In applying the provisions of subsection (1)(m) of this section in the case of property described in subsection (1)(m)(iv)2a of this section, there shall be taken into account only that portion of the basis which is properly attributable to construction, reconstruction, or erection after December 31, 1972.

3. Plant or other property. For purposes of subsection (1)(m)(iv)1 of this section, the phrase "plant or other property" means any tangible property whether or not such property is used in the trade or business or held for the production of income.

4. Buildings. For purposes of subsection (1)(m)(iv)2 of this section, the term "building" generally means any structure or edifice enclosing a space within its walls, and usually covered by a roof, the purpose of which is to provide shelter or housing, or to provide working, office, parking, display, or sales space. The term includes structures such as apartment houses, factory and office buildings, warehouses, barns, garages, railway or bus stations, stores, and other similarly used structures. The term does not include:

a. A structure which is essentially an item of machinery or equipment; or

b. An enclosure which is so closely combined with the machinery or equipment which it supports, houses or serves that it must be replaced, retired or abandoned contemporaneously with such machinery or equipment, and which is depreciated over the life of such machinery or equipment.

5. Structural components. For purposes of subsection (1)(m)(iv)2 of this section, the term "structural components" includes chimneys and other components relating to the operating or maintenance of a building. The term "structural components" does not include machinery or a device which serves no function other than the abatement or control of noise, water or atmospheric pollution.

6. Amortizable basis. For purposes of subsection (1)(m)(i) of this section, the "amortizable basis" of a certified pollution or environmental control facility is the adjusted basis of such facility for purposes of determining gain (Section 27-7-9) reduced by the cost of any pollution or environmental control facility:

a. Completed or acquired by the taxpayer prior to December 31, 1972;

b. Which is a profit-making abatement works; and

c. Requiring allocation of nonpollution or environmental control equipment.

(v) Profit-making abatement works. The Mississippi Air and Water Pollution Control Commission shall not certify any property under the provisions of subsection (1)(m) of this section to the extent it appears that by reason of profits derived through the recovery of wastes or otherwise in the operation of such property, its costs will be recovered over its actual useful life.

(vi) Application for certification. Applications for certification for the amortization deduction authorized under subsection (1)(m) of this section for pollution or environmental control facilities shall be submitted to the Mississippi Air and Water Pollution Control Commission in such manner as such commission may prescribe; shall be signed by the applicant or agent thereof; and shall include the following information:

1. Name, address and federal employer identifying number of the applicant;

2. Type and narrative description of the new identifiable facility for which certification is (or will be) sought, including a copy of schematic or engineering drawings, and a description of the function and operation of such facility;

3. Address (or proposed address) of facility location;

4. A general description of the operation in connection with which such facility is (or will be) used and a description of the specific process or processes resulting in discharges or emissions which are (or will be) controlled by the facility;

5. If the facility is (or will be) used in connection with more than one (1) plant or other property, a description of the operations of the facility in respect to each plant or other property, including a reasonable allocation of the costs of the facility among the plants being serviced, and a description of the reasoning and accounting methods used to arrive at such allocation;

6. Description of the effect of such facility in terms of type and quantity of noise, pollutants, contaminants, wastes or heat, removed, altered, stored, or disposed of by such facility;

7. If the facility performs a function other than removal, alteration, storage, or disposal of pollutants, contaminants, wastes or heat, or noise, a description of all functions performed by the facility, including a reasonable identification of the costs of the facility allocable to removal, alteration, storage, or disposal of pollutants, contaminants, wastes or heat, or noise, and a description of the reasoning and the accounting methods used to arrive at such allocation;

8. Date when such construction, reconstruction, or erection will be completed or when such facility was (or will be) acquired;

9. Date when such facility is placed (or is intended to be placed) in operation;

10. Cost of construction, acquisition, installation, operation, and maintenance of the facility;

11. Estimated profits reasonably expected to be derived through the recovery of wastes or otherwise in the operation of the facility; and

12. Such other information as the Mississippi Air and Water Pollution Control Commission deems necessary for certification.

(vii) Requirements for certification. The Mississippi Air and Water Pollution Control Commission will certify a facility if it makes the following determinations:

1. It removes, alters, disposes of, or stores pollutants, contaminants, wastes or heat, or noise, which, but for the facility, would be released into the environment.

2. The facility furthers the general policies of Mississippi in the prevention and abatement of pollution and noise.

3. The facility is suitable and reasonably adequate to satisfy the interests and purposes of the Mississippi Air and Water Pollution Control Commission Law, and regulations thereunder.

4. The applicant has complied with all the other requirements of subsection (1)(m) of this section and has submitted all requested information.

(viii) Certification. When the Mississippi Air and Water Pollution Control Commission has certified a facility as a pollution or environmental control facility under the requirements and provisions of subsection (1)(m) of this section, a notice of certification shall be given by mail to the applicant, the Chairman of the State Tax Commission, and the tax assessor of the county or counties in which the facility is located, said notice of certification to contain such information and data as may be required by the State Tax Commission in the proper administration and control of the amortization deduction authorized by subsection (1)(m) of this section.

(ix) Revocation. Certification under subsection (1)(m) of this section may be revoked by the Mississippi Air and Water Pollution Control Commission on thirty (30) days' written notice to the applicant, served by certified mail, whenever such commission shall determine that the facility in question is no longer being operated consistent with the requirements for certification (subsection (1)(m)(vii) of this section) in effect at the time the facility was placed in service. Within such period of thirty (30) days, the applicant may submit to the Mississippi Air and Water Pollution Control Commission such evidence, data, or other written materials as the applicant may deem appropriate to show why the certification under subsection (1)(m) of this section should not be revoked. Notification of a revocation under this subparagraph shall be given to the Chairman of the State Tax Commission. The Mississippi Air and Water Pollution Control Commission shall consider the issues presented by the applicant, according to law and the facts, and shall within thirty (30) days from the date of the applicant's petition make a determination and notify the applicant of its findings, with a copy of such findings to the Chairman of the State Tax Commission.

(x) Appeals. An applicant may appeal any decision of the Mississippi Air and Water Pollution Control Commission which:

1. Denies certification; or

2. Disapproves the applicant's suggested method of allocating cost pursuant to subsection (1)(m)(vi) of this section.

The petition for an appeal to the Mississippi Air and Water Pollution Control Commission shall be in writing and shall be filed with such commission within thirty (30) days from the date of the decision to which the appeal applies. The Mississippi Air and Water Pollution Control Commission shall promptly consider the petition, grant a hearing, and notify the petitioner of the time and place fixed for the hearing. At said hearing, the Mississippi Air and Water Pollution Control Commission shall try the issues presented, according to the law and facts and shall, as soon as practical thereafter, notify the applicant of its determination.

(n) Dividend distributions - investment trusts. Dividends distributed by an investment trust defined in Section 79-15-3, if the dividend distributions meet the requirements of Section 857 or are otherwise deductible under Section 858 or 860, federal Internal Revenue Code of 1986, as amended. The deductions allowed in this paragraph shall be effective for the 1985 taxable year of the investment trust and for each taxable year thereafter.

(2) Individual nonbusiness deductions.

(a) The amount allowable for individual nonbusiness itemized deductions for federal income tax purposes, except the deduction for state income taxes paid, where the individual is eligible to elect, for the taxable year, to itemize deductions on his federal return, and the amount paid by the individual during the taxable year for the initial motor vehicle title privilege tax, the renewal motor vehicle title privilege tax, the motor vehicle tag fee, or any combination thereof, imposed by Section 1 of this act, if that tax or fee is not allowable as an individual nonbusiness itemized deduction for federal income tax purposes; or

(b) In lieu of the individual nonbusiness itemized deductions authorized in paragraph (a), for all purposes other than ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, an optional standard deduction of:

(i) Three Thousand Four Hundred Dollars ($3,400.00) in the case of married individuals filing a joint or combined return;

(ii) One Thousand Seven Hundred Dollars ($1,700.00) in the case of married individuals filing separate returns;

(iii) Three Thousand Four Hundred Dollars ($3,400.00) in the case of a head of family; or

(iv) Two Thousand Three Hundred Dollars ($2,300.00) in the case of an individual who is not married.

In the case of a husband and wife living together, having separate incomes, and filing combined returns, the standard deduction authorized may be divided in any manner they choose. In the case of separate returns by a husband and wife, the standard deduction shall not be allowed to either if the taxable income of one (1) of the spouses is determined without regard to the standard deduction.

(c) A nonresident individual shall be allowed the same individual nonbusiness deductions as are authorized for resident individuals in paragraph (a) or (b) of this subsection; however, the nonresident individual is entitled only to that proportion of the individual nonbusiness deductions as his net income from sources within the State of Mississippi bears to his total or entire net income from all sources.

(3) Nothing in this section shall permit the same item to be deducted more than once, either in fact or in effect.

SECTION 12. Section 27-65-111, Mississippi Code of 1972, is amended as follows:

27-65-111. The exemptions from the provisions of this chapter which are not industrial, agricultural or governmental, or which do not relate to utilities or taxes, or which are not properly classified as one of the exemption classifications of this chapter, shall be confined to persons or property exempted by this section or by the Constitution of the United States or the State of Mississippi. No exemptions as now provided by any other section, except the classified exemption sections of this chapter set forth herein, shall be valid as against the tax herein levied. Any subsequent exemption from the tax levied hereunder, except as indicated above, shall be provided by amendments to this section.

No exemption provided in this section shall apply to taxes levied by Section 27-65-15 or 27-65-21, Mississippi Code of 1972.

The tax levied by this chapter shall not apply to the following:

(a) Sales of tangible personal property and services to hospitals or infirmaries owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are subject to and governed by Sections 41-7-123 through 41-7-127.

Only sales of tangible personal property or services which are ordinary and necessary to the operation of such hospitals and infirmaries are exempted from tax.

(b) Sales of daily or weekly newspapers, and periodicals or publications of scientific, literary or educational organizations exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code of 1954, as it exists as of March 31, 1975, and subscription sales of all magazines.

(c) Sales of coffins, caskets and other materials used in the preparation of human bodies for burial.

(d) Sales of tangible personal property for immediate export to a foreign country.

(e) Sales of tangible personal property to an orphanage, old men's or ladies' home, supported wholly or in part by a religious denomination, fraternal nonprofit organization or other nonprofit organization.

(f) Sales of tangible personal property, labor or services taxable under Sections 27-65-17, 27-65-19, and 27-65-23, to a YMCA, YWCA, a Boys' or Girls' Club owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual.

(g) Sales to elementary and secondary grade schools, junior and senior colleges owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are exempt from state income taxation, provided that this exemption does not apply to sales of property or services which are not to be used in the ordinary operation of the school, or which are to be resold to the students or the public.

(h) The gross proceeds of retail sales and the use or consumption in this state of drugs and medicines:

(i) Prescribed for the treatment of a human being by a person authorized to prescribe the medicines, and dispensed or prescription filled by a registered pharmacist in accordance with law; or

(ii) Furnished by a licensed physician, surgeon, dentist or podiatrist to his own patient for treatment of the patient; or

(iii) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, surgeon, dentist or podiatrist; or

(iv) Sold to a licensed physician, surgeon, podiatrist, dentist or hospital for the treatment of a human being; or

(v) Sold to this state or any political subdivision or municipal corporation thereof, for use in the treatment of a human being or furnished for the treatment of a human being by a medical facility or clinic maintained by this state or any political subdivision or municipal corporation thereof.

"Medicines," as used in this paragraph, shall mean and include any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment or prevention of disease and which is commonly recognized as a substance or preparation intended for such use; provided that "medicines" do not include any auditory, prosthetic, ophthalmic or ocular device or appliance, any dentures or parts thereof or any artificial limbs or their replacement parts, articles which are in the nature of splints, bandages, pads, compresses, supports, dressings, instruments, apparatus, contrivances, appliances, devices or other mechanical, electronic, optical or physical equipment or article or the component parts and accessories thereof, or any alcoholic beverage or any other drug or medicine not commonly referred to as a prescription drug.

Notwithstanding the preceding sentence of this subsection, "medicines" as used in this subsection, shall mean and include sutures, whether or not permanently implanted, bone screws, bone pins, pacemakers and other articles permanently implanted in the human body to assist the functioning of any natural organ, artery, vein or limb and which remain or dissolve in the body.

"Hospital," as used in this paragraph, shall have the meaning ascribed to it in Section 41-9-3, Mississippi Code of 1972.

Insulin furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed to be dispensed on prescription within the meaning of this subsection.

(i) Retail sales of automobiles, trucks and truck-tractors if exported from this state within forty-eight (48) hours and registered and first used in another state.

(j) Sales of tangible personal property or services to the Salvation Army and the Muscular Dystrophy Association, Inc.

(k) From July 1, 1985, through December 31, 1992, retail sales of "alcohol blended fuel" as such term is defined in Section 75-55-5. The gasoline-alcohol blend or the straight alcohol eligible for this exemption shall not contain alcohol distilled outside the State of Mississippi.

(l) Sales of tangible personal property or services to the Institute for Technology Development.

(m) The gross proceeds of retail sales of food and drink for human consumption made through vending machines serviced by full line vendors from and not connected with other taxable businesses.

(n) The gross proceeds of sales of motor fuel.

(o) Retail sales of food for human consumption purchased with food stamps issued by the United States Department of Agriculture, or other federal agency, from and after October 1, 1987, or from and after the expiration of any waiver granted pursuant to federal law, the effect of which waiver is to permit the collection by the state of tax on such retail sales of food for human consumption purchased with food stamps.

(p) Sales of cookies for human consumption by the Girl Scouts of America no part of the net earnings from which sales inures to the benefit of any private group or individual.

(q) Gifts or sales of tangible personal property or services to public or private nonprofit museums of art.

(r) Sales of tangible personal property or services to alumni associations of state-supported colleges or universities.

(s) Sales of tangible personal property or services to chapters of the National Association of Junior Auxiliaries, Inc.

(t) Sales of tangible personal property or services to domestic violence shelters which qualify for state funding under Sections 93-21-101 through 93-21-113.

(u) Sales of tangible personal property or services to the National Multiple Sclerosis Society, Mississippi Chapter.

(v) Retail sales of food for human consumption purchased with food instruments issued the Mississippi Band of Choctaw Indians under the Women, Infants and Children Program (WIC) funded by the United States Department of Agriculture.

(w) Sales of tangible personal property or services to a private company, as defined in Section 57-61-5, which is making such purchases with proceeds of bonds issued under Section 57-61-1 et seq., the Mississippi Business Investment Act.

(x) The gross collections from the operation of self-service, coin-operated car washing equipment and sales of the service of washing motor vehicles with portable high pressure washing equipment on the premises of the customer.

(y) Sales of private carriers of passengers and light carriers of property. As used in this paragraph (y), "private carrier of passengers" and "light carrier of property" shall be defined as provided in subsection (6) of Section 1 of this act.

SECTION 13. Section 27-65-201, Mississippi Code of 1972, is amended as follows:

27-65-201. (1) For the purposes of this section, unless the context otherwise requires, the term "motor vehicle" means a motor vehicle required to be registered or licensed by the county tax collectors pursuant to Section 27-19-43.

(2) Upon every person, firm or corporation purchasing other than at wholesale within this state any motor vehicle required to be registered or licensed with the tax collector of any county in this state from any person, firm or corporation which is not a licensed dealer engaged in selling motor vehicles, there shall be levied and collected a sales tax at the rate of three percent (3%) of the true value of the motor vehicle as calculated by using the most current official motor vehicle assessment schedule supplied by the State Tax Commission.

(3) Upon every person, firm or corporation purchasing other than at wholesale outside the state any motor vehicle required to be registered or licensed with the tax collector of any county in this state from any person, firm or corporation which is not a licensed dealer engaged in selling motor vehicles, for use, storage or other consumption within this state there is levied a use tax at the rate of three percent (3%) of the true value of the motor vehicle as calculated by using the most current official motor vehicle assessment schedule supplied by the State Tax Commission.

(4) Where any motor vehicle is taken in trade as a credit or part payment on the sale of a motor vehicle taxable under this section, the tax levied by this section shall be paid on the net difference, that is, the true value of the motor vehicle sold less the credit for the motor vehicle taken in trade.

(5) The tax levied by this section shall be collected by the tax collector at the time of, and as a prerequisite to, the registration of or licensing of any such motor vehicle. The tax collector shall give to the person registering the vehicle a receipt in a form prescribed and furnished by the State Tax Commission for the amount of tax collected.

(6) County tax collectors shall be liable for the tax they are required to collect, and taxes which are in fact collected, under this section and failure to properly collect or maintain proper records shall not relieve them of liability for payment to the State Tax Commission. Deficiencies in collection or payment shall be assessed against the tax collector, or his successor, in the same manner and subject to the same penalties and provisions for appeal as are deficiencies assessed against taxpayers under Chapter 65, Title 27, Mississippi Code of 1972.

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 State Tax Commission all funds collected under the provisions of this section, less a commission of three percent (3%) which shall be retained by the tax collector as a commission for collecting such tax, and such commission shall be deposited in the county general fund. The report required to be filed shall cover all collections made during the calendar month next preceding the date on which the report is due and filed. All funds remitted to the State Tax Commission shall be deposited to the credit of the State General Fund.

Any error in the report and remittance to the State Tax Commission may be adjusted on a subsequent report. 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 State Tax Commission.

All information relating to the collection of this tax by tax collectors and such records as the State Tax Commission may require shall be preserved in the tax collector's office for a period of three (3) years for audit by the State Tax Commission.

(7) The tax levied by this section shall not apply to the following:

(a) Transfers of legal ownership of motor vehicles between husband and wife, parent and child, or grandparents and grandchildren, unless the transferor is a licensed dealer of motor vehicles and the transfer of the motor vehicle is made in the regular course of business.

(b) Transfers of legal ownership of motor vehicles pursuant to a will or pursuant to any law providing for the distribution of the property of one dying intestate.

(c) Transfers of legal ownership of motor vehicles ten (10) or more years after the date of the manufacture of such vehicle.

(d) Sales and other transfers of legal ownership of private carriers of passengers and light carriers of property. As used in this paragraph (d), "private carrier of passengers" and "light carrier of property" shall be defined as provided in subsection (6) of Section 1 of this act.

SECTION 14. Section 25-7-21, Mississippi Code of 1972, is amended as follows:

25-7-21. (1) From and after October 1, 1985, there will be no fees for the services of the tax collector, with the exception of taxes collected for taxing authorities other than the board of supervisors. For collecting taxes for authorities other than the board of supervisors, the fee shall be five percent (5%) of the taxes collected or an amount authorized by contract between the county and the outside taxing authority. However, the tax collector shall not receive any fee for remitting payments from the Motor Vehicle Tax Reimbursement Fund to municipalities, municipal school districts and other taxing districts under Section 4 of this act. A tax collector shall keep a complete account of every such fee collected and shall file an itemized statement thereof monthly, under oath, with the clerk of the board of supervisors of the county who shall preserve same as a part of the records of the office. The tax collector shall make a remittance to the clerk of the board of supervisors of the county on or before the twentieth of each month for deposit into the general fund of the county of all those fees collected during the preceding month.

(2) For the purpose of the limitations set forth in Section 27-39-321, commissions for levies set by the board of supervisors shall be added to base collections of the general county fund for the 1984-1985 year only.

(3) Fees of publisher for publication - To the publishers, payable by the delinquent taxpayer, and to be collected and paid over by the tax collectors; or if the land be sold to the state to be paid by the state:

For each separate publication advertising lands for sale for taxes, for each separately described subdivision, as described and set out in the assessment rolls for the county.............$1.50

(4) Fees of chancery clerk for collection of delinquent taxes:

(a) For abstracting the list of lands sold for taxes, for each separately described section or subdivision.......$1.00

(b) For filing and recording deed to land sold for taxes......................................................$6.00

(c) For abstracting each deed in the sectional index, per section or subdivision.................................$1.00

(d) For recording redemption of each............$6.00

(e) For abstracting each redemption in the sectional index, per section or subdivision..........................$1.00

(f) And, in addition, one percent (1%) on the amount necessary to redeem.

The several officers' fees shall be collected by the tax collector or chancery clerk and paid over to those entitled to same.

SECTION 15. Section 27-19-43, Mississippi Code of 1972, is amended as follows:

27-19-43. (1) License tags, substitute tags and decals for individual fleets and for private carriers of passengers, school buses (excluding school buses owned by a school district in the state), church buses, taxicabs, ambulances, hearses, motorcycles and private carriers of property, and private commercial carriers of property of a gross weight of ten thousand (10,000) pounds and less, and all vehicles owned by a road, drainage or levee district shall be sold and issued by the tax collectors of the several counties.

(2) Applications for license tags for motor vehicles in a corporate fleet registered under Section 27-19-66, and applications for all other license tags, substitute tags and decals shall be filed with the commission or the local tax collector of the respective counties and forwarded to the commission for issuance to the applicant. All tags and decals for vehicles owned by the state or any agency or instrumentality thereof, and vehicles owned by a fire protection district, school district or a county or municipality shall be issued by the commission.

(3) In addition to the privilege taxes levied herein or the motor vehicle tag fees imposed by Section 1 of this act, there shall be collected a registration * * * fee of Five Dollars ($5.00) * * * for the issuance of both a license tag and two (2) decals or * * * for the issuance of up to two (2) decals only * * *. No tag or decal shall be issued either by a tax collector or by the commission without the collection of such registration fee except substitute tags and decals and license tags for vehicles owned by the State of Mississippi.

(4) Beginning July 1, 1987, and until the date specified in Section 65-37-35, there shall be levied a registration fee of Five Dollars ($5.00) in addition to the regular registration fee imposed in subsection (3) of this section. Such additional registration fee shall be levied in the same manner as the regular registration fee.

SECTION 16. Section 27-19-45, Mississippi Code of 1972, is amended as follows:

27-19-45. (1) Owners of motor vehicles who are residents of the State of Mississippi and who hold an unrevoked and unexpired official amateur radio station license issued by the Federal Communications Commission, upon application to the tax collector in the owner's county of legal residence accompanied by proof of ownership of such amateur radio station license, and upon payment of the road and bridge privilege taxes, ad valorem taxes and registration fees as prescribed by law for passenger cars, pickup trucks or other noncommercial motor vehicles, and upon payment of an additional registration * * * fee of Fifteen Dollars ($15.00) shall be issued a special license plate upon which, in lieu of the numbers prescribed by law, shall be inscribed the official amateur call letters of such applicant as assigned by the Federal Communications Commission. This special license plate may be used in place of the regular license tag for passenger cars, pickup trucks or other noncommercial motor vehicles. The application and the additional fee, less five percent (5%) thereof to be retained by the county tax collector, shall be remitted to the State Tax Commission within seven (7) days of the date the application for the special license tag is made. The portion of the additional fee retained by the tax collector shall be deposited into the county general fund. The portion of the fee remitted to the Tax Commission shall be deposited into the State Treasury on the day it is received and shall be deposited by the State Treasurer into the State General Fund.

The Governor under like terms and provisions shall be * * * authorized to exhibit on any passenger cars, pickup trucks or other noncommercial motor vehicles used by him license tag Number 1, with the county of his residence inscribed thereon. The Lieutenant Governor is likewise authorized to use license plate Number 2, with the county of his residence appearing thereon. All former governors, under like terms and provisions, are authorized to use license plate X-1, with the county of his residence appearing thereon, and all former lieutenant governors, under like terms and provisions, are authorized to use license plate X-2, with the county of his residence appearing thereon.

When a passenger car, pickup truck or other noncommercial motor vehicle for which a special license tag has been issued is sold or traded by the owner, the special tag may be transferred to the new or other passenger car, pickup truck or other noncommercial motor vehicle which is replacing the passenger car, pickup truck or other noncommercial motor vehicle for which the license tag was originally issued, without additional charge, upon application to the county tax collector, with proof that all taxes and registration fees as prescribed by law have been paid for such replacement passenger car, pickup truck or other noncommercial motor vehicle.

(2) The State Tax Commission shall make such rules and regulations as necessary to ascertain compliance with all state license laws relating to use and operation of private passenger cars, pickup trucks or other noncommercial motor vehicles before authorizing the issuance of these tags.

(3) This section is supplemental to the motor vehicle licensing laws of the State of Mississippi, and nothing herein shall be construed as abridging or amending such laws.

SECTION 17. Section 27-19-49, Mississippi Code of 1972, is amended as follows:

27-19-49. (1) Owners of motorcycles who are members of a Shrine motorcycle club, corps or unit of Mississippi may, in their discretion, purchase and use, in lieu of the motorcycle tag described in Section 27-19-35, an especially prepared tag of the same dimensions as the regular motorcycle tag. This distinctive tag shall be of a yellow background; the Shrine emblem in green coloring in the middle left of the tag; "Miss." (abbreviated) in red letters in the lower left of the tag; the year of issuance in abbreviated form (the last two numbers) in red letters in the lower right of the tag; and the designated number of the particular tag in red numbers in the middle right of the tag. These tags shall be numbered commencing with the numeral "1."

(2) These distinctive Shrine tags shall be ordered through the commission by an official of each such Shrine club, corps or unit desiring same. Only one (1) such distinctive tag shall be allowed to each individual member of any Shrine club, corps or unit and only for a heavy weight or heavy duty motorcycle.

(3) The individual Shrine members or Shrine club, corps or unit so ordering such tag or tags shall pay the regular motorcycle registration fees and taxes as designated by the tax collector's office of the county in which the motorcycle is registered and such Shrine members, clubs, corps or units shall pay any additional charge necessary for the purchase of such distinctive tag. Each such distinctive Shrine tag will be duly recorded and registered at the office of the sheriff of the county in which the individual Shrine member resides.

SECTION 18. Section 27-19-56.5, Mississippi Code of 1972, is amended as follows:

27-19-56.5. In recognition of the patriotic service rendered by Mississippians who survived the attack on Pearl Harbor and by Mississippians who are recipients of the Purple Heart Medal, any such person is privileged to obtain one (1) distinctive motor vehicle license plate or tag identifying him as a Pearl Harbor survivor or a Purple Heart Medal recipient. The distinctive plates or tags shall be of a color and design designated by the tax commission.

The distinctive license plates shall be prepared by the tax commission and shall be issued through the tax collectors of the counties in the same manner as are other motor vehicle license plates or tags. An additional * * * fee of Fifteen Dollars ($15.00) shall be collected by the tax collector for such license plates or tags and shall be forwarded to the tax commission which shall deposit such fee to the credit of the State General Fund. An applicant for such distinctive plates shall present to the issuing official either (a) written proof that the applicant is an honorably discharged former member of one of the Armed Forces of the United States and, while serving in the Armed Forces of the United States, was present during the attack on the island of Oahu, Territory of Hawaii, on December 7, 1941, between the hours of 7:55 a.m. and 9:45 a.m., Hawaii time, or (b) written proof that the applicant is a Purple Heart Medal recipient. The distinctive license plates or tags so issued shall be used only upon a personally or jointly owned private passenger vehicle (to include station wagons, recreational motor vehicles and pickup trucks) registered in the name, or jointly in the name, of the person making application therefor, and when issued to such person shall be used upon the vehicle for which issued in lieu of the standard license plate or license tag normally issued for such vehicle.

The distinctive license plates shall not be transferable between motor vehicle owners; and in the event the owner of a vehicle bearing a distinctive plate shall sell, trade, exchange or otherwise dispose of the vehicle, such plate shall be retained by such owner and returned to the tax collector

SECTION 19. Section 27-19-69, Mississippi Code of 1972, is amended as follows:

27-19-69. If a carrier of property with a gross vehicle weight of sixteen thousand (16,000) pounds or greater on which the privilege tax prescribed by this article has been paid shall be totally destroyed by fire, tornado, flood, collision, accident or acts of Providence, then the person or operator who has paid the privilege tax or the owner of the vehicle, in the event of a sale thereof after the payment of such taxes, shall be entitled to the issuance of a new privilege license for the remainder of the registration year for any vehicle acquired by such owner or operator as a replacement for the vehicle so destroyed, which privilege license shall be of the same tax value as the unexpired portion of the privilege tax on the vehicle destroyed. In no event shall such person claiming credit under this provision be entitled to a cash refund, but he shall only be entitled to the issuance of a license tag and decals in the same classification and of the same unexpired value as the license tag issued for the vehicle so destroyed.

In order to obtain the issuance of the replacement license, such person claiming same must present the damaged license tag and decals to the tax collector of the county of his residence or the commission or must present proof, supported by affidavit of three (3) reputable citizens that such tag and decals have been destroyed, and must prove to the satisfaction of the tax collector or commission that the vehicle for which the tag was issued has been totally destroyed, as above set forth.

When a replacement license is issued under the provisions of this article, the certificate of registration and payment of privilege taxes on the destroyed vehicle shall be cancelled by the commission. The only charges which shall be made for the issuance of such a replacement license is the registration * * * fee, unless the replacement vehicle shall require a greater amount of privilege tax than the vehicle for which the tag was originally issued, in which event the person obtaining such license shall be required to pay the increased amount of tax, prorated from the first day of the month during which the replacement tag and decals are obtained until the expiration date thereon.

SECTION 20. Section 27-19-71, Mississippi Code of 1972, is amended as follows:

27-19-71. If any vehicle on which the privilege tax has been paid, either as a common or contract carrier of property, a private commercial carrier of property, a private carrier of property, a dray, a common and contract carrier of passengers, or a passenger coach, shall be removed from the State of Mississippi by the operator thereof, or the use thereof in Mississippi shall be discontinued entirely by such operator or owner for any reason, and such vehicle shall be replaced by another and different vehicle, then the person or operator who has paid such taxes, or the owner of such vehicle in the event of the sale thereof after the payment of such tax, shall be entitled to the issuance of new privilege license for the replacement vehicle for the remainder of the registration year in the same tax classification and of the same privilege tax value. In no event shall such person be entitled to a cash refund under this provision, but he shall only be entitled to the issuance of a license tag and decals for replacement vehicle in the same tax classification and of the same privilege tax value as the license tag and decals issued for the vehicle, the use of which has been discontinued.

In order to obtain the issuance of such replacement license the owner or operator claiming same must present an affidavit to the commission or tax collector of the county of his residence, setting forth that the use of the vehicle upon which the original tax was paid has been entirely discontinued in Mississippi by such owner or operator and giving the reasons for such discontinuance, and full details with reference thereto, and no replacement license shall be issued unless the tax collector or commission is absolutely satisfied that the * * * vehicle is no longer to be used in Mississippi by such owner or operator. When any such replacement license is applied for, such owner or operator must surrender the license tag and decals originally issued, to the tax collector of the county of his residence, or the commission, and the commission shall cancel the certificate of registration and payment of the privilege tax on the original vehicle. The only charge which shall be made for the issuance of such a replacement license is the registration * * * fee, unless the replacement vehicle requires a greater amount of privilege tax than the vehicle upon which the license was originally paid, in which case the owner or operator thereof shall pay the increased amount of tax upon such vehicle prorated from the first day of the month in which the replacement license is issued until the expiration date thereon.

SECTION 21. Section 27-19-73, Mississippi Code of 1972, is amended as follows:

27-19-73. The tax collector or the commission, as the case may be, is authorized and empowered to refund to any individual, firm or corporation any motor vehicle privilege license tax, permit or registration fee which has been paid or collected through error or otherwise when such person, individual, firm or corporation was not liable for such tax or fee or when such individual, firm or corporation has paid any such privilege tax or fee in excess of the sum properly due, whether such payments were made under protest or compulsion or not. Taxes erroneously paid within the meaning of this section shall include, but shall not be limited to, overpayments, double payments upon the same vehicle, payments upon vehicles not located within the State of Mississippi, and all other erroneous or illegal payments.

All claims for refunds under this provision shall be made within twelve (12) months from the date of the erroneous payment of such taxes or fees and such refunds, approved by the tax collector or commission, shall be made out of any monies collected by the tax collector or commission from the same source of revenue. If such source of revenue no longer exists, the refund shall come from the general fund collections. If such refund is approved by the tax collector, he shall issue a warrant to the claimant and deduct the proper amounts from his next settlement. If a claim for refund is disapproved, the claimant shall be notified of such disapproval and the reasons therefor. Any claimant aggrieved by the commission's disapproval may, within thirty (30) days from the date thereof, appeal in writing to the board of review as hereinafter provided in this chapter.

SECTION 22. Section 27-19-99, Mississippi Code of 1972, is amended as follows:

27-19-99. The State Tax Commission shall furnish the tax collector of each county a sufficient supply of license tags or plates and a sufficient supply of license receipts with which to make the collection of the taxes imposed by the provisions of this article, which such tax collectors are required to collect. The license tag receipts shall be on forms prescribed by the commission. Upon the payment of the taxes and fees required by this article, the tax collector shall issue the license receipt in the form prescribed by the commission. The commission shall keep account against the tax collector for the license taxes and fees collected. The tax collector shall keep a similar account.

The tax collector shall, at the end of each month or within twenty (20) days thereafter, pay into the county road fund all privilege taxes collected by him during the preceding month upon motor vehicle privilege licenses which he is entitled to issue, less the county's commission.

The tax collector shall keep a record of the information furnished by the owners of each motor vehicle registered. The record shall be made in numerical order by tag number or decal number, whichever is appropriate. At the end of each month, or within twenty (20) days thereafter, the tax collector shall submit to the commission a copy of such record, together with the copy of each registration receipt, and shall, at the same time, remit to the commission the registration fee for each license tag or decal sold by him during the preceding month. When the tax collector shall have complied with the provisions of this section and shall have forwarded to the commission, within the time specified, all reports required of him hereunder, he shall then be entitled to retain five percent (5%) of the registration fees imposed in subsection (3) of Section 27-19-43, to be paid into the county general fund; otherwise the county's commission shall be forfeited. The five percent (5%) shall not apply to any additional registration fee imposed above the amounts imposed in subsection (3) of Section 27-19-43. The commission shall keep a record from the duplicates filed by the tax collectors of all registered vehicles.

Counties that use their existing computer system to communicate all data regarding vehicle title and registration transactions to the state's central computer system shall be allotted Fifty Cents (504 ) for each registration fee collected by the county and remitted to the State Tax Commission. Such communication must successfully pass any edit features and successfully create or update title/registration records on the network system. This amount paid to the county shall be deposited into the county general fund to be expended only for costs incurred for the purchase of equipment, software, maintenance or other costs directly related to the title/registration network system.

All monies remitted to the commission by tax collectors as registration * * * fees from the portion of the rate imposed in subsection (3) of Section 27-19-43, and all monies received by the commission directly as registration * * * fees from the portion of the rate imposed in subsection (3) of Section 27-19-43, shall be paid by the commission into the General Fund of the State Treasury on the first day of the month succeeding the month in which such fees are received by the commission. All monies remitted to the commission by tax collectors as registration * * * fees from the additional rate of Five Dollars ($5.00) imposed in subsection (4) of Section 27-19-43, and all monies received by the commission directly as registration * * * tag fees from the additional rate of Five Dollars ($5.00) imposed in subsection (4) of Section 27-19-43, shall be paid into the State Treasury to the credit of the State Highway Fund for the construction or reconstruction of highways designated under the Four-Lane Highway Program created under Section 65-3-97.

SECTION 23. Section 27-19-155, Mississippi Code of 1972, is amended as follows:

27-19-155. The license or number tag herein provided for shall be purchased by the License Tag Commission, composed of the Governor, Commissioner of Revenue, Attorney General, and the State Treasurer, upon competitive bids, after having given three (3) weeks' notice of the time and place of purchase, by publishing said notice in at least three (3) newspapers, at least one (1) of which shall be published in the State of Mississippi, for a period of three (3) weeks prior to the date of purchase. The successful bidder shall enter into a bond with some surety company, authorized to do business in the state, as surety thereon, payable to the State of Mississippi, in a sum equal to the amount of his contract, conditioned for the faithful and prompt carrying out of the bid, and, in the event of the failure to comply with the terms of the contract, the amount of the bond shall be forfeited as liquidated damages and may be recovered by the Attorney General in any appropriate action. The License Tag Commission is * * * authorized and empowered to renegotiate any contract entered into for the purchase of license tags in order to obtain any other or additional tags necessitated by the passage of this article.

All license tags and numbered plates purchased under the provisions of this article, shall be paid for pursuant to an appropriation to be made for such purposes. All moneys received by the State Tax Commission as registration * * * fees, either from the tax collectors, or from licenses issued by the State Tax Commission, shall be paid into the State Treasury on the same day in which such funds are collected by the State Tax Commission.

SECTION 24. Section 27-29-11, Mississippi Code of 1972, is amended as follows:

27-29-11. The tax collector shall make reports in writing, verified by his affidavit, on the first day of each month or within twenty (20) days thereafter, except as hereinafter provided, to the Auditor of Public Accounts and to the clerk of the board of supervisors, of all taxes collected by him during the preceding month for the * * * levee and county, respectively; and if he has collected none, the report shall be made out and state that fact. * * * All taxes collected by him for the county shall be paid into the county depository on the day such taxes are collected or on the next business day thereafter. The payments that the tax collector receives from the State Tax Commission under Section 4 of this act shall be remitted to the chancery clerk of the county within ten (10) days after he receives the payments from the commission.

SECTION 25. Section 27-51-25, Mississippi Code of 1972, is amended as follows:

27-51-25. Within twenty (20) days after the end of the month, the county tax collector shall file a report showing the amount of motor vehicle ad valorem taxes collected by him for the previous month. This report shall be made in part in conjunction with and as a part of the monthly report made on the collection of road and bridge privilege taxes for the same period. The form for this portion of the report shall be prescribed by the administrator of the road and bridge privilege tax law in cooperation with the State Tax Commission.

This * * * report shall show, in addition to the information prescribed by the administrator of the road and bridge privilege tax law, the following information for each motor vehicle on which ad valorem taxes were paid: the code number of the vehicle as fixed by the assessment schedule, the assessed value of the vehicle, the situs of the vehicle as to school district, road district, levee district, municipality, the total tax rate applicable, ad valorem taxes, damages, if any, and the total ad valorem taxes and damages. These sheets shall be numbered in consecutive order, and shall be made in quadruplicate. The original copy of this report shall be placed in a suitable binder and retained by the county tax collector as a permanent record, the first and second copies shall be forwarded to the administrator of the road and bridge privilege tax law and Commission of Public Safety, respectively, as now provided by law, and the third copy shall be delivered to the chancery clerk.

When the above-mentioned portion of the report has been completed, a recapitulation of it shall be made on a separate sheet, showing by classes the total number of road and bridge privilege licenses issued, the amount of money collected for the license plates, the total road and bridge privilege taxes collected by classes, and the total amount of ad valorem taxes collected designating the amount collected for each separate taxing area. This report shall also be made in quadruplicate. The tax collector shall retain the original as a permanent record, the first copy shall be forwarded to the administrator of the road and bridge privilege tax law, the second copy shall be forwarded to the Tax Commission, and the third copy shall be delivered to the chancery clerk.

Motor vehicle ad valorem tax collections shall be entered in the tax collector's cash book as reflected by the * * * recapitulation, showing by taxing area, the total assessed value and total such taxes collected each month for each separate taxing area, and it shall not be necessary that either the tax receipt number or the taxpayer's name be entered, as required by Section 27-41-39 for other ad valorem tax collections.

In all cases where the county tax collector is ordered to collect motor vehicle ad valorem taxes for a municipality, the tax collector shall furnish to each such municipality a certified statement as to the total assessed value of the motor vehicles on which taxes were collected for such municipality, together with an additional statement showing the net amount of taxes collected for such municipality less his indicated collection fees. This report shall be made to the municipality at the same time a remittance is made to the municipality for all such net ad valorem taxes collected for the * * * municipality for the previous month. This remittance and report shall be made to the municipality within ten (10) days after the tax collector receives the payments from the State Tax Commission under Section 4 of this act.

SECTION 26. Section 27-51-29, Mississippi Code of 1972, is amended as follows:

27-51-29. Any municipality in the state desiring to have its motor vehicle ad valorem taxes collected by the county tax collector at the same time and in the same manner provided for by this chapter for collecting county * * * ad valorem taxes on motor vehicles may do so by proceeding as follows:

On or before May 1, the municipal board shall enter an order upon its minutes signifying its desire to have the county tax collector collect its motor vehicle ad valorem taxes at the same time and in the same manner that he collects the county * * * ad valorem taxes on such motor vehicles for the ensuing fiscal year. A certified copy of this order shall be furnished the tax collector of the county, the State Tax Commission, and the administrator of the road and bridge privilege tax laws. In such case, it shall be mandatory that such municipal ad valorem taxes be collected by the county tax collector.

The authorization of the tax collector to collect municipal taxes on this class of property shall also include the collection of such taxes on such property located in the municipal separate school district, if any, although such property is located outside of the corporate limits of such municipality.

On or before September 15, the municipal clerk shall certify to the county tax collector a copy of its official tax levy for the then ensuing fiscal year. On this tax levy, the clerk shall not only certify as to the tax levy for each purpose for which it was levied, but he shall also certify as to the total amount of the levy for all municipal purposes, and he shall show separately the total amount of the levy for the municipal separate school district, if the * * * municipality is a part of a municipal separate school district.

After collecting such municipal and municipal separate school district ad valorem taxes, the county tax collector shall retain the fee as allowed in Section 25-7-21, except in no instance shall his fee be less than two percent (2%) of such collection for the services furnished by a county office in collecting municipal separate school district taxes. Such fees shall be paid into the county general fund. The tax collector shall * * * remit to the municipality the remaining portion of such taxes so collected within ten (10) days after the tax collector receives the payments from the State Tax Commission under Section 4 of this act. A report of the total assessed value of the subject motor vehicle on which such municipal ad valorem taxes were collected for the preceding month shall be forwarded to the municipality along with the * * * remittance.

The records of the county tax collector shall be available at any time during regular office hours for inspection by the municipal authorities or their authorized agents to determine as to whether or not any such taxpayer has been properly assessed, both as to value and as to situs of the subject motor vehicle, and as to whether or not the proper tax has been collected and remitted for the benefit of the municipality and municipal separate school district, in proper cases, if such municipality has officially authorized the tax collector to collect its motor vehicle ad valorem taxes as provided hereinabove.

For similar violations of this chapter, the same penalties shall apply in favor of any municipality, in proper cases, which apply in favor of the counties. The tax collector shall be liable on his official bond to the municipality for any failure on his part to assess, collect and remit the correct amount of taxes due any municipality under the provisions of this chapter on any motor vehicle for which he collects county * * * ad valorem taxes.

SECTION 27. Section 27-65-17, Mississippi Code of 1972, is amended as follows:

27-65-17. * * * 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, except as otherwise provided herein.

Retail sales of farm tractors shall be taxed at the rate of one percent (1%) when made to farmers for agricultural purposes. Retail sales of other self-propelled farm implements, or farm implements used as attachments to or drawn by a tractor, or implements which are drawn by animals, when made to farmers for agricultural purposes shall be taxed at the rate of three percent (3%). The three percent (3%) rate shall also apply to retail sales of brooders, feeders and waterers to chicken farmers for use in chicken houses to produce poultry for the market, sales of mechanical and gravity feeders and waterers to livestock producers, sales of mechanical milking machines, milk tanks and coolers used in the production of milk for sale and sales of aerators to domestic fish farmers for use in the raising of domesticated fish as defined in Section 69-7-501. The three percent (3%) rate shall also apply to all equipment used in logging, pulpwood operations or tree farming which is either (a) self-propelled or which is (b) mounted so that it is (i) permanently attached to other equipment which is self-propelled or (ii) permanently attached to other equipment drawn by a vehicle which is self-propelled.

Retail sales of aircraft, automobiles, trucks, truck-tractors, semitrailers and mobile homes shall be taxed at the rate of three percent (3%).

Sales of manufacturing machinery or manufacturing machine parts when made to a manufacturer or custom processor for plant use only when said 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%).

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%).

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%).

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.

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%).

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.

Any person exercising any privilege taxable under Section 27-65-15 and selling his natural resource products at wholesale or to exempt persons shall pay the tax levied by said section in lieu of the tax levied by this section.

SECTION 28. 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) 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 such municipality and paid to such municipal corporation. 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) and 27-65-21, on business activities within a municipal corporation shall be allocated for distribution to such municipality and paid to such municipal corporation.

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 subsection may be pledged as security for any loan received by the municipal corporation for the purpose of capital improvements as authorized under Section 57-1-303, or loans as authorized under Section 57-44-7, or water systems improvements as authorized under Section 41-3-16.

In any county having a county seat which is not an incorporated municipality, the distribution provided hereunder shall be made as though the county seat was an incorporated municipality; however, the distribution to such municipality shall be paid to the county treasury wherein the municipality is located and such funds shall be used for road, bridge and street construction or maintenance therein.

(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 (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 State Tax Commission shall require all distributors of gasoline and diesel fuel to report to the commission 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 State Tax Commission 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 State Tax Commission 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 65-37-35, the proceeds derived from contractors' taxes levied under Section 27-65-21 on contracts for the construction or reconstruction of highways designated under the Four-Lane Highway Program created under Section 65-3-97 shall be deposited into the State Treasury to the credit of the State Highway Fund to be used to fund such Four-Lane Highway Program. The Mississippi Department of Transportation shall provide to the State Tax Commission 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, 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. Such 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 heretofore allocated to counties under this section. Such funds 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 such bonds has been published, for the first time, as provided by law prior to March 29, 1981. From the amount of taxes paid into the special fund pursuant to 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.

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 such county for fiscal year 1994. Monies allocated to a county from the State Aid Road Fund for fiscal year 1995 or any fiscal year thereafter that exceed the amount of funds allocated to that county from the State Aid Road Fund for fiscal year 1994, first must be expended by the county for replacement or rehabilitation of bridges on the state aid road system that have a sufficiency rating of less than twenty-five (25), according to National Bridge Inspection standards, before such monies may be approved for expenditure by the State Aid Road Engineer on other projects that qualify for the use of state aid road funds.

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. Such payments into the 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 of Chapter 542, Laws of 1983, shall be paid into the special fund known as the Correctional Facilities Construction Fund created in Section 6 of Chapter 542, Laws of 1983.

(7) On or before August 15, 1992, 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 by the commission into the School Ad Valorem Tax Reduction Fund created pursuant to Section 37-61-35.

(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 pursuant to Section 37-61-33.

(9) On or before August 15, 1994, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, Two Hundred Fifty Thousand Dollars ($250,000.00) shall be paid into the State Aid Road Fund.

(10) 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, which 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 pursuant to legislative appropriations solely to defray the costs of repairs and renovation at such Trade Mart and Coliseum.

(11) 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.

(12) It shall be the duty of the municipal officials of any municipality which expands its limits, or of any community which incorporates as a municipality, to notify the commissioner of such action thirty (30) days before the effective date. Failure to so notify the commissioner shall cause such municipality to forfeit the revenue which it would have been entitled to receive during this period of time when the commissioner had no knowledge of the action. 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 such municipality by withholding the necessary funds from any subsequent payment to be made to the municipality.

SECTION 29. Sections 27-51-101, 27-51-103, Mississippi Code of 1972, which provide for definitions and provide for a credit against motor vehicle ad valorem taxes for passenger motor vehicles and light trucks are repealed. Sections 27-51-105, 27-51-107, and 27-67-35, Mississippi Code of 1972, which establish the Motor Vehicle Ad Valorem Tax Reduction Fund, provide for distributions from the fund, and provide for the payment of certain use taxes into the fund, are repealed on November 1, 1997.

SECTION 30. Any monies in the Motor Vehicle Ad Valorem Tax Reduction Fund on November 1, 1997, shall be transferred to the Motor Vehicle Tax Reimbursement Fund created in Section 3 of this act.

SECTION 31. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the road and bridge privilege tax laws, ad valorem tax laws, sales tax laws or income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the road and bridge privilege tax laws, ad valorem tax laws, sales tax laws and income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.

SECTION 32. This act shall take effect and be in force from and after October 1, 1997, except for Section 28, which shall take effect and be in force from and after November 1, 1997.