MISSISSIPPI LEGISLATURE
2018 Regular Session
To: Ways and Means
By: Representatives Gunn, Aguirre, Arnold, Baker, Barnett, Beckett, Bell (21st), Bennett, Boyd, Busby, Byrd, Carpenter, Chism, Corley, Crawford, Currie, DeLano, Denny, Eure, Guice, Hale, Kinkade, Lamar, Mangold, Massengill, McNeal, Mettetal, Oliver, Read, Roberson, Rogers (61st), Scoggin, Snowden, Tullos, Turner, Weathersby, White, Willis, Wilson, Rogers (14th), Morgan, Ford, Bounds
AN ACT TO PROVIDE THAT A PORTION OF USE TAX REVENUE COLLECTED FROM TAXPAYERS THAT DO NOT HAVE SALES TAX NEXUS WITH THIS STATE BUT VOLUNTARILY COLLECT AND REMIT USE TAX TO THIS STATE SHALL BE DEPOSITED INTO A SPECIAL FUND IN THE STATE TREASURY AND USED FOR THE REPAIR, MAINTENANCE AND RECONSTRUCTION OF ROADS, STREETS AND BRIDGES IN THE STATE; TO PROVIDE THAT A PORTION OF SUCH USE TAX REVENUE SHALL BE DEPOSITED INTO A SPECIAL FUND IN THE STATE TREASURY AND USED TO ASSIST COUNTIES IN PAYING COSTS ASSOCIATED WITH THE REPAIR, MAINTENANCE AND RECONSTRUCTION OF ROADS, STREETS AND BRIDGES IN COUNTIES; TO PROVIDE THAT A PORTION OF SUCH USE TAX REVENUE SHALL BE DEPOSITED INTO A SPECIAL FUND IN THE STATE TREASURY AND USED TO ASSIST MUNICIPALITIES IN PAYING COSTS ASSOCIATED WITH THE REPAIR, MAINTENANCE AND RECONSTRUCTION OF ROADS, STREETS AND BRIDGES IN MUNICIPALITIES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) An amount equal to the use tax revenue above the first Fifty Million Dollars ($50,000,000.00) collected from voluntary taxpayers and deposited into the State General Fund during the preceding fiscal year, not to exceed Two Hundred Fifty Million Dollars ($250,000,000.00), shall be allocated and distributed in the manner provided in this section. For the purposes of this section, the term "voluntary taxpayer" means a taxpayer that does not have nexus with this state for sales tax purposes but voluntarily collects and remits use tax to this state on behalf of this state.
(2) (a) An amount equal to fifty percent (50%) of such use tax revenue shall be deposited into a special fund that is hereby created in the State Treasury. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state. The fund shall consist of monies deposited therein as provided in this paragraph (a) and monies from any other source designated for deposit into such fund. Monies in the fund may be expended by the Department of Transportation, upon appropriation by the Legislature, for repair, maintenance and/or reconstruction of roads, streets and bridges in the state. However, the Legislature shall not initially appropriate monies in the fund for such use by the Department of Transportation unless the department provides the Legislature with evidence that has been certified by the Legislative Budget Office that for the initial fiscal year for which the monies are available for appropriation, the department has reallocated or otherwise scheduled for use during the applicable fiscal year funds in the department budget of not less than Twenty-five Million Dollars ($25,000,000.00) for repair, maintenance and/or reconstruction of roads, streets and bridges in the state and that such funds were not allocated and used for such purposes in the department's budget for the previous fiscal year. For subsequent fiscal years, the Legislature shall not appropriate monies in the fund for use by the Department of Transportation unless the department provides the Legislature with evidence that has been certified by the Legislative Budget Office, that for the applicable fiscal year the department has not and will not reallocate such amount of funds away from repair, maintenance and/or reconstruction of roads, streets and bridges in the state. Any interest earned or investment earnings on amounts in the fund shall be deposited to the credit of the fund.
(b) An amount equal to twenty-five percent (25%) of such use tax revenue shall be deposited into a special fund that is hereby created in the State Treasury. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state. The fund shall consist of monies deposited therein as provided in this paragraph (b) and monies from any other source designated for deposit into such fund. Monies in the fund may be expended by the Office of State Aid Road Construction, upon appropriation by the Legislature, to provide funds to assist counties in this state in paying costs associated with the repair, maintenance and/or reconstruction of roads, streets and bridges in counties. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited to the credit of the fund. Funds provided to counties under this paragraph (b) shall be allocated and distributed to counties in the following proportions:
(i) One-third (1/3) shall be allocated to all counties in equal shares,
(ii) 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
(iii) One-third (1/3) shall be allocated to counties based on the proportion that the rural population of a county bears to the total rural population in all counties of the state, according to the latest federal decennial census.
(c) (i) An amount equal to twenty-five percent (25%) of such use tax revenue shall be deposited into a special fund that is hereby created in the State Treasury. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state. The fund shall consist of monies deposited therein as provided in this paragraph (c) and monies from any other source designated for deposit into such fund. Monies in the fund may be expended by the Office of State Aid Road Construction, upon appropriation by the Legislature, to provide grants to assist municipalities in this state in paying costs associated with the repair, maintenance and/or reconstruction of roads, streets and bridges in municipalities. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited to the credit of the fund.
(ii) The Office of State Aid Road Construction shall establish a program to make grants to municipalities for the purpose of assisting such municipalities in paying costs associated with the repair, maintenance and/or reconstruction of roads, streets and bridges in municipalities. The maximum amount of a grant made to a municipality under this paragraph (c) cannot exceed One Million Five Hundred Thousand Dollars ($1,500,000.00). A municipality may apply to the Office of State Aid Road Construction for a grant under this paragraph (c) in the manner provided for in this subparagraph (ii). A municipality desiring a grant under this paragraph (c) must submit an application to the Office of State Aid Road Construction. The application must include a description of the project for which the grant is requested, the cost of the project for which the grant is requested, the amount of the grant requested and any other information required by the Office of State Aid Road Construction.
(iii) The Office of State Aid Road Construction shall have all powers necessary to implement and administer the program established under this paragraph (c), and the Office of State Aid Road Construction shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this paragraph (c).
(3) The Department of Revenue shall make the distributions required under this section on or before January 31, 2019, and each succeeding January 31 thereafter.
(4) This section shall stand repealed on July 1, 2025.
SECTION 2. Section 1 of this act shall be codified as a separate section in Chapter 67, Title 27, Mississippi Code of 1972.
SECTION 3. This act shall take effect and be in force from and after July 1, 2018.