MISSISSIPPI LEGISLATURE

2023 Regular Session

To: Finance

By: Senator(s) Sojourner, McDaniel, Chism

Senate Bill 2926

AN ACT TO AMEND SECTION 27-19-21, MISSISSIPPI CODE OF 1972, TO EXCLUDE VEHICLES INCAPABLE OF EXCEEDING THE SPEED OF 35 MILES PER HOUR FROM THE DEFINITION OF "ELECTRIC VEHICLE" FOR PURPOSES OF THE ELECTRIC VEHICLE TAX, AND TO REFUND TAXES COLLECTED ON SUCH VEHICLES; TO AMEND SECTION 27-19-23, MISSISSIPPI CODE OF 1972, TO EXCLUDE VEHICLES INCAPABLE OF EXCEEDING THE SPEED OF 35 MILES PER HOUR FROM THE DEFINITION OF "HYBRID VEHICLE" FOR PURPOSES OF THE HYBRID VEHICLE TAX, AND TO REFUND TAXES COLLECTED ON SUCH VEHICLES; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-19-21, Mississippi Code of 1972, is amended as follows:

27-19-21. (1) For the purposes of this section, the term "electric vehicle" means a vehicle that is powered solely by an electric motor drawing current from rechargeable batteries, fuel cells, or other portable sources of electrical current, is manufactured primarily for use on public streets, roads and highways, and is required to have a license tag under Section 27-19-1 et seq., for operation on public streets, roads and highways. The definition in this subsection does not include motor vehicles that are incapable of exceeding the speed of thirty-five (35) miles per hour, and any taxes collected on such vehicles pursuant to this section shall be refunded.

(2) (a) Subject to the provisions of this section, there is imposed an annual tax on each electric vehicle, which shall be in addition to any other taxes for which the vehicle is liable. The tax shall be paid to the county tax collector at the same time and in the same manner as the annual highway privilege tax is paid. The amount of the tax shall be One Hundred Fifty Dollars ($150.00). The tax shall not be imposed on an electric vehicle that is exempt from ad valorem taxation under Sections 27-19-53 and 27-51-41(2)(j).

(b) Beginning July 1, 2021, and each succeeding July 1 thereafter, the rate of the tax imposed under this section and in effect at the end of the preceding state fiscal year shall be adjusted by increasing the tax by a percentage amount equal to the United States inflation rate for the previous calendar year ending on December 31 as certified by the Department of Finance and Administration. The United States inflation rate for a calendar year shall be the Consumer Price Index for the calendar year for urban consumers as calculated by the Bureau of Labor Statistics of the United States Department of Labor. In adjusting the amount of the tax, amounts equal to or greater than Fifty Cents (50) shall be rounded to the next highest whole dollar.

(3) The tax collector shall have a special designation for electric vehicles in the vehicle records of the tax collector's office so that the owners of electric vehicles will be provided with the proper forms for paying the tax imposed by this section.

(4) The tax collector shall remit the proceeds of the tax collected under this section to the Department of Revenue, and the department shall apportion the proceeds of the tax among the various purposes specified in Section 27-5-101 for gasoline and diesel fuel taxes in the same proportion that those taxes were apportioned for those purposes during the previous state fiscal year and such funds shall be used solely for the repair and maintenance of roads, streets and bridges.

(5) The Department of Revenue shall have all of the power and authority that it has for enforcement of the motor vehicle privilege tax laws (Section 27-19-1 et seq.) to enforce the provisions of this section. The Commissioner of Revenue may adopt any rules or regulations that he deems necessary for the proper administration of this section.

SECTION 2. Section 27-19-23, Mississippi Code of 1972, is amended as follows:

27-19-23. (1) For the purposes of this section, the term "hybrid vehicle" means a vehicle that utilizes more than one (1) form of onboard energy to achieve propulsion, is manufactured primarily for use on public streets, roads and highways, and is required to have a license tag under Section 27-19-1 et seq., for operation on public streets, roads and highways. The definition in this subsection does not include motor vehicles that are incapable of exceeding the speed of thirty-five (35) miles per hour, and any taxes collected on such vehicles pursuant to this section shall be refunded.

(2) (a) Subject to the provisions of this section, there is imposed an annual tax on each hybrid vehicle, which shall be in addition to any other taxes for which the vehicle is liable. The tax shall be paid to the county tax collector at the same time and in the same manner as the annual highway privilege tax is paid. The amount of the tax shall be Seventy-five Dollars ($75.00). The tax shall not be imposed on a hybrid vehicle that is exempt from ad valorem taxation under Sections 27-19-53 and 27-51-41(2)(j).

(b) Beginning July 1, 2021, and each succeeding July 1 thereafter, the rate of the tax imposed under this section and in effect at the end of the preceding state fiscal year shall be adjusted by increasing the tax by a percentage amount equal to the United States inflation rate for the previous calendar year ending on December 31 as certified by the Department of Finance and Administration. The United States inflation rate for a calendar year shall be the Consumer Price Index for the calendar year for urban consumers as calculated by the Bureau of Labor Statistics of the United States Department of Labor. In adjusting the amount of the tax, amounts equal to or greater than Fifty Cents (50) shall be rounded to the next highest whole dollar.

(3) The tax collector shall have a special designation for hybrid vehicles in the vehicle records of the tax collector's office so that the owners of hybrid vehicles will be provided with the proper forms for paying the tax imposed by this section.

(4) The tax collector shall remit the proceeds of the tax collected under this section to the Department of Revenue, and the department shall apportion the proceeds of the tax among the various purposes specified in Section 27-5-101 for gasoline and diesel fuel taxes in the same proportion that those taxes were apportioned for those purposes during the previous state fiscal year and such funds shall be used solely for the repair and maintenance of roads, streets and bridges.

(5) The Department of Revenue shall have all of the power and authority that it has for enforcement of the motor vehicle privilege tax laws (Section 27-19-1 et seq.) to enforce the provisions of this section. The Commissioner of Revenue may adopt any rules or regulations that he deems necessary for the proper administration of this section.

SECTION 3. This act shall take effect and be in force from and after July 1, 2023.