House Bill 288

AN ACT TO IMPOSE A TAX ON MOTOR VEHICLES CHARGED AT ALTERNATIVE-FUEL FUELING STATIONS IN THIS STATE; TO DEFINE THE TERM "ALTERNATIVE-FUEL FUELING STATION"; TO PROVIDE FOR THE AMOUNT OF THE TAX; TO PROVIDE THAT THE REVENUE DERIVED FROM THE TAX IMPOSED BY THIS ACT WILL BE APPORTIONED AMONG THE VARIOUS PURPOSES SPECIFIED FOR GASOLINE AND DIESEL FUEL TAXES IN THE SAME PROPORTION THAT THOSE TAXES WERE APPORTIONED FOR THOSE PURPOSES DURING THE PREVIOUS STATE FISCAL YEAR; TO AMEND SECTION 27-19-21, MISSISSIPPI CODE OF 1972, TO REVISE THE AMOUNT OF THE ANNUAL TAX IMPOSED ON ELECTRIC VEHICLES; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) For the purposes of this section, the following words and phrases shall have the meanings ascribed in this subsection unless the context clearly indicates otherwise:

(a) "Motor vehicle" means and has the same definition as that term has in Section 27-19-3.

(b) "Alternative-fuel fueling station" means a metered-for-fee, public access recharging system for motor vehicles propelled, in whole or in part, by electricity, regardless of whether the recharging system is capable of universal charging for all electric vehicles. The term "alternative-fuel fueling station" does not include a building or its structural components.

(2) In addition to any other taxes, there is imposed a tax of Three Dollars and Fifty Cents ($3.50) on each motor vehicle charged at an alternative-fuel fueling station in this state. The owner or operator of the alternative-fuel fueling station shall collect the tax at the time of the motor vehicle charging and shall remit the proceeds of the tax to the Department of Revenue. The Department of Revenue 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.

(3) The Department of Revenue shall have all powers necessary to implement and administer the provisions of this section, and the department shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.

SECTION 2. 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.

(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). Subject to the provisions of this section, from and after July 1, 2027, the amount of such tax shall be Two Hundred Twenty-five Dollars ($225.00). However, subject to the provisions of this section, from and after July 1, 2026, through June 30, 2027, the amount of the tax imposed under this section shall be Seventy-five Dollars ($75.00) for each electric vehicle that is a motorcycle and from and after July 1, 2027, the amount of the tax shall be One Hundred Twelve Dollars and fifty cents ($112.50) for each electric vehicle that is a motorcycle. 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 rates 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 3. This act shall take effect and be in force from and after July 1, 2026.