MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Ways and Means

By: Representatives Moak, Williams

AN ACT TO AMEND SECTION 27-65-201, MISSISSIPPI CODE OF 1972, TO CREATE A SALES TAX EXEMPTION ON THE TRANSFER OR SALE OF A MOTOR VEHICLE FROM ONE SIBLING TO ANOTHER SIBLING; TO CREATE A NEW SECTION TO BE CODIFIED AS SECTION 27-19-56.9, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE ISSUANCE OF DISTINCTIVE LICENSE TAGS THAT DISPLAY THE EMBLEM OF PUBLIC UNIVERSITIES LOCATED IN OTHER STATES; TO IMPOSE AN ADDITIONAL FEE FOR SUCH TAGS; TO PROVIDE THAT A PORTION OF THE ADDITIONAL FEE SHALL BE FORWARDED TO SUCH OTHER STATES AND USED TO AWARD SCHOLARSHIPS TO MISSISSIPPI RESIDENTS WHO ATTEND PUBLIC UNIVERSITIES IN SUCH STATES; TO CREATE A SPECIAL FUND IN THE STATE TREASURY FOR THE DEPOSIT OF MONIES COLLECTED BY OTHER STATES FROM THE ISSUANCE OF DISTINCTIVE LICENSE TAGS IN SUCH STATES THAT DISPLAY EMBLEMS OF PUBLIC UNIVERSITIES IN THIS STATE; TO PROVIDE THAT MONIES IN THE SPECIAL FUND SHALL BE EXPENDED BY PUBLIC UNIVERSITIES IN THIS STATE TO AWARD SCHOLARSHIPS TO RESIDENTS OF OTHER STATES WHO ATTEND PUBLIC UNIVERSITIES IN THIS STATE; AND FOR RELATED PURPOSES.  

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

SECTION 1. 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, Mississippi Code of 1972.

(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 or transfers of legal ownership of motor vehicles between siblings, unless the seller or transferor is a licensed dealer of motor vehicles and the sale or transfer of the motor vehicle is made in the regular course of business.

SECTION 2. The following shall be codified as Section 27-19-56.9, Mississippi Code of 1972:

27-19-56-9. (1) (a) Any owner of a motor vehicle who is a resident of this state, upon complying with the motor vehicle laws relating to registration and licensing of motor vehicles, and upon payment of the road and bridge privilege taxes, ad valorem taxes and registration fees as prescribed by law for private carriers of passengers, pickup trucks and other noncommercial motor vehicles, and upon payment of an additional annual fee in the amount of Fifty Dollars ($50.00), shall be issued a distinctive license tag that displays the emblem of any public university of his choice located in another state if such other state has entered into a reciprocal agreement with the State Tax Commission to issue distinctive license tags in that state which display the emblems of public universities located in Mississippi.

(b) The design of the emblems for the distinctive license tags authorized under this subsection shall be determined by agreement between the State Tax Commission and the license tag issuing authorities and the governing authorities of public universities in the states where the universities are located. Such other design characteristics and information to be contained on such distinctive license tags shall be determined by the State Tax Commission.

(c) Application for the distinctive license tag authorized under this subsection shall be made to the county tax collector on forms prescribed by the State Tax Commission. The application and the additional fee, less five percent (5%) thereof to be retained by the tax collector, shall be remitted to the State Tax Commission within seven (7) days of the date that the application is made. The portion of the additional fee retained by the tax collector shall be deposited into the county general fund.

(d) The State Tax Commission shall deposit all fees that it receives under this subsection into the State Treasury on the day received. At the end of each month, the State Tax Commission shall certify to the State Treasurer the total fees remitted to it under this subsection and shall identify the states and the public universities in such other states for which the distinctive license tags have been issued. The State Treasurer shall distribute such collections as follows:

(i) Ten Dollars ($10.00) of the additional fees collected from each distinctive license tag issued under this subsection shall be deposited into the State General Fund;

(ii) The remainder of the additional fees shall be forwarded by the State Treasurer to the treasurer of each of those states for which distinctive license tags have been issued in this state under the provisions of this subsection and shall be held, invested and made available, in accordance with the terms of reciprocal agreements entered into between this state and such other states, for the award of scholarships to residents of this state who attend public universities in such other states.

(2) (a) There is created in the State Treasury a special fund to be designated as the "Team Tags Scholarship Fund". There shall be deposited in such fund all monies which the state receives from other states with which the State Tax Commission has entered into a reciprocal agreement for the issuance of distinctive public university license tags. On February 1 of each year, the State Treasurer shall notify each university in this state of the amount of money on deposit in the Team Tags Scholarship Fund to the credit of the university and shall advise each university of the number of scholarships that each university may award based upon increments of One Thousand Dollars ($1,000.00).

(b) On August 15 of each year, money to the credit of a university in the Team Tags Scholarship Fund may be expended by warrant drawn on the fund by the appropriate officer of the university. The warrants shall be made payable to those students attending the university who are residents of a state with which the State Tax Commission has entered into a reciprocal agreement for the issuance of distinctive public university license tags. The criteria for selection of those students who receive the scholarship awards shall be determined by the governing authorities of the university; however, money may be expended from the fund for the award of scholarships only to students who are residents of a state with which the State Tax Commission has entered into a reciprocal agreement for the issuance of distinctive public university license tags, and the total amount of scholarships awarded to all students from the same state shall not exceed the amount of monies on deposit in the Team Tags Scholarship Fund to the credit of that state.

SECTION 3. 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 sales 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 sales 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 4. This act shall take effect and be in force from and after July 1, 1997.