MISSISSIPPI LEGISLATURE
2005 Regular Session
To: Finance
By: Senator(s) Walls
AN ACT TO ESTABLISH THE LOCAL LAW ENFORCEMENT ASSISTANCE PROGRAM UNDER THE DIRECTION OF THE MISSISSIPPI DEVELOPMENT AUTHORITY FOR THE PURPOSE OF MAKING GRANTS TO COUNTY AND MUNICIPAL GOVERNMENTS FOR THEIR USE IN PROVIDING ASSISTANCE TO SHERIFFS AND POLICE DEPARTMENTS UNDER THEIR JURISDICTION; TO PROVIDE THAT MONEY RECEIVED BY A COUNTY OR MUNICIPALITY UNDER THE PROGRAM SHALL BE UTILIZED TO SUPPLEMENT THE SALARIES OF LAW ENFORCEMENT PERSONNEL OR TO PURCHASE UNIFORMS OR EQUIPMENT FOR SHERIFFS AND POLICE DEPARTMENTS; TO CREATE A SPECIAL FUND TO PROVIDE MONEY FOR SUCH GRANTS; TO AMEND SECTIONS 27-69-13, 27-69-31, 27-69-75, 27-71-7, 27-71-29, 27-71-307, 27-71-337, 75-76-129 AND 75-76-177, MISSISSIPPI CODE OF 1972, TO INCREASE THE TAX ON TOBACCO PRODUCTS, ALCOHOLIC BEVERAGES, LIGHT WINE AND BEER AND TO INCREASE GAMING FEES; TO REQUIRE THE REVENUE FROM SUCH INCREASES TO BE DEPOSITED INTO THE SPECIAL FUND CREATED TO FUND THE GRANT PROGRAM ESTABLISHED BY THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) There is hereby established, under the direction of the Mississippi Development Authority, the Local Government Law Enforcement Assistance Program for the purpose of making grants to county and municipal governments for their use in providing assistance to sheriffs and police departments under their jurisdiction.
(2) Money received by any county or municipality under the program shall be utilized to:
(a) Supplement the salaries of law enforcement personnel; or
(b) Purchase uniforms or equipment for sheriffs and police departments under their jurisdiction.
(3) Any county or municipality desiring to participate in the program shall make application to the Mississippi Development Authority in a form satisfactory to the Mississippi Development Authority. The application shall detail the uses for which the grant is sought and contain such other information as the Mississippi Development Authority may require. In providing grants under the program, the Mississippi Development Authority shall give priority to counties and municipalities with populations of ten thousand (10,000) or less according to the latest federal decennial census.
(4) There is created in the State Treasury a special fund which shall be comprised of the money required to be deposited into the fund under Sections 27-69-75, 27-71-29, 27-71-337 and 75-76-129, and money appropriated to such fund by the Legislature. Money in the fund shall be utilized by the Mississippi Development Authority, upon appropriation by the Legislature, for the purpose of making grants under the Local Government Law Enforcement Assistance Program. Unexpended amounts remaining in the special fund at the end of a fiscal year shall not lapse into the General Fund, and any interest earned or investment earnings on amounts in the special fund shall be deposited to the credit of the special fund.
SECTION 2. Section 27-69-13, Mississippi Code of 1972, is amended as follows:
27-69-13. (1) There is * * * imposed, levied and assessed, to be collected and paid as hereinafter provided in this chapter, an excise tax on each person or dealer in cigarettes, cigars, stogies, snuff, chewing tobacco, and smoking tobacco, or substitutes therefor, upon the sale, use, consumption, handling or distribution in the State of Mississippi, as follows:
(a) On cigarettes, the rate of tax shall be Eighteen-twentieths of One Cent (18/20 of 1¢) on each cigarette sold with a maximum length of one hundred twenty (120) millimeters; any cigarette in excess of this length shall be taxed as if it were two (2) or more cigarettes. * * * However, if the federal tax rate on cigarettes in effect upon June 1, 1985, is reduced, then the rate as provided in this paragraph (a) shall be increased by the amount of the federal tax reduction. Such tax increase shall take effect on the first day of the month following the effective date of such reduction in the federal tax rate.
(b) On cigars, cheroots, stogies, snuff, chewing and smoking tobacco and all other tobacco products except cigarettes, the rate of tax shall be fifteen percent (15%) of the manufacturer's list price.
(c) In addition to the excise tax levied in paragraph (a) of this subsection, there is levied an additional excise tax equal to one percent (1%) of the tax levied in paragraph (a) of this subsection.
(d) In addition to the excise tax levied in paragraph (b) of this subsection, there is levied an excise tax of one percent (1%) of the manufacturer's list price on cigars, cheroots, stogies, snuff, chewing and smoking tobacco and all other tobacco products, except cigarettes.
(e) On or before the fifteenth day of August and the fifteenth day of each succeeding month thereafter, the revenue derived from the excise tax levied by paragraphs (c) and (d) of this subsection shall be deposited into a special fund as provided in Section 27-69-75.
(2) No stamp evidencing the tax * * * levied on cigarettes by this section shall be of a denomination of less than One Cent (1¢), and whenever the tax computed at the rates * * * prescribed on cigarettes in this section shall be a specified amount, plus a fractional part of One Cent (1¢), the package shall be stamped for the next full cent. However, (a) the additional face value of stamps purchased to comply with taxes imposed by subsection (1)(a) of this section after June 1, 1985, shall be subject to a four percent (4%) discount or compensation to dealers for their services rather than the eight percent (8%) discount or compensation allowed by Section 27-69-31; and (b) the additional face value of stamps purchased to comply with taxes imposed by subsection (1)(c) of this section after July 1, 2005, shall be subject to a four percent (4%) discount or compensation to dealers for their services rather than the eight percent (8%) discount or compensation allowed by Section 27-69-31.
(3) Every wholesaler shall purchase stamps as provided in this chapter, and affix the same to all packages of cigarettes handled by him as * * * provided in this section.
(4) The * * * tax levied by this chapter is levied upon the sale, use, gift, possession, or consumption of tobacco within the State of Mississippi, and the impact of the tax levied by this chapter is hereby declared to be on the vendee, user, consumer or possessor of tobacco in this state; and when the tax is paid by any other person, such payment shall be considered as an advance payment and shall thereafter be added to the price of the tobacco and recovered from the ultimate consumer or user.
SECTION 3. Section 27-69-31, Mississippi Code of 1972, is amended as follows:
27-69-31. Dealers subject to the provisions of this chapter shall be allowed, as compensation for their services in affixing the stamps herein required, a sum equal to eight percent (8%) of the face value of the stamps purchased by them, except as otherwise provided in Section 27-69-13(2); however, the commission shall allow no discount on the purchase of stamps by wholesalers of an aggregate amount of less than One Hundred Dollars ($100.00), and by retailers of an aggregate amount of less than Fifty Dollars ($50.00) in any one order.
It is further provided that the commissioner may, in his discretion, either reduce the compensation allowed, or disallow any compensation for the affixing of stamps, for failure of such dealer to comply with any provisions of the law or rules and regulations promulgated by the commissioner.
SECTION 4. Section 27-69-75, Mississippi Code of 1972, is amended as follows:
27-69-75. (1) All taxes levied by this chapter shall be payable to the commissioner in cash, or by personal check, cashier's check, bank exchange, post office money order or express money order, and shall be deposited by the commissioner in the State Treasury on the same day collected. No remittance other than cash shall be a final discharge of liability for the tax herein assessed and levied, unless and until it has been paid in cash to the commissioner.
(2) Except as otherwise provided in subsection (3) of this section, all tobacco taxes collected, including tobacco license taxes, shall be deposited into the State Treasury to the credit of the General Fund.
(3) The revenue derived from the excise taxes levied in Section 27-69-13(1)(c) and (d) shall be deposited into the special fund created in Section 1, Senate Bill No. 2408, 2005 Regular Session.
(4) Wholesalers who are entitled to purchase stamps at a discount, as provided by Section 27-69-31, may have consigned to them, without advance payment, such stamps, if and when such wholesaler shall give to the commissioner a good and sufficient bond executed by some surety company authorized to do business in this state, conditioned to secure the payment for the stamps so consigned. The commissioner shall require payment for such stamps not later than thirty (30) days from the date the stamps were consigned.
SECTION 5. Section 27-71-7, Mississippi Code of 1972, is amended as follows:
27-71-7. (1) (a) There is hereby levied and assessed an excise tax upon each case of alcoholic beverages sold by the commission to be collected from each retail licensee at the time of sale in accordance with the following schedule:
(i) Distilled spirits.......... $2.50 per gallon
(ii) Sparkling wine and
champagne...................................... $1.00 per gallon
(iii) Other wines, including
native wines................................... $ .35 per gallon
(b) In addition to the tax levied in paragraph (a) of this subsection, there is levied and assessed an excise tax upon each case of alcoholic beverages sold by the commission to be collected from each retail licensee at the time of sale in an amount equal to one percent (1%) of the tax levied in paragraph (a) of this subsection.
(2) (a) In addition to the tax levied by subsection (1) of this section, and in addition to any other markup collected, the Alcoholic Beverage Control Division shall collect a markup of three percent (3%) on all alcoholic beverages, as defined in Section 67-1-5, Mississippi Code of 1972, which are sold by the division. The proceeds of the markup shall be collected by the division from each purchaser at the time of purchase.
(b) * * * The revenue derived from the markup provided for in paragraph (a) of this subsection shall be deposited by the division in the State Treasury to the credit of the "Mental Health Programs Fund," a special fund which is hereby created in the State Treasury and shall be used by the State Department of Mental Health for the service programs of the department. * * *
(3) (a) In addition to the tax levied by subsection (1) of this section, and in addition to the markup collected under subsection (2) of this section and any other markup collected, the Alcoholic Beverage Control Division shall collect a markup of one percent (1%) on all alcoholic beverages, as defined in Section 67-1-5, Mississippi Code of 1972, which are sold by the division. The proceeds of the markup shall be collected by the division from each purchaser at the time of purchase.
(b) The revenue derived from the markup provided for in paragraph (a) of this subsection shall be deposited into the special fund created in Section 1, Senate Bill No. 2408, 2005 Regular Session.
SECTION 6. Section 27-71-29, Mississippi Code of 1972, is amended as follows:
27-71-29. (1) All taxes levied by this article shall be paid to the State Tax Commission in cash or by personal check, cashier's check, bank exchange, post office money order or express money order and shall be deposited by the commission in the State Treasury on the same day collected, but no remittances other than cash shall be a final discharge of liability for the tax herein imposed and levied unless and until it has been paid in cash to the State Tax Commission.
(2) All taxes levied under Section 27-71-7(1)(a) and received by the commission under this article shall be paid into the General Fund.
(3) The three percent (3%) levied under Section 27-71-7(2) and received by the commission under this article shall be paid into the special fund in the State Treasury designated as the "Mental Health Programs Fund" as required by law.
(4) All taxes levied under Section 27-71-7(1)(b) and received by the commission under this article shall be paid into the special fund created in Section 1, Senate Bill No. 2408, 2005 Regular Session.
(5) The one percent (1%) levied under Section 27-71-7(3) and received by the commission under this article shall be paid into the special fund created in Section 1, Senate Bill No. 2408, 2005 Regular Session, as required by law.
(6) Any funds derived from the sale of alcoholic beverages in excess of inventory requirements shall be paid not less often than annually into the General Fund.
SECTION 7. Section 27-71-307, Mississippi Code of 1972, is amended as follows:
27-71-307. (1) (a) In addition to the specific tax imposed in Section 27-71-303, there is hereby imposed, levied, assessed and shall be collected, as hereinafter provided, an excise or privilege tax upon each person engaged or continuing in the business of wholesaler or distributor of light wines or beer equivalent to Forty-two and Sixty-eight One-hundredths Cents (42.68¢) per gallon upon all light wines and beer acquired for sale or distribution in this state. Such excise or privilege tax is also imposed at the same rate upon each gallon of light wine or beer manufactured by brewpubs, each of which shall accurately and reliably measure the quantity of light wine and beer produced by using a measuring device such as a meter or gauge glass or any other suitable method approved by the commissioner. Such tax is hereby imposed as an additional tax for the privilege of engaging or continuing in business.
(b) In addition to the excise or privilege tax imposed by paragraph (a) of this subsection, an excise or privilege tax upon each person engaged or continuing in the business of wholesaler or distributor of light wines or beer equivalent to Forty-three One Hundredths Cent (.43¢) per gallon upon all light wines and beer acquired for sale or distribution in this state. Such excise or privilege tax is also imposed at the same rate upon each gallon of light wine or beer manufactured by brewpubs, each of which shall accurately and reliably measure the quantity of light wine and beer produced by using a measuring device such as a meter or gauge glass or any other suitable method approved by the commissioner. Such tax is hereby imposed as an additional tax for the privilege of engaging or continuing in business.
(c) Except as otherwise provided in paragraph (d) of this subsection, the excise tax imposed in this section shall be paid to the State Tax Commission monthly on or before the fifteenth day of the month following the month in which the beer or light wine was manufactured or received in this state. Monthly report forms shall be furnished by the commissioner to the wholesalers, distributors and brewpubs.
(d) * * * Persons operating a railroad dining car, club car or other car in interstate commerce upon which light wines or beer may be sold and who are licensed under the provisions of Section 67-3-27 and any other law relating to the sale of such beverages shall keep such records of the sales of such light wines and beer in this state as the commissioner shall prescribe and shall submit monthly reports of such sales to the commissioner within fifteen (15) days after the end of each month on a form prescribed therefor by the commissioner, and shall pay the tax due under the provisions of this section at the time such reports are filed.
No official crowns, lids, labels or stamps with the word "MISSISSIPPI" or "MS" imprinted thereon or any other evidence of tax payment is required by this section, or may be required under rule or regulation promulgated by the commissioner, to be affixed on or to any part of a beer, light wine or malt cooler bottle, can or other light wine or malt cooler container. For purposes of this section, malt cooler products shall be defined as a flavored malt beverage made from a base of malt beverage and flavored with fruit juices, aromatics and essences of other flavoring in quantities and proportions such that the resulting product possesses a character and flavor distinctive from the base malt beverage and distinguishable from other malt beverages.
(2) A licensed wholesaler or distributor of beer or light wine may not import beer or light wine from any source other than a brewer or importer authorized by the commissioner to sell such beer or light wine in Mississippi. Any person who violates the provisions of this subsection, upon conviction thereof, shall be punished by a fine of not more than One Thousand Dollars ($1,000.00) or by imprisonment in the county jail for not more than six (6) months, or by both such fine and imprisonment, in the discretion of the court and shall be subject to license forfeiture following an appropriate hearing before the State Tax Commission.
(3) The wholesaler or distributor shall be allowed credit for tax paid on beer or light wine which is no longer marketable and which is destroyed by same when such destruction is witnessed by an agent of the commissioner and when the amount of the excise tax exceeds One Hundred Dollars ($100.00). No other loss will be allowed.
A brewpub shall be allowed credit for light wine or beer which has passed through the meter, gauge glass or other approved measuring device and which has been soured or damaged. The brewpub shall record the removal of sour or damaged light wine or beer and may take credit after the destruction is witnessed by an agent of the commissioner and when the amount of excise tax exceeds Twenty-five Dollars ($25.00). No other loss shall be allowed.
(4) All manufacturers, brewers and importers of beer or light wine shall file monthly reports as prescribed by the commissioner listing sales to each wholesaler or distributor by date, invoice number, quantity and container size, and any other information deemed necessary.
(5) All administrative provisions of the Mississippi Sales Tax Law, including those which fix damages, penalties and interest for nonpayment of taxes and for noncompliance with the provisions of such chapter, and all other requirements and duties imposed upon taxpayers, shall apply to all persons liable for taxes under the provisions of this chapter, and the commissioner shall exercise all the power and authority and perform all the duties with respect to taxpayers under this chapter as are provided in the sales tax law except where there is conflict, then the provisions of this chapter shall control.
SECTION 8. Section 27-71-337, Mississippi Code of 1972, is amended as follows:
27-71-337. (1) All taxes levied by this article and required to be paid to the commissioner shall be payable to the commissioner in cash or by personal check, cashier's check, bank exchange, post office money order or express money order and, except as otherwise provided in subsection (2) of this section, shall be deposited by the commissioner into the State Treasury on the same day collected, provided that no remittances other than cash shall be a final discharge of liability for the tax herein imposed and levied unless and until it has been paid in cash to the commissioner.
(2) The taxes levied by Section 27-7-307(1)(b) shall be paid into the special fund created in Section 1, Senate Bill No. 2408, 2005 Regular Session.
SECTION 9. Section 75-76-129, Mississippi Code of 1972, is amended as follows:
[Through June 30, 2022, this section shall read as follows:]
75-76-129. (1) On or before the last day of each month all taxes, fees, interest, penalties, damages, fines or other monies collected by the State Tax Commission during that month under the provisions of this chapter, with the exception of (a) the local government fees imposed under Section 75-76-195, * * * (b) an amount equal to Three Million Dollars ($3,000,000.00) of the revenue collected pursuant to the fee imposed under Section 75-76-177(1)(c), or an amount equal to twenty-five percent (25%) of the revenue collected pursuant to the fee imposed under Section 75-76-177(1)(c), whichever is the greater amount, and (c) the revenue collected pursuant to the fee imposed under Section 75-76-177(2) shall be paid by the State Tax Commission to the State Treasurer to be deposited in the State General Fund.
(2) The local government fees shall be distributed by the State Tax Commission pursuant to Section 75-76-197.
(3) Except for the period beginning on July 1, 2004, and through June 30, 2005, an amount equal to Three Million Dollars ($3,000,000.00) of the revenue collected during that month pursuant to the fee imposed under Section 75-76-177(1)(c) shall be deposited by the State Tax Commission into the bond sinking fund created in Section 65-39-3. Except for the period beginning on July 1, 2004, and through June 30, 2005, the revenue collected during that month pursuant to the fee imposed under Section 75-76-177(1)(c) that is in excess of Three Million Dollars ($3,000,000.00), but is less than twenty-five percent (25%) of the amount of revenue collected during that month, shall be deposited into the State Highway Fund to be used exclusively for the reconstruction and maintenance of highways of the State of Mississippi.
(4) The revenue collected during that month pursuant to the fee imposed under Section 75-76-177(2) shall be paid into the special fund created in Section 1, Senate Bill No. 2408, 2005 Regular Session.
[From and after July 1, 2022, this section shall read as follows:]
75-76-129. (1) On or before the last day of each month, all taxes, fees, interest, penalties, damages, fines or other monies collected by the State Tax Commission during that month under the provisions of this chapter, with the exception of the local government fees imposed under Section 75-76-195 and the fee imposed under Section 75-76-177(2), shall be paid by the State Tax Commission to the State Treasurer to be deposited in the State General Fund.
(2) The local government fees shall be distributed by the State Tax Commission pursuant to Section 75-76-197.
(3) The revenue collected during that month pursuant to the fee imposed under Section 75-76-177(2) shall be paid into the special fund created in Section 1, Senate Bill No. 2408, 2005 Regular Session.
SECTION 10. Section 75-76-177, Mississippi Code of 1972, is amended as follows:
75-76-177. (1) From and after August 1, 1990, there is hereby imposed and levied on each gaming licensee a license fee based upon all the gross revenue of the licensee as follows:
(a) Four percent (4%) of all the gross revenue of the licensee which does not exceed Fifty Thousand Dollars ($50,000.00) per calendar month;
(b) Six percent (6%) of all the gross revenue of the licensee which exceeds Fifty Thousand Dollars ($50,000.00) per calendar month and does not exceed One Hundred Thirty-four Thousand Dollars ($134,000.00) per calendar month; and
(c) Eight percent (8%) of all the gross revenue of the licensee which exceeds One Hundred Thirty-four Thousand Dollars ($134,000.00) per calendar month.
(2) In addition to the license fee imposed by subsection (1) of this section, there is hereby imposed and levied on each gaming licensee a license fee equal to one percent (1%) of all the gross revenue of the licensee.
(3) All revenue received from any game or gaming device which is leased for operation on the premises of the licensee-owner to a person other than the owner thereof or which is located in an area or space on such premises which is leased by the licensee-owner to any such person, must be attributed to the owner for the purposes of this section and be counted as part of the gross revenue of the owner. The lessee is liable to the owner for his proportionate share of such license fees.
(4) If the amount of license fees required to be reported and paid pursuant to this section is later determined to be greater or less than the amount actually reported and paid by the licensee, the Chairman of the State Tax Commission shall:
(a) Assess and collect the additional license fees determined to be due, with interest thereon until paid; or
(b) Refund any overpayment, with interest thereon, to the licensee.
Interest must be computed, until paid, at the rate of one percent (1%) per month from the first day of the first month following either the due date of the additional license fees or the date of overpayment.
(5) Failure to pay the fees provided for in this section when they are due for continuation of a license shall be deemed a surrender of the license.
SECTION 11. This act shall take effect and be in force from and after July 1, 2005.