Senate Bill 2390

AN ACT TO IMPOSE AN EXCISE TAX ON RETAIL SALES OF BOTTLED WATER IN THE AMOUNT OF 2¢ PER LITER; TO PROVIDE FOR THE MANNER OF IMPOSITION AND COLLECTION OF THE TAX; TO PROVIDE THAT 50% OF THE REVENUE COLLECTED AS A RESULT OF LEVY OF SUCH TAX SHALL BE DEPOSITED INTO THE WATER POLLUTION CONTROL REVOLVING LOAN FUND; TO PROVIDE THAT THE REMAINDER OF THE REVENUE COLLECTED AS A RESULT OF THE LEVY OF SUCH TAX SHALL BE DEPOSITED INTO THE LOCAL GOVERNMENTS AND RURAL WATER SYSTEMS IMPROVEMENTS REVOLVING LOAN FUND; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As used in this section, "bottled water" means potable water contained in a can, a bottle or other container, including drinking water, mineral water, carbonated water or natural spring water.

(2) There is hereby imposed upon every person selling bottled water at retail, an excise tax in the amount of Two Cents (2¢) per liter on retail sales of bottled water.

(3) Persons liable for the tax imposed by this section shall add the amount of tax to the price of the bottled water and in addition shall collect, insofar as practicable, the amount of the tax due from the person purchasing the bottled water.

(4) Such tax shall be collected by and paid to the State Tax Commission on a form to be prescribed by the State Tax Commission in the same manner that sales taxes are collected and paid. The full enforcement provisions and all other provisions of the Mississippi Sales Tax Law shall apply as necessary for the implementation and administration of this section.

(5) Fifty percent (50%) of all revenue collected by the State Tax Commission pursuant to this section shall be deposited into the Water Pollution Control Revolving Loan Fund created pursuant to Section 49-17-85. The remainder of the revenue collected by the State Tax Commission pursuant to this section shall be deposited into the Local Governments and Rural Water Systems Improvements Revolving Loan Fund created pursuant to Section 41-3-16.

SECTION 2. This act shall take effect and be in force from and after July 1, 2007.