MISSISSIPPI LEGISLATURE
2011 Regular Session
To: Ways and Means
By: Representative DeLano
AN ACT TO DESIGNATE THE WEEK OF MAY 25 THROUGH MAY 31 OF EACH YEAR AS OFFICIAL "HURRICANE MITIGATION WEEK" IN THE STATE OF MISSISSIPPI; TO REQUIRE THE GOVERNOR TO ISSUE A PROCLAMATION URGING PREPARATION FOR THE HURRICANE SEASON; TO CREATE A SPECIAL ADVISORY COMMISSION ON HURRICANE MITIGATION TO EVALUATE AND STRENGTHEN THE STATE'S PREPAREDNESS FOR HURRICANES; TO PROVIDE FOR THE MEMBERSHIP COMPOSITION OF THE COMMISSION; TO SET FORTH THE DUTIES OF THE COMMISSION; TO REQUIRE THE COMMISSION TO MAKE A REPORT TO THE GOVERNOR AND THE LEGISLATURE ONE YEAR FROM THE DATE OF ITS CREATION AND THEN EVERY FOUR YEARS THEREAFTER; TO AMEND SECTION 27-65-111, MISSISSIPPI CODE OF 1972, TO EXEMPT FROM SALES TAXATION THE RETAIL SALES OF CERTAIN EQUIPMENT DURING THE HURRICANE MITIGATION WEEK; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) The period from May 25 through May 31 of each year is hereby designated as official "Hurricane Mitigation Week" in the State of Mississippi.
(2) The Governor shall issue each year, a proclamation to:
(a) Encourage individuals, business owners, and commercial property owners within the state to prepare their homes, properties, and communities for the coming hurricane season;
(b) Direct all state agencies to review and update hurricane preparedness plans; and
(c) Direct all county and municipal governments, as well as the State Department of Education, the State Department of Emergency Management, the State Department of Commerce and the State Department of Insurance, to the extent practicable, to focus educational, outreach and other efforts oriented towards hurricane preparedness during the period between May 25 and May 31 of that year.
SECTION 2. (1) There is created a Special Advisory Commission on Hurricane Mitigation to examine and make recommendations to the Governor and the Legislature with regard to:
(a) The areas of the state most vulnerable to hurricane damage and the appropriate ways to reduce this damage;
(b) The status of the state's own preparedness for against hurricane damage;
(c) The strengths and weaknesses of the statewide building code, building codes used around the state in the private sector and land use policies with regard to protecting the residents from hurricane damage;
(d) The preventive steps the state should take to improve its preparedness for hurricanes.
(2) The membership of the commission shall be composed of the following members:
(a) The Director of the Mississippi Emergency Management Agency, or his designee;
(b) The Commissioner of Insurance, or his designee;
(c) Six (6) members appointed by the Governor, including:
(i) One (1) of whom shall have experience or be knowledgeable in the field of insurance;
(ii) One (1) of whom shall have experience in or be knowledgeable in the retrofitting of homes to better withstand hurricane losses;
(iii) One (1) of whom shall be a builder of single family homes;
(iv) One (1) of whom shall be a builder of commercial structures;
(v) One (1) of whom shall be the owner of a single family home in the area of the state served by the state residual wind insurance market or FAIR plan; and
(vi) One (1) of whom shall be the owner of a commercial structure in the area of the state served by the state residual wind insurance market or FAIR plan.
(d) Two (2) Senators appointed by the Lieutenant Governor, to represent each major political party of the state; and
(e) Two (2) Representatives appointed by the Speaker of the House, to represent each major political party of the state.
(3) The commission shall submit its first report and recommendations to the Governor and the Legislature one (1) year from the date of enactment of this act, and every four (4) years thereafter, and shall make the report and recommendations available in electronic format to be posted on the websites of the Mississippi Emergency Management Agency and the Department of Insurance.
(4) Subject to the availability of funds, the Legislature is authorized to appropriate up to a maximum of Fifty Thousand Dollars ($50,000.00) for the purposes of carrying out this section. The Department of Emergency Management shall provide staff support to the commission.
(5) Members of the commission shall serve without compensation for their services, but may be reimbursed for necessary expense in attending to the actual business of the commission from any available funds, as provided by law. Legislative members shall be reimbursed from the contingent expense fund of their respective house, but only with the specific approval of the Rules Committee of the respective house; however, no per diem or expense for attending meetings of the commission may be paid to Legislative members while the Legislature is in session. The commission, by approval of a majority of its membership, may accept funds that may be donated or provided in the form of grants from public or private sources.
SECTION 3. Section 27-65-111, Mississippi Code of 1972, is amended as follows:
27-65-111. The exemptions from the provisions of this chapter which are not industrial, agricultural or governmental, or which do not relate to utilities or taxes, or which are not properly classified as one (1) of the exemption classifications of this chapter, shall be confined to persons or property exempted by this section or by the Constitution of the United States or the State of Mississippi. No exemptions as now provided by any other section, except the classified exemption sections of this chapter set forth herein, shall be valid as against the tax herein levied. Any subsequent exemption from the tax levied hereunder, except as indicated above, shall be provided by amendments to this section.
No exemption provided in this section shall apply to taxes levied by Section 27-65-15 or 27-65-21, Mississippi Code of 1972.
The tax levied by this chapter shall not apply to the following:
(a) Sales of tangible personal property and services to hospitals or infirmaries owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are subject to and governed by Sections 41-7-123 through 41-7-127.
Only sales of tangible personal property or services which are ordinary and necessary to the operation of such hospitals and infirmaries are exempted from tax.
(b) Sales of daily or weekly newspapers, and periodicals or publications of scientific, literary or educational organizations exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code of 1954, as it exists as of March 31, 1975, and subscription sales of all magazines.
(c) Sales of coffins, caskets and other materials used in the preparation of human bodies for burial.
(d) Sales of tangible personal property for immediate export to a foreign country.
(e) Sales of tangible personal property to an orphanage, old men's or ladies' home, supported wholly or in part by a religious denomination, fraternal nonprofit organization or other nonprofit organization.
(f) Sales of tangible personal property, labor or services taxable under Sections 27-65-17, 27-65-19 and 27-65-23, to a YMCA, YWCA, a Boys' or Girls' Club owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual.
(g) Sales to elementary and secondary grade schools, junior and senior colleges owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are exempt from state income taxation, provided that this exemption does not apply to sales of property or services which are not to be used in the ordinary operation of the school, or which are to be resold to the students or the public.
(h) The gross proceeds of retail sales and the use or consumption in this state of drugs and medicines:
(i) Prescribed for the treatment of a human being by a person authorized to prescribe the medicines, and dispensed or prescription filled by a registered pharmacist in accordance with law; or
(ii) Furnished by a licensed physician, surgeon, dentist or podiatrist to his own patient for treatment of the patient; or
(iii) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, surgeon, dentist or podiatrist; or
(iv) Sold to a licensed physician, surgeon, podiatrist, dentist or hospital for the treatment of a human being; or
(v) Sold to this state or any political subdivision or municipal corporation thereof, for use in the treatment of a human being or furnished for the treatment of a human being by a medical facility or clinic maintained by this state or any political subdivision or municipal corporation thereof.
"Medicines," as used in this paragraph (h), shall mean and include any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment or prevention of disease and which is commonly recognized as a substance or preparation intended for such use; provided that "medicines" do not include any auditory, prosthetic, ophthalmic or ocular device or appliance, any dentures or parts thereof or any artificial limbs or their replacement parts, articles which are in the nature of splints, bandages, pads, compresses, supports, dressings, instruments, apparatus, contrivances, appliances, devices or other mechanical, electronic, optical or physical equipment or article or the component parts and accessories thereof, or any alcoholic beverage or any other drug or medicine not commonly referred to as a prescription drug.
Notwithstanding the preceding sentence of this paragraph (h), "medicines" as used in this paragraph (h), shall mean and include sutures, whether or not permanently implanted, bone screws, bone pins, pacemakers and other articles permanently implanted in the human body to assist the functioning of any natural organ, artery, vein or limb and which remain or dissolve in the body.
"Hospital," as used in this paragraph (h), shall have the meaning ascribed to it in Section 41-9-3, Mississippi Code of 1972.
Insulin furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed to be dispensed on prescription within the meaning of this paragraph (h).
(i) Retail sales of automobiles, trucks and truck-tractors if exported from this state within forty-eight (48) hours and registered and first used in another state.
(j) Sales of tangible personal property or services to the Salvation Army and the Muscular Dystrophy Association, Inc.
(k) From July 1, 1985, through December 31, 1992, retail sales of "alcohol blended fuel" as such term is defined in Section 75-55-5. The gasoline-alcohol blend or the straight alcohol eligible for this exemption shall not contain alcohol distilled outside the State of Mississippi.
(l) Sales of tangible personal property or services to the Institute for Technology Development.
(m) The gross proceeds of retail sales of food and drink for human consumption made through vending machines serviced by full line vendors from and not connected with other taxable businesses.
(n) The gross proceeds of sales of motor fuel.
(o) Retail sales of food for human consumption purchased with food stamps issued by the United States Department of Agriculture, or other federal agency, from and after October 1, 1987, or from and after the expiration of any waiver granted pursuant to federal law, the effect of which waiver is to permit the collection by the state of tax on such retail sales of food for human consumption purchased with food stamps.
(p) Sales of cookies for human consumption by the Girl Scouts of America no part of the net earnings from which sales inures to the benefit of any private group or individual.
(q) Gifts or sales of tangible personal property or services to public or private nonprofit museums of art.
(r) Sales of tangible personal property or services to alumni associations of state-supported colleges or universities.
(s) Sales of tangible personal property or services to chapters of the National Association of Junior Auxiliaries, Inc.
(t) Sales of tangible personal property or services to domestic violence shelters which qualify for state funding under Sections 93-21-101 through 93-21-113.
(u) Sales of tangible personal property or services to the National Multiple Sclerosis Society, Mississippi Chapter.
(v) Retail sales of food for human consumption purchased with food instruments issued the Mississippi Band of Choctaw Indians under the Women, Infants and Children Program (WIC) funded by the United States Department of Agriculture.
(w) Sales of tangible personal property or services to a private company, as defined in Section 57-61-5, which is making such purchases with proceeds of bonds issued under Section 57-61-1 et seq., the Mississippi Business Investment Act.
(x) The gross collections from the operation of self-service, coin-operated car washing equipment and sales of the service of washing motor vehicles with portable high-pressure washing equipment on the premises of the customer.
(y) Sales of tangible personal property or services to the Mississippi Technology Alliance.
(z) Sales of tangible personal property to nonprofit organizations that provide foster care, adoption services and temporary housing for unwed mothers and their children if the organization is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code.
(aa) Sales of tangible personal property to nonprofit organizations that provide residential rehabilitation for persons with alcohol and drug dependencies if the organization is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code.
(bb) Retail sales of an article of clothing or footwear designed to be worn on or about the human body if the sales price of the article is less than One Hundred Dollars ($100.00) and the sale takes place during a period beginning at 12:01 a.m. on the last Friday in July and ending at 12:00 midnight the following Saturday. This paragraph (bb) shall not apply to:
(i) Accessories including jewelry, handbags, luggage, umbrellas, wallets, watches, backpacks, briefcases, garment bags and similar items carried on or about the human body, without regard to whether worn on the body in a manner characteristic of clothing;
(ii) The rental of clothing or footwear; and
(iii) Skis, swim fins, roller blades, skates and similar items worn on the foot.
From and after January 1, 2010, the governing authorities of a municipality, for retail sales occurring within the corporate limits of the municipality, may suspend the application of the exemption provided for in this paragraph (bb) by adoption of a resolution to that effect stating the date upon which the suspension shall take effect. A certified copy of the resolution shall be furnished to the Department of Revenue at least ninety (90) days prior to the date upon which the municipality desires such suspension to take effect.
(cc) From the period beginning at 12:01 a.m. on May 25 and ending at 12:00 midnight on May 31, the retail sales of portable generators used to provide light or communications or preserve food in the event of a power outage and certain other hurricane preparedness equipment, including, but not limited to:
(i) Blue ice;
(ii) Carbon monoxide detectors;
(iii) Mobile phone batteries;
(iv) Mobile phone chargers;
(v) Gas or diesel fuel tanks;
(vi) Nonelectric food storage coolers;
(vii) Portable self-powered light sources;
(viii) Portable self-powered radios;
(ix) Two-way radios;
(x) Weather band radios;
(xi) Storm shutter devices;
(xii) Tarpaulins or other flexible waterproof sheeting;
(xiii) Ground anchor systems or tie down kits or
hurricane straps;
(xiv) Clips or hold-down devices; and
(xv) Packages of AAA cell, AA cell, C cell, D cell, 6 volt, or 9 volt batteries, excluding automobile and boat batteries.
For purposes of this paragraph (cc), "storm shutter" means materials and products manufactured, rated and marketed specifically for the purpose of preventing window damage from storms.
The exemption provided in this paragraph (cc) shall apply to each portable generator with a selling price of One Thousand Dollars ($1,000.00) or less, and each article of other hurricane preparedness equipment with a selling price of Sixty Dollars ($60.00) or less. Any discount, coupon, or other credit offered either by the retailer or by a vendor of the retailer to reduce the final price to the customer shall be taken into account in determining the selling price for purposes of this exemption.
The Department of Revenue in consultation with the Commission on Hurricane Mitigation shall develop guidelines that describe the items of merchandise that qualify for the exemption under this paragraph (cc) and those such guidelines available, both electronically and in hard copy, no later than May 15 of each year.
This paragraph (cc) shall stand repealed on July 1, 2014.
SECTION 4. This act shall take effect and be in force from and after its passage.